Document:

Exhibit 4.4

                            Dated [o] January 2005

                           GRANITE MASTER ISSUER PLC

                             THE BANK OF NEW YORK

                  as Note Trustee and Issuer Security Trustee

                                    - and -

                                    OTHERS

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

                             ISSUER DEED OF CHARGE

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

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

                                                   CONTENTS

1.       Interpretation.......................................................2

2.       Covenant to Pay and to Perform.......................................3

3.       Issuer Security......................................................3

4.       Release of Issuer Charged Property...................................6

5.       Declaration of Trust.................................................7

6.       Restrictions on Exercise of Certain Rights...........................7

7.       Enforcement.........................................................11

8.       Upon Enforcement....................................................13

9.       Receiver............................................................16

10.      Further Assurance and Power of Attorney.............................21

11.      Crystallisation.....................................................22

12.      Provisions relating to the Security.................................23

13.      Protection of Third Parties.........................................25

14.      Set-Off.............................................................25

15.      Representations and Covenants.......................................26

16.      Supplement to Trustee Acts..........................................30

17.      Appointment, Removal and Retirement:................................39

18.      Remuneration and Indemnification of Issuer Security Trustee:........41

19.      Modification and Waiver.............................................43

20.      Miscellaneous Provisions............................................44

21.      Rights cumulative...................................................45

22.      Assignment..........................................................45

23.      Non Petition Covenant; Corporate Obligations........................45

24.      Notices.............................................................46

25.      Third Party Rights..................................................47

26.      Execution in Counterparts; Severability.............................47

                                      i

<PAGE>

27.      Governing Law and Jurisdiction; Appropriate Forum...................47

SCHEDULE 1  FORM OF SECURITY POWER OF ATTORNEY...............................51

SCHEDULE 2  ISSUER PRIORITY OF PAYMENTS......................................54

SCHEDULE 3  FORM OF NOTICE OF ASSIGNMENT.....................................62

SCHEDULE 4  ISSUER RESERVE FUND..............................................65

SCHEDULE 5  FORM OF ACCESSION UNDERTAKING....................................67

                                      ii

<PAGE>

THIS DEED OF CHARGE is made on [o] January 2005

BETWEEN:

(1)  GRANITE MASTER ISSUER PLC (registered number 5250668) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as Master
     Issuer;

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at 48th Floor, One Canada Square, London E14 5AL, United
     Kingdom, in its capacity as (1) Issuer Security Trustee and (2) Note
     Trustee;

(3)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as (1) Principal Paying Agent, (2) Agent Bank,
     (3) Registrar, (4) Transfer Agent and (5) an Issuer Account Bank;

(4)  CITIBANK, N.A., acting through its office at 14th Floor, 388 Greenwich
     Street, New York, N.Y. 10013, U.S.A., in its capacity as US Paying Agent;

(5)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as (1) Issuer Cash Manager, (2) Issuer GIC Provider, (3) an
     Issuer Account Bank and (4) Start-Up Loan Provider; and

(6)  LAW DEBENTURE CORPORATE SERVICES LIMITED (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
     7EX as the Corporate Services Provider.

WHEREAS:

(A)  This Deed secures and will secure, inter alia, the Issuer Secured
     Obligations.

(B)  The Master Issuer may, from time to time, issue Series of Issuer Notes
     pursuant to the Issuer Trust Deed.

(C)  The Paying Agents, the Agent Bank, the Registrar and the Transfer Agent
     have agreed to provide certain agency services on behalf of the Master
     Issuer for the benefit of the Noteholders on the terms set out in the
     Issuer Paying Agent and Agent Bank Agreement.

(D)  The Issuer Cash Manager has agreed to act as cash manager and to provide
     certain administration and cash management services to the Master Issuer
     on the terms set out in the Issuer Cash Management Agreement.

(E)  The Issuer Account Banks have agreed to provide certain bank account
     services to the Master Issuer on the terms set out in the Issuer Bank
     Account Agreement.

(F)  The Issuer GIC Provider has agreed to provide certain guaranteed
     investment services to the Master Issuer on the terms set out in the
     Issuer Guaranteed Investment Contract.

                                      1

<PAGE>

(G)  The Start-Up Loan Provider has agreed to make available Start-Up Loan
     Tranches to the Master Issuer on the terms set out in the Start-Up Loan
     Agreement.

(H)  The Corporate Services Provider has agreed to act as corporate services
     provider to, inter alios, the Master Issuer on the terms set out in the
     Issuer Corporate Services Agreement.

(I)  This Deed is supplemental to the Issuer Trust Deed of even date herewith
     and made between the Master Issuer and the Note Trustee relating to the
     issuance of the Issuer Notes.

(J)  New Issuer Secured Creditors, including, but not restricted to, any
     Issuer Swap Provider may accede to this Deed from time to time on the
     terms set out herein.

NOW THIS DEED WITNESSES AS FOLLOWS:

1.       Interpretation

1.1      Definitions: The provisions of:

     (a)  the Programme Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy LLP
          on [o] January 2005, and

     (b)  the Issuer Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy LLP
          on [o] January 2005,

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

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

1.2  Construction: In this Deed, except where the context otherwise requires:

     (a)  the terms of the Issuer Trust Deed and of any agreement in existence
          at the date hereof between the parties hereto are incorporated in
          this Deed but (unless otherwise expressly provided for herein) only
          to the extent required to ensure that any proposed disposition of
          the Issuer Charged Property contained in this Deed is a valid
          disposition in accordance with Section 2(1) of the Law of Property
          (Miscellaneous Provisions) Act 1989;

     (b)  a reference in this Deed to any property, assets, undertakings or
          rights includes, unless the context otherwise requires, present and
          future property, assets, undertakings or rights; and

     (c)  "this Issuer Deed of Charge", "this Deed of Charge" or "this Deed"
          means this Deed and all the Schedules hereto (as from time to time
          modified and/or supplemented in accordance with the provisions set
          out herein) and all Deeds of Accession entered into under or
          pursuant to this Deed and each other

                                      2

<PAGE>

     document or deed entered into pursuant hereto (as from time to time
     modified/and or supplemented as aforesaid) and expressed to be
     supplemental hereto.

2.   Covenant to Pay and to Perform

     Subject to the provisions of the Issuer Transaction Documents (including,
     in the case of the Issuer Notes, to Clause 2 (Covenant to Repay etc.) of
     the Issuer Trust Deed), the Master Issuer covenants with and undertakes
     to the Issuer Security Trustee for itself and as trustee for the Issuer
     Secured Creditors that it will:

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether
          before or after demand) become due and payable by the Master Issuer
          to the Issuer Security Trustee (whether for its own account or as
          trustee for the Issuer Secured Creditors) or to any of the other
          Issuer Secured Creditors, whether actually or contingently, under
          the Issuer Transaction Documents (including without limitation the
          Issuer Notes); and

     (b)  observe, perform and satisfy all its other obligations and
          liabilities under the Issuer Transaction Documents (including
          without limitation the Issuer Notes),

3.   Issuer Security

3.1  Funding 2 Charged Property:

     The Master Issuer, by way of first fixed security for the payment or
     discharge of the Issuer Secured Obligations, subject to Clause 4 (Release
     of Issuer Charged Property), hereby assigns to the Issuer Security
     Trustee, all of its right, title, benefit and interest and all claims,
     present and future, in and to, the security and all property, assets and
     rights and claims held on trust by the Funding 2 Security Trustee for the
     payment or discharge of the relevant Funding 2 Secured Obligations
     pursuant to the Funding 2 Deed of Charge including all rights to receive
     payment of any amount which may become payable to the Master Issuer
     thereunder and all rights to serve notices and/or make demands thereunder
     and/or to take such steps as are required to cause payments to become due
     and payable thereunder and all rights of action in respect of any breach
     thereof and all rights to receive damages or obtain relief in respect
     thereof and the proceeds of any of the foregoing, TO HOLD the same unto
     the Issuer Security Trustee absolutely.

3.2  Contractual rights:

     (a)  The Master Issuer, by way of first fixed security for the payment or
          discharge of the Issuer Secured Obligations, subject to Clause 4
          (Release of Issuer Charged Property), hereby assigns to the Issuer
          Security Trustee, all of its right, title, benefit and interest,
          present and future, in, to and under the Issuer Transaction
          Documents (other than this Deed and provided that the assignment of
          the right, title, benefit and interest of the Master Issuer under
          each Issuer Swap Agreement shall be subject to the rights of set-off
          and netting provided therein):

                                      3

<PAGE>

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

3.3  Accounts: The Master Issuer, by way of first fixed security for the
     payment or discharge of the Issuer Secured Obligations, subject to Clause
     4 (Release of Issuer Charged Property), hereby charges in favour of the
     Issuer Security Trustee all of its rights, title, benefit and interest,
     present and future, in and to:

     (a)  each Issuer Bank Account;

     (b)  any Issuer Swap Collateral Account; and

     (c)  each other account (if any) in which the Master Issuer may at any
          time have or acquire any right, title, benefit or interest,

     and all monies or securities now or at any time hereafter standing to the
     credit thereof and the debts represented by them together with all rights
     and claims relating or attached thereto including, without limitation,
     the right to interest or other income or distributions and the proceeds
     of any of the foregoing, TO HOLD the same unto the Issuer Security
     Trustee absolutely.

3.4  Authorised Investments and Swap Collateral: The Master Issuer, by way of
     first fixed security for the payment or discharge of the Issuer Secured
     Obligations, subject to Clause 4 (Release of Issuer Charged Property),
     hereby charges in favour of the Issuer Security Trustee all of its right,
     title, benefit and interest, present and future in, to and under:

     (a)  any Authorised Investment purchased using monies standing to the
          credit of any Issuer Bank Account; and

     (b)  any Swap Collateral in the form of securities,

     for the time being owned by it and all rights in respect of or ancillary
     to such Authorised Investments and such Swap Collateral, including the
     right to income and distributions and the proceeds of any of the
     foregoing, TO HOLD the same unto the Issuer Security Trustee absolutely.

3.5  Floating Charge: The Master Issuer, by way of first floating security for
     the payment or discharge of the Issuer Secured Obligations, subject to
     Clause 4 (Release of Issuer Charged Property), hereby charges in favour
     of the Issuer Security Trustee the whole of its undertaking and all its
     property, assets and rights, whatsoever and wheresoever, both present and
     future, including without limitation its uncalled capital, other than any
     property or assets for the time being the subject of a fixed charge or
     effectively assigned pursuant to any of the foregoing provisions of this
     Clause 3 (Issuer Security) and/or any Deed of Accession.

                                      4

<PAGE>

3.6  Title Guarantee: Each of the dispositions of, assignments of and charges
     over property effected in or pursuant to this Deed is made with full
     title guarantee.

3.7  Further Acquired Items: For the avoidance of doubt, it is hereby
     confirmed that the Security Interests created under or pursuant to
     Clauses 3.1 (Funding 2 Charged Property) to Clause 3.4 (Authorised
     Investments and Swap Collateral) (inclusive) are intended to be specific
     and fixed assignments, or specific and fixed charges over (as the case
     may be) the property and assets to which they relate, both present and
     future, including property and assets which are acquired after the date
     hereof.

3.8  No Transfer of Obligations: Notwithstanding anything else in this Deed,
     it is hereby agreed that dispositions of property effected in or pursuant
     to this Clause 3 (Issuer Security) do not transfer obligations, and
     nothing herein shall be construed as a transfer of obligations to, the
     Issuer Security Trustee.

3.9  Notice and Acknowledgement:

     (a)  The execution of this Deed and/or any Deed of Accession by any
          Issuer Secured Creditor shall constitute express notice to such
          Issuer Secured Creditor of the assignments, charges and Security
          Interests made by the Master Issuer pursuant to this Deed.

     (b)  By its execution of this Deed and/or any Deed of Accession each
          Issuer Secured Creditor acknowledges and consents to the Issuer
          Security and also acknowledges that as at the date hereof it has not
          received from any other person notice of any assignment or charge of
          the Issuer Charged Property.

     (c)  Notwithstanding the Issuer Security and subject as provided
          otherwise in this Deed, each of the parties hereto acknowledges
          that:

          (i)  each Issuer Secured Creditor and each other party to any Issuer
               Transaction Document may continue to make all payments becoming
               due to the Master Issuer under any Issuer Transaction Document
               in the manner envisaged by such Issuer Transaction Document
               until the receipt of written notice from the Issuer Security
               Trustee or any Receiver requiring payments to be made
               otherwise; and

          (ii) [until the Issuer Security becomes enforceable in accordance
               with Clause 7.2 (Enforceable), the Master Issuer shall be
               entitled to exercise its rights, powers and discretions and
               perform its obligations in relation to the Issuer Charged
               Property and under the Issuer Transaction Documents in
               accordance with the provisions of the Issuer Transaction
               Documents.]

3.10 Issuer Security Trustee's Discretion in relation to Issuer Charged
     Property:

     Without prejudice to any other rights of the Issuer Security Trustee
     after the Issuer Security has become enforceable and subject to the terms
     of the Issuer Transaction Documents, the Issuer Security Trustee may from
     time to time at any time after any part or parts of the Issuer Security
     becomes enforceable:

                                      5

     (a)  enter into, make, execute, sign, deliver and do all such contracts,
          agreements, deeds, receipts, payments, assignments, transfers,
          conveyances, assurances and things and bring, prosecute, enforce,
          defend and abandon all such actions, suits and proceedings in
          relation to the Issuer Charged Property as it may think expedient;

     (b)  exercise or refrain from exercising, in such manner as in its
          absolute discretion the Issuer Security Trustee shall think fit, all
          or any of the rights, powers, authorities, discretions or remedies
          of the Master Issuer under or in relation to the Issuer Charged
          Property or incidental to the ownership thereof and, in particular
          but without limiting the generality of the foregoing, exercise all
          rights to vote or to give any consent or notification or make any
          declaration in relation to such Issuer Charged Property. For the
          avoidance of doubt, the Issuer Security Trustee shall not be
          required to have regard to the interests of the Master Issuer in the
          exercise or non-exercise of any such rights, powers, authorities,
          discretions and remedies or to comply with any direction given by
          the Master Issuer in relation thereto; and

     (c)  demand, sue for and take any advice or institute any proceedings to
          recover or obtain payment of any amounts which may then be due and
          payable to the Master Issuer but which remains unpaid under or in
          respect of the Issuer Charged Property or any part thereof either in
          its own name or in the name of the Master Issuer.

3.11 Accession of New Secured Creditors: As a condition precedent to any
     Series of Issuer Notes issued under the Programme, any New Issuer Secured
     Creditor shall accede to the terms of this Deed by executing an Accession
     Undertaking in the form or substantially in the form set out in Schedule
     5 (Form of Accession Undertaking) to this Deed.

4.   Release of Issuer Charged Property

4.1  Release, Reassignment or Discharge: Upon the irrevocable and
     unconditional payment in full or discharge (or any combination of the
     foregoing) of all the Issuer Secured Obligations and upon the Issuer
     Security Trustee being satisfied that the Master Issuer is under no
     further actual or contingent obligation under this Deed or any other
     Issuer Transaction Document, the Issuer Security Trustee shall, at the
     request and cost of the Master Issuer, release, reassign and/or discharge
     from the Issuer Security all of the Issuer Charged Property to, or to the
     order of, the Master Issuer; provided that where any such release,
     re-assignment or discharge is made in whole or in part on the faith of
     any payment, security or other disposition which is avoided or which must
     be repaid on bankruptcy, liquidation or otherwise, the security
     constituted by this Deed and the liability of the Master Issuer hereunder
     shall continue as if there had been no such release, re-assignment or
     discharge.

4.2  Disposal of Authorised Investments and Swap Collateral: On the making at
     any time by the Issuer Cash Manager on behalf of the Master Issuer of a
     disposal of any Authorised Investment or Swap Collateral in the form of
     securities charged pursuant to Clause 3.4 (Authorised Investments and
     Swap Collateral), the Issuer Security Trustee shall, if so requested by
     and at the sole cost and expense of the Master Issuer, but without the
     Issuer Security Trustee being responsible for any loss, costs, claims or

                                      6

<PAGE>

     liabilities whatsoever occasioned by so acting upon such request,
     release, reassign or discharge from the Issuer Security the relevant
     Authorised Investments or Swap Collateral, provided that in the case of a
     disposal of an Authorised Investment, the proceeds of such disposal are
     paid by the Master Issuer into the Issuer Bank Accounts from which the
     monies to make such Authorised Investment were originally drawn and, that
     in the case of Swap Collateral, the proceeds of such disposal are paid by
     the Master Issuer into the relevant Issuer Swap Collateral Cash Account
     or Issuer Bank Account (as appropriate in accordance with the Cash
     Management Agreement) subject to and in accordance with the provisions of
     this Deed and the Issuer Transaction Documents.

4.3  Withdrawals from Issuer Bank Accounts and Issuer Swap Collateral
     Accounts: Subject to and in accordance with this Deed and the other
     Issuer Transaction Documents, the Issuer Cash Manager, on behalf of the
     Master Issuer and the Issuer Security Trustee, is permitted pursuant to
     Clause 6 (Restrictions on Exercise of Certain Rights) from time to time
     to withdraw amounts from the Issuer Bank Accounts in order to apply such
     amounts in accordance with the relevant Issuer Priority of Payments and
     from time to time to withdraw amounts or securities from the Issuer Swap
     Collateral Accounts in order to apply such amounts or securities in
     accordance with the Issuer Cash Management Agreement. Any amount or
     securities so withdrawn shall be released from the Issuer Security
     provided that any amount withdrawn from the Issuer Bank Accounts is
     applied in accordance with and subject to the relevant Issuer Priority of
     Payments.

5.   Declaration of Trust

     Each of the Issuer Secured Creditors declares the Issuer Security Trustee
     as trustee of, and the Issuer Security Trustee hereby declares that it
     holds on trust for the Issuer Secured Creditors, upon and subject to the
     terms and conditions of this Deed, all of the covenants, undertakings and
     representations made to the Issuer Security Trustee under this Deed and
     any other Issuer Transaction Document and all of the charges,
     assignments, security and Security Interests made or given to the Issuer
     Security Trustee or to be made or given to it for the purpose of securing
     the Issuer Secured Obligations under or pursuant to this Deed or any
     other Issuer Transaction Document.

6.   Restrictions on Exercise of Certain Rights

6.1  Payments to Issuer Bank Accounts and Issuer Swap Collateral Accounts: At
     all times prior to the release, re-assignment and/or discharge of the
     Issuer Security pursuant to Clause 4 (Release of the Issuer Charged
     Property), the Master Issuer shall save as otherwise provided in the
     Issuer Transaction Documents or unless the Issuer Security Trustee
     otherwise agrees in writing (and then only on such terms and in such
     manner as the Issuer Security Trustee may require) procure that:

     (a)  the Issuer Bank Accounts shall from time to time be credited with
          all amounts (excluding Swap Collateral) received by the Master
          Issuer under or in respect of the Issuer Transaction Documents,
          including without limitation the following payments:

                                      7

<PAGE>

          (i)  amounts received by the Master Issuer from or on behalf of
               Funding 2 pursuant to the provisions of the Global Intercompany
               Loan Agreement;

          (ii) interest received on the Issuer Bank Accounts;

         (iii) amounts received by the Master Issuer from any Issuer Swap
               Provider under any Issuer Swap Agreement (excluding Swap
               Collateral);

          (iv) income received by the Master Issuer in respect of the proceeds
               of any Authorised Investments;

          (v)  amounts received by the Master Issuer from the Funding 2
               Security Trustee or a Receiver following the service of a
               Funding 2 Intercompany Loan Enforcement Notice;

          (vi) such other payments received by the Master Issuer as are, or
               ought in accordance with this Deed to be, comprised in the
               Issuer Charged Property;

     (b)  all Swap Collateral delivered to the Master Issuer (if any) pursuant
          to any Issuer Swap Agreement is deposited into an Issuer Swap
          Collateral Account; and

     (c)  the Issuer Reserve Fund is deposited into the Issuer GIC Account.

6.2  No withdrawal from Issuer Bank Accounts and Issuer Swap Collateral
     Accounts: At all times during the subsistence of the Issuer Security, the
     Master Issuer shall not be entitled to withdraw or transfer from any
     Issuer Bank Account or Issuer Swap Collateral Account any monies or
     securities standing to the credit thereof or direct any payment to be
     made therefrom to any person save to the extent expressly permitted under
     the Issuer Transaction Documents without the Issuer Security Trustee's
     prior written consent.

6.3  Permitted Withdrawals from Issuer Bank Accounts and Issuer Swap
     Collateral Accounts; Authorised Investments:

     (a)  The Master Issuer covenants with the Issuer Security Trustee that
          the amounts standing to the credit of the Issuer Bank Accounts and
          any Swap Collateral standing to the credit of an Issuer Swap
          Collateral Account may only be withdrawn in accordance with this
          Clause 6.3 or otherwise with the Issuer Security Trustee's prior
          written consent.

     (b)  On any day during an Interest Period prior to the Issuer Security
          becoming enforceable pursuant to Clause 7.2 (Enforceable), the
          Master Issuer and the Issuer Security Trustee hereby authorise the
          Issuer Cash Manager to withdraw such monies from the Issuer
          Transaction Account as are to be applied on such date to meet any
          amounts then due and payable by the Master Issuer to third parties
          in accordance with item [(C)] of the Issuer Pre-Enforcement Revenue
          Priority of Payments provided that such monies are applied in making
          such payments on behalf of the Master Issuer. For the purpose of
          this paragraph (b), the remaining provisions of this Clause 6.3,
          Clause 6.4 (Issuer Pre-

                                      8

<PAGE>

          Enforcement Revenue Priority of Payments) and Clause 6.5 (Issuer
          Pre-Enforcement Principal Priority of Payments), the Issuer Cash
          Manager shall be entitled to assume that the Issuer Security is not
          enforceable pursuant to Clause 7.2 (Enforceable) unless it has
          received notice from the Master Issuer or the Issuer Security
          Trustee or is otherwise aware that the Issuer Security has become so
          enforceable and shall not be liable to the Issuer Security Trustee,
          the Master Issuer or any other Issuer Secured Creditor for making
          payments based on this assumption.

     (c)  The Issuer Security Trustee hereby authorises the Issuer Cash
          Manager, prior to the Issuer Security becoming enforceable pursuant
          to Clause 7.2 (Enforceable), to make withdrawals from:

          (i)  the relevant Issuer Bank Account for the purposes of acquiring
               Authorised Investments provided that all amounts received in
               respect of the Authorised Investments (including earnings
               thereon) shall be deposited into the relevant Issuer Bank
               Account from which they were originally drawn; and

          (ii) the relevant Issuer Swap Collateral Account for the purpose of
               (1) returning Swap Collateral to an Issuer Swap Provider
               pursuant to the terms of the relevant Issuer Swap Agreement; or
               (2) transferring Swap Collateral to the Issuer Transaction
               Account pursuant to the terms of the relevant Issuer Swap
               Agreement and the Issuer Cash Management Agreement.

     (d)  On each Payment Date prior to the Issuer Security becoming
          enforceable pursuant to clause 7.2 (Enforceable) the Issuer Security
          Trustee hereby authorises the Issuer Cash Manager to transfer from
          the Issuer GIC Account to the Issuer Transaction Account such
          amounts that are to be applied as Issuer Available Revenue Receipts
          on such date in accordance with this Deed.

6.4  Issuer Pre-Enforcement Revenue Priority of Payments: On each Payment
     Date, prior to the Issuer Security becoming enforceable pursuant to
     Clause 7.2 (Enforceable), the Issuer Security Trustee hereby authorises
     the Master Issuer or the Issuer Cash Manager in its place to withdraw
     Issuer Available Revenue Receipts standing to the credit of the Issuer
     Transaction Account and to apply such monies in accordance with the
     provisions and the order of priority of the Issuer Pre-Enforcement
     Revenue Priority of Payments.

6.5  Issuer Pre-Enforcement Principal Priority of Payments: On each Payment
     Date prior to the Issuer Security becoming enforceable pursuant to Clause
     7.2 (Enforceable), the Issuer Security Trustee hereby authorises the
     Master Issuer or the Issuer Cash Manager in its place to withdraw Issuer
     Available Principal Receipts standing to the credit of the Issuer
     Transaction Account and to apply such monies in accordance with the order
     of priority of the Issuer Pre-Enforcement Principal Priority of Payments.

6.6  Amendment to Issuer Priority of Payments: On the issuance of Issuer Notes
     on any Closing Date, the making available of any Loan Tranches by the
     Master Issuer to

                                      9

<PAGE>

     Funding 2 or if any new Funding 2 Intercompany Loans are made available
     by a new Funding 2 Issuer to Funding 2 in accordance with the terms of
     the Transaction Documents or Funding 2 enters into any Bridging
     Arrangements, if any amendment to the Issuer Priority of Payments is
     required as a result thereof, then, subject to the parties to this Deed
     agreeing the necessary amendments to the priority of payments, the
     parties to this Deed, together with any person entering into a Deed of
     Accession, shall set out the new Issuer Priority of Payments accordingly
     in a schedule to that Deed of Accession. The new Issuer Priority of
     Payments so amended shall supersede those set out in Schedule 2 (Issuer
     Priority of Payments) to this Deed.

6.7  No Enforcement by Issuer Secured Creditors: Each of the Issuer Secured
     Creditors (other than the Issuer Security Trustee and the Note Trustee
     (acting on behalf of the Noteholders) and any Receiver) hereby agrees
     with the Master Issuer and the Issuer Security Trustee that:

     (a)  only the Issuer Security Trustee may enforce the Issuer Security in
          accordance with the provisions hereof;

     (b)  notwithstanding any other provision of this Deed or any other Issuer
          Transaction Document no sum due or owing to any Issuer Secured
          Creditor or to the Issuer Security Trustee (whether for itself or on
          behalf of the Issuer Secured Creditors) from or by the Master Issuer
          under this Deed or any other Issuer Transaction Document shall be
          payable by the Master Issuer except to the extent that the Master
          Issuer or (following enforcement of the Issuer Security) the Issuer
          Security Trustee has sufficient funds available to it (and, in the
          case of the Issuer Security Trustee, as a result of the realisation
          of that security) to pay such sum subject to and in accordance with
          the relevant Issuer Priority of Payments and provided that all
          liabilities of the Issuer required to be paid in priority thereto or
          pari passu therewith pursuant to such Issuer Priority of Payments
          have been paid, discharged and/or otherwise provided for in full
          PROVIDED THAT this paragraph (b) shall not apply to and shall not
          limit the obligations of the Master Issuer to the Noteholders under
          the Issuer Notes and this Deed; and

     (c)  it shall not take any steps for the purpose of recovering any of the
          Issuer Secured Obligations (including, without limitation, by
          exercising any rights of set-off) or enforcing any rights arising
          out of the Issuer Transaction Documents against the Master Issuer
          and it shall not take any steps or legal proceedings for the
          winding-up, dissolution or reorganisation of, or the institution of
          insolvency proceedings against, the Master Issuer or for the
          appointment of a receiver, administrator, administrative receiver,
          liquidator or similar officer of the Master Issuer in respect of any
          or all of its revenues and assets,

PROVIDED THAT

          (i)  in the case of any Noteholder, this provision shall be subject
               to Clause 7.2 (Only Note Trustee to Enforce) of the Issuer
               Trust Deed; and

          (ii) in the case of any other Issuer Secured Creditor and subject to
               there being no Issuer Note then outstanding, if the Issuer
               Security Trustee

                                      10

<PAGE>

               having become bound to do so subject to and in accordance with
               the terms of this Deed and the Issuer Transaction Documents,
               fails to take any steps or proceedings to enforce the security
               created hereunder within 30 days of becoming so bound and such
               failure is continuing, each such other Issuer Secured Creditor
               shall be entitled to take such steps and proceedings to enforce
               its rights arising out of the relevant Issuer Transaction
               Document as it shall deem necessary other than the presentation
               of a petition or making an application for the winding up,
               dissolution or reorganisation of, or the institution of
               insolvency proceedings against, the Master Issuer or the
               appointment of an administrator or liquidator of the Master
               Issuer.

6.8  Acknowledgement of Issuer Security Trustee: The Issuer Security Trustee
     hereby acknowledges and agrees that save with respect to the obligations
     of the Master Issuer to the Noteholders under the Issuer Notes and this
     Deed which are not limited under paragraph (b) of Clause 6.7 (No
     Enforcement by Issuer Secured Creditors) or under this Clause 6.8
     (Acknowledgement of Issuer Security Trustee) and notwithstanding any
     other provision of this Deed or any other Issuer Transaction Document, no
     sum due or owing to any Issuer Secured Creditor or to the Issuer Security
     Trustee (whether for itself or on behalf of the Issuer Secured Creditors)
     from or by the Master Issuer under this Deed or any other Issuer
     Transaction Document shall be payable by the Master Issuer except to the
     extent that the Master Issuer has sufficient funds available or
     (following enforcement of the Issuer Security) the Issuer Security
     Trustee has realised sufficient funds from the Issuer Security to pay
     such sum subject to and in accordance with the relevant Issuer Priority
     of Payments and provided that all liabilities of the Master Issuer
     required to be paid in priority thereto or pari passu therewith pursuant
     to such Issuer Priority of Payments have been paid, discharged and/or
     otherwise provided for in full.

6.9  Utilisation of Issuer Reserves: The Master Issuer and the Issuer Cash
     Manager shall procure that, subject to and in accordance with the Issuer
     Priority of Payments, amounts standing to the credit of the Issuer
     Reserve Ledger shall only be debited for the purposes as specified in
     paragraph 1 of Schedule 4 (Issuer Reserve Fund).

6.10 Adjustment of Issuer Reserves: The Issuer Reserve Minimum Amount, the
     Programme Reserve Required Amount and the Programme Reserve Required
     Percentage may be adjusted in accordance with paragraph 2 of Schedule 4
     (Issuer Reserve Fund).

7.   Enforcement

7.1  Notification: The Issuer Security Trustee shall, if practicable, give
     prior notification to the Seller, Funding 2, the Cash Manager and the
     Issuer Cash Manager of the Issuer Security Trustee's intention to enforce
     the Issuer Security. However, the failure of the Issuer Security Trustee
     to provide such notification shall not in any way prejudice the ability
     of the Issuer Security Trustee to enforce the Issuer Security.

7.2  Enforceable:

     Without prejudice to the provisions of Clause 9 (Receiver) the Issuer
     Security shall become immediately enforceable and the power of sale and
     other powers conferred by

                                      11

<PAGE>

     Section 101 of the 1925 Act, as varied or amended by this Deed, shall be
     exercisable by the Issuer Security Trustee:

     (a)  at any time following the service of an Issuer Enforcement Notice
          (which has not been withdrawn); or

     (b)  if there are no Issuer Notes outstanding, following a default in
          payment of any other Issuer Secured Obligations on its due date or
          within any applicable grace period following such due date stated in
          the relevant Issuer Transaction Document but subject always to any
          limited recourse provisions stated therein and to Clause 6.7 (No
          Enforcement by Issuer Secured Creditors) hereof.

7.3  Power of Sale:

     (a)  Notwithstanding any other provision of this Deed, the Issuer Secured
          Obligations shall be deemed to have become due and payable for the
          purposes of Section 101 of the 1925 Act and (to the extent
          applicable) the statutory power of sale and of appointing a receiver
          and other powers which are conferred on mortgagees under the 1925
          Act as varied or extended by this Deed shall be deemed to arise
          immediately after execution of this Deed.

     (b)  Section 103 of the 1925 Act shall not apply to this Deed and
          forthwith after the Issuer Security has become enforceable in
          accordance with Clause 7.2 (Enforceable) the statutory power of
          sale, as extended by this Deed, and all other powers shall become
          immediately exercisable without notice to the Master Issuer and the
          provisions of the 1925 Act regulating the power of sale shall, so
          far as they relate to the Issuer Charged Property, be varied and
          extended accordingly.

7.4  Discretionary Enforcement: Subject to the provisions of this Deed, the
     Issuer Security Trustee may at any time, at its discretion and without
     notice, take such proceedings and/or other action as it may think fit
     against, or in relation to, the Master Issuer or any other party to any
     of the Issuer Transaction Documents to enforce their obligations under
     any of the Issuer Transaction Documents. Subject to the provisions of
     this Deed, at any time after the Issuer Security has become enforceable
     in accordance with Clause 7.2 (Enforceable), the Issuer Security Trustee
     may, at its discretion and without notice, take such steps as it may
     think fit to enforce the Issuer Security.

7.5  Mandatory Enforcement: The Issuer Security Trustee shall not, and shall
     not be bound to, take any proceedings, actions or steps under or in
     connection with any of the Issuer Transaction Documents (including,
     without limitation, any steps to enforce the Issuer Security) unless:

     (a)  it shall have been directed to do so by the Note Trustee acting in
          accordance with the provisions of this Deed; or

     (b)  if there are no Issuer Notes outstanding, it shall have been
          directed to do so by the Issuer Secured Creditor which ranks highest
          in the Issuer Post-Enforcement Priority of Payments; and

                                      12

<PAGE>

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

7.6  Law of Property Act 1925: The provisions of the 1925 Act relating to the
     power of sale and the other powers conferred by Section 101(1) and (2)
     are hereby extended in relation to the Master Issuer as if such
     extensions were contained in the 1925 Act such that at any time after the
     Issuer Security has become enforceable in accordance with Clause 7.2
     (Enforceable) above, the Issuer Security Trustee may in its absolute
     discretion:

     (a)  make demand in the name of the Issuer Secured Creditors or in its
          own right for any monies and liabilities in respect of the Issuer
          Charged Property;

     (b)  enforce any rights it may have in respect of the whole or any part
          of the Issuer Charged Property in such manner and upon such terms as
          the Issuer Security Trustee shall think fit;

     (c)  take possession of, get in and collect the Issuer Charged Property
          and perfect interests comprised therein;

     (d)  (subject to any restrictions under or in respect of the relevant
          Issuer Charged Property) sell, transfer, convey, dispose of, vary or
          otherwise deal with, and also grant any option to purchase, and
          effect exchanges of, the whole or any part of Issuer Charged
          Property or any interest therein in such manner, for such
          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit
          and/or to concur in any of the foregoing (and nothing shall preclude
          any such disposal being made to a Issuer Secured Creditor);

     (e)  carry out any transaction, scheme or arrangement which the Issuer
          Security Trustee may, in its absolute discretion, consider
          appropriate with a view to or in connection with the sale of the
          Issuer Charged Property;

     (f)  do all or any of the things or exercise all or any of the powers,
          authorities and discretions conferred expressly or by implication on
          any Receiver under Clause 9.6 (Powers of the Receiver) or otherwise
          under this Deed; and/or

     (g)  exercise all or any of the powers conferred on mortgagees by the
          1925 Act as varied or extended by this Deed and any other rights and
          remedies that may be conferred by statute or common law or in equity
          on mortgagees or receivers.

8.   Upon Enforcement

8.1  Service of an Issuer Enforcement Notice: Without prejudice to the
     effectiveness of any service of an Issuer Enforcement Notice, in the
     event that an Issuer Enforcement Notice has been served (and not
     withdrawn) by the Note Trustee on the Master Issuer and the Issuer
     Security Trustee, the Issuer Security Trustee shall as soon as is
     practicable notify each of the following parties of the enforcement of
     the Issuer

                                      13

<PAGE>

     Security (whether by service of a copy of any Issuer Enforcement Notice
     or otherwise):

     (a)  the Seller;

     (b)  Funding 2;

     (c)  the Account Bank, the Cash Manager and the Issuer Cash Manager;

     (d)  the Paying Agents and the other Agents under the Issuer Paying Agent
          and Agent Bank Agreement;

     (e)  any Issuer Swap Provider;

     (f)  the Corporate Services Provider; and

     (g)  each other Issuer Secured Creditor.

8.2  Crystallisation: From and including the date when the Note Trustee serves
     an Issuer Enforcement Notice (which has not been withdrawn) on the Master
     Issuer:

     (a)  notwithstanding any provision hereof or of any other Issuer
          Transaction Document no amount may be withdrawn from the Issuer Bank
          Accounts except with the prior written consent of the Issuer
          Security Trustee; and

     (b)  if not already crystallised, but subject to any prohibition or
          restriction imposed by law, any charge created by this Deed which is
          a floating charge shall crystallise, provided that the floating
          charge created by this Deed shall not be crystallised solely as a
          result of obtaining a moratorium (or anything done with a view to
          obtaining a moratorium) under the Insolvency Act 2000 except with
          leave of the court.

8.3  Issuer Post-Enforcement Priority of Payments: At any time after the
     Issuer Security has become enforceable in accordance with Clause 7.2
     (Enforceable) and provided that the Issuer Enforcement Notice has not
     been withdrawn, the relevant Issuer Available Revenue Receipts, Issuer
     Available Principal Receipts and all other monies (excluding Swap
     Collateral standing to the credit of the Issuer Swap Collateral Accounts)
     paid to or received or recovered by or on behalf of the Master Issuer or
     the Issuer Security Trustee or any Receiver appointed on its behalf,
     including all proceeds following any sale, realisation of the Issuer
     Charged Property or other enforcement of the Issuer Security and all
     amounts (excluding Swap Collateral standing to the credit of the Issuer
     Swap Collateral Accounts) not previously distributed and/or standing to
     the credit of any Issuer Bank Account shall (if not already received by
     the Issuer Security Trustee) be paid to and held by the Issuer Security
     Trustee on trust to apply the same (save to the extent otherwise required
     by applicable law) in accordance with the order of priority of the Issuer
     Post-Enforcement Priority of Payments.

8.4  Certification of Amounts:

     (a)  The Issuer Security Trustee shall be entitled to rely on (and to
          accept as conclusive evidence save in the case of manifest error) a
          certificate from each Issuer Secured Creditor as to the amounts owed
          to such Issuer Secured Creditor under the Issuer

                                      14

<PAGE>

          Transaction Documents. The Issuer Security Trustee shall not take
          into account for the purpose of the application of moneys in
          accordance with the Issuer Post-Enforcement Priority of Payments any
          amounts of which it has not been notified by the intended recipient
          on or prior to the date in question.

     (b)  Each Issuer Secured Creditor will, at all times, promptly provide
          the Issuer Security Trustee and/or any Receiver on request with a
          certificate setting out detailed information as to the amount of the
          Issuer Secured Obligations to which such Issuer Secured Creditor is
          entitled and such other information as the Issuer Security Trustee
          and/or any Receiver may require to enable or facilitate the Issuer
          Security Trustee and/or any Receiver to perform its functions
          hereunder or under any of the Issuer Transaction Documents, such
          certificate to be in a form required by the Issuer Security Trustee
          and/or any Receiver. In determining the respective entitlements of
          the Issuer Secured Creditors hereunder, such certificates shall be
          binding on all of the Issuer Secured Creditors.

8.5  Retention Account: If the Issuer Security Trustee enforces the Issuer
     Security at a time when either no amounts or not all amounts owing in
     respect of the Issuer Secured Obligations have become due and payable or
     any of the Issuer Secured Obligations are at such time contingent or
     future, the Issuer Security Trustee or a Receiver may, for so long as no
     such amounts or not all such amounts have become due and payable or any
     of the Issuer Secured Obligations are at such time contingent or future,
     pay any monies referred to in Clause 8.3 (Issuer Post-Enforcement
     Priority of Payments), as the case may be, into, and retain such monies
     in, an interest-bearing account (a "retention account") to be held by it
     as security and applied by it in accordance with Clause 8.3 (Issuer
     Post-Enforcement Priority of Payments) as and when any of the amounts
     referred to therein become due and payable.

8.6  Issuer Security Trustee Rights upon Enforcement: In addition to any other
     rights expressly provided herein, for the period commencing upon the
     service of an Issuer Enforcement Notice and terminating upon the
     notification to the Issuer Secured Creditors by the Issuer Security
     Trustee that all Issuer Secured Obligations have been satisfied in full
     [or that such Issuer Enforcement Notice has been withdrawn]:

     (a)  (provided such Issuer Secured Creditor has received a copy of, or
          other notice of the service on the Master Issuer of, any such Issuer
          Enforcement Notice) each Issuer Secured Creditor agrees that it will
          pay to the Issuer Security Trustee or the Receiver, as the case may
          be, all monies received or recovered by such Issuer Secured Creditor
          (whether by way of set-off or otherwise) in order that such amounts
          may be applied by the Issuer Security Trustee in accordance with
          Clause 8.3 (Issuer Post-Enforcement Priority of Payments);

     (b)  save as otherwise expressly provided in this Deed or as required by
          the Issuer Security Trustee, all payments under or arising from this
          Deed and all amounts payable to the Master Issuer by any party to
          this Deed under any Issuer Transaction Document shall be paid to the
          Issuer Security Trustee or to its order;

     (c)  save as otherwise expressly provided in this Deed, all rights or
          remedies provided for by this Deed or available at law or in equity
          to the Issuer Secured Creditors are exercisable by the Issuer
          Security Trustee;

                                      15

<PAGE>

     (d)  save as otherwise expressly provided in this Deed, all rights to
          compel performance of the Issuer Transaction Documents are
          exercisable by the Issuer Security Trustee; and

     (e)  all payments in respect of the Issuer Secured Obligations shall
          operate in satisfaction pro tanto of the Master Issuer's covenants
          to the relevant Issuer Secured Creditors.

8.7  Swap Collateral: Notwithstanding the foregoing provisions of this Clause
     8 (Upon Enforcement), at any time after the Issuer Security has become
     enforceable in accordance with Clause 7.2 (Enforceable) and provided that
     an Issuer Enforcement Notice has not been withdrawn:

     (a)  all Swap Collateral delivered to or received or recovered by or on
          behalf of the Master Issuer or the Issuer Security Trustee or any
          Receiver appointed on its behalf pursuant to any Issuer Swap
          Agreement is deposited into a Funding 2 Swap Collateral Account; and

     (b)  Swap Collateral may only be withdrawn from the relevant Issuer Swap
          Collateral Account for the purpose of (A) returning Swap Collateral
          to an Issuer Swap Provider pursuant to the terms of the applicable
          Issuer Swap Agreement or (B) applying Swap Collateral in or towards
          satisfaction of such Issuer Swap Provider's obligations under the
          applicable Issuer Swap Agreement.

9.   Receiver

9.1  Appointment: At any time after the Issuer Security constituted hereunder
     becomes enforceable, and whether or not the Issuer Security Trustee has
     taken possession of the Issuer Charged Property, the Issuer Security
     Trustee may, in addition to all statutory and other powers of appointment
     or otherwise, appoint, by writing or by deed, such person or persons
     (including an officer or officers of the Issuer Security Trustee) as the
     Issuer Security Trustee thinks fit to be a receiver, a receiver and
     manager or an administrative receiver of the Issuer Charged Property or
     any part thereof (each a "Receiver") and, in the case of an appointment
     of more than one person, to act together or independently of the other or
     others.

9.2  Removal and Replacement: Except as otherwise required by statute, the
     Issuer Security Trustee may by writing or by deed remove a Receiver
     appointed by it whether or not appointing another in its place and may
     also appoint another Receiver or to act with any other Receiver or to
     replace any Receiver who resigns, retires or otherwise ceases to hold
     office.

9.3  Extension of Appointment: The exclusion of any part of the Issuer Charged
     Property from the appointment of the Receiver shall not preclude the
     Issuer Security Trustee from subsequently extending its appointment (or
     that of the Receiver replacing it) to that part of the Issuer Charged
     Property or appointing another Receiver over any other part of the Issuer
     Charged Property.

9.4  Agent of Master Issuer: The Receiver shall, so far as the law permits, be
     the agent of the Master Issuer and (subject to any restriction or
     limitation imposed by law) the

                                      16

<PAGE>

     Master Issuer alone shall be responsible for the Receiver's contracts,
     engagements, acts, omissions, misconduct, negligence or default and for
     liabilities incurred by it; and in no circumstances whatsoever shall the
     Issuer Security Trustee or any Issuer Secured Creditor be in any way
     responsible for or incur any liability in connection with its contracts,
     engagements, acts, omissions, misconduct, negligence or default, and if a
     liquidator of the Master Issuer shall be appointed, the Receiver shall
     act as principal and not as agent for the Issuer Security Trustee.
     Notwithstanding the generality of the foregoing, such Receiver shall in
     the exercise of its powers, authorities and discretions conform to the
     regulations or directions (if any) from time to time made and given by
     the Issuer Security Trustee.

9.5  Remuneration: Subject as provided otherwise by applicable law, the
     remuneration of the Receiver shall be fixed by the Issuer Security
     Trustee and may be or include a commission calculated by reference to the
     gross amount of all monies received or otherwise. Such remuneration and
     such commission (if any) shall be payable hereunder by the Master Issuer
     alone subject always to Clause 8.3 (Issuer Post-Enforcement Priority of
     Payments) and the amount of such remuneration shall form part of the
     Issuer Secured Obligations and shall accordingly be secured by the Issuer
     Security.

9.6  Powers of the Receiver: The Receiver of the Master Issuer, in addition to
     any powers conferred on an administrative receiver, receiver, manager or
     receiver and manager by statute or common law, shall have the power to:

     (a)  take possession of, get in and collect the Issuer Charged Property;

     (b)  (subject to any restrictions under or in respect of relevant Issuer
          Charged Property) sell, transfer, convey, license, release or
          otherwise dispose of vary or deal with, and also grant any option to
          purchase, and effect exchanges of, the whole or any part of the
          Issuer Charged Property or any interest therein and grant or accept
          surrenders, disclaimers and variations in relation to or otherwise
          affecting the Issuer Charged Property in each case in such manner,
          for such consideration (if any) and generally upon such terms
          (including by deferred payment of payment by instalments) as it may
          think fit and/or concur in any of the foregoing (and nothing shall
          preclude any such disposal being made to a Issuer Secured Creditor);

     (c)  carry out any transaction, scheme or arrangement which it may, in
          its absolute discretion, consider appropriate with a view to or in
          connection with the sale of the Issuer Charged Property;

     (d)  insure the Issuer Charged Property against such risks and for such
          amounts as it may consider prudent and obtain bonds and performance
          guarantees;

     (e)  otherwise protect, maintain or improve, the Issuer Charged Property
          or any part thereof in any manner and for any purpose whatsoever as
          it shall think fit;

     (f)  transfer all or any of the Issuer Charged Property and/or any of the
          liabilities to any other company or body corporate, whether or not
          formed or acquired for the purpose (and whether or not a subsidiary
          or associated company of the

                                      17

<PAGE>

          Issuer Security Trustee or any other party to the Issuer Transaction
          Documents) and to form a subsidiary or subsidiaries of the Master
          Issuer;

     (g)  carry on and manage or concur in managing or appoint a manager of,
          the whole or any part of the business of the Master Issuer in such
          manner as it shall in its absolute discretion think fit including
          the power to enter into any contract and to perform, repudiate,
          rescind or vary any contract to which the Master Issuer is a party;

     (h)  sell or concur in selling the whole or any part of the Master
          Issuer's business whether as a going concern or otherwise;

     (i)  appoint, dismiss, engage or vary the terms of employment of any
          employees, managers, agents or advisers of the Master Issuer upon
          such terms as to remuneration and otherwise for such periods as it
          may in its absolute discretion think fit;

     (j)  in connection with the exercise or proposed exercise of any of its
          powers or in order to obtain payment of its remuneration or
          reimbursement of its expenses (in each case, whether or not already
          due), borrow or raise money from any person, without security or on
          the security of the Issuer Charged Property (either in priority to
          the Issuer Security or otherwise) and generally in such manner and
          on such terms as it may think fit;

     (k)  bring, defend, submit to arbitration, negotiate, compromise,
          enforce, abandon and settle actions, suits, claims and proceedings
          concerning or affecting the Issuer Charged Property or the Issuer
          Security;

     (l)  exercise any powers, discretions, voting, conversion or other rights
          or entitlements in relation to any of the Issuer Charged Property or
          incidental to the ownership of or rights in or to any of the Issuer
          Charged Property and to complete or effect any transaction entered
          into by the Master Issuer or disclaim, abandon or modify all or any
          of the outstanding contracts or arrangements of the Master Issuer
          relating to or affecting the Issuer Charged Property;

     (m)  generally carry out, or cause to be carried out any transaction or
          scheme or arrangement whatsoever, whether similar or not to any of
          the foregoing, in relation to the Issuer Charged Property which it
          may consider expedient as effectual as if it were solely and
          absolutely entitled to the Issuer Charged Property;

     (n)  in connection with the exercise of any of its powers, execute or do,
          or cause or authorise to be executed or done, on behalf of or in the
          name of the Master Issuer or otherwise, as it may think fit, all
          documents, acts or things which it may consider appropriate;

     (o)  redeem, discharge or compromise any security whether or not having
          priority to the security created hereunder;

                                      18

<PAGE>

     (p)  enter into covenants, guarantees, commitments, indemnities and other
          obligations or liabilities as it shall think fit;

     (q)  pay and discharge out of the profits and income of the Issuer
          Charged Property and the monies to be made by it carrying on any
          such business as aforesaid the expenses in and about the carrying on
          and management of such business or in the exercise of any of the
          powers conferred by Clause 9 (Receivers) or otherwise in respect of
          the Issuer Charged Property and all outgoings which it shall think
          fit to pay and to apply the residue of the said profits, income or
          monies in the manner provided by Clause 8.3 (Issuer Post-Enforcement
          Priority of Payments); and

     (r)  exercise any other powers, rights and/or remedies that may be
          available at law or in equity including the powers referred to in
          Schedule 1 (and where applicable Schedule 2) of the Insolvency Act
          1986.

9.7  Security: The Issuer Security Trustee may from time to time and at any
     time require any such Receiver to give security for the due performance
     of its duties and may fix the nature and amount of the security to be so
     given but the Issuer Security Trustee shall not be bound in any such case
     to require any such security.

9.8  Application by Receiver: Save so far as otherwise directed by the Issuer
     Security Trustee, all monies from time to time received by such Receiver
     shall be paid over to the Issuer Security Trustee to be held by it on the
     trusts declared under this Deed and to be distributed in accordance with
     Clause 8.3 (Issuer Post-Enforcement Priority of Payments).

9.9  Payment to Receiver: The Issuer Security Trustee may pay over to such
     Receiver any monies constituting part of the Issuer Charged Property for
     the same to be applied for the purposes of this Deed by such Receiver and
     the Issuer Security Trustee may from time to time determine what funds
     the Receiver shall be at liberty to keep in hand with a view to the
     performance of its duties as such Receiver.

9.10 No Restrictions: None of the restrictions imposed by the 1925 Act in
     relation to the appointment of receivers or the giving of notice or
     otherwise shall apply in relation to the Receiver.

9.11 Appointment of Administrator:

     (a)  Subject to any relevant provisions of the Insolvency Act 1986, the
          Issuer Security Trustee may, by any instrument or deed of
          appointment, appoint one or more persons to be the administrator of
          the Master Issuer at any time after:

          (i)  the service of an Issuer Enforcement Notice; or

          (ii) being requested to do so by the Master Issuer; or

          (iii) any application having been made to the court for an
                administration order under the Insolvency Act 1986; or

                                      19

<PAGE>

          (iv) any person having ceased to be an administrator as a result of
               any event specified in paragraph 90 of Schedule B1 to the
               Insolvency Act 1986; or

          (v)  any notice of intention to appoint an administrator having been
               given by any person or persons entitled to make such
               appointment under the Insolvency Act 1986.

     (b)  Where any such appointment is made at a time when an administrator
          continues in office, the administrator shall act either jointly or
          concurrently with the administrator previously appointed hereunder,
          as the appointment specifies.

     (c)  Subject to any applicable order of the Court, the Issuer Security
          Trustee may replace any administrator, or seek an order replacing
          the administrator, in any manner allowed by the Insolvency Act 1986.

     (d)  Where the administrator was appointed by the Issuer Security Trustee
          under paragraph 14 of Schedule B1 to the Insolvency Act 1986, the
          Issuer Security Trustee may, by notice in writing to the Master
          Issuer, replace the administrator in accordance with paragraph 92 of
          Schedule B1 to the Insolvency Act 1986.

     (e)  Every such appointment shall take effect at the time and in the
          manner specified by the Insolvency Act 1986.

     (f)  If at any time and by virtue of any such appointment(s) any two or
          more persons shall hold office as administrators of the same assets
          or income, such administrators may act jointly or concurrently as
          the appointment specifies so that, if appointed to act concurrently,
          each one of such administrators shall be entitled (unless the
          contrary shall be stated in any of the deed(s) or other
          instrument(s) appointing them) to exercise all the functions
          conferred on an administrator by the Insolvency Act 1986.

     (g)  Every administrator shall have all the powers of an administrator
          under the Insolvency Act 1986.

     (h)  In exercising his functions hereunder and under the Insolvency Act
          1986, the administrator acts as agent of the Master Issuer and does
          not act as agent of the Issuer Security Trustee.

     (i)  Every administrator shall be entitled to remuneration for his
          services in the manner fixed by or pursuant to the Insolvency Act
          1986 or the Insolvency Rules 1986.

9.12 Administration:

     (a)  Upon application being made to a court of competent jurisdiction for
          an administration order or the service of a notice of intention to
          appoint an administrator or the filing of documents with the court
          for the appointment of an administrator in relation to the Master
          Issuer or other order having substantially the same effect to be
          made on application by a creditor or

                                      20

<PAGE>

          creditors of the Master Issuer, the Issuer Security Trustee shall,
          (except in the circumstances where the Issuer Security Trustee has
          taken steps to appoint an administrator in accordance with Clause
          9.11 (Appointment of an Administrator)), subject to it being
          indemnified to its satisfaction, as soon as practicable appoint a
          Receiver in accordance with this Deed (who shall, to the extent
          permitted by law, be an "administrative receiver" under Section 29
          (2) of the Insolvency Act 1986) of the whole of the Issuer Charged
          Property and, in the case of any application to the court or
          petition the Issuer Security Trustee shall instruct the Receiver to
          attend at the hearing of the application or petition and take such
          steps as are necessary to prevent the appointment of an
          administrator. The Issuer Secured Creditors shall co-operate and do
          all acts and enter into such further documents, deeds or agreements
          as the Issuer Security Trustee may deem necessary or desirable to
          ensure that an administration order is not made or that an
          administrator is not otherwise appointed and that an administrative
          receiver is appointed.

     (b)  Paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to
          the floating charge created hereunder.

10.  Further Assurance and Power of Attorney

10.1 Further Assurance: The Master Issuer covenants with and undertakes to the
     Issuer Security Trustee from time to time (notwithstanding that the
     security may not have become enforceable and the Note Trustee may not
     have served any Issuer Enforcement Notice) upon demand:

     (a)  to execute, at the Master Issuer's cost, any document or do any act
          or thing which the Issuer Security Trustee or any Receiver may
          specify (including executing such Security Interests over its rights
          in and over the Issuer Charged Property and any other assets of the
          Master Issuer in such form as the Issuer Security Trustee and/or any
          Receiver may require) with a view to:

          (i)  registering, perfecting, protecting or improving any charge or
               security or Security Interest created or intended to be created
               by or pursuant to this Deed (including any act or document
               which may be required or desirable under the laws of any
               jurisdiction in which any property or assets may be located in
               order to confer on the Issuer Security Trustee security over
               such property and assets equivalent or similar to the security
               intended to be conferred by or pursuant to this Deed) and in
               such form as the Issuer Security Trustee or the Receiver may
               specify; and/or

          (ii) facilitating the realisation of or enforcement of rights of,
               all or any part of the Issuer Charged Property or the exercise,
               or proposed exercise, of any of the powers, duties or
               discretions vested or intended to be vested in the Issuer
               Security Trustee or such Receiver by or pursuant to this Deed
               or doing any act or thing deemed necessary by the Issuer
               Security Trustee or the Receiver;

     (b)  to give or join in giving or procure the giving of any notices to
          any persons and obtain or procure that there is obtained any
          necessary acknowledgements

                                      21

<PAGE>

          in relation to such notices, all in such form, as the Issuer
          Security Trustee or the Receiver may require at the cost of the
          Master Issuer,

     and for the purpose of this Clause 10.1 (Further Assurance) a certificate
     in writing signed by the Issuer Security Trustee to the effect that any
     particular assurance or thing is required by it shall be conclusive
     evidence of that fact provided that the Master Issuer shall not be
     obliged to execute any such documentation or take any other action or
     steps to the extent that it would breach a restriction in any agreement
     to which it is a party or conflict with any applicable law.

10.2 Execution of Power of Attorney: Immediately upon execution of this Deed,
     the Master Issuer shall execute and deliver to the Issuer Security
     Trustee the power of attorney in or substantially in the form set out in
     Schedule 1 (Form of Security Power of Attorney).

10.3 Issuer Charged Property on Trust: To the extent permitted to do so under
     the Issuer Transaction Documents, for the purpose of giving effect to
     this Deed, the Master Issuer hereby declares that, after service of an
     Issuer Enforcement Notice, it will hold all the Issuer Charged Property
     (subject to the right of redemption) upon trust to convey, assign or
     otherwise deal with such Issuer Charged Property in such manner and to
     such person as the Issuer Security Trustee shall direct pursuant to this
     Deed, and declares that it shall be lawful for the Issuer Security
     Trustee to appoint a new trustee or trustees of the Issuer Charged
     Property in place of the Master Issuer.

11.  Crystallisation

11.1 Notice: In addition and without prejudice to any other event resulting in
     a crystallisation of the floating charge created by this Deed or any
     other right the Issuer Security Trustee may have, but subject to any
     prohibition or restriction imposed by law, the Issuer Security Trustee
     may, by notice in writing to the Master Issuer, declare that the floating
     charge hereby created shall be converted into first specific fixed
     charges over such of the undertaking, property and assets of the Master
     Issuer as the Issuer Security Trustee may specify in such notice at any
     time if:

     (a)  a Note Event of Default or a Potential Note Event of Default has
          occurred; or

     (b)  the Issuer Security Trustee believes that the Issuer Charged
          Property or any part thereof is in danger of being seized or sold
          under any form of distress, execution or diligence levied or is
          otherwise in jeopardy; or

     (c)  the Issuer Security Trustee considers that it is desirable in order
          to protect the priority of the security created by this Deed,

     provided that the floating charge created by this Deed may not be
     converted into a fixed charge or charges solely as a result of the
     obtaining of a moratorium (or anything done with a view to obtaining a
     moratorium) under the Insolvency Act 2000 without the leave of the court.

11.2 Automatic Crystallisation: In addition and without prejudice to any other
     event resulting in a crystallisation of the floating charge contained
     herein and without prejudice to any rule of law which may have a similar
     effect, but subject to any

                                      22

<PAGE>

     prohibition or restriction imposed by law, the floating charge created
     under this Deed shall automatically and without notice be converted with
     immediate effect into a fixed charge as regards:

     (a)  all property, assets or undertaking of the Master Issuer subject to
          the floating charge, upon:

          (i)  the Master Issuer ceasing to carry on its business or a
               material part thereof as a going concern;

          (ii) the presentation of a petition for or the making of an
               application for the compulsory winding-up of the Master Issuer;

         (iii) the convening of a meeting for the passing of a resolution for
               the voluntary winding-up of the Master Issuer;

          (iv) the making of an application for an administration order or the
               filing of documents with the court for the appointment of an
               administrator or the service of a notice of intention to
               appoint an administrator in relation to the Master Issuer;

          (v)  the presentation or making of an application for a warrant of
               execution, writ of fieri facias, garnishee order or charging
               order in respect of any of the assets of the Master Issuer
               subject to the floating charge;

          (vi) the occurrence of a Note Event of Default; and/or

     (b)  any property, assets or undertaking of the Master Issuer, which
          become subject to an Encumbrance in favour of any person other than
          the Issuer Security Trustee or which is/are the subject of a sale,
          transfer or other disposition, in either case, contrary to the
          covenants and undertakings contained in the Issuer Transaction
          Documents, immediately prior to such Encumbrance arising or such
          sale, transfer or other disposition being made,

     provided that the floating charge created by this Deed may not be
     converted into a fixed charge or charges solely as a result of the
     obtaining of a moratorium (or anything done with a view to obtaining a
     moratorium) under the Insolvency Act 2000 without the leave of the court.

12.  Provisions relating to the Security

12.1 Continuing Security: The Issuer Security shall be:

     (a)  in addition to and independent of and shall not operate so as to
          prejudice or affect or merge in any other security, right of
          recourse or other right whatsoever which may be held by any of the
          Issuer Secured Creditors or the Issuer Security Trustee on their
          behalf in respect of the whole or any part of the Issuer Secured
          Obligations and shall not be affected by any release, reassignment
          or discharge of such other security; and

     (b)  a continuing security for the Issuer Secured Obligations and shall
          remain in force as continuing security for the Issuer Secured
          Creditors and shall not be

                                      23

<PAGE>

          considered as satisfied or discharged by any intermediate payment or
          settlement of the whole or any part of the Issuer Secured
          Obligations or the existence at any time of a credit balance on any
          current or other account or any other matter or thing whatsoever.

12.2 Consolidation: Section 93 of the 1925 Act shall not apply in relation to
     any of the Issuer Security.

12.3 Ruling Off: If the Issuer Security Trustee receives notice of any
     Encumbrance affecting the whole or any part of the Issuer Charged
     Property or any security granted hereunder in contravention of the
     provisions hereof:

     (a)  the Issuer Security Trustee may open a new account in the name of
          the Master Issuer and, if it does not, it shall nevertheless be
          deemed to have done so at the time it received such notice; and

     (b)  all payments made by the Master Issuer to the Issuer Security
          Trustee after the Issuer Security Trustee receives such notice shall
          be credited or deemed to have been credited to the new account, and
          in no circumstances whatsoever shall operate to reduce the Issuer
          Secured Obligations as at the time the Issuer Security Trustee
          received such notice.

12.4 Avoidance of Payments: Any settlement, discharge or release between (a)
     the Master Issuer and (b) the Issuer Security Trustee or any Receiver
     (the "Relevant Person(s)") shall be conditional upon no security or
     payment granted or made to the Relevant Person(s) by the Master Issuer or
     any other person being avoided or reduced by virtue of any provisions or
     enactments relating to bankruptcy, insolvency or liquidation for the time
     being in force and, in the event of such security or payment being so
     avoided or reduced, the Relevant Person(s) shall be entitled to recover
     the value or amount of such security or payment from the Master Issuer
     and from the security subsequently as if such settlement, discharge or
     release had not occurred.

12.5 Retention of Charges: If the Issuer Security Trustee shall have
     reasonable grounds for believing that the Master Issuer may be insolvent
     or deemed to be insolvent pursuant to the provisions of the Insolvency
     Act 1986 (and production of a solvency certificate of a duly authorised
     officer of the Master Issuer shall be prima facie evidence of the
     solvency of the Master Issuer) as at the date of any payment made by the
     Master Issuer to the Issuer Security Trustee and that as a result, such
     payment may be capable of being avoided or clawed back, the Issuer
     Security Trustee shall be at liberty to retain the charges contained in
     or created pursuant to this Deed until the expiry of a period of one
     month plus such statutory period within which any assurance, security,
     guarantee or payment can be avoided or invalidated after the payment and
     discharge in full of all Issuer Secured Obligations notwithstanding any
     release, settlement, discharge or arrangement which may be given or made
     by the Issuer Security Trustee on, or as a consequence of, such payment
     or discharge of liability provided that, if at any time within such
     period, a petition or an application shall be presented to a competent
     court for an order for the winding up or the making of an administration
     order in respect of the Master Issuer, or if the Master Issuer shall
     commence to be wound up or to go into administration or any analogous
     proceedings shall be commenced by or against the Master Issuer, as the
     case may be, the Issuer Security Trustee shall be at liberty to continue
     to retain such security for such further

                                      24

<PAGE>

     period as the Issuer Security Trustee may determine and such security
     shall be deemed to continue to have been held as security for the payment
     and discharge to the Issuer Security Trustee of all Issuer Secured
     Obligations.

12.6 Possession: Entry into possession of the Issuer Charged Property or any
     part thereof shall not render the Issuer Security Trustee or any Receiver
     of the Master Issuer liable to account as mortgagee or creditor in
     possession for anything except actual receipts. If and whenever the
     Issuer Security Trustee or the Receiver enters into possession of the
     Issuer Charged Property, it shall be entitled at any time to go out of
     such possession.

12.7 Change of Name, etc.: This Deed shall remain valid and enforceable
     notwithstanding any change in the name, composition or constitution of
     the Issuer Security Trustee or the Master Issuer or any amalgamation,
     merger or consolidation by the Issuer Security Trustee or the Master
     Issuer, with any other corporation (whether, in the case of the Master
     Issuer, permitted under the Issuer Transaction Documents or not).

13.  Protection of Third Parties

13.1 No Enquiry: No purchaser from, or other person dealing with, the Issuer
     Security Trustee or a Receiver shall be concerned to enquire whether any
     of the powers exercised or purported to be exercised under this Deed has
     arisen or become exercisable, whether the Issuer Secured Obligations
     remain outstanding or have become payable, whether the Issuer Security
     Trustee or the Receiver is authorised to act or as to the propriety or
     validity of the exercise or purported exercise of any power; and the
     title and the position of such a purchaser or other person shall not be
     impeachable by reference to any of those matters and all the protection
     to purchasers contained in Sections 104 and 107 of the 1925 Act shall
     apply to any person purchasing from or dealing with the Issuer Security
     Trustee or any such Receiver.

13.2 Receipts to Current Parties: Upon any sale, calling in, collection,
     enforcement or other realisation of the Issuer Charged Property in
     accordance with the terms hereof and upon any other dealing or
     transaction under or pursuant to this Deed, the receipt of the Issuer
     Security Trustee or any Receiver shall be an absolute and a conclusive
     discharge to a purchaser or other person dealing with the Issuer Security
     Trustee or such Receiver and shall relieve it of any obligation to see to
     the application of any monies paid to or by the direction of the Issuer
     Security Trustee or such Receiver.

14.  Set-Off

     The Issuer Security Trustee may at any time after the security created
     under this Deed has become enforceable in accordance with Clause 7.2
     (Enforceable) without notice and notwithstanding any settlement of
     account or other matter whatsoever combine or consolidate all or any
     existing accounts of the Master Issuer whether in its own name or jointly
     with others and held by it or any Issuer Secured Creditor and may set-off
     or transfer all or any part of any credit balance or any sum standing to
     the credit of any such account (whether or not the same is due to the
     Master Issuer from the Issuer Security Trustee or relevant Issuer Secured
     Creditor and whether or not the credit balance and the account in debit
     or the Issuer Secured Obligations are expressed in the same currency in
     which case the Issuer Security Trustee is hereby authorised to effect any
     necessary conversions at its prevailing rates of exchange) in or towards

                                      25

<PAGE>

     satisfaction of any of the Issuer Secured Obligations (and on or at any
     time after the Issuer Security has become enforceable in accordance with
     Clause 7.2 (Enforceable) the Issuer Security Trustee may make such
     application notwithstanding any specified maturity of any deposits), but
     subject always to the Issuer Priority of Payments, and may in its
     absolute discretion estimate the amount of any liability of the Master
     Issuer which is contingent or unascertained and thereafter set-off such
     estimated amount and no amount shall be payable by the Issuer Security
     Trustee to the Master Issuer unless and until all the Issuer Secured
     Obligations have been ascertained and fully repaid or discharged.

15.  Representations and Covenants

15.1 Representations and Warranties:

(a)  The Master Issuer hereby represents to the Issuer Security Trustee that
     it is, as of the date hereof, the beneficial owner of all of the Issuer
     Charged Property free and clear of all liens, claims, charges or
     Encumbrances except for the Issuer Security and undertakes that it will
     retain all rights associated with ownership of the Issuer Charged
     Property free and clear of all liens, claims, charges, Encumbrances
     except for the Issuer Security.

(b)  The Master Issuer represents that it has taken all necessary steps to
     enable it to create the Issuer Security in respect of the Issuer Charged
     Property in accordance with this Deed and has taken no action or steps
     which will or may prejudice its right, title and interest in, to and
     under the Issuer Charged Property.

(c)  The Master Issuer represents that its Centre of Main Interests (as
     defined in the EU Regulation) is in the UK.

15.2 Negative Covenants: The Master Issuer hereby undertakes that, for so long
     as any Issuer Secured Obligation remains outstanding, the Master Issuer
     shall not, save to the extent contemplated or provided in the Issuer
     Transaction Documents or unless it has obtained the prior written consent
     of the Issuer Security Trustee:

     (a)  open or maintain any bank account or deposit account with any bank
          or any other financial institution other than the Issuer Bank
          Accounts or the Issuer Swap Collateral Accounts or close the Issuer
          Bank Accounts or the Issuer Swap Collateral Accounts;

     (b)  either in a single transaction or in a series of transactions,
          whether related or not and whether voluntarily or involuntarily,
          sell, transfer, lease or otherwise dispose of or grant any option
          over all or any part of its property, assets or undertaking or any
          interest, estate, right, title or benefit therein or agree or
          purport to do any of the foregoing;

     (c)  create or permit to subsist any Security Interest (unless arising by
          operation of law) over or in respect of any of its property, assets
          (including any uncalled capital) or undertaking, present or future
          provided that on the issuance of Issuer Notes on any Closing Date,
          the making available of any Loan Tranches by the Master Issuer to
          Funding 2 or if any new Funding 2 Intercompany Loans are made
          available by a new Funding 2 Issuer to Funding 2 in

                                      26

<PAGE>

          accordance with the terms of the Transaction Documents, the Master
          Issuer shall be entitled to create the Security Interests (if any)
          contemplated under the applicable Deed of Accession;

     (d)  incur any indebtedness in respect of borrowed money whatsoever or
          give any guarantee or indemnity in respect of any indebtedness of or
          of any obligation or any person;

     (e)  pay any dividend or make any other distribution to its shareholder
          or issue any further shares;

     (f)  consolidate or merge with any other person or convey or transfer its
          properties or assets substantially as an entirety to any other
          person;

     (g)  make or consent to any amendment to, or variation of or agree to
          waive or authorise any breach of any provision of any of the Issuer
          Transaction Documents or permit any person whose obligations form
          part of the Issuer Charged Property to be released from its
          respective obligations;

     (h)  offer to surrender to any company any amounts which are available
          for surrender by way of group relief within Chapter IV of Part X of
          the Income and Corporation Taxes Act 1988 except for full payment at
          the current applicable rate of corporation tax applied to the
          surrendered amount and payable at the date when corporation tax is
          due to be paid by the claimant or would be due in the absence of the
          surrender;

     (i)  do any act or thing the effect of which would be to make the Master
          Issuer resident in any jurisdiction other than the United Kingdom;

     (j)  permit any person other than the Master Issuer and the Issuer
          Security Trustee to have any equitable interest in any of its
          property, assets or undertakings or any interest, estate, right,
          title or benefit therein;

     (k)  purchase or otherwise acquire any Note or Notes (including the
          Issuer Notes); or

     (l)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not
          hold any property if doing so would cause it to be engaged or deemed
          to be engaged in a trade or business within the United States as
          determined under United States tax principles.

15.3 Positive covenants: The Master Issuer covenants and undertakes with the
     Issuer Security Trustee for the benefit of the Issuer Secured Creditors
     that it shall:

     (a)  Registration of Security: file or procure the filing with the
          Registrar of Companies pursuant to Chapter I of Part XII of the
          Companies Act 1985 of duly completed Forms 395 together with an
          executed original of this Deed and the required fee within 21 days
          after the date of this Deed;

     (b)  Notice of Assignment: on the date hereof join with the Issuer
          Security Trustee in giving notice of the assignments and the
          security created under or pursuant

                                      27

<PAGE>

          to this Deed to Funding 2, the Funding 2 Security Trustee and each
          other party to any Issuer Transaction Document not being a party to
          this Deed and on any date hereafter (to the extent only that such
          notice and acknowledgement is not given under or pursuant to this
          Deed) join with the Issuer Security Trustee in giving notice of the
          assignments and the security created under this Deed to any party to
          an Issuer Transaction Document entered into by the Master Issuer
          after the date hereof in each case in the form (or substantially in
          the form) set out in Schedule 3 (Form of Notice of Assignment);

     (c)  Accounts for Stock Exchange: cause to be prepared and certified by
          the Auditors of the Master Issuer in respect of each Financial Year,
          accounts in such form as will comply with relevant legal and
          accounting requirements for the time being and all requirements for
          the time being of any stock exchange on which the Issuer Notes are
          listed;

     (d)  Books and Records: at all times keep or procure the keeping of such
          books of account and records as may be necessary to comply with all
          applicable laws and so as to enable accounts of the Master Issuer to
          be prepared and allow the Issuer Security Trustee and any person or
          persons appointed by the Issuer Security Trustee free access to such
          books of account and records at all reasonable times during normal
          business hours upon reasonable notice in writing, provided that such
          inspection shall only be for the purposes of carrying out its duties
          under this Deed and any information so obtained shall only be used
          and passed on to any other person for the purpose of the Issuer
          Security Trustee carrying out its duties under this Deed;

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

     (f)  Administration: immediately on receipt or notice of the same supply
          the Issuer Security Trustee full details of any application to the
          court for an administration order under paragraph 10 of Schedule B1
          of the Insolvency Act made in respect of the Master Issuer and
          (without prejudice to paragraph 12(2) of Schedule B1 to the
          Insolvency Act) of any actual or proposed appointment of an
          administrator by the holder of a qualifying floating charge (within
          the meaning of paragraph 14 of Schedule B1 to the Insolvency Act) or
          (without prejudice to paragraph 26(1) of Schedule B1 to the
          Insolvency Act) by the Master Issuer or its directors.

     (g)  Certificates Relating to Financial Information: give to the Issuer
          Security Trustee (a) within seven days after demand by the Issuer
          Security Trustee therefor and (b) (without the necessity for any
          such demand) promptly after the publication of its audited accounts
          in respect of each Financial Year commencing with the Financial Year
          first ending after the date hereof and in any event not later than
          180 days after the end of each such Financial Year a certificate
          signed by two directors of the Master Issuer to the effect that as
          at a date not more than seven days before delivering such
          certificate (the

                                      28

<PAGE>

          "certification date") there did not exist and had not existed since
          the certification date of the previous certificate (or in the case
          of the first such certificate the date hereof) any Note Event of
          Default or any Potential Note Event of Default (or if such then
          exists or existed specifying the same) and that during the period
          from and including the certification date of the last such
          certificate (or in the case of the first such certificate the date
          hereof) to and including the certification date of such certificate
          the Master Issuer has complied with all its obligations contained in
          this Deed and each of the other Issuer Transaction Documents or (if
          such is not the case) specifying the respects in which it has not so
          complied;

     (h)  Further Assurances: so far as permitted by applicable law, at all
          times execute all such further documents and do all such further
          acts and things as may be necessary at any time or times in the
          opinion of the Issuer Security Trustee to give effect to this Deed
          and the other Issuer Transaction Documents;

     (i)  Compliance with Issuer Transaction Documents: observe and comply
          with its obligations and use its reasonable endeavours to procure
          that each other party to any of the Issuer Transaction Documents
          complies with and performs all its respective obligations under each
          Issuer Transaction Document and notify the Issuer Security Trustee
          forthwith upon becoming aware of any breach by any such other party
          to any Issuer Transaction Document;

     (j)  Information: so far as permitted by applicable law, give or procure
          to be given to the Issuer Security Trustee such opinions,
          certificates, information and evidence as it shall require and in
          such form as it shall require (including without limitation the
          procurement by the Master Issuer of all such certificates called for
          by the Issuer Security Trustee pursuant to this Deed) for the
          purpose of the discharge or exercise of the duties, trusts, powers,
          authorities and discretions vested in it under this Deed or by
          operation of law;

     (k)  Taxes: duly and promptly pay and discharge all Taxes imposed upon it
          or its assets unless such Taxes are, in the opinion of the Issuer
          Security Trustee, being contested in good faith by the Master
          Issuer;

     (l)  Issuer Swap Agreements: in the event of termination of any
          Transaction (as defined in an Issuer Swap Agreement) under an Issuer
          Swap Agreement, notify the Security Trustee and the Rating Agencies
          and use its best efforts to enter into a replacement of that
          Transaction upon terms acceptable to the Rating Agencies and the
          Issuer Security Trustee with an issuer Swap provider whom the Rating
          Agencies have previously confirmed in writing to the Master Issuer
          and the Issuer Security Trustee will not cause the then-current
          ratings of the Issuer Notes to be downgraded, withdrawn or
          qualified;

     (m)  Bank Accounts: in the event of termination of the Issuer Bank
          Account Agreement, subject to and in accordance with the provisions
          of the Issuer Bank Account Agreement use its reasonable endeavours
          to enter into a replacement bank account agreement;

     (n)  Cash Management Agreement: in the event of termination of the Issuer
          Cash Management Agreement, subject to and in accordance with the
          provisions of

                                      29

<PAGE>

          the Issuer Cash Management Agreement, use its reasonable endeavours
          to enter into a replacement cash management agreement; and

     (o)  Centre of Main Interests: the Master Issuer shall have its centre of
          Main Interests (as defined in the EU Regulation) in the UK.

     In addition to the foregoing, the Master Issuer hereby covenants with
     each of the Issuer Swap Providers, that it shall not make any amendment
     or modification to, or exercise any waiver in respect of, the Issuer Cash
     Management Agreement which would be adversely prejudicial to the
     interests of any Issuer Swap Provider, without the prior written consent
     of the affected Issuer Swap Provider save that to the extent required,
     such consent shall not be unreasonably withheld or delayed.

16.  Supplement to Trustee Acts

16.1 Trustee Act 1925 and Trustee Act 2000: The Issuer Security Trustee shall
     have all the powers conferred upon trustees by the Trustee Act 1925 and
     the Trustee Act 2000 of England and Wales and by way of supplement
     thereto it is expressly declared as set out in the remaining provisions
     of this Clause 16 (Supplement to Trustee Acts).

16.2 Reliance on Information:

     (a)  The Issuer Security Trustee may in relation to this Deed or any
          other Issuer Transaction Document act and rely upon the opinion or
          advice of, or a certificate or a report or any information obtained
          from, any lawyer, banker, valuer, surveyor, securities company,
          broker, auctioneer, accountant or other expert in the United Kingdom
          or elsewhere, whether obtained by the Master Issuer, the Issuer
          Security Trustee or otherwise, whether or not any of the aforesaid
          or any engagement letter or other document entered into by the
          Issuer Security Trustee and the relevant person in connection
          therewith contains any monetary or other limit on the liability of
          the relevant person and the Issuer Security Trustee shall not be
          responsible for any loss occasioned by so acting or relying on. Any
          such opinion, advice, certificate or information may be sent or
          obtained by letter, facsimile reproduction or in any other form and
          the Issuer Security Trustee shall not be liable for acting in good
          faith on any opinion, advice, certificate or information purporting
          to be so conveyed although the same shall contain some error or
          shall not be authentic provided that such error or lack of
          authenticity is not manifest.

     (b)  Except in the event of wilful default or manifest error, the Issuer
          Security Trustee may call for and shall be entitled to rely upon a
          certificate, reasonably believed by it to be genuine, of the Master
          Issuer or any other person in respect of every matter and
          circumstance for which a certificate is expressly provided for under
          this Deed, the Issuer Conditions or any other Issuer Transaction
          Document and to call for and rely upon a certificate of the Agent
          Bank, any Paying Agent, Registrar, Transfer Agent, any Reference
          Bank or any other person reasonably believed by it to be genuine as
          to any other fact or matter prima facie within the knowledge of such
          Agent Bank, Paying Agent, Registrar, Transfer Agent, Reference Bank
          or such other person as sufficient evidence thereof and the Issuer
          Security Trustee shall not be bound in any such case to call for
          further evidence or be responsible for any loss, liability,

                                      30

<PAGE>

          costs, damages, expenses or inconvenience that may be caused by it
          failing to do so.

     (c)  The Issuer Security Trustee shall be entitled to act on any
          directions provided in accordance with Clause 16.13 (Issuer Security
          Trustee to act on directions) without further enquiry and to assume
          that any such directions are given in accordance with the provisions
          of this Deed and the Issuer Security Trustee shall not be liable to
          any person for any action taken or omitted under or in connection
          with this Deed in accordance with any such directions. The Issuer
          Security Trustee shall be entitled to act upon any notice, request
          or other communication of any party to this Deed for the purposes of
          this Deed or any of the Issuer Transaction Documents if such notice,
          request or other communication purports to be signed or sent by or
          on behalf of any authorised signatory of such party.

16.3 Powers and Duties:

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

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

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

     (d)  The Issuer Security Trustee may accept without enquiry, requisition
          or objection such title as the Master Issuer may have to the Issuer
          Charged Property or as Funding 2 may have to the Funding 2 Charged
          Property or any part thereof from time to time and shall not be
          required to investigate or make any enquiry into or be liable for
          any defect in the title of the Master Issuer to the Issuer Charged
          Property or of Funding 2 to the Funding 2 Charged Property or any
          part thereof from time to time whether or not any defect was

                                      31

<PAGE>

          known to the Issuer Security Trustee or might have been discovered
          upon examination, inquiry or investigation and whether or not
          capable of remedy.

     (e)  The Issuer Security Trustee shall not be bound to give notice to any
          person of the execution of this Deed, nor shall it have any duty to
          make any investigation in respect of or in any way be liable
          whatsoever for the registration, filing, protection or perfection of
          the Issuer Security or the priority of the Issuer Security created
          thereby and shall not be liable for any failure, omission or defect
          in perfecting, protecting, procuring the registration of or further
          assuring the security created or purported to be created thereby.

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

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

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

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

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

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

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

                                      32

<PAGE>

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

     (n)  The Issuer Security Trustee shall (save as expressly otherwise
          provided in this Deed or in any other Issuer Transaction Document)
          as regards all rights, powers, authorities and discretions vested in
          it by this Deed or any other Issuer Transaction Document, or by
          operation of law, have absolute and uncontrolled discretion as to
          the exercise or non-exercise thereof.

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

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

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

          (ii) if in its sole opinion, there may be a conflict as among
               Noteholders, it will have regards to the interests of the Class
               of Noteholders with the highest-ranking Issuer Notes only. If
               there is a conflict between the interests of the Class A
               Noteholders of one Series and the Class A Noteholders of
               another Series or Group of Series, or conflict between the
               interests of the Class B Noteholders of one Series and the
               Class B Noteholders of another Series or Group of Series, or
               conflict between the interests of the Class M Noteholders of
               one Series and the Class M Noteholders of another Series or
               Group of Series, or conflict between

                                      33

<PAGE>

               the interests of the Class C Noteholders of one Series and the
               Class C Noteholders of another Series or Group of Series, or
               conflict between the interests of the Class D Noteholders of
               one Series and the Class D Noteholders of another Series or
               Group of Series, then a resolution directing it to take any
               action shall be deemed to have been duly passed only if passed
               at separate meetings of the holders of each Series or Group of
               Series of the Class A Notes, or as applicable, each Series or
               Group of Series of the Class B Notes, each Series or Group of
               Series of the Class M Notes, each Series or Group of Series of
               the Class C Notes or each Series or Group of Series of the
               Class D Notes subject to the conflict. In all cases, the Issuer
               Security Trustee will only be obliged to act if it is
               indemnified to its satisfaction.

         (iii) at any time after the redemption in full of the Issuer Notes,
               it shall have regard to the interest of the Issuer Secured
               Creditor which ranks next highest under the Issuer
               Post-Enforcement Priority of Payments;

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

     (q)  The Issuer Security Trustee may determine whether or not a default
          in the performance by the Master Issuer of any obligation under the
          provisions of this Deed or any other Issuer Transaction Document or
          a default in the performance by Funding 2 of any obligation under
          the Funding 2 Intercompany Loan Agreement is capable of remedy
          and/or whether the same is materially prejudicial to the interests
          of the Issuer Secured Creditors or any of them and if the Issuer
          Security Trustee shall certify that any such default is, in its
          opinion, not capable of remedy and/or materially prejudicial to the
          interests of the Issuer Secured Creditors or any of them, such
          certificate shall be conclusive and binding upon the Master Issuer
          and the Issuer Secured Creditors.

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

     (s)  In relation to any asset held by the Issuer Security Trustee under
          this Deed, the Issuer Security Trustee may appoint any person to act
          as its nominee on any terms.

     (t)  Any trustee of this Deed being a lawyer, accountant, broker or other
          person engaged in any profession or business shall be entitled to
          charge and be paid all usual professional and other charges for
          business transacted and acts done by him or his firm in connection
          with the trusts of this Deed and the other Issuer Transaction
          Documents and also his charges in addition to disbursements for all
          other work and business done and all time spent by him or his firm
          in connection with matters arising in connection with this Deed and
          the other Issuer Transaction Documents, including matters which
          might or

                                      34

<PAGE>

          should have been attended to in person by a trustee not being a
          banker, lawyer, broker or other professional person.

     (u)  The Issuer Security Trustee may, in the execution of all or any of
          the trusts, powers, authorities and discretions vested in it by this
          Deed or any of the other Issuer Transaction Documents, act by
          responsible officers or a responsible officer for the time being of
          the Issuer Security Trustee. The Issuer Security Trustee may also,
          whenever it thinks expedient in the interests of the Issuer Secured
          Creditors, whether by power of attorney or otherwise, delegate to
          any person or persons all or any of the trusts, rights, powers,
          duties, authorities and discretions vested in it by this Deed or any
          of the other Issuer Transaction Documents. Any such delegation may
          be made upon such terms and subject to such conditions and subject
          to such regulations (including power to sub-delegate) as the Issuer
          Security Trustee may think fit in the interests of the Issuer
          Secured Creditors. The Issuer Security Trustee shall give prompt
          notice to the Master Issuer of the appointment of any delegate as
          aforesaid and shall procure that any delegate shall also give prompt
          notice of the appointment of any sub-delegate to the Master Issuer.

     (v)  If the Issuer Security Trustee exercises reasonable care in
          selecting any custodian, agent, delegate, nominee or any other
          person appointed under this Clause 16.3 (Powers and Duties) (each,
          an "Appointee") it will not have any obligation to supervise such
          Appointee or be responsible for any loss, liability, costs, claim,
          proceedings or expenses incurred by reason of such Appointee's
          misconduct, omission or default or the misconduct, omission or
          default of any substitute lawfully appointed by such Appointee.

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

     (x)  Any consent given by the Issuer Security Trustee for the purposes of
          this Deed or any of the other Issuer Transaction Documents may be
          given on such terms and subject to such conditions (if any) as the
          Issuer Security Trustee thinks fit and may be given retrospectively.

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

     (z)  The Issuer Security Trustee shall not (unless required by law or
          ordered to do so by a court of competent jurisdiction) be required
          to disclose to any Issuer

                                      35

<PAGE>

          Secured Creditor or any other person any information made available
          to the Issuer Security Trustee by the Master Issuer or any other
          person in connection with the trusts of this Deed or any other
          Issuer Transaction Documents and no Issuer Secured Creditor or any
          other person shall be entitled to take any action to obtain from the
          Issuer Security Trustee any such information. The Issuer Security
          Trustee shall not be responsible for exercising the rights of any of
          the parties under the Issuer Transaction Documents or considering
          the basis upon which the approvals or consents are granted by any of
          the parties under the Issuer Transaction Documents.

     (aa) Notwithstanding anything else in this Deed, the Issuer Notes or any
          other Issuer Transaction Document, the Issuer Security Trustee may
          refrain from doing anything which would or might in its opinion be
          contrary to any law of any jurisdiction or any directive or
          regulation of any governmental agency or which would or might
          otherwise render it liable to any person and may do anything which
          is, in its opinion, necessary to comply with any such law, directive
          or regulation.

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

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

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

     (ee) The powers conferred by this Deed upon the Issuer Security Trustee
          or any Receiver shall be in addition to and not in substitution for
          any powers which may from time to time be conferred on the Issuer
          Security Trustee or any such Receiver by statute or under common
          law.

                                      36

<PAGE>

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

     (gg) Without prejudice to the provisions of any Issuer Transaction
          Documents relating to insurance, the Issuer Security Trustee shall
          not be under any obligation to insure any of the Issuer Charged
          Property or the Funding 2 Charged Property or any deeds or documents
          of title or other evidence in respect of the Issuer Charged Property
          or the Funding 2 Charged Property or to require any other person to
          maintain any such insurance or monitor the adequacy of any such
          insurance and shall not be responsible for any liability which may
          be suffered by any person as a result of the lack of or inadequacy
          of any such insurance.

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

16.5 Ascertaining Default: The Issuer Security Trustee shall not be
     responsible or liable for:

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

     (b)  ascertaining whether a default has occurred under the terms of any
          of the Issuer Transaction Documents and, save where otherwise
          specifically provided in the Issuer Transaction Documents, nor is
          the Issuer Security Trustee responsible for taking any action in
          connection with any such default or alleged default;

16.6 Rating of Issuer Notes: The Issuer Security Trustee shall have no
     responsibility for the maintenance of any rating of the Issuer Notes by
     the Rating Agencies or any other credit-rating agency or any other
     person.

16.7 Delivery of Certificates: The Issuer Security Trustee shall have no
     liability whatsoever for any loss, cost damages or expenses directly or
     indirectly suffered or incurred by the Master Issuer, any Issuer Secured
     Creditor or any other person as a result of the delivery by the Issuer
     Security Trustee of a certificate, or the omission by it to deliver a
     certificate, to the Master Issuer as to material prejudice, on the basis
     of an opinion formed by it in good faith.

                                      37

<PAGE>

16.8 Assumption of No Default: The Issuer Security Trustee shall not be bound
     to ascertain whether any Note Event of Default or Potential Note Event of
     Default has happened and, until it shall have actual knowledge or express
     notice to the contrary, the Issuer Security Trustee shall be entitled to
     assume that no such Note Event of Default or Potential Note Event of
     Default has happened and that the Master Issuer is observing and
     performing all the obligations on its part under the Issuer Notes and
     this Deed and no event has happened as a consequence of which any Issuer
     Notes may become repayable.

16.9 Assumption of no Intercompany Loan Default: The Issuer Security Trustee
     shall not be bound to ascertain whether any Funding 2 Intercompany Loan
     Event of Default or Potential Funding 2 Intercompany Loan Event of
     Default has happened and, until it shall have actual knowledge or express
     notice to the contrary, the Issuer Security Trustee shall be entitled to
     assume that no such Funding 2 Intercompany Loan Event of Default or
     Potential Funding 2 Intercompany Loan Event of Default has happened and
     that Funding 2 is observing and performing all the obligations on its
     part;

16.10 Commercial Transactions: The Issuer Security Trustee shall not, and no
     director, officer or employee of any corporation being an Issuer Security
     Trustee hereof shall by reason of the fiduciary position of the Issuer
     Security Trustee be in any way precluded from making any commercial
     contracts or entering into any commercial transactions with any party to
     the Issuer Transaction Documents, whether directly or through any
     subsidiary or associated company, or from accepting the trusteeship of
     any other debenture stock, debentures or securities of any party to the
     Issuer Transaction Documents, and without prejudice to the generality of
     these provisions, it is expressly declared that such contracts and
     transactions include any contract or transaction in relation to the
     placing, underwriting, purchasing, subscribing for or dealing with or
     lending monies upon or making payments in respect of or any stock,
     shares, debenture stock, debentures or other securities of any party to
     the Issuer Transaction Documents or any contract of banking or insurance
     of any party to the Issuer Transaction Documents and neither the Issuer
     Security Trustee nor any such director, officer or employee shall be
     accountable to any Issuer Secured Creditor or to any party to the Issuer
     Transaction Documents for any profit, fees, commissions, interest,
     discounts or share of brokerage earned, arising or resulting from any
     such contracts or transactions, and the Issuer Security Trustee and any
     such director, officer or employee shall also be at liberty to retain the
     same without accounting therefor.

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

16.12 Issuer Security Trustee Liable for Negligence etc.: Notwithstanding any
     other provision of this Deed, none of the provisions of this Deed shall,
     in any case in which the Issuer Security Trustee has failed to show the
     degree of care and diligence required of it as trustee under this Deed
     having regard to the provisions of this Deed conferring on the Issuer
     Security Trustee any powers, authorities or discretions, relieve the
     Issuer Security Trustee from or indemnify the Issuer Security Trustee
     against any liabilities which by virtue of any rule of law would
     otherwise attach to it

                                      38

<PAGE>

     in respect of any negligence, default, breach of duty or breach of trust
     of which it may be guilty in relation to its duties under this Deed.

16.13 Issuer Security Trustee to act on directions: Notwithstanding any other
     provision in any other Issuer Transaction Document, each of the Issuer
     Secured Creditors and the Master Issuer acknowledges that when exercising
     its opinion and/or when exercising the rights, benefits, power, trusts,
     authorities, directions and obligations expressed to be granted by this
     Deed, the other Issuer Transaction Documents or by operation of law, the
     Issuer Security Trustee shall, for so long as there are any Issuer Notes
     outstanding, have regard to the interests of or directions received from
     the Note Trustee and shall not be responsible for any loss, costs,
     damages, expenses or inconveniences that may result from the exercise or
     non-exercise thereof. At any time when all Issuer Notes have been repaid
     in full, the Issuer Security Trustee shall no longer be required to act
     at the request or direction of the Note Trustee but instead shall act at
     the request or direction of the Issuer Secured Creditor which ranks next
     highest in the Issuer Post-Enforcement Priority of Payments.

17.  Appointment, Removal and Retirement:

17.1 Power of Master Issuer: Subject to the provisions of this Clause 17
     (Appointment, Removal and Retirement of Issuer Security Trustee), the
     power of appointing a new Issuer Security Trustee in place of an existing
     Issuer Security Trustee shall be vested in the Master Issuer but such
     appointment or removal must (i) be approved by (save to the extent
     otherwise provided in the Conditions) an Extraordinary Resolution of the
     Class A Noteholders, the Class B Noteholders, the Class M Noteholders,
     the Class C Noteholders and the Class D Noteholders then outstanding, and
     (ii) be approved in writing by each other Issuer Secured Creditor (such
     approval not be unreasonably withheld or delayed). A trust corporation
     may be appointed sole trustee hereof but subject thereto there shall be
     at least two trustees hereof, one at least of which shall be a trust
     corporation. Any appointment of a new Issuer Security Trustee and any
     retirement of an existing Issuer Security Trustee hereof shall as soon as
     practicable thereafter be notified by the Master Issuer to the Issuer
     Secured Creditors. Any new Issuer Security Trustee must meet the
     requirements set out in Clause 17.5 (Retirement or Removal Not
     Effective).

17.2 Powers of Issuer Security Trustee to appoint: Notwithstanding the
     provisions of Clause 17.1 (Power of Master Issuer), the Issuer Security
     Trustee may (as attorney for the Master Issuer) upon giving prior notice
     to the Master Issuer but without the consent of the Master Issuer or the
     Issuer Secured Creditors appoint any person established or resident in
     any jurisdiction (whether a trust corporation or not) to act either as a
     separate trustee or as a co-trustee jointly with the Issuer Security
     Trustee:

     (a)  if the Issuer Security Trustee considers such appointment to be in
          the interests of the Issuer Secured Creditors (or any of them); or

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

     (c)  for the purposes of obtaining a judgment in any jurisdiction or the
          enforcement in any jurisdiction of either a judgment already
          obtained or any of the

                                      39

<PAGE>

          provisions of these presents or any of the other Issuer Transaction
          Documents against the Master Issuer or any other party thereto.

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

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

17.4 Retirement or Removal of Issuer Security Trustee: Subject as provided in
     Clause 17.5 (Retirement or Removal not Effective), any Issuer Security
     Trustee for the time being of this Deed may retire at any time upon
     giving not less than three months' prior notice in writing to the Master
     Issuer without assigning any reason therefor and without being
     responsible for any costs resulting from such retirement.

17.5 Retirement or Removal not Effective: The retirement or removal of any
     Issuer Security Trustee shall not become effective unless there remains
     at least one trustee hereof being a trust corporation in office upon such
     retirement or removal. The Master Issuer covenants that, in the event of
     a trustee (being a sole trustee or the only trust corporation) giving
     notice or being removed under Clause 17.4 (Retirement or Removal of
     Issuer Security Trustee) it shall use its best endeavours to procure a
     new Issuer Security Trustee of these presents (being a trust corporation)
     to be appointed as soon as reasonably practicable thereafter (for the
     avoidance of doubt, on the same terms as these presents). If within 30
     days of having given notice of its intention to retire, the Master Issuer
     has failed to appoint a replacement Issuer Security Trustee, the outgoing
     Issuer Security Trustee will be entitled to appoint its successor
     provided that the Rating Agencies confirm that the then ratings of the
     Issuer Notes shall not be either reduced, qualified or withdrawn as a
     result of such appointment.

17.6 Funding 2 Security Trustee, Note Trustee and Issuer Security Trustee: If
     the Issuer Security Trustee retires or is removed in accordance with the
     provisions of this Clause 17 (Appointment, Removal and Retirement) then
     the Funding 2 Security Trustee, each Note Trustee and each other Issuer
     Security Trustee shall retire at the same time in accordance with the
     provisions of the Funding 2 Deed of Charge, the applicable Issuer Trust
     Deed and the applicable Issuer Deed of Charge. If the Funding 2 Security
     Trustee retires or is removed in accordance with the provisions of the
     Funding 2 Deed

                                      40

<PAGE>

     of Charge, a Note Trustee retires or is removed in accordance with the
     provisions of the applicable Issuer Trust Deed and/or another Issuer
     Security Trustee retires or is removed in accordance with the provisions
     of the applicable Issuer Deed of Charge, then the Issuer Security Trustee
     shall retire at the same time in accordance with the provisions of this
     Clause 17 (Appointment, Removal and Retirement). In each case the
     successor Issuer Security Trustee, the Funding 2 Security Trustee, each
     successor Note Trustee and each other successor Issuer Security Trustee
     shall be the same person or persons.

18.  Remuneration and Indemnification of Issuer Security Trustee:

18.1 Normal Remuneration: The Master Issuer shall (subject as hereinafter
     provided) pay to the Issuer Security Trustee remuneration of such amount
     as shall from time to time be agreed by the Master Issuer and the Issuer
     Security Trustee. The rate of remuneration in force from time to time may
     upon the final redemption of the whole of the Issuer Notes of any Series
     be reduced by such amount as shall be agreed between the Master Issuer
     and the Issuer Security Trustee, such reduced remuneration to be
     calculated from such date as shall be agreed as aforesaid. Such
     remuneration shall be payable in priority to payments to Noteholders and
     other Issuer Secured Creditors on each Payment Date subject to and in
     accordance with the relevant Issuer Priority of Payments. Such
     remuneration shall accrue from day to day and be payable up to and
     including the date when, all the Issuer Notes having become due for
     redemption, the redemption monies and interest thereon to the date of
     redemption have been paid to the Principal Paying Agent or, as the case
     may be, the Issuer Security Trustee PROVIDED THAT if upon due
     presentation of any Note Certificate or any cheque payment of the monies
     due in respect thereof is improperly withheld or refused, remuneration
     will commence again to accrue until payment to Noteholders is made.

18.2 Extra Remuneration: In the event of the occurrence of a Note Event of
     Default or the Issuer Security Trustee considering it expedient or
     necessary or being requested by the Master Issuer to undertake duties
     which the Issuer Security Trustee and the Master Issuer agree to be of an
     exceptional nature or otherwise outside the scope of the normal duties of
     the Issuer Security Trustee under this Deed, the Master Issuer shall pay
     to the Issuer Security Trustee such additional remuneration as shall be
     agreed between them;

18.3 Failure to Agree: In the event of the Issuer Security Trustee and the
     Master Issuer failing to agree:

     (a)  (in a case to which Clause 18.1 (Normal Remuneration) applies) upon
          normal remuneration; or

     (b)  (in a case to which Clause 18.2 (Extra Remuneration) applies) upon
          whether such duties shall be of an exceptional nature or otherwise
          outside the scope of the normal duties of the Issuer Security
          Trustee under these presents, or upon such additional remuneration;

     such matters shall be determined by an investment bank (acting as an
     expert and not as an arbitrator) selected by the Issuer Security Trustee
     and approved by the Master Issuer or, failing such approval, nominated
     (on the application of the Issuer Security

                                      41

<PAGE>

     Trustee) by the President for the time being of The Law Society of
     England and Wales (the expenses involved in such nomination and the fees
     of such investment bank being payable by the Master Issuer) and the
     determination of any such investment bank shall be final and binding upon
     the Issuer Security Trustee and the Master Issuer.

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

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

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

18.5 Indemnity: The Master Issuer shall indemnify the Issuer Security Trustee
     in respect of all proceedings, claims, demands, losses, costs, charges,
     expenses and liabilities to which it (or any person appointed by it to
     whom any trust, power, authority or discretion may be delegated by it in
     the execution or purported execution of the trusts, powers, authorities
     or discretions vested in it by or pursuant to these presents and any of
     the other Issuer Transaction Documents) may be or become liable or which
     may be properly incurred by it (or any such person as aforesaid) in the
     execution or purported execution of any of its trusts, powers,
     authorities and discretions hereunder or its functions under any such
     appointment or in respect of any other matter or thing done or omitted in
     any way relating to these presents and any of the other Issuer
     Transaction Documents provided that it is expressly stated that Clause
     16.12 (Issuer Security Trustee Liable for Negligence etc.) shall apply in
     relation to these provisions.

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

     (a)  the execution and delivery of this Deed and any other Issuer
          Transaction Document to which the Issuer Security Trustee is a
          party; and

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

                                      42

<PAGE>

18.7 VAT: The Master Issuer shall in addition pay to the Issuer Security
     Trustee an amount equal to any value added tax or similar tax chargeable
     in respect of its remuneration under this Deed.

18.8 Interest: Subject as provided in Clause 18.9 (Payment), all sums payable
     by the Master Issuer under this Clause 18 (Remuneration and
     Indemnification of Issuer Security Trustee) shall be payable on demand
     or, in the case of any remuneration payable under Clause 18.1 (Normal
     Remuneration) on the due date specified therein and shall carry interest
     at the rate per annum, which is one per cent. per annum above the base
     rate from time to time of the National Westminster Bank Plc from the date
     on which they were paid, charged or incurred by the Issuer Security
     Trustee or, in the case of remuneration, the due date for payment
     thereof, to the date of actual payment, and in all other cases shall (if
     not paid on the date specified in such demand or, if later, within three
     days after such demand and, in either case, the Issuer Security Trustee
     so requires) carry interest at such rate from the date specified in such
     demand.

18.9 Payment: Notwithstanding the other provisions of this Deed, any amount
     owing by the Master Issuer pursuant to this Clause 18 (Remuneration and
     Indemnification of Issuer Security Trustee) shall only be payable by the
     Master Issuer subject to and in accordance with the applicable Issuer
     Priority of Payments which applies at such time.

18.10 Survival: Unless otherwise specifically stated in any discharge of this
     Deed, the provisions of this Clause 18 (Remuneration and Indemnification
     of Issuer Security Trustee) shall continue in full force and effect
     notwithstanding such discharge.

19.  Modification and Waiver

19.1 Modification: The Issuer Security Trustee may without the consent or
     sanction of the Noteholders or any other Issuer Secured Creditor (other
     than the Note Trustee (if it is a party to the relevant document)) at any
     time and from time to time concur with any person in making any
     modification to this Deed, the Issuer Notes, the Issuer Trust Deed or to
     any of the other Issuer Transaction Documents which in the opinion of the
     Issuer Security Trustee it may be proper to make PROVIDED THAT the Issuer
     Security Trustee is of the opinion that such modification will not be
     materially prejudicial to the interests of any Issuer Secured Creditors
     or (ii) to this Deed, the Issuer Notes, the Issuer Trust Deed or any of
     the other Issuer Transaction Documents if in the opinion of the Issuer
     Security Trustee such modification is of a formal, minor or technical
     nature or to correct an error established as such to the satisfaction of
     the Issuer Security Trustee. For the purposes of this Clause 17.1
     (Modification), a proposed modification will not materially harm the
     interest of any Issuer Secured Creditors solely as a result of any
     Funding 2 Issuer executing a Deed of Accession pursuant to Clause 3.11
     (New Intercompany Loan) of the Funding 2 Deed of Charge or the execution
     of a Deed of Accession pursuant to Clause 3.12 (Bridging Arrangements) of
     the Funding 2 Deed of Charge or the execution of a Deed of Accession. Any
     such modification may be made on such terms and subject to such
     conditions (if any) as the Issuer Security Trustee may determine, shall
     be binding upon the Master Issuer and the Issuer Secured Creditors and,
     unless the Issuer Security Trustee agrees otherwise, shall be notified by
     the Master Issuer to the Noteholders in accordance with the Conditions
     and to the other Issuer Secured Creditors as soon as practicable
     thereafter. So long as any of the Issuer Notes are

                                      43

<PAGE>

     rated by the Rating Agencies, the Master Issuer shall notify the Rating
     Agencies in writing as soon as reasonably practicable thereafter of any
     modification to the provisions of this Deed, the Issuer Notes, the Issuer
     Trust Deed or any of the other Issuer Transaction Documents.[Each of the
     Issuer Secured Creditors agrees from time to time to do and perform such
     other and further acts and execute and deliver any and all such other
     instruments as may be required to carry out and effect the intent and
     purpose of this Clause 19.1 (Modification and Waiver)).]

19.2 Waiver: Subject as expressly provided otherwise in the Issuer Notes or in
     any other Transaction Document, the Issuer Security Trustee may from time
     to time and at any time without the consent or sanction of the
     Noteholders or any other Issuer Secured Creditor and without prejudice to
     its rights in respect of any subsequent breach, but only if and in so far
     as in its opinion the interests of the Issuer Secured Creditors shall not
     be materially prejudiced thereby waive or authorise any breach or
     proposed breach by the Master Issuer or any other party thereto of any of
     the covenants or provisions contained in this Deed or in any of the other
     Transaction Documents PROVIDED ALWAYS THAT the Issuer Security Trustee
     shall not exercise any powers conferred on it by this Clause 17.2
     (Waiver) in contravention of any express direction or request given in
     accordance with Clause 16.9 (Assumption of no Intercompany Loan Default)
     (but so that no such direction or request shall affect any waiver,
     authorisation or determination previously given or made). Any such
     waiver, authorisation or determination:

     (a)  may be given or made on such terms and subject to such conditions
          (if any) as the Issuer Security Trustee may determine;

     (b)  shall be binding on the Noteholders and the other Issuer Secured
          Creditors, if, but only if, the Issuer Security Trustee shall so
          require; and

     (c)  shall be notified by the Master Issuer to the Noteholders in
          accordance with the Conditions and to the other Issuer Secured
          Creditors as soon as practicable thereafter.

20.  Miscellaneous Provisions

20.1 Evidence of Indebtedness: In any action, proceedings or claim relating to
     this Deed or the Issuer Security, a statement as to any amount due to any
     Issuer Secured Creditor or of the Issuer Secured Obligations or any part
     thereof or a statement of any amounts which have been notified to the
     Issuer Security Trustee as being amounts due to any Issuer Secured
     Creditor which is certified as being correct by an officer of the Issuer
     Security Trustee or an officer of the relevant Issuer Secured Creditor
     shall, save in the case of manifest error, be conclusive evidence that
     such amount is in fact due and payable.

20.2 Liability: All the liabilities and obligations of the Master Issuer under
     or by virtue of this Deed shall not be impaired by:

     (a)  any failure of this Deed to be legal, valid, binding and enforceable
          as regards the Master Issuer whether as a result of a lack of
          corporate powers or of directors' authority, defective execution or
          for any other reason whatsoever;

                                      44

<PAGE>

     (b)  any giving of time, forbearance, indulgence or waiver as regards the
          Master Issuer;

     (c)  a discharge or release of the Master Issuer; or

     (d)  any other matter or event whatsoever whether similar to the
          foregoing or not which might have the effect of impairing all or any
          of its liabilities or obligations except proper and valid payment or
          discharge of all Issuer Secured Obligations and amounts whatsoever
          which this Deed provides are to be paid by the Master Issuer or an
          absolute discharge or release of the Master Issuer signed by the
          Issuer Secured Creditors and the Issuer Security Trustee.

20.3 Issuer Secured Creditors: Each Issuer Secured Creditor shall be bound by
     the provisions of this Deed as if it contained covenants by each Issuer
     Secured Creditor in favour of the Issuer Security Trustee and every other
     Issuer Secured Creditor to observe and be bound by all the provisions of
     this Deed expressed to apply to the Issuer Secured Creditors.

21.  Rights cumulative

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

22.  Assignment

     None of the Issuer Secured Creditors may assign, encumber or transfer all
     or any part of its rights or benefits and/or transfer its obligations
     under this Deed without the prior written consent of the Issuer Security
     Trustee.

23. Non Petition Covenant; Corporate Obligations

23.1 [Non Petition: Each of the parties hereto hereby agrees that it shall not
     institute against the Master Issuer any winding-up, administration,
     insolvency or similar proceedings for so long as any sum is outstanding
     under Issuer Notes or for two years plus one day since the last day on
     which any such sum was outstanding provided that the Issuer Security
     Trustee may prove or lodge a claim in the event of a liquidation
     initiated by any other person.]

23.2 Corporate Obligations: To the extent permitted by law, no recourse under
     any obligation, covenant, or agreement of any person contained in this
     Deed shall be had against any shareholder, officer or director of such
     person as such, by the enforcement of any assessment or by any legal
     proceeding, by virtue of any statute or otherwise; it being expressly
     agreed and understood that this Deed is a corporate obligation of each
     person expressed to be a party hereto and no personal liability shall
     attach to or be

                                      45

<PAGE>

     incurred by the shareholders, officers, agents or directors of such
     person as such, or any of them, under or by reason of any of the
     obligations, covenants or agreements of such person contained in this
     Deed, or implied therefrom, and that any and all personal liability for
     breaches by such person of any of such obligations, covenants or
     agreements, either under any applicable law or by statute or
     constitution, of every such shareholder, officer, agent or director is
     hereby expressly waived by each person expressed to be a party hereto as
     a condition of and consideration for the execution of this Deed.

24.  Notices

     Any notices or other communication or document to be given or delivered
     pursuant to this Deed to any of the parties hereto shall be sufficiently
     served if sent by prepaid first class post, by hand or by facsimile
     transmission and shall be deemed to be given (in the case of facsimile
     transmission) when despatched or (where delivered by hand) on the day of
     delivery if delivered before 17.00 hours on a London Business Day or on
     the next London Business Day if delivered thereafter or (in the case of
     first class post) when it would be received in the ordinary course of the
     post and shall be sent:

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

     (b)  in the case of the Note Trustee, to The Bank of New York, 48th
          Floor, One Canada Square, London E14 5AL, attention Corporate Trust
          (Global Structured Finance) (facsimile number 020 7964 6399);

     (c)  in the case of the Issuer Security Trustee, to the Bank of New York,
          48th Floor, One Canada Square, London E14 5AL, attention Corporate
          Trust (Global Structured Finance) (facsimile number 020 7964 6399);

     (d)  in the case of the Principal Paying Agent, the Agent Bank, the
          Registrar, the Transfer Agent or the Account Bank, to Citibank,
          N.A., 5 Carmelite Street, London, EC4Y 0PA;

     (e)  in the case of the Issuer Cash Manager to Northern Rock plc,
          Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
          (facsimile number 0191 213 2203) for the attention of the Group
          Secretary;

     (f)  in the case of the U.S. Paying Agent, to Citibank, N.A., 111 Wall
          Street, 14th Floor, 388 Greenwich Street, New York, N.Y. 10013,
          U.S.A. (facsimile number 212 816 5527) for the attention of Agency
          and Trust;

     (g)  in the case of the Corporate Services Provider, to Law Debenture
          Corporate Services Limited, Fifth Floor, 100 Wood Street, London
          EC2V 7EX (facsimile number 020 7606 0643) for the attention of the
          Company Secretary;

                                      46

<PAGE>

     (h)  in the case of Moody's, to Moody's Investor Services, 1st Floor, 2
          Minster Court, Mincing Lane, London EC3R 7XB (facsimile number 020
          7772 5400) for the attention of Head of Monitoring Group, Structured
          Finance;

     (i)  in the case of S&P, to Standard & Poor's, 20 Canada Square, Canary
          Wharf, London E14 5LH (facsimile number 020 7176 3598) for the
          attention of the Structured Finance Surveillance Group; and

     (j)  in the case of Fitch, to Fitch Ratings Limited, Eldon House, 2 Eldon
          Street, London EC2M 7UA (facsimile number: 020 7417 6262) for the
          attention of European Structured Finance,

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party
     to the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 22 (Notices).

25.  Third Party Rights

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

26.  Execution in Counterparts; Severability

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

26.2 Severability: Where any provision in or obligation under this Deed shall
     be invalid, illegal or unenforceable in any jurisdiction, the validity,
     legality and enforceability of the remaining provisions or obligations
     under this Deed, or of such provision or obligation in any other
     jurisdiction, shall not be affected or impaired thereby.

27.  Governing Law and Jurisdiction; Appropriate Forum

27.1 Governing Law: This Deed is governed by, and shall be construed in
     accordance with, English law.

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

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

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

                                      47

<PAGE>

<TABLE>
<CAPTION>
                                                EXECUTION PAGE

The Master Issuer

<S>                                                        <C>
Executed by
GRANITE MASTER ISSUER PLC
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its                          for and on behalf of LDC
directors and by another of its directors/its                       Securitisation Director No. 1 Limited
secretary                                                           - Director

                                                           Name:___________________________________________

                                                           By:_____________________________________________
                                                                    for and on behalf of LDC
                                                                    Securitisation Director No. 2 Limited
                                                                    - Director

                                                           Name:___________________________________________

The Note Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The Issuer Security Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

                                                        48

<PAGE>

The Principal Paying Agent, the Agent Bank, the
Registrar, the Transfer Agent, and the Account
Bank

Executed by
CITIBANK, N.A.
as follows:                                                By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The US Paying Agent

Executed by
CITIBANK, N.A.
as follows:                                                By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duty Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The Issuer Cash Manager

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duty Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

Signature:_____________________________________
             Witness

                                                        49

<PAGE>

Full Name:__________________________________
Occupation: Solicitor
            --------------------------------
Address:    c/o Sidley Austin Brown &
            -------------------------
Wood
----
            Woolgate Exchange
            --------------------------------
            25 Basinghall Street
            --------------------------------
            London EC2V 5HA
            --------------------------------

The Corporate Service Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED                                           By:_____________________________________________
as its deed as follows:                                    Director
Signed for and on its behalf by one of its
directors and by another of its directors/its              Name:___________________________________________
secretary

                                                           By:_____________________________________________
                                                                    Director/Secretary

                                                           Name:___________________________________________
</TABLE>

                                                        50

<PAGE>

                                  SCHEDULE 1

                      FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on [o] by Granite Master Issuer plc (registered
number 5250668) a private limited liability company incorporated under the
laws of England and Wales whose registered office is at Fifth Floor, 100 Wood
Street, London EC2V 7EX (the "Principal").

WHEREAS

(1)  By virtue of a Deed (as amended, varied, supplemented or novated from
     time to time the "Issuer Deed of Charge") dated [o] January 2005 between
     Granite Master Issuer plc, The Bank of New York as Issuer Security
     Trustee and others, provision was made for the execution by the Principal
     of this Power of Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed
     to the contrary) have the same meanings respectively as the words and
     phrases in the Issuer Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Issuer Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Issuer Deed of Charge and the other Issuer Transaction
     Documents to which the Principal is a party from time to time appoints
     The Bank of New York and any other person or persons for the time being
     the Issuer Security Trustee or Issuer Security Trustees of and under the
     Issuer Deed of Charge (the "Attorney") and each and every person to whom
     the Issuer Security Trustee shall from time to time have delegated the
     exercise of the power of attorney conferred by this Power of Attorney
     (each a "Delegate") and any receiver including any administrative
     receiver and any manager (the "Receiver") and/or administrator (the
     "Administrator") appointed from time to time by the Attorney or on its
     behalf its true and lawful attorney for and in the Principal's name or
     otherwise jointly and severally to sign, seal, execute, deliver, perfect
     and do any assurance, act, matter or thing which the Attorney, Delegate,
     Receiver or Administrator considers in each case to be necessary for the
     protection or preservation of the Attorney's and the Issuer Secured
     Creditors' interests and rights (as described in the Issuer Deed of
     Charge) in and to the Issuer Charged Property or which ought to be done
     by the Principal under the covenants, undertakings and provisions
     contained in the Issuer Deed of Charge and the other Issuer Transaction
     Documents to which the Principal is a party from time to time and
     generally to in its name and on its behalf to exercise all or any of the
     powers, authorities or discretions conferred by or pursuant to the Issuer
     Deed of Charge on the Issuer Security Trustee and/or any Receiver whether
     on or at any time after the security has become enforceable in accordance
     with Clause 7.2 (Enforceable) of the Issuer Deed of Charge or in any
     other circumstances where the Attorney has become entitled to take any of
     the steps referred to in the Issuer Deed of Charge including (without
     limitation) any or all of the following:

                                      51

<PAGE>

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Issuer Charged Property and/or fully and
          effectively vesting, transferring or assigning the Issuer Charged
          Property or any part thereof and/or the Principal's estate, right,
          title, benefit and/or interest therein or thereto in or to the
          Attorney and its successors in title or other person or persons
          entitled to the benefit thereof or for carrying into effect any
          other dealing with the Issuer Charged Property whatsoever permitted
          under the Issuer Deed of Charge in the same manner and as fully and
          effectively as the Principal could have done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Issuer Deed of Charge)
          from time to time to appoint a substitute attorney (each a
          "Substitute") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney
          by this Power of Attorney and/or to revoke any such appointment at
          any time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or
     Administrator and/or Substitute, or a person dealing with any of them and
     the successors and assigns of such a person, all acts properly done and
     documents executed or signed by the Attorney, a Delegate, a Receiver, an
     Administrator or a Substitute in the purported exercise of any power
     conferred by this Power of Attorney shall for all purposes be valid and
     binding on the Principal and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or
     Substitute appointed from time to time by the Attorney and their
     respective estates (each an "Indemnified Party") against all actions,
     proceedings, claims, costs, expenses and liabilities of every description
     arising from the exercise, or the purported exercise, of any of the
     powers conferred by this Power of Attorney, save where the same arises as
     the result of the fraud, negligence or wilful default of the relevant
     Indemnified Party or its officers or employees.

4.   The provisions of Clause 3 (Issuer Security) of the Issuer Deed of Charge
     shall continue in force after the revocation or termination, howsoever
     arising, of this Power of Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and
     the interpretation thereof and to all acts of the Attorney and each
     Delegate, Receiver and/or Administrator and/or Substitute carried out or
     purported to be carried out under the terms hereof.

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any
     Delegate, Receiver or Administrator or Substitute shall properly and
     lawfully do or cause to be done in and concerning the Issuer Charged
     Property.

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

                                      52

<PAGE>

EXECUTED AS A DEED by                                )

GRANITE MASTER ISSUER PLC                            )

acting by:                                           )

Director

Name:

Title:

Director/Secretary

Name:

Title:

                                      53

<PAGE>

                                  SCHEDULE 2

                          ISSUER PRIORITY OF PAYMENTS

1.   Priority of Payments for Issuer Available Revenue Receipts Prior to
     Enforcement of the Issuer Security

     Issuer Available Revenue Receipts will be applied, as applicable:

     (a)  on each Payment Date; or

     (b)  on each day when due in respect of amounts due to third parties
          pursuant to paragraph (C) below,

     in each case prior to the enforcement of the Issuer Security pursuant to
     the Issuer Deed of Charge or until such time as there are no Issuer
     Secured Obligations outstanding, in making such payments and provisions
     in the following order of priority (in each case only if and to the
     extent that payments or provisions of a higher priority have been made in
     full) (the "Issuer Pre-Enforcement Revenue Priority of Payments"):

     (A)  first, in no order of priority among them but in proportion to the
          respective amounts due, to pay amounts due to the Note Trustee and
          the Issuer Security Trustee, together with interest and (to the
          extent not already inclusive) VAT on those amounts, and to provide
          for any amounts due or to become due during the following Interest
          Period to the Note Trustee or the Issuer Security Trustee, as
          applicable, under the Issuer Trust Deed, the Issuer Deed of Charge
          or any other Transaction Document;

     (B)  second, in no order of priority among them but in proportion to the
          respective amounts due, to pay amounts due to the Agent Bank, the
          Paying Agents, the Transfer Agent and the Registrar together with
          interest and (to the extent not already inclusive) VAT on those
          amounts, and to provide for any costs, charges, liabilities and
          expenses due or to become due during the following interest period
          to the Agent Bank, the Paying Agents, the Transfer Agent and the
          Registrar, under the Issuer Paying Agent and Agent Bank Agreement;

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

     (D)  fourth, in no order or priority among them but in proportion to the
          respective amounts due, to pay amounts due to the Issuer Cash
          Manager under the Issuer Cash Management Agreement, the Corporate
          Services Provider under the

                                      54

<PAGE>

          Corporate Services Agreement and the Issuer Account Bank under the
          Issuer Bank Account Agreement together with (to the extent not
          already inclusive) VAT on those amounts, and to provide for any
          amounts due, or to become due in the immediately succeeding Interest
          Period, to the Issuer Cash Manager under the Issuer Cash Management
          Agreement, to the Corporate Services Provider under the Corporate
          Services Agreement and to the Issuer Account Bank under the Issuer
          Bank Account Agreement;

     (E)  fifth, from amounts (excluding principal) received by the Master
          Issuer from Funding 2 in respect of each AAA Loan Tranche (and, in
          respect of (ii) below, the amounts (if any), excluding principal,
          received from the Issuer Swap Provider(s) under the Issuer Swap
          Agreement(s) in respect of the related Series and Class of Issuer
          Notes):

          (i)  to pay the amounts due and payable to the relevant Issuer Swap
               Provider(s) (if any) in respect of the related Series of Class
               A Notes (including any termination payment but excluding any
               Issuer Swap Excluded Termination Amount) in accordance with the
               terms of the relevant Issuer Swap Agreement(s);

          (ii) to pay interest due and payable on the related Series of Class
               A Notes;

     (F)  sixth, from amounts (excluding principal) received by the Master
          Issuer from Funding 2 in respect of each AA Loan Tranche (and, in
          respect of (ii) below, the amounts (if any), excluding principal,
          received from the Issuer Swap Provider(s) under the Issuer Swap
          Agreement(s) in respect of the related Series and Class of Issuer
          Notes):

          (i)  to pay the amounts due and payable to the relevant Issuer Swap
               Provider(s) (if any) in respect of the related Series of Class
               B Notes (including any termination payment but excluding any
               Issuer Swap Excluded Termination Amount) in accordance with the
               terms of the relevant Issuer Swap Agreement(s);

          (ii) to pay interest due and payable on the related Series of Class
               B Notes;

     (G)  seventh, from amounts (excluding principal) received by the Master
          Issuer from Funding 2 in respect of each A Loan Tranche (and, in
          respect of (ii) below, the amounts, excluding principal, received
          from the Issuer Swap Provider(s) under the Issuer Swap Agreement(s)
          in respect of the related Series and Class of Notes):

          (i)  to pay the amounts due and payable to the relevant Issuer Swap
               Provider(s) (if any) in respect of the related Series of Class
               M Notes (including any termination payment but excluding any
               Issuer Swap Excluded Termination Amount) in accordance with the
               terms of the relevant Issuer Swap Agreement(s);

          (ii) to pay interest due and payable on the related Series of Class
               M Notes;

                                      55

<PAGE>

     (H)  eighth, from amounts (excluding principal) received by the Master
          Issuer from Funding 2 in respect of each BBB Loan Tranche (and, in
          respect of (ii) below, the amounts, excluding principal, received
          from the Issuer Swap Provider(s) under the Issuer Swap Agreement(s)
          in respect of the related Series and Class of Issuer Notes):

          (i)  to pay the amounts due and payable to the relevant Issuer Swap
               Provider(s) (if any) in respect of the related Series of Class
               C Notes (including any termination payment but excluding any
               Issuer Swap Excluded Termination Amount) in accordance with the
               terms of the relevant Issuer Swap Agreement(s);

          (ii) to pay interest due and payable on the related Series of Class
               C Notes;

     (I)  ninth, from amounts (excluding principal) received by the Master
          Issuer From Funding 2 in respect of each BB Loan Tranche (and, in
          respect of (ii) below, the amounts (if any), excluding principal,
          received from the Issuer Swap Provider(s) under the Issuer Swap
          Agreement(s) in respect of the related Series and Class of Issuer
          Notes):

          (i)  to pay the amounts due and payable to the relevant Issuer Swap
               Provider(s) (if any) in respect of the related Series of Class
               D Notes (I including any termination payment but excluding any
               Issuer Swap Excluded Termination Amount) in accordance with the
               terms of the relevant Issuer Swap Agreement(s);

          (ii) to pay interest due and payable on the related Series of Class
               D Notes;

     (J)  tenth, after taking account of any replenishment of the Issuer
          Reserve Fund on that Payment Date from Issuer Available Principal
          Receipts, to credit the Issuer Reserve Ledger up to an amount no
          less than the Issuer Reserve Required Amount;

     (K)  eleventh, in no order of priority among them but in proportion to
          the respective amounts due, towards payment of:

          (i)  interest amounts due to the Start-Up Loan Provider(s); and

          (ii) principal amounts due to the Start-Up Loan Provider(s) to the
               extent of issuance fees received from Funding 2 under the
               Global Intercompany Loan Agreement);

     (L)  twelfth, in no order of priority among them but in proportion to the
          respective amounts due, to pay any Issuer Swap Excluded Termination
          Payments to the Issuer Swap Providers;

     (M)  thirteenth, in no order of priority among them but in proportion to
          the respective amounts due, towards payment of principal amounts due
          to the Start-Up Loan Provider(s) under the Start-Up Loan
          Agreement(s); and

     (N)  last, to pay to the Master Issuer an amount equal to 0.01% per annum
          of the interest received under the Global Intercompany Loan, which
          will be retained

                                      56

<PAGE>

          by the Master Issuer as profit, less corporation tax in respect of
          those profits provided for or paid at item (C) above.

2.   Distribution of Issuer Available Principal Receipts Prior to Enforcement
     of the Issuer Security

     Prior to enforcement of the Issuer Security pursuant to the Issuer Deed
     of Charge, or until such time as there are no Issuer Notes outstanding,
     Issuer Available Principal Receipts will be applied in the following
     manner (the "Issuer Pre-Enforcement Principal Priority of Payments"):

     (A)  to the extent that monies have been drawn from the Issuer Reserve
          Fund to make Issuer Reserve Principal Payments, towards the
          replenishment of the Issuer Reserve Fund up to the Issuer Reserve
          Required Amount, such amount to be debited to the Sub-Ledger(s) of
          the Series and Class(es) of Issuer Notes in respect of which such
          Issuer Reserve Principal Payments were made;

     (B)  In respect of the Class A Notes, from principal amounts received by
          the Master Issuer from Funding 2 in respect of each AAA Loan Tranche
          (and, in respect of (ii) below, the principal amounts received (if
          any) from the Issuer Swap Provider(s) under the relevant Issuer Swap
          Agreement(s)):

          (i)  to pay amounts due and payable (in respect of principal) on
               such Payment Date to the relevant Issuer Swap Provider(s) in
               respect of the related Series of Class A Notes in accordance
               with the terms of the relevant Issuer Swap Agreement(s); and

          (ii) to pay amounts due and payable (in respect of principal) on
               such Payment Date on the related Series of Class A Notes;

     (C)  In respect of the Class B Notes, from principal amounts received by
          the Master Issuer from Funding 2 in respect of each AA Loan Tranche
          (and, in respect of (ii) below, the principal amounts received (if
          any) from the Issuer Swap Provider(s) under the relevant Issuer Swap
          Agreement(s)):

          (i)  to pay amounts due and payable (in respect of principal) on
               such Payment Date to the relevant Issuer Swap Provider(s) in
               respect of the related Series of Class B Notes in accordance
               with the terms of the relevant Issuer Swap Agreement(s); and

          (ii) to pay amounts due and payable on such Payment Date on the
               related Series of Class B Notes;

     (D)  In respect of the Class M Notes, from principal amounts received by
          the Master Issuer from Funding 2 in respect of each A Loan Tranche
          (and, in respect of (ii) below, the principal amounts received (if
          any) from the Issuer Swap Provider(s) under the relevant Issuer Swap
          Agreement(s)):

          (i)  to pay amounts due and payable (in respect of principal) on
               such Payment Date to the relevant Issuer Swap Provider(s) in
               respect of the related Series of Class M Notes in accordance
               with the terms of the relevant Issuer Swap Agreement(s); and

                                      57

<PAGE>

          (ii) to pay amounts due and payable (in respect of principal) on
               such Payment Date on the related Series of Class M Notes;

     (E)  In respect of the Class C Notes, from principal amounts received by
          the Master Issuer from Funding 2 in respect of each BBB Loan Tranche
          (and, in respect of (ii) below, the principal amounts received (if
          any) from the Issuer Swap Provider(s) under the relevant Issuer Swap
          Agreement(s)):

          (i)  to pay amounts due and payable (in respect of principal) on
               such Payment Date to the relevant Issuer Swap Provider(s) in
               respect of the related Series of Class C Notes in accordance
               with the terms of the relevant Issuer Swap Agreement(s); and

          (ii) to pay amounts due and payable (in respect of principal) on
               such Payment Date on the related Series of Class C Notes;

     (F)  In respect of the Class D Notes, from principal amounts received by
          the Master Issuer from Funding 2 in respect of each BB Loan Tranche
          (and, in respect of (ii) below, the principal amounts received (if
          any) from the Issuer Swap Provider(s) under the relevant Issuer Swap
          Agreement(s)):

          (i)  to pay amounts due and payable (in respect of principal) on
               such Payment Date to the relevant Issuer Swap Provider(s) in
               respect of the related Series of Class D Notes in accordance
               with the terms of the relevant Issuer Swap Agreement(s); and

          (ii) to pay amounts due and payable (in respect of Principal) on
               such Payment Date on the related Series of Class D Notes.

3.   Distribution of Issuer Available Principal Receipts and Issuer Available
     Revenue Receipts Following Enforcement of the Issuer Security

     Following enforcement of the Issuer Security, on each Payment Date the
     Issuer Security Trustee (or the Issuer Cash Manager on its behalf) will
     apply amounts received or recovered as follows:

     (A)  first, in no order of priority among them but in proportion to the
          amounts due to pay amounts due to the Note Trustee and the Issuer
          Security Trustee (and any Receiver appointed by the Issuer Security
          Trustee) together with the interest and VAT on those amounts and to
          provide for any amounts then due or to become due and payable to the
          Note Trustee and the Issuer Security Trustee, and the Receiver under
          the provisions of the Issuer Trust Deed, the Issuer Deed of Charge
          and any other Transaction Document;

     (B)  second, to pay, in no order of priority among them but in proportion
          to the respective amounts due, the Agent Bank, the Paying Agents,
          the Transfer Agent and the Registrar, together with interest and VAT
          on those amounts and to provide for any costs, charges, liabilities
          and expenses then due or to become due and payable to them under the
          provisions of the Paying Agent and Agent Bank Agreement;

                                      58

<PAGE>

     (C)  third, in no order of priority among them but in proportion to the
          respective amounts due, towards payment of amounts (together with
          VAT on those amounts) due and payable to the Issuer Cash Manager
          under the Issuer Cash Management Agreement, to the Corporate
          Services Provider under the Corporate Services Agreement and to the
          Issuer Account Bank under the Issuer Bank Account Agreement;

     (D)  fourth, subject to item (E) below, in no order of priority among
          them but in proportion to the respective amounts due, to pay amounts
          due to the Issuer Swap Providers for each Series of Class A Notes
          (including any termination payment but excluding any Issuer Swap
          Excluded Termination Amount);

     (E)  fifth, in no order of priority among them but in proportion to the
          respective amounts due, to pay interest due or overdue on, and to
          repay principal of, the applicable series of Class A Notes provided
          that if the amounts available for distribution under this item (E)
          (on the assumption that no amounts are due and payable under item
          (D) and no amounts are received from any Issuer Swap Provider) would
          be insufficient to pay the Sterling Equivalent of the amounts due
          and payable on the Class A Notes, the shortfall shall be divided
          amongst all Class A Notes on a pro rata basis and the amount payable
          by the Master Issuer to the Issuer Swap Provider in respect of any
          Series of Class A Notes under paragraph (D) above shall be reduced
          by the amount of the shortfall applicable to that Series of Class A
          Notes;

     (F)  sixth, subject to item (G) below, in no order of priority among them
          but in proportion to the respective amounts due, to pay amounts due
          to the Issuer Swap Providers for each Series of Class B Notes
          (including any termination payment but excluding any Issuer Swap
          Excluded Termination Amount);

     (G)  seventh, in no order of priority among them but in proportion to the
          respective amounts due, to pay interest due or overdue on, and to
          repay principal of, the applicable Series of Class B Notes provided
          that if the amounts available for distribution under this item (G)
          (on the assumption that no amounts are due and payable under item
          (F) and no amounts are received from any Issuer Swap Provider) would
          be insufficient to pay the Sterling Equivalent of the amounts due
          and payable on the Class B Notes, the shortfall shall be divided
          amongst all Class B Notes on a pro rata basis and the amount payable
          by the Master Issuer to the Issuer Swap Provider in respect of the
          any Series Class B Notes of under paragraph (F) above shall be
          reduced by the amount of the shortfall applicable to that Series of
          Class B Notes;

     (H)  eighth, subject to item (I) below, in no order of priority among
          them but in proportion to the respective amounts due, to pay amounts
          due to the Issuer Swap Providers for each Series of Class M Notes
          (including any termination payment but excluding any Issuer Swap
          Excluded Termination Amount);

     (I)  ninth, in no order of priority among them but in proportion to the
          respective amounts due, to pay interest due or overdue on, and to
          repay principal of, the applicable Series of Class M Notes provided
          that if the amounts available for distribution under this item (I)
          (on the assumption that no amounts are due and payable under item
          (H) and no amounts are received from any Issuer Swap

                                      59

<PAGE>

          Provider) would be insufficient to pay the Sterling Equivalent of
          the amounts due and payable on the Class M Notes, the shortfall
          shall be divided amongst all Class M Notes on a pro rata basis and
          the amount payable by the Master Issuer to the Issuer Swap Provider
          in respect of any Series of Class M Notes under paragraph (H) above
          shall be reduced by the amount of the shortfall applicable to that
          Series of Class M Notes;

     (J)  tenth, subject to item (K) below, in no order of priority among them
          but in proportion to the respective amounts due, to pay amounts due
          to the Issuer Swap Providers for each Series of Class C Notes
          (including any termination payment but excluding any Issuer Swap
          Excluded Termination Amount);

     (K)  eleventh, in no order of priority among them but in proportion to
          the respective amounts due, to pay interest due or overdue on, and
          to repay principal of, the applicable Series of Class C Notes
          provided that if the amounts available for distribution under this
          item (K) (on the assumption that no amounts are due and payable
          under item (J) and no amounts are received from any Issuer Swap
          Provider) would be insufficient to pay the Sterling Equivalent of
          the amounts due and payable on the Class C Notes, the shortfall
          shall be divided amongst all Class C Notes on a pro rata basis and
          the amount payable by the Master Issuer to the Issuer Swap Provider
          in respect of any Series of Class C Notes under paragraph (J) above
          shall be reduced by the amount of the shortfall applicable to that
          Series of Class C Notes;

     (L)  twelfth, subject to item (M) below, in no order of priority among
          them but in proportion to the respective amounts due, to pay amounts
          due to the Issuer Swap Providers for each Series of Class D Notes
          (including any termination payment but excluding any Issuer Swap
          Excluded Termination Amount);

     (M)  thirteenth, in no order of priority among them but in proportion to
          the respective amounts due, to pay interest due or overdue on, and
          to repay principal of, the applicable Series of Class D Notes
          provided that if the amounts available for distribution under this
          item (M) (on the assumption that no amounts are due and payable
          under item (K) and no amounts are received from any Issuer Swap
          Provider) would be insufficient to pay the Sterling Equivalent of
          the amounts due and payable on the Class D Notes, the shortfall
          shall be divided amongst all Class D Notes on a pro rata basis and
          the amount payable by the Master Issuer to the Issuer Swap Provider
          in respect of any Series of Class D Notes under paragraph (K) above
          shall be reduced by the amount of the shortfall applicable to that
          Series of Class D Notes;

     (N)  fourteenth, on the Payment Date falling in December of each year, to
          pay to the Issuer Account Bank an amount equal to the amount of any
          debit balance in the Issuer Transaction Account as permitted by the
          Issuer Account Bank and outstanding at such Payment Date;

     (O)  fifteenth, in no order of priority among them but in proportion to
          the respective amounts due, towards payment of:

          (i)  interest amounts due to the Start-Up Loan Provider(s); and

                                      60

<PAGE>

          (ii) principal amounts due to the Start-Up Loan Provider(s) to the
               extent of issuance fees received from Funding 2 under the
               Global Intercompany Loan Agreement);

          under the Start-Up Loan Agreement(s);

     (P)  sixteenth, in no order of priority among them but in proportion to
          the respective amounts due, to pay any Issuer Swap Excluded
          Termination Payments to the Issuer Swap Providers;

     (Q)  seventeenth, in no order of priority among them but in proportion to
          the respective amounts due, towards payment of principal amounts due
          to the Start-Up Loan Provider(s) under the Start-Up Loan Agreements;

     (R)  last, to pay any amount remaining following the application of
          principal and revenue set forth in items (A) through (Q) above, to
          the Master Issuer.

                                      61

<PAGE>

                                  SCHEDULE 3

                         FORM OF NOTICE OF ASSIGNMENT

To:      [Addressee(s)]

Granite Master Issuer plc - Assignment of rights under Issuer Transaction
Documents

                                                                           [o]

Dear Sirs,

Terms and expressions used in this letter are as defined in a deed of charge
(the "Issuer Deed of Charge") between Granite Master Issuer plc (the "Master
Issuer"), The Bank of New York (the "Issuer Security Trustee") and others
dated [o].

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Issuer Deed of Charge, the Master Issuer has assigned
absolutely, by way of security for the payment and performance of certain
obligations of the Master Issuer described in the Issuer Deed of Charge (the
"Issuer Secured Obligations"), to the Issuer Security Trustee all its right,
title, benefit and interest under the [Agreement(s)] (the "Issuer Transaction
Documents") including its right, title interest and benefit in relation to
[describe property] and including, without limitation, all rights to receive
payment of any amounts which may become payable to the Master Issuer
thereunder, all payments received by the Master Issuer thereunder, all rights
to serve notices and/or make demands thereunder and/or to take such steps as
are required to cause payments to become due and payable thereunder and all
rights of action in respect of any breach thereof and all rights to receive
damages or obtain relief in respect thereof and the proceeds of any of the
foregoing, (hereinafter called "Relevant Issuer Property").

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (a)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to the Master Issuer under
          the aforesaid agreements to or to the order of the Issuer Security
          Trustee; and

     (b)  you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Issuer Property.

                                      62

<PAGE>

Notwithstanding the assignments made by the Master Issuer and referred to in
this notice, the Issuer Security Trustee hereby confirms and you further
acknowledge that:

     (a)  you may continue to make all payments becoming due to the Master
          Issuer in respect of the Relevant Issuer Property in the manner
          envisaged by the relevant Issuer Transaction Document(s); and

     (b)  the Master Issuer shall be entitled to exercise its rights, powers
          and discretions and perform its obligations in relation to the
          Relevant Issuer Property and under the Issuer Transaction Documents
          in accordance with the provisions of the Issuer Transaction
          Documents,

but only until such time as you receive notice from the Issuer Security
Trustee to the contrary or to the effect that the security created under the
Issuer Deed of Charge has become enforceable, in which event from receipt of
such notice you agree that you will pay all monies becoming due and payable to
the Master Issuer in respect of the Relevant Issuer Property in accordance
with any instructions received from the Issuer Security Trustee.

This letter is governed by, and shall be construed in accordance with, English
law.

Please acknowledge receipt of this notice by executing and returning the copy
of this letter attached hereto.

Yours faithfully,

EXECUTED for and on behalf of           )

GRANITE MASTER ISSUER PLC               )

by:                                     )

Authorised Signatory

Name:

Title:

                                      63

<PAGE>

EXECUTED for and on behalf of           )

THE BANK OF NEW YORK                    )

by:                                     )

Authorised Signatory

Name:

Title:

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Issuer Property.

In respect of the [Agreement]:

For and on behalf of                    )

[Party to Issuer Transaction Document]  )

by:                                     )

Authorised Signatory

Name:

Title:

                                      64

<PAGE>

                                  SCHEDULE 4

                              ISSUER RESERVE FUND

1.   Utilisation of Issuer Reserves

1.1  Prior to enforcement of the Issuer Security, amounts standing to the
     credit of the Issuer Reserve Fund may be utilised:

     (a)  through inclusion in the calculation of Issuer Available Reserve
          Receipts, to help meet any deficit in Issuer Available Revenue
          Receipts;

     (b)  to help meet expenses in connection with the issue of Issuer Notes
          by the Master Issuer; and

     (c)  through inclusion in the calculation of Issuer Available Principal
          Receipts, to help meet any deficit:

          (i)  prior to the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Redemption Notes (which are Class A Notes); and

          (ii) on or after the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Redemption Notes (which are Class A Notes) on their respective
               Final Maturity Dates.

1.2  Following enforcement of the Issuer Security, to the extent not applied
     on a Payment Date in accordance with paragraph 1 above, amounts standing
     to the credit of the Issuer Reserve Ledger shall only be applied in
     making payments of principal due under the Issuer Notes on any Payment
     Date.

2.   Adjustment of Issuer Reserves

     The  Master Issuer may adjust:

     (a)  the Issuer Reserve Minimum Amount or the method of computing the
          Issuer Reserve Minimum Amount, at any time without the consent of
          any Issuer Secured Creditors, so long as it has an opinion of
          counsel that for US federal income tax purposes:

          (i)  the change will not adversely affect the tax characterisation
               as debt of any outstanding Series and Class of Issuer Notes
               that were characterised as debt at the time of their issuance;

          (ii) following the change, the Master Issuer will not be treated as
               an association, or publicly traded partnership, taxable as a
               corporation; and

          (iii) such change will not cause or constitute an event in which
               gain or loss would be recognised by any holder of such Issuer
               Notes;

                                      65

<PAGE>

     (b)  the Programme Reserve Required Percentage or the method of computing
          the Programme Reserve Required Amount, at any time without the
          consent of any Issuer Secured Creditors, so long as we obtain
          confirmation from the Rating Agencies that such adjustments will not
          cause a reduction, qualification or withdrawal of the ratings of any
          outstanding Issuer Notes.

                                      66

<PAGE>

                                  SCHEDULE 5

                         FORM OF ACCESSION UNDERTAKING

THIS DEED is made on [o]

BETWEEN:

(1)  GRANITE MASTER ISSUER PLC (registered number 5250668) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as Master
     Issuer;

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at 48th Floor, One Canada Square, London E14 5AL, United
     Kingdom, in its capacity as (1) Issuer Security Trustee and (2) Note
     Trustee;

(3)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as (1) Principal Paying Agent, (2) Agent Bank,
     (3) Registrar, (4) Transfer Agent and (5) Account Bank;

(4)  CITIBANK, N.A., acting through its office at 111 Wall Street, 14th Floor,
     388 Greenwich Street, New York, N.Y. 10013, U.S.A., in its capacity as US
     Paying Agent;

(5)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as (1) Issuer Cash Manager, (2) Issuer GIC Provider and (3)
     Start-Up Loan Provider; and

(6)  LAW DEBENTURE CORPORATE SERVICES LIMITED (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
     7EX as the Corporate Services Provider; and

(7)  [o] (in its capacity as [o], the "New Issuer Secured Creditor".

NOW THIS DEED WITNESSES AS FOLLOWS

WHEREAS

(A)  Pursuant to the terms of [description of agreement] (the "Agreement")
     dated [o] made between the Master Issuer and the New Secured Creditor,
     the Master Issuer has agreed to [description of nature of obligations of
     the Master Issuer under the Agreement].

(B)  The Master Issuer has agreed to provide the Issuer Security Trustee with
     the benefit of the security described in the Issuer Deed of Charge to
     secure the Master Issuer's obligations to the Issuer Secured Creditors.

                                      67

<PAGE>

(C)  The terms of the Issuer Deed of Charge permit the Master Issuer to secure
     its obligations to a New Secured Creditor thereunder.

(D)  The New Secured Creditor has agreed to enter into this Deed to accede to
     the provisions of the Issuer Deed of Charge.

(E)  The Issuer Secured Creditors have agreed to enter into this Deed to,
     inter alia, acknowledge and agree to such accession and to permit any
     consequential changes to the Issuer Priority of Payments set out in the
     Issuer Deed of Charge as are required and any other amendment as may be
     required to give effect to this Accession Undertaking.

1.   INTERPRETATION

     The Master Definitions Schedule as amended and restated by (and appearing
     as Appendix 1 to) the Master Definitions Schedule [o]th Deed of Amendment
     made on [o] between others, the Seller, Funding, [Funding 2] and the
     Mortgages Trustee (as the same may have been and may be amended, varied
     or supplemented from time to time with the consent of the parties hereto)
     are expressly and specifically incorporated into and shall apply to this
     Deed.

2.   REPRESENTATIONS AND WARRANTIES

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

     (a)  pursuant to the terms of the Agreement, the Master Issuer has agreed
          to pay to the New Secured Creditor the amount (if any) [description
          in relation to the Agreement]; and

     (b)  the Agreement expressly provides that all amounts due from the
          Master Issuer thereunder are to be secured by the Issuer Deed of
          Charge.

2.2  The Master Issuer hereby represents and warrants to the Issuer Security
     Trustee that each of the Issuer Secured Creditors that as at the date of
     this Deed, the conditions to issuing further Issuer Notes set out in the
     Programme Agreement are satisfied;

3.   ACCESSION

     In consideration of the New Secured Creditor being accepted as an Issuer
     Secured Creditor for the purposes of the Issuer Deed of Charge by the
     parties thereto as form the date of this Deed, the New Secured Creditor:

     (a)  confirms that as from [o], it intends to be a party to the Issuer
          Deed of Charge as an Issuer Secured Creditor;

     (b)  undertakes to comply with and be bound by all of the provisions of
          the Master Definitions Schedule as amended and restated by (and
          appearing as Appendix 1 to) the Master Definitions Schedule [o]th
          Deed of Amendment (as the same

                                      68

<PAGE>

          may have been and may be amended, varied or supplemented from time
          to time) and the Issuer Deed of Charge in its capacity as an Issuer
          Secured Creditor, as if it had been an original party thereto.

     (c)  undertakes to perform, comply with and be bound by all of the
          provisions of the Issuer Deed of Charge in its capacity as a Issuer
          Secured Creditor, as if it had been an original party thereto as
          provided in [relevant clauses relating to Issuer Priority of
          Payment]; and

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

4.   SCOPE OF THE DEED OF CHARGE

     The Master Issuer, the New Secured Creditor and the Issuer Security
     Trustee hereby agree that for the relevant purposes under the Issuer Deed
     of Charge and the Master Definitions Schedule as amended and restated by
     (and appearing as Appendix 1 to) the Master Definitions Schedule [o]th
     Deed of Amendment:

     (a)  the Agreement shall be treated as an Issuer [Transaction Document];
          and

     (b)  the New Secured Creditor shall be treated as an Issuer Secured
          Creditor.

5.   AMENDMENT TO THE ISSUER PRIORITY OF PAYMENTS

     To the extent necessary, the Issuer Secured Creditors agree to amend and
     restate the Issuer Priority of Payments set out in this Deed.

6.   APPLICATION

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

7.   NOTICES

     Any notice or communication under or in connection with this Deed, the
     Issuer Deed of Charge or the Master Definitions Schedule shall be given
     in the manner and at the times set out in Clause 22 (Notices) of the
     Issuer Deed of Charge to the addresses given in this Clause or at such
     other address as the recipient may have notified to the other parties
     hereto and/or thereto in writing.

     The address referred to in this Clause 7 for the New Secured Creditor is:

     [o]

     For the attention of: [o]
     Telephone: [o]
     Facsimile: [o]

                                      69

<PAGE>

     or such other address and/or numbers as the New Secured Creditor may
     notify to the parties to the Deed of Charge in accordance with the
     provisions thereof.

8.   GOVERNING LAW

     This Deed is governed by, and shall be construed in accordance with,
     English law.

DULY EXECUTED AND DELIVERED AS A DEED by each of the parties hereto on its
behalf on the date appearing on page 1.

New Secured Creditor
<TABLE>
<CAPTION>

<S>                                                        <C>
Executed by
[o]
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its                          Director
directors and by another of its directors/its
secretary

                                                           Name:___________________________________________

                                                           By:_____________________________________________
                                                                    Director/Secretary

                                                           Name:___________________________________________

The Master Issuer

Executed by
GRANITE MASTER ISSUER PLC
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its                          for and on behalf of LDC
directors and by another of its directors/its                       Securitisation Director No. 1 Limited
secretary                                                           - Director

                                                           Name:___________________________________________

                                                           By:_____________________________________________
                                                                    for and on behalf of LDC
                                                                    Securitisation Director No. 2 Limited
                                                                    - Director

                                                           Name:___________________________________________

                                      70

<PAGE>

The Note Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The Issuer Security Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The Principal Paying Agent, the Agent Bank, the
Registrar, the Transfer Agent, and the Account
Bank

Executed by
CITIBANK, N.A.
as follows:                                                By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

                                           71

<PAGE>

The US Paying Agent

Executed by
CITIBANK, N.A.
as follows:                                                By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duty Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

The Issuer Cash Manager

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                    By:_____________________________________________
Signed for and on its behalf by one of its duly                     Duty Authorised Attorney/Signatory
authorised attorneys/signatories

                                                           Name:___________________________________________

Signature:_____________________________________
             Witness

Full Name:__________________________________
Occupation: Solicitor
            --------------------------------
Address:    c/o Sidley Austin Brown &
            -------------------------
Wood
----
            Woolgate Exchange
            --------------------------------
            25 Basinghall Street
            --------------------------------
            London EC2V 5HA
            --------------------------------

The Corporate Service Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED                                           By:_____________________________________________
as its deed as follows:                                    Director
Signed for and on its behalf by one of its
directors and by another of its directors/its              Name:___________________________________________
secretary

                                                           By:_____________________________________________
                                                                    Director/Secretary

                                                           Name:___________________________________________

</TABLE>

                                                        72Exhibit 4.5.1

                                Dated [o] 2005

                       GRANITE FINANCE FUNDING 2 LIMITED

                             THE BANK OF NEW YORK
                         as Funding 2 Security Trustee

                                    - and -

                                    OTHERS

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

                           FUNDING 2 DEED OF CHARGE

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

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

                               Table of Contents

                                                                        Page No.

1.  Interpretation.............................................................2

2.  Covenant to Pay and to Perform.............................................3

3.  Security...................................................................3

4.  Release of  Charged Property...............................................8

5.  Declaration of Trust.......................................................9

6.  Restrictions on Exercise of Certain Rights.................................9

7.  Enforcement...............................................................13

8.  Upon Enforcement..........................................................16

9.  Receiver..................................................................19

10. Further Assurance and Power of Attorney...................................24

11. Crystallisation...........................................................25

12. Provisions relating to the Security.......................................26

13. Protection of Third Parties...............................................28

14. Set-Off...................................................................28

15. Representations and Covenants.............................................29

16. Terms of Appointment......................................................32

17. Modification and Waiver...................................................44

18. Remuneration of the Funding 2 Security Trustee............................45

19. Appointment, Removal and Retirement of Funding 2 Security Trustee.........47

20. Miscellaneous Provisions..................................................49

21. Rights cumulative.........................................................50

22. Assignment................................................................50

23. Non Petition Covenant; Corporate Obligations..............................50

24. Notices...................................................................51

25. Third Party Rights........................................................52

26. Execution in Counterparts; Severability...................................52

                                      i

<PAGE>

                               Table of Contents ctd

                                                                        Page No.

27. Governing Law and Submission to Jurisdiction..............................53

SCHEDULE 1  FORM OF SECURITY POWER OF ATTORNEY................................58

SCHEDULE 2  FORM OF DEED OF ACCESSION.........................................61

SCHEDULE 3  FUNDING 2 PRIORITY OF PAYMENTS  Part I  Funding 2 Pre-
     Enforcement Revenue Priority of Payments.................................72

Part II  Funding 2 Pre-Enforcement Principal Priority of Payments.............76

Part III  Funding 2 Post-Enforcement Priority of Payments.....................85

SCHEDULE 4  FORM OF NOTICE OF ASSIGNMENT......................................87

SCHEDULE 5  UTILISATION OF FUNDING 2 RESERVES.................................89

                                      ii

<PAGE>

THIS FUNDING 2 DEED OF CHARGE is made on [o] 2005

BETWEEN:

(1)  GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387), a private
     limited company incorporated under the laws of England and Wales whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at 48th Floor, One Canada Square, London E14 5AL, in its
     capacity as (1) Funding 2 Security Trustee and (2) Issuer Security
     Trustee to the Master Issuer;

(3)  GRANITE MASTER ISSUER PLC (registered number 5250668), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

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

(5)  NORTHERN ROCK PLC (registered number 03273685), a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as (1) Cash Manager (2) Funding 2 GIC Provider (3) Funding 2
     Basis Rate Swap Provider and (4) Account Bank; and

(6)  LAW DEBENTURE CORPORATE SERVICES LIMITED, a private limited company
     incorporated under the laws of England and Wales whose registered office
     is Fifth Floor, 100 Wood Street, London, EC2V 7EX, in its capacity as
     Corporate Services Provider; and

WHEREAS:

(A)  Pursuant to the terms of the Mortgage Sale Agreement, the Seller has
     assigned the Initial Mortgage Portfolio and New Mortgage Portfolios to
     the Mortgages Trustee and may, from time to time, assign further New
     Mortgage Portfolios to the Mortgages Trustee upon and subject to the
     terms thereof. Such property assigned to the Mortgages Trustee forms part
     of the Trust Property.

(B)  Pursuant to the terms of the Mortgages Trust Deed, the Mortgages Trustee
     holds the Trust Property upon trust for the Seller, Funding and Funding
     2. Pursuant to the terms of the Mortgages Trust Deed, each of Funding and
     Funding 2 may make Contributions to the Mortgages Trustee as
     consideration for its share of the Trust Property.

(C)  Pursuant to the terms of the Global Intercompany Loan Agreement, the
     Master Issuer has agreed to make Loan Tranches available to Funding 2
     upon and subject to the terms thereof.

(D)  The Cash Manager has agreed to provide certain cash management services
     to Funding 2 on the terms set out in the Cash Management Agreement.

<PAGE>

(E)  The Account Bank has agreed to provide certain banking services to
     Funding 2 on the terms set out in the Funding 2 Bank Account Agreement.

(F)  The Funding 2 GIC Provider has agreed to provide certain guaranteed
     investment services to Funding 2 on the terms set out in the Funding 2
     Guaranteed Investment Contract.

(G)  The Corporate Services Provider has agreed to provide certain corporate
     services to Funding 2 pursuant to the terms set out in the Corporate
     Services Agreement.

(H)  The Funding 2 Basis Rate Swap Provider has agreed to enter into four
     interest rate swap transactions pursuant to the terms of the Funding 2
     Basis Rate Swap Agreement.

(I)  Funding 2 has agreed to provide the Funding 2 Security Trustee with the
     benefit of the security described in this Funding 2 Deed of Charge to
     secure Funding 2's obligations under the Funding 2 Transaction Documents,
     upon and subject to the terms hereof. The Funding 2 Security Trustee
     shall hold such security on trust for the benefit of the Funding 2
     Secured Creditors.

NOW THIS DEED WITNESSES AS FOLLOWS:

1.   Interpretation

1.1  Definitions: The provisions of the Programme Master Definitions Schedule
     signed for the purposes of notification by Sidley Austin Brown & Wood and
     Allen & Overy LLP on [o] 2005 (as the same have been and may be amended,
     varied or supplemented from time to time with the consent of the parties
     hereto) are expressly and specifically incorporated into and shall apply
     to this Deed.

1.2  Construction: In this Deed, except where the context otherwise requires:

     (a)  the terms of the Global Intercompany Loan Agreement, the Master
          Definitions Schedule and of any agreement in existence at the date
          hereof between the parties hereto in relation to any such documents
          are incorporated in this Deed to the extent required to ensure that
          any proposed disposition of the Funding 2 Charged Property contained
          in this Deed is a valid disposition in accordance with Section 2(1)
          of the Law of Property (Miscellaneous Provisions) Act 1989;

     (b)  a reference in this Deed to any property, assets, undertakings or
          rights includes, unless the context otherwise requires, present and
          future property, assets, undertakings or rights;

     (c)  "this Funding 2 Deed of Charge", "this Deed of Charge" or "this
          Deed" means this Funding 2 Deed of Charge and all the Schedules
          hereto (as from time to time modified and/or supplemented in
          accordance with the provisions set out herein) and all Deeds of
          Accession entered into pursuant to this Deed and each other document
          or deed entered into pursuant hereto (as from time to time
          modified/and or supplemented as aforesaid) and expressed to be
          supplemental hereto.

                                      2

<PAGE>

2.   Covenant to Pay and to Perform

     Subject to the provisions of the Funding 2 Transaction Documents, Funding
     2 covenants with and undertakes to the Funding 2 Security Trustee for
     itself and as trustee for the Funding 2 Secured Creditors that it will:

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether
          before or after demand) become due and payable by Funding 2 to the
          Funding 2 Security Trustee (whether for its own account or as
          trustee for the Funding 2 Secured Creditors) or to any of the other
          Funding 2 Secured Creditors, whether actually or contingently, under
          the Funding 2 Transaction Documents; and

     (b)  observe, perform and satisfy all its other obligations and
          liabilities under the Funding 2 Transaction Documents,

     PROVIDED THAT every payment in respect of any Funding 2 Transaction
     Document made to the relevant Funding 2 Secured Creditor in the manner
     provided in such Funding 2 Transaction Document shall operate in
     satisfaction pro tanto of the relevant covenant by Funding 2 in this
     Clause 2 (Covenant to Pay and Perform).

3.   Security

3.1  Trust Property:

     Funding 2, by way of first fixed security for the payment or discharge of
     the Funding 2 Secured Obligations, subject to Clause 4 (Release of
     Charged Property), hereby charges and assigns to the Funding 2 Security
     Trustee all of its right, title, benefit and interest, present and
     future, in, to and under the Funding 2 Share of the Trust Property
     (including, without limitation, all Scottish Trust Property, present and
     future, comprised in the Trust Property), including all rights to receive
     payment of any amounts which may become payable to Funding 2 thereunder
     and all payments received by Funding 2 thereunder (including, without
     limitation, all rights to serve notices and/or make demands thereunder
     and/or to take such steps as are required to cause payments to become due
     and payable thereunder and all rights of action in respect of any breach
     thereof and all rights to receive damages or obtain relief in respect
     thereof) and the proceeds of any of the foregoing, TO HOLD the same unto
     the Funding 2 Security Trustee absolutely.

3.2  Contractual rights:

     Funding 2, by way of first fixed security for the payment or discharge of
     the Funding 2 Secured Obligations, subject to Clause 4 (Release of
     Funding 2 Charged Property), hereby assigns to the Funding 2 Security
     Trustee all of its right, title, benefit and interest, present and
     future, in, to and under the Funding 2 Transaction Documents (other than
     this Deed and provided that the assignment of the right, title, benefit
     and interest of Funding 2 under the Funding 2 Basis Rate Swap Agreement
     shall be subject to the rights of set-off and netting provided therein)
     including, without limitation, all rights to receive payment of any
     amounts which may become payable to Funding 2 thereunder and all payments
     received by Funding 2 thereunder, all rights to serve notices and/or make
     demands thereunder and/or to take such steps as are

                                      3

<PAGE>

     required to cause payments to become due and payable thereunder and all
     rights of action in respect of any breach thereof and all rights to
     receive damages or obtain relief in respect thereof and the proceeds of
     any of the foregoing, TO HOLD the same unto the Funding 2 Security
     Trustee absolutely.

3.3  Accounts: Funding 2, by way of first fixed security for the payment or
     discharge of the Funding 2 Secured Obligations, subject to Clause 4
     (Release of Charged Property), hereby charges in favour of the Funding 2
     Security Trustee all of its rights, title, benefit and interest, present
     and future, in:

     (a)  each Funding 2 Bank Account;

     (b)  any Funding 2 Swap Collateral Account; and

     (c)  each other account (if any) in which Funding 2 may at any time have
          or acquire any right, title, benefit or interest,

     and to all monies now or at any time hereafter standing to the credit
     thereof and the debts represented by them together with all rights and
     claims relating or attached thereto, including, without limitation, the
     right to interest and the proceeds of any of the foregoing, TO HOLD the
     same unto the Funding 2 Security Trustee absolutely.

3.4  Authorised Investments and Swap Collateral: Funding 2, by way of first
     fixed security for the payment or discharge of the Funding 2 Secured
     Obligations, subject to Clause 4 (Release of Charged Property), hereby
     charges to the Funding 2 Security Trustee all of its right, title,
     benefit and interest, present and future in, to and under

     (a)  any Authorised Investment purchased using monies standing to the
          credit of any Funding 2 Bank Account; and

     (b)  any Swap Collateral in the form of securities,

     for the time being owned by it and all rights in respect of or ancillary
     to such Authorised Investments and Swap Collateral, including the right
     to income and the proceeds of any of the foregoing, TO HOLD the same unto
     the Funding 2 Security Trustee absolutely.

3.5  Floating Charge: Funding 2, by way of first floating security for the
     payment or discharge of the Funding 2 Secured Obligations, subject to
     Clause 4 (Release of Charged Property), hereby charges by way of first
     floating charge in favour of the Funding 2 Security Trustee the whole of
     its undertaking and all its property, assets and rights, whatsoever and
     wheresoever, both present and future other than any property or assets
     from time to time or for the time being the subject of a fixed charge or
     effectively assigned by way of security pursuant to any of the foregoing
     provisions of this Clause 3 (Security) and/or any Deed of Accession (but
     excluding from the foregoing exception all undertaking, property, assets
     and rights of Funding 2, present and future, situated in Scotland or the
     rights to which are governed by the laws of Scotland, all of which are
     charged by the floating charge hereby created).

3.6  Title Guarantee: Each of the dispositions of or charges over property
     effected in or pursuant to this Deed is made with full title guarantee
     (or, in relation to assets or rights situated in or governed by the laws
     of Scotland, with absolute warrandice).

                                      4

<PAGE>

3.7  Further Acquired Items: For the avoidance of doubt, it is hereby
     confirmed that the Security Interests created under or pursuant to
     Clauses 3.1 (Trust Property) through Clause 3.4 (Authorised Investments
     and Swap Collateral) (inclusive) and/or any Deed of Accession are
     intended to be specific and fixed assignments by way of security of, or
     specific and fixed charges over (as the case may be) the property and
     assets to which they relate, both present and future, including property
     and assets which are acquired after the date hereof.

3.8  No Transfer of Obligations: Notwithstanding anything else in this Deed,
     it is hereby agreed that dispositions of property effected in or pursuant
     to this Deed do not transfer obligations, and nothing herein or in any
     Deed of Accession shall be construed as a transfer of obligations to, the
     Funding 2 Security Trustee.

3.9  Notice and Acknowledgement:

     (a)  The execution of this Deed and/or any Deed of Accession by each
          Funding 2 Secured Creditor shall constitute express notice to such
          Funding 2 Secured Creditor of the assignments, charges and Security
          Interests made by Funding 2 pursuant to this Deed;

     (b)  By its execution of this Deed and/or a Deed of Accession, each
          Funding 2 Secured Creditor acknowledges that it has notice of and
          consents to the Funding 2 Security and also acknowledges that as at
          the date hereof it has not received from any other person any notice
          of any assignment or charge of any of the Funding 2 Charged
          Property.

     (c)  Funding 2 hereby intimates and gives notice to the Mortgages Trustee
          as trustee under and in terms of the Mortgages Trust Deed of the
          assignations in security made in terms of Clause 3.1 (Trust
          Property) and Clause 3.2 (Contractual rights), and the Mortgages
          Trustee by its execution of this Deed as such trustee immediately
          subsequent to the execution hereof by Funding 2 confirms that as at
          the date hereof it has received no intimation of any other dealing
          with the Funding 2 Share of the Trust Property or any part thereof
          or the Funding 2 Transaction Documents except in accordance with the
          terms of the Funding 2 Transaction Documents.

     (d)  Notwithstanding the Funding 2 Security and subject as provided
          otherwise in this Deed, each of the parties hereto acknowledges
          that:

          (i)  each Funding 2 Secured Creditor and each other party to any
               Funding 2 Transaction Document may continue to make all
               payments becoming due to Funding 2 under any Funding 2
               Transaction Document in the manner provided in such Funding 2
               Transaction Document until the receipt of written notice from
               the Funding 2 Security Trustee or any Receiver requiring
               payments to be made otherwise; and

          (ii) [until the Funding 2 Security becomes enforceable in accordance
               with Clause 7.2 (Enforceable), Funding 2 shall be entitled to
               exercise its rights, powers and discretions and perform its
               obligations in relation to the Funding 2 Charged Property and
               under the Funding 2 Transaction

                                      5

<PAGE>

               Documents in accordance with the provisions of the Funding 2
               Transaction Documents.]

3.10 Funding 2 Security Trustee's Discretion in relation to Funding 2 Charged
     Property: Without prejudice to any other rights of the Funding 2 Security
     Trustee after the Funding 2 Security has become enforceable and subject
     to the terms of the Funding 2 Transaction Documents, the Funding 2
     Security Trustee may at any time after any part or parts of the Funding 2
     Security have become enforceable:

     (a)  enter into, make, execute, sign, deliver and do all such contracts,
          agreements, deeds, receipts, payments, assignments, assignations,
          transfers, conveyances, assurances and things and bring, prosecute,
          enforce, defend and abandon all such actions, suits and proceedings
          in relation to the Funding 2 Charged Property as it may think
          expedient;

     (b)  exercise or refrain from exercising, in such manner as in its
          absolute discretion the Funding 2 Security Trustee shall think fit,
          all or any of the rights, powers, authorities discretions or
          remedies of Funding 2 under or in relation to the Funding 2 Charged
          Property or incidental to the ownership thereof and, in particular
          but without limiting the generality of the foregoing, exercise all
          rights to vote or to give any consent or notification or make any
          declaration in relation to such Funding 2 Charged Property. For the
          avoidance of doubt, the Funding 2 Security Trustee shall not be
          required to have regard to the interests of Funding 2 in the
          exercise or non-exercise of any such rights, powers, authorities,
          discretions and remedies or to comply with any direction given by
          Funding 2 in relation thereto; and

     (c)  demand, sue for and take any advice or institute any proceedings to
          recover or obtain payment of any amounts which may then be due and
          payable to Funding 2 but which remains unpaid under or in respect of
          the Funding 2 Charged Property or any part thereof either in its own
          name or in the name of Funding 2.

3.11 New Intercompany Loan: At any time after the Funding 2 Programme Date,
     Funding 2 may, with the prior written consent of the Funding 2 Security
     Trustee and subject to the following conditions, enter into another
     Funding 2 Intercompany Loan Agreement with a new Funding 2 Issuer:

     (a)  each of the Rating Agencies has confirmed in writing to the Funding
          2 Security Trustee that any funding arrangements entered into by the
          applicable Funding 2 Issuer will not cause the current ratings by
          the Rating Agencies of the existing Notes of any Funding 2 Issuer to
          be reduced, withdrawn or qualified;

     (b)  no Funding 2 Intercompany Loan Event of Default is continuing or
          unwaived at the relevant drawdown date;

     (c)  there is no debit balance on any Principal Deficiency Ledger as at
          the relevant drawdown date;

                                      6

<PAGE>

     (d)  Funding 2 has entered into, as required by the Rating Agencies or
          otherwise, any additional agreements (including any new bank account
          agreement, any basis rate swap agreement and/or any guaranteed
          investment contract, if required, in relation to the applicable
          Funding 2 Intercompany Loan Agreement and the Funding 2 Issuer;

     (e)  any other relevant creditors, as determined by the Funding 2
          Security Trustee, shall have acceded to the terms of this Deed by
          executing a Deed of Accession; and

     (f)  Funding 2 shall have provided confirmation to the parties to this
          Deed that the Note Trustee in respect of the Notes to be issued by
          the new Funding 2 Issuer and the Issuer Security Trustee in respect
          of the security to be granted by such Funding 2 Issuer over its
          assets shall be the same legal entity as the existing Note
          Trustee(s) and Issuer Security Trustee(s) at the time of the
          issuance of such Notes;

     Each other party to this Deed agrees that it shall enter into the
     relevant Deed of Accession required under sub-clause (e) above.

3.12 Bridging Arrangements: At any time after the Funding 2 Program Date,
     Funding 2 may, with the prior written consent of the Funding 2 Security
     Trustee enter into Bridging Arrangements with, amongst others, Funding,
     subject to the following conditions:

     (a)  each of the Rating Agencies has confirmed in writing that such
          Bridge Arrangements will not cause the current ratings by the Rating
          Agencies of the existing Notes of any Funding 2 Issuer to be
          reduced, withdrawn or qualified;

     (b)  no Funding 2 Intercompany Loan Event of Default is continuing or
          unwaived at the relevant drawdown date;

     (c)  there is no debit balance on any Principal Deficiency Ledger as at
          the relevant drawdown date;

     (d)  any other relevant creditors as determined by the Funding 2 Security
          Trustee, shall have acceded to the terms of this Deed by executing a
          Deed of Accession; and

     (e)  Funding 2 has entered into, as required by the Rating Agencies or
          otherwise, any additional agreements (including any new bank account
          agreement, any basis rate swap agreement and/or any guaranteed
          investment contract, if required, in relation to the Bridge
          Arrangements;

     (f)  [other].

     Each other party to this Deed agrees that it shall enter into any Deed of
     Accession required under sub-clause (d) above.

                                      7

<PAGE>

4.   Release of Charged Property

4.1  Release, Reassignment or Discharge: Upon the irrevocable and
     unconditional payment in full or discharge (or any combination of the
     foregoing) of all the Funding 2 Secured Obligations and upon the Funding
     2 Security Trustee being satisfied that Funding 2 is under no further
     actual or contingent obligation under this Deed or any other Funding 2
     Transaction Document, the Funding 2 Security Trustee shall at the request
     and cost of Funding 2 release, reassign and/or discharge from the Funding
     2 Security all of the relevant Funding 2 Charged Property to, or to the
     order of, Funding 2.

4.2  Disposal of Authorised Investments and Swap Collateral: On the making at
     any time by the Cash Manager on behalf of Funding 2 or the Funding 2
     Security Trustee of a disposal of any Authorised Investment or Swap
     Collateral charged pursuant to this Deed, the Funding 2 Security Trustee
     shall, if so requested by the Cash Manager (and at the sole cost and
     expense of Funding 2), but without the Funding 2 Security Trustee being
     responsible for any loss, costs, claims or liabilities whatsoever
     occasioned by so acting upon such request, release, reassign or discharge
     from the Funding 2 Security the relevant Authorised Investments or Swap
     Collateral provided that in the case of a disposal of an Authorised
     Investment, the proceeds of such disposal are paid by Funding 2 into the
     Funding 2 Bank Account(s) from which the monies to make such Authorised
     Investment were originally drawn, and that, in the case of a disposal of
     Swap Collateral, the proceeds of such disposal are paid by Funding 2 into
     the relevant Funding 2 Swap Collateral Account or Funding 2 Bank Account
     (as appropriate in accordance with the Cash Management Agreement and the
     Funding 2 Basic Rate Swap Agreement) subject to and in accordance with
     the provisions of this Deed and the other Funding 2 Transaction
     Documents.

4.3  Trust Property: On the purchase or repurchase (as applicable) by the
     Seller from the Mortgages Trustee of any Mortgage Loan together with its
     Related Security pursuant to and in accordance with the terms of the
     Mortgage Sale Agreement, such Mortgage Loan and its Related Security
     shall no longer form part of the Trust Property (or, in the case of any
     Scottish Mortgage Loan and its Related Security, the Scottish Trust
     Property in accordance with Clause 9 (Termination of Trust) of the
     relevant Scottish Trust Deed) and shall automatically be released and
     retrocessed from any Security Interest created under or pursuant to this
     Deed in respect of the Funding 2 Share of the Trust Property.

4.4  Withdrawals from Funding 2 Bank Accounts and Funding 2 Swap Collateral
     Accounts: Subject to and in accordance with this Deed and the other
     Funding 2 Transaction Documents, the Cash Manager, on behalf of Funding 2
     and the Funding 2 Security Trustee, is permitted pursuant to Clause 6
     (Restrictions on Exercise of Certain Rights) from time to time to
     withdraw amounts from the Funding 2 Bank Accounts in order to apply such
     amounts in accordance with the relevant Funding 2 Priority of Payments
     or, in the case of the Funding 2 Swap Collateral Accounts, to apply in
     accordance with the terms of the Cash Management Agreement and the
     Funding 2 Basis Rate Swap Agreement. Any amount so withdrawn shall be
     released from the Funding 2 Security provided that such amount is applied
     in accordance with and subject to the relevant Funding 2 Priority of
     Payments or, in the case of any amount withdrawn from the Funding 2 Swap
     Collateral Accounts, the Cash Management Agreement and the Funding 2
     Basis Rate Swap Agreement.

                                      8

<PAGE>

5.   Declaration of Trust

     Each of the Funding 2 Secured Creditors declares the Funding 2 Security
     Trustee as trustee of, and the Funding 2 Security Trustee hereby declares
     that it holds on trust for the Funding 2 Secured Creditors, upon and
     subject to the terms and conditions of this Deed, all of the covenants,
     undertakings and representations made to the Funding 2 Security Trustee
     under this Deed and the other Funding 2 Transaction Documents and all of
     the charges, assignments, security and Security Interests made or given
     to the Funding 2 Security Trustee or to be made or given to it for the
     purpose of securing the Funding 2 Secured Obligations under or pursuant
     to this Deed and the other Funding 2 Transaction Documents.

6.   Restrictions on Exercise of Certain Rights

6.1  Funding 2 Bank Accounts and Funding 2 Swap Collateral Accounts: At all
     times prior to the release, reassignment, retrocession or discharge of
     the Funding 2 Security pursuant to Clause 4 (Release of Charged
     Property):

     (a)  save as otherwise provided in the Funding 2 Transaction Documents or
          unless the Funding 2 Security Trustee otherwise agrees in writing
          (and then only on such terms and in such manner as the Funding 2
          Security Trustee may require), Funding 2 shall procure that:

          (i)  any distribution of Mortgages Trustee Available Revenue
               Receipts to Funding 2 and any distribution of Principal
               Receipts to Funding 2 pursuant to the Mortgages Trust is
               deposited into the Funding 2 GIC Account;

          (ii) all Swap Collateral delivered to Funding 2 (if any) pursuant to
               the Funding 2 Basis Rate Swap Agreement is deposited into a
               Funding 2 Swap Collateral Account;

         (iii) all proceeds from a Loan Tranche which are to be applied in
               repayment of another Loan Tranche are, pending such repayment,
               deposited into the Funding 2 GIC account; and

          (iv) all other income of Funding 2 (if any) is deposited into the
               Funding 2 GIC Account;

     (b)  save as otherwise expressly permitted in the Funding 2 Transaction
          Documents, Funding 2 shall not be entitled to withdraw or transfer
          from any Funding 2 Bank Account or any Funding 2 Swap Collateral
          Account any monies or securities standing to the credit thereof or
          direct any payment or transfer to be made therefrom to any person
          without the Funding 2 Security Trustee's prior written consent.

6.2  Permitted Withdrawals from Funding 2 Bank Accounts and Funding 2 Swap
     Collateral Accounts; Authorised Investments:

     (a)  Funding 2 covenants with the Funding 2 Security Trustee that the
          amounts standing to the credit of the Funding 2 Bank Accounts and
          any Swap Collateral standing to the credit of the Funding 2 Swap
          Collateral Accounts

                                      9

<PAGE>

          may only be withdrawn in accordance with this Clause 6.2 (Permitted
          Withdrawals from Funding 2 Bank Accounts and Funding 2 Swap
          Collateral Accounts; Authorised Investments).

     (b)  On any day during an Interest Period prior to the Funding 2 Security
          becoming enforceable pursuant to Clause 7.2 (Enforceable), the
          Funding 2 Security Trustee hereby authorises the Cash Manager to
          transfer such monies from the Funding 2 GIC Account to the Funding 2
          Transaction Account as are to be applied on such date to meet any
          amounts then due and payable by Funding 2 to third parties in
          accordance with item (C) of the Funding 2 Pre-Enforcement Revenue
          Priority of Payments and further authorises the Cash Manager to
          withdraw such amounts from the Funding 2 Transaction Account on such
          date to apply such monies in making such payments on behalf of
          Funding 2. For the purpose of this paragraph (b), the remaining
          provisions of this Clause 6.2 (Permitted Withdrawals from Funding 2
          Bank Accounts; Authorised Investments), Clause 6.3 (Funding 2
          Pre-Enforcement Revenue Priority of Payments) and Clause 6.4
          (Funding 2 Pre-Enforcement Principal Priority of Payments), the Cash
          Manager shall be entitled to assume that the Funding 2 Security is
          not enforceable pursuant to Clause 7.2 (Enforceable) unless it has
          received notice from Funding 2 or the Funding 2 Security Trustee or
          is otherwise aware that the Funding 2 Security has become so
          enforceable and shall not be liable to the Funding 2 Security
          Trustee, Funding 2 or any other Funding 2 Secured Creditor for
          making payments based on this assumption.

     (c)  On each Payment Date, prior to the Funding 2 Security becoming
          enforceable pursuant to Clause 7.2 (Enforceable), the Funding 2
          Security Trustee hereby authorises the Cash Manager to transfer from
          the Funding 2 GIC Account to the Funding 2 Transaction Account such
          amounts of Funding 2 Available Revenue Receipts as may be necessary
          on such date to be applied to meet Funding 2's payment obligations
          in accordance with the Funding 2 Pre-Enforcement Revenue Priority of
          Payments (as the same may be amended or varied from time to time).

     (d)  On each Payment Date, prior to the Funding 2 Security becoming
          enforceable pursuant to Clause 7.2 (Enforceable), the Funding 2
          Security Trustee hereby authorises the Cash Manager to transfer from
          the Funding 2 GIC Account to the Funding 2 Transaction Account such
          amounts of Funding 2 Available Principal Receipts as may be
          necessary on such date to be applied to meet Funding 2's payment
          obligations in accordance with the Funding 2 Pre-Enforcement
          Principal Priority of Payments (as the same may be amended or varied
          from time to time).

     (e)  The Funding 2 Security Trustee hereby authorises the Cash Manager,
          prior to the Funding 2 Security becoming enforceable pursuant to
          Clause 7.2 (Enforceable), to make withdrawals from:

          (i)  the relevant Funding 2 Bank Accounts for the purposes of
               acquiring Authorised Investments provided that all amounts
               received in respect of the Authorised Investments (including
               earnings thereon) shall be deposited into the relevant Funding
               2 Bank Account from which they were originally drawn; and

                                      10

<PAGE>

          (ii) the relevant Funding 2 Swap Collateral Account for the purpose
               of (A) returning Swap Collateral to the Funding 2 Basis Rate
               Swap Provider pursuant to the terms of the Funding 2 Basis Rate
               Swap Agreement or (B) transferring Swap Collateral to the
               Funding 2 Transaction Account pursuant to the terms of the
               Funding 2 Basis Rate Swap Agreement and the Cash Management
               Agreement.

6.3  Funding 2 Pre-Enforcement Revenue Priority of Payments: On each Payment
     Date prior to the Funding 2 Security becoming enforceable pursuant to
     Clause 7.2 (Enforceable), the Funding 2 Security Trustee hereby
     authorises Funding 2 or the Cash Manager in its place to withdraw Funding
     2 Available Revenue Receipts from the Funding 2 Transaction Account and
     to apply such monies in accordance with the rules and the order of
     priority of the Funding 2 Pre-Enforcement Revenue Priority of Payments.

6.4  Funding 2 Pre-Enforcement Principal Priority of Payments: On each Payment
     Date prior to the Funding 2 Security becoming enforceable pursuant to
     Clause 7.2 (Enforceable), the Funding 2 Security Trustee hereby
     authorises Funding 2 or the Cash Manager on its behalf to make
     withdrawals of Funding 2 Available Principal Receipts standing to the
     credit of the Funding 2 Transaction Account and to apply such monies to
     repay principal due and payable by Funding 2 under each Funding 2
     Intercompany Loan Agreement or otherwise in accordance with the rules and
     the order of priority of the Funding 2 Pre-Enforcement Principal Priority
     of Payments.

6.5  Amendment to Funding 2 Priority of Payments: On the making available of
     any Loan Tranches by the Master Issuer to Funding 2 or if any other
     Funding 2 Intercompany Loans are made available by another Funding 2
     Issuer to Funding 2 in accordance with the terms of the Funding 2
     Transaction Documents or if Funding 2 enters into any Bridging
     Arrangements], if any amendment to the Funding 2 Priority of Payments is
     required as a result thereof, then, subject to the parties to this Deed
     agreeing the necessary amendments to the priority of payments, the
     parties to this Deed, together with any person entering into a Deed of
     Accession, shall set out the new Funding 2 Priority of Payments
     accordingly in a schedule to that Deed of Accession. The new Funding 2
     Priority of Payments so amended shall supersede those set out in Schedule
     3 (Funding 2 Priority of Payments) to this Deed.

6.6  No Enforcement against Issuers: Each party to this Deed undertakes to
     each Funding 2 Issuer and each of the Funding 2 Secured Creditors
     (including the Funding 2 Security Trustee in its capacity as such under
     this Deed) that it shall not:

     (a)  take any steps or pursue any action whatsoever for the purpose of
          recovering any debts or amounts due or owing to it by any Funding 2
          Issuer; or

     (b)  take any steps or legal proceedings for the winding-up, dissolution
          or reorganisation of, or the institution of insolvency proceedings
          against, any Funding 2 Issuer or for the appointment of a receiver,
          administrator, liquidator or similar officer of any Funding 2 Issuer
          in respect of any or all of its revenues and assets.

                                      11

<PAGE>

6.7  No Enforcement by Funding 2 Secured Creditors and Limited Recourse: Each
     of the Funding 2 Secured Creditors (other than the Funding 2 Security
     Trustee and any Receiver) hereby agrees with Funding 2 and the Funding 2
     Security Trustee that:

     (a)  only the Funding 2 Security Trustee may enforce the Funding 2
          Security in accordance with the provisions hereof;

     (b)  notwithstanding any other provision of this Deed or any other
          Funding 2 Transaction Document, no sum due or owing to any Funding 2
          Secured Creditor or to the Funding 2 Security Trustee (whether for
          itself or on behalf of the Funding 2 Secured Creditors) from or by
          Funding 2 under this Deed or any other Funding 2 Transaction
          Document shall be payable by Funding 2 except to the extent that
          Funding 2 has sufficient funds available or (following enforcement
          of the Funding 2 Security) the Funding 2 Security Trustee has
          realised sufficient funds from the Funding 2 Security to pay such
          sum subject to and in accordance with the relevant Funding 2
          Priority of Payments and provided that all liabilities of Funding 2
          required to be paid in priority thereto or pari passu therewith
          pursuant to such Funding 2 Priority of Payments have been paid,
          discharged and/or otherwise provided for in full; and

     (c)  it shall not take any steps for the purpose of recovering any of the
          Funding 2 Secured Obligations (including, without limitation, by
          exercising any rights of set-off) or enforcing any rights arising
          out of the Funding 2 Transaction Documents against Funding 2 and it
          shall not take any steps or legal proceedings for the winding-up,
          dissolution or reorganisation of, or the institution of insolvency
          proceedings against, Funding 2 or for the appointment of a receiver,
          administrator, liquidator or similar officer of Funding 2 in respect
          of any or all of its revenues and assets,

     PROVIDED THAT if the Funding 2 Security Trustee having become bound to do
     so subject to and in accordance with the terms of this Deed and the other
     Funding 2 Transaction Documents, fails to serve a Funding 2 Intercompany
     Loan Enforcement Notice and/or, to take any steps or proceedings to
     enforce the Funding 2 Security within 30 days of becoming so bound and
     such failure is continuing, then (for so long as any Funding 2
     Intercompany Loan is outstanding) the applicable Issuer Security
     Trustee(s) (or in the event of the failure of the applicable Issuer
     Security Trustee(s)) [the applicable Funding 2 Issuer(s)] or (if there
     are no Funding 2 Intercompany Loans outstanding) any other Funding 2
     Secured Creditor shall be entitled to take such steps and proceedings to
     enforce the Funding 2 Security as it shall deem necessary other than the
     presentation of a petition for or making an application for the winding
     up, dissolution or reorganisation of, or the institution of insolvency
     proceedings against, Funding 2 or the appointment of an administrator or
     liquidator of Funding 2.

6.8  Acknowledgement of Funding 2 Security Trustee: The Funding 2 Security
     Trustee hereby acknowledges and agrees that notwithstanding any other
     provision of this Deed or any other Funding 2 Transaction Document, no
     sum due or owing to any Funding 2 Secured Creditor or to the Funding 2
     Security Trustee (whether for itself or on behalf of the Funding 2
     Secured Creditors) from or by Funding 2 under this Deed or any other
     Funding 2 Transaction Document shall be payable by Funding 2 except to
     the extent that Funding 2 has sufficient funds available or (following
     enforcement of the Funding 2 Security) the Funding 2 Security Trustee has
     realised sufficient

                                      12

<PAGE>

     funds from the Funding 2 Security to pay such sum subject to and in
     accordance with the relevant Funding 2 Priority of Payments and provided
     that all liabilities of Funding 2 required to be paid in priority thereto
     or pari passu therewith pursuant to such Funding 2 Priority of Payments
     have been paid, discharged and/or otherwise provided for in full.

6.9  Utilisation of Funding 2 Reserves: Funding 2 and the Cash Manager shall
     procure that, subject to and in accordance with the Funding 2 Priority of
     Payments, amounts standing to the credit of the Funding 2 Reserve Ledger
     or the Funding 2 Liquidity Reserve Ledger (if any) shall only be debited
     for the purposes as specified in Schedule 5 (Utilisation of Funding 2
     Reserves).

6.10 Adjustment of Funding 2 Reserves: The Funding 2 Reserve Maximum Amount,
     the Target Reserve Required Amount and the Target Reserve Required
     Percentage may be as specified in paragraph 3 of Schedule 5 (Utilisation
     of Funding 2 Reserves).

7.   Enforcement

7.1  Notification: The Funding 2 Security Trustee shall, if reasonably
     practicable, give prior notification to the Seller, the Cash Manager and
     each Funding 2 Secured Creditor of the Funding 2 Security Trustee's
     intention to enforce the Funding 2 Security. However, the failure of the
     Funding 2 Security Trustee to provide such notification shall not in any
     way prejudice the ability of the Funding 2 Security Trustee to enforce
     the Funding 2 Security.

7.2  Enforceable:

     Without prejudice to the provisions of Clause 9 (Receiver) the Funding 2
     Security shall become immediately enforceable and the power of sale and
     other powers conferred by Section 101 of the 1925 Act, as varied or
     amended by this Deed, shall be exercisable by the Funding 2 Security
     Trustee, in each case at any time:

     (a)  upon the service on Funding 2 by the Funding 2 Security Trustee of a
          Funding 2 Intercompany Loan Enforcement Notice; or

     (b)  if there are no Funding 2 Intercompany Loans outstanding, following
          a default in payment of any other Funding 2 Secured Obligation on
          its due date or within any applicable grace period following such
          due date stated in the relevant Funding 2 Transaction Document but
          subject always to any limited recourse provisions stated therein and
          to Clause 6.7 (No Enforcement by Funding 2 Secured Creditors and
          Limited Recourse) hereof.

7.3  Power of Sale:

     (a)  Notwithstanding any other provision of this Deed, the Funding 2
          Secured Obligations shall be deemed to have become due and payable
          for the purposes of Section 101 of the 1925 Act, and (to the extent
          applicable) the statutory power of sale and of appointing a receiver
          and other powers which are conferred on mortgagees under the 1925
          Act as varied or extended by this Deed shall be deemed to arise
          immediately after execution of this Deed.

                                      13

<PAGE>

     (b)  Section 103 of the 1925 Act shall not apply to this Deed and
          forthwith after the Funding 2 Security has become enforceable in
          accordance with Clause 7.2 (Enforceable) the statutory power of
          sale, as extended by this Deed, and all other powers shall become
          immediately exercisable without notice to Funding 2 and the
          provisions of the 1925 Act regulating the power of sale shall, so
          far as they relate to the Funding 2 Charged Property, be varied and
          extended accordingly.

7.4  Discretionary Enforcement: Subject to the provisions of this Deed, the
     Funding 2 Security Trustee may at any time, at its discretion and without
     notice, take such proceedings and/or other action as it may think fit
     against, or in relation to, Funding 2 or any other party to any of the
     Funding 2 Transaction Documents to enforce their obligations under any of
     the Funding 2 Transaction Documents. Subject to the provisions of this
     Deed, at any time after the Funding 2 Security has become enforceable in
     accordance with Clause 7.2 (Enforceable), the Funding 2 Security Trustee
     may, at its discretion and without notice, take such steps as it may
     think fit to enforce the Funding 2 Security.

7.5  Mandatory Enforcement: The Funding 2 Security Trustee shall not, and
     shall not be bound to, take any proceedings, actions or steps under or in
     connection with any of the Funding 2 Transaction Documents (including,
     without limitation, any steps to enforce the Funding 2 Security) unless:

     (a)  it shall have been directed to do so by the Issuer Security
          Trustee(s) acting in accordance with the provisions of this Deed; or

     (b)  if there are no Funding 2 Intercompany Loans outstanding, it shall
          have been directed to do so by the Funding 2 Secured Creditor which
          ranks highest in the Funding 2 Post-Enforcement Priority of
          Payments; and

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

7.6  Law of Property Act 1925: The provisions of the 1925 Act relating to the
     power of sale and the other powers conferred by Section 101(1) and (2)
     are hereby extended in relation to Funding 2 as if such extensions were
     contained in the 1925 Act such that at any time after the Funding 2
     Security has become enforceable in accordance with Clause 7.2
     (Enforceable) above, the Funding 2 Security Trustee may in its absolute
     discretion:

     (a)  make demand in the name of the Funding 2 Secured Creditors or in its
          own right for any monies and liabilities in respect of the Funding 2
          Charged Property;

     (b)  enforce any rights it may have in respect of the whole or any part
          of the Funding 2 Charged Property in such manner and upon such terms
          as the Funding 2 Security Trustee shall think fit;

                                      14

<PAGE>

     (c)  take possession of, get in and collect the Funding 2 Charged
          Property and perfect the interests comprised therein;

     (d)  subject as expressly provided in Clause 7.7 (Restriction on Disposal
          of Charged Property), sell, transfer, convey, dispose of vary or
          otherwise deal with, and also to grant any option to purchase, and
          to effect exchanges of, the whole or any part of the Funding 2
          Charged Property or any interest therein in such manner, for such
          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit
          and/or to concur in any of the foregoing (and nothing shall preclude
          any such disposal being made to a Funding 2 Secured Creditor);

     (e)  carry out any transaction, scheme or arrangement which the Funding 2
          Security Trustee may, in its absolute discretion, consider
          appropriate with a view to or in connection with the sale of the
          Funding 2 Charged Property;

     (f)  do all or any of the things or exercise all or any of the powers,
          authorities and discretions conferred expressly or by implication on
          any Receiver under Clause 9.6 (Powers of the Receiver) or otherwise
          under this Deed; and

     (g)  exercise all or any of the powers conferred on mortgagees by the
          1925 Act as varied or extended by this Deed and any other rights and
          remedies that may be conferred by statute or common law or in equity
          on mortgagees or receivers.

7.7  Restriction on Disposal of Charged Property: Notwithstanding the
     foregoing provisions of this Clause 7 (Enforcement), if the Funding 2
     Security has become enforceable otherwise than by reason of a default in
     payment of any amount due in respect of any AAA Loan Tranche, the Funding
     2 Security Trustee will not be entitled to dispose of all or part of the
     Funding 2 Charged Property unless either:

     (a)  a sufficient amount would be realised to allow a full and immediate
          discharge of all amounts owing under all AAA Loan Tranches of each
          Funding 2 Issuer and all prior ranking amounts due by each Funding 2
          Issuer in accordance with the relevant Funding 2 Priority of
          Payments; or

     (b)  the Funding 2 Security Trustee is of the opinion, which shall be
          binding on the Funding 2 Secured Creditors, reached after
          considering at any time and from time to time the advice of any
          financial or such other professional advisers selected by the
          Funding 2 Security Trustee for the purpose of giving such advice
          that the cashflow expected to be received by Funding 2 will not, or
          that there is a significant risk that it will not, be sufficient (as
          certified to it by Funding 2), having regard to any other relevant
          actual, contingent or prospective liabilities of Funding 2 to
          discharge in full in due course all amounts owing in respect of each
          AAA Loan Tranche and all prior ranking amounts due by each Funding 2
          Issuer. The fees and expenses of the aforementioned financial
          adviser or such other professional adviser selected by the Funding 2
          Security Trustee shall be paid by Funding 2,

     PROVIDED THAT if the Funding 2 Security Trustee is unable to obtain the
     advice referred to in paragraph (b) above having made reasonable efforts
     to do so, this Clause 7.7 (Restriction on Disposal of Funding 2 Charged
     Property) shall not apply.

                                      15

<PAGE>

     The Funding 2 Security Trustee shall not be bound to make the
     determination set out above unless it shall have been indemnified and/or
     secured to its satisfaction against all liabilities to which it may
     thereby become liable or which it may incur by so doing,

7.8  Authorised Investments: Any monies which under the trusts of this Deed
     ought to or may be invested by the Funding 2 Security Trustee (or the
     Cash Manager on its behalf) after the Funding 2 Security has become
     enforceable in accordance with Clause 7.2 (Enforceable) may be invested
     in the name or under the control of the Funding 2 Security Trustee in any
     Authorised Investments and the Funding 2 Security Trustee may at any time
     vary or transfer (or direct the Cash Manager to vary or transfer) any of
     such Authorised Investments for or into other such Authorised Investments
     as the Funding 2 Security Trustee in its absolute discretion may
     determine, and shall not be responsible (save where any loss results from
     the Funding 2 Security Trustee's fraud, wilful default or gross
     negligence or that of its officers or employees) for any loss occasioned
     by reason of any such investments whether by depreciation in value or
     otherwise, provided that such Authorised Investments were made in
     accordance with the foregoing provisions.

7.9  Scottish Trust Property: Funding 2 and the Mortgages Trustee hereby
     covenant and agree with and undertake to the Funding 2 Security Trustee
     that if at any time after the Funding 2 Security has become enforceable
     in accordance with Clause 7.2 (Enforceable), the Funding 2 Security
     Trustee or any Receiver shall so require and subject to the terms of this
     Clause 7 (Enforcement), they will join together in directing the Seller
     to sell or dispose of all or any part of the Scottish Trust Property on
     terms previously approved by the Funding 2 Security Trustee and/or in
     causing the trusts constituted by all and any Scottish Trust Deeds to be
     wound up or performed and they will take all such actions and execute all
     such documents as may be necessary to effect such sale or disposal or
     winding up or performance and the distribution or transfer of the
     Scottish Trust Property or any part thereof in accordance with the terms
     of each Scottish Trust Deed, the Mortgages Trust Deed and this Deed. The
     Seller and the Mortgages Trustee hereby acknowledge and consent to the
     foregoing as trustee and beneficiary respectively in terms of each
     Scottish Trust Deed.

8.   Upon Enforcement

8.1  Service of Intercompany Loan Enforcement Notice: Subject to the
     provisions of the Funding 2 Transaction Documents (including, without
     limitation, Clause [15.9] (Acceleration) of the Global Intercompany Loan
     Agreement), in the event that a Funding 2 Intercompany Loan Enforcement
     Notice has been served (and not withdrawn) by the Funding 2 Security
     Trustee on Funding 2, the Funding 2 Security Trustee shall as soon as
     practicable serve a copy of that Funding 2 Intercompany Loan Enforcement
     Notice on the Funding 2 Secured Creditors.

8.2  Crystallisation: From and including the date when the Funding 2 Security
     Trustee serves a Funding 2 Intercompany Loan Enforcement Notice (which
     has not been withdrawn) on Funding 2:

     (a)  notwithstanding any other provision hereof or of any other Funding 2
          Transaction Document, no amount may be withdrawn from the Funding 2
          Bank Accounts except with the prior written consent of the Funding 2
          Security Trustee; and

                                      16

<PAGE>

     (b)  (provided that the Mortgages Trustee and the Cash Manager have been
          notified of the service of a Funding 2 Intercompany Loan Enforcement
          Notice) no action whatsoever may be taken by the Mortgages Trustee
          in relation to or in respect of the Funding 2 Charged Property
          without the prior written consent of the Funding 2 Security Trustee
          save for any action required to preserve or protect the Mortgages
          Trustee's right, title or interest therein; and

     (c)  if not already crystallised, but subject to any prohibition or
          restriction imposed by applicable law, any charge created by this
          Deed which is a floating charge shall crystallise provided that the
          floating charge created by this Deed shall not be crystallised
          solely as a result of obtaining a moratorium (or anything done with
          a view to obtaining a moratorium) under the Insolvency Act 2000
          except with leave of the court.

8.3  Funding 2 Post-Enforcement Priority of Payments: At any time after the
     Funding 2 Security has become enforceable in accordance with Clause 7.2
     (Enforceable) and provided that a Funding 2 Intercompany Loan Enforcement
     Notice has not been withdrawn, all Funding 2 Available Revenue Receipts,
     Funding 2 Available Principal Receipts and all other monies (excluding
     Swap Collateral standing to the credit of the Funding 2 Swap Collateral
     Accounts) paid to or received or recovered by or on behalf of Funding 2
     or the Funding 2 Security Trustee or any Receiver appointed on its
     behalf, including all proceeds following any sale or realisation of the
     Funding 2 Charged Property or enforcement of the Funding 2 Security and
     all amounts (excluding Swap Collateral standing to the credit of the
     Funding 2 Swap Collateral Accounts) not previously distributed and/or
     standing to the credit of any Funding 2 Bank Account and all monies
     standing to the credit of the Funding 2 Reserve Ledger (if any) shall (if
     not already received by the Funding 2 Security Trustee) be paid to and
     held by the Funding 2 Security Trustee on trust to apply the same (save
     to the extent required otherwise by applicable law) in accordance with
     the rules and the order of priority of the Funding 2 Post-Enforcement
     Priority of Payments.

8.4  Certification of Amounts:

     (a)  The Funding 2 Security Trustee shall be entitled to rely on (and to
          accept as conclusive evidence save in the case of manifest error) a
          certificate from each Funding 2 Secured Creditor as to the amounts
          owed to such Funding 2 Secured Creditor under the Funding 2
          Transaction Documents. The Funding 2 Security Trustee shall not take
          into account for the purpose of the application of moneys in
          accordance with the Funding 2 Post-Enforcement Priority of Payments
          any amounts of which it has not been notified by the intended
          recipient on or prior to the date in question.

     (b)  Each Funding 2 Secured Creditor will, at all times, promptly provide
          the Funding 2 Security Trustee and/or any Receiver on request with a
          certificate setting out detailed information as to the amount of the
          Funding 2 Secured Obligations to which such Funding 2 Secured
          Creditor is entitled and such other information as the Funding 2
          Security Trustee and/or any Receiver may require to enable or
          facilitate the Funding 2 Security Trustee and/or any Receiver to
          perform its functions hereunder or under any of the Funding 2
          Transaction Documents, such certificate to be in a form required by
          the

                                      17

<PAGE>

          Funding 2 Security Trustee and/or any Receiver. In determining the
          respective entitlements of the Funding 2 Secured Creditors
          hereunder, such certificates shall be binding on all of the Funding
          2 Secured Creditors.

8.5  Retention Account: If the Funding 2 Security Trustee enforces the Funding
     2 Security at a time when either no amounts or not all amounts owing in
     respect of the Funding 2 Secured Obligations have become due and payable
     or any of the Funding 2 Secured Obligations are at such time contingent
     or future obligations the Funding 2 Security Trustee or a Receiver may,
     for so long as no such amounts or not all such amounts have become due
     and payable or any of the Funding 2 Secured Obligations are at such time
     contingent or future obligations pay any monies referred to in Clause 8.3
     (Funding 2 Post-Enforcement Priority of Payments), as the case may be,
     into, and retain such monies in, an interest-bearing account (a
     "retention account") to be held by it as security and applied by it in
     accordance with Clause 8.3 (Funding 2 Post-Enforcement Priority of
     Payments) as and when any of the amounts referred to therein become due
     and payable.

8.6  Funding 2 Security Trustee Rights upon Enforcement: In addition to any
     other rights expressly provided herein, for the period commencing upon
     the service of a Funding 2 Intercompany Loan Enforcement Notice and
     terminating upon the notification to the Funding 2 Secured Creditors by
     the Funding 2 Security Trustee that all Funding 2 Secured Obligations
     have been satisfied in full:

     (a)  (provided such Funding 2 Secured Creditor has received a copy of, or
          other notice of the service on Funding 2 of, any such Funding 2
          Intercompany Loan Enforcement Notice) each Funding 2 Secured
          Creditor agrees that it will pay to the Funding 2 Security Trustee
          or the Receiver, as the case may be, all monies received or
          recovered by such Funding 2 Secured Creditor otherwise than in
          accordance with Clause 8.3 (Funding 2 Post-Enforcement Priority of
          Payments (whether by way of set-off or otherwise) in order that such
          amounts may be applied by the Funding 2 Security Trustee in
          accordance with Clause 8.3 (Funding 2 Post-Enforcement Priority of
          Payments);

     (b)  save as otherwise expressly provided in this Deed or as required by
          the Funding 2 Security Trustee, all payments under or arising from
          this Deed and all amounts payable to Funding 2 by any Funding 2
          Secured Creditor under any Funding 2 Transaction Document shall be
          paid to the Funding 2 Security Trustee or to its order; (c) save as
          otherwise expressly provided in this Deed, all rights or remedies
          provided for by this Deed or available at law or in equity to the
          Funding 2 Secured Creditors are exercisable by the Funding 2
          Security Trustee;

     (d)  save as otherwise expressly provided in this Deed, all rights to
          compel performance of the Funding 2 Transaction Documents are
          exercisable by the Funding 2 Security Trustee; and

     (e)  all payments in respect of the Funding 2 Secured Obligations shall
          operate in satisfaction pro tanto of Funding 2's covenants to the
          Funding 2 Secured Creditors.

                                      18

<PAGE>

8.7  Swap Collateral: Notwithstanding the foregoing provisions of Clause 7
     (Enforcement) and this Clause 8 (Upon Enforcement), at any time after the
     Funding 2 Security has become enforceable in accordance with Clause 7.2
     (Enforceable) and provided that a Funding 2 Intercompany Loan Enforcement
     Notice has not been withdrawn:

     (a)  all Swap Collateral delivered to or received or recovered by or on
          behalf of Funding 2 or the Funding 2 Security Trustee or any
          Receiver appointed on its behalf pursuant to the Funding 2 Basis
          Rate Swap Agreement is deposited into a Funding 2 Swap Collateral
          Account; and

     (b)  Swap Collateral may only be withdrawn from the relevant Funding 2
          Swap Collateral Account for the purpose of (A) returning Swap
          Collateral to the Funding 2 Basis Rate Swap Provider pursuant to the
          terms of the Funding 2 Basis Rate Swap Agreement or (B) applying
          Swap Collateral in or towards satisfaction of the Funding 2 Basis
          Rate Swap Provider's obligations under the Funding 2 Basis Rate Swap
          Agreement.

     If, in relation to Swap Collateral, there is any conflict between the
     terms of the Funding 2 Basis Rate Swap Agreement, the Cash Management
     Agreement and/or this Deed, the terms of the Funding 2 Basis Rate Swap
     Agreement shall apply.

8.8  Swap Replacement Premium: Notwithstanding the foregoing provisions of
     Clause 7 (Enforcement) and this Clause 8 (Upon Enforcement), at any time,
     any Swap Replacement Premium received by Funding 2 from a replacement
     swap provider upon entry into a swap agreement replacing the Funding 2
     Basis Rate Swap Agreement shall firstly be applied in payment of any
     termination payment due and payable to the Funding 2 Basis Rate Swap
     Provider following the termination of the Funding 2 Basis Rate Swap
     Agreement. Any amount of such Swap Replacement Premium not applied in or
     towards payment of such termination payment will form part of Funding 2
     Available Revenue Receipts.

9.   Receiver

9.1  Appointment: At any time after the Funding 2 Security becomes
     enforceable, and whether or not the Funding 2 Security Trustee has taken
     possession of the Funding 2 Charged Property, the Funding 2 Security
     Trustee may appoint, in addition to all statutory and other powers of
     appointment, by writing or by deed, such person or persons (including an
     officer or officers of the Funding 2 Security Trustee) as the Funding 2
     Security Trustee thinks fit to be a receiver, a receiver and manager or
     an administrative receiver of the Funding 2 Charged Property or any part
     thereof (each a "Receiver") and, in the case of an appointment of more
     than one person, to act together or independently of the other or others.

9.2  Removal and Replacement: Except as otherwise required by statute, the
     Funding 2 Security Trustee may by writing or by deed remove a Receiver
     appointed by it whether or not appointing another in its place and may
     also appoint another Receiver to act with any other Receiver or to
     replace any Receiver who resigns, retires or otherwise ceases to hold
     office.

                                      19

<PAGE>

9.3  Extension of Appointment: The exclusion of any part of the Funding 2
     Charged Property from the appointment of the Receiver shall not preclude
     the Funding 2 Security Trustee from subsequently extending its
     appointment (or that of the Receiver replacing it) to that part of the
     Funding 2 Charged Property or appointing another Receiver over any other
     part of the Funding 2 Charged Property.

9.4  Agent of Funding 2: The Receiver shall, so far as the law permits, be the
     agent of Funding 2 and (subject to any restriction or limitation imposed
     by law) Funding 2 alone shall be responsible for the Receiver's
     contracts, engagements, acts, omissions, misconduct, negligence or
     default and for liabilities incurred by it; and in no circumstances
     whatsoever shall the Funding 2 Security Trustee or any Funding 2 Secured
     Creditor be in any way responsible for or incur any liability in
     connection with its contracts, engagements, acts, omissions, misconduct,
     negligence or default, and if a liquidator of Funding 2 shall be
     appointed, the Receiver shall act as principal and not as agent for the
     Funding 2 Security Trustee. Notwithstanding the generality of the
     foregoing, such Receiver shall in the exercise of its powers, authorities
     and discretions conform to the regulations (if any) from time to time
     made and given by the Funding 2 Security Trustee.

9.5  Remuneration: Subject as provided otherwise by applicable law, the
     remuneration of the Receiver shall be fixed by the Funding 2 Security
     Trustee and may be or include a commission calculated by reference to the
     gross amount of all monies received or otherwise. Such remuneration and
     such commission) (if any) shall be payable hereunder by Funding 2 alone
     subject always to Clause 8.3 (Funding 2 Post-Enforcement Priority of
     Payments) and the amount of such remuneration shall form part of the
     Funding 2 Secured Obligations and shall accordingly be secured by the
     Funding 2 Security.

9.6  Powers of the Receiver: The Receiver of Funding 2, in addition to any
     powers conferred on an administrative receiver, receiver, manager or
     receiver and manager by statute or common law, shall have the power to:

     (a)  take possession of, get in and collect the Funding 2 Charged
          Property;

     (b)  subject as expressly provided in Clause 7.7 (Restriction on Disposal
          of Funding 2 Charged Property), sell, transfer, convey, license,
          release or otherwise dispose of vary or deal with, and also to grant
          any option to purchase, and to effect exchanges of, the whole or any
          part of Funding 2 Charged Property or any interest therein and to
          grant or accept surrenders, disclaimers and variations in relation
          to or otherwise affecting the Funding 2 Charged Property in each
          case in such manner, for such consideration (if any) and generally
          upon such terms (including by deferred payment or payment by
          instalments) as it may think fit and/or to concur in any of the
          foregoing (and nothing shall preclude any such disposal being made
          to a Funding 2 Secured Creditor);

     (c)  carry out any transaction, scheme or arrangement which the Funding 2
          Security Trustee may, in its absolute discretion, consider
          appropriate with a view to or in connection with the sale of the
          Funding 2 Charged Property;

                                      20

<PAGE>

     (d)  insure the Funding 2 Charged Property against such risks and for
          such amounts as the Funding 2 Security Trustee may consider prudent
          and to obtain bonds and performance guarantees;

     (e)  otherwise protect, maintain or improve, the Funding 2 Charged
          Property or any part thereof in any manner and for any purpose
          whatsoever as it shall think fit;

     (f)  transfer all or any of the Funding 2 Charged Property and/or any of
          the liabilities to any other company or body corporate, whether or
          not formed or acquired for the purpose (and whether or not a
          subsidiary or associated company of the Funding 2 Security Trustee
          or any other party to the Funding 2 Transaction Documents) and to
          form a subsidiary or subsidiaries of Funding 2;

     (g)  carry on and manage or concur in managing or appoint a manager of,
          the whole or any part of the business of Funding 2 in such manner as
          it shall in its absolute discretion think fit including the power to
          enter into any contract and to perform, repudiate, rescind or vary
          any contract to which Funding 2 is a party;

     (h)  sell or concur in selling the whole or any part of Funding 2's
          business whether as a going concern or otherwise;

     (i)  appoint, dismiss, engage or vary the terms of employment of any
          employees, managers, agents or advisers of Funding 2 upon such terms
          as to remuneration and otherwise for such periods as it may in its
          absolute discretion think fit;

     (j)  in connection with the exercise or proposed exercise of any of its
          powers or in order to obtain payment of its remuneration or
          reimbursement of its expenses (in each case, whether or not already
          due), to borrow or raise money from any person, without security or
          on the security of the Funding 2 Charged Property (either in
          priority to the Funding 2 Security or otherwise) and generally in
          such manner and on such terms as it may think fit;

     (k)  bring, defend, submit to arbitration, negotiate, compromise,
          enforce, abandon and settle actions, suits, claims and proceedings
          concerning or affecting the Funding 2 Charged Property or the
          Funding 2 Security;

     (l)  exercise any powers, discretions, voting, conversion or other rights
          or entitlements in relation to any of the Funding 2 Charged Property
          or incidental to the ownership of or rights in or to any of the
          Funding 2 Charged Property and to complete or effect any transaction
          entered into by Funding 2 or disclaim, abandon or modify all or any
          of the outstanding contracts or arrangements of Funding 2 relating
          to or affecting the Funding 2 Charged Property;

     (m)  generally carry out, or cause to be carried out any transaction or
          scheme or arrangement whatsoever, whether similar or not to any of
          the foregoing, in relation to the Funding 2 Charged Property which
          it may consider expedient as effectual as if it were solely and
          absolutely entitled to the Funding 2 Charged Property;

                                      21

<PAGE>

     (n)  in connection with the exercise of any of its powers, execute or do,
          or cause or authorise to be executed or done, on behalf of or in the
          name of Funding 2 or otherwise, as it may think fit, all documents,
          acts or things, acts or things which it may consider appropriate;

     (o)  redeem, discharge or compromise any security whether or not having
          priority to the security created hereunder;

     (p)  enter into covenants, guarantees, commitments, indemnities and other
          obligations or liabilities as it shall think fit;

     (q)  pay and discharge out of the profits and income of the Funding 2
          Charged Property and the monies to be made by it carrying on any
          such business as aforesaid the expenses in and about the carrying on
          and management of such business or in the exercise of any of the
          powers conferred by this Clause 9 (Receiver) or otherwise in respect
          of the Funding 2 Charged Property and all outgoings which it shall
          think fit to pay and to apply the residue of the said profits,
          income or monies in the manner provided by Clause 8.3 (Funding 2
          Post-Enforcement Priority of Payments); and

     (r)  exercise any other powers, rights and/or remedies that may be
          available at law or in equity including the powers referred to in
          Schedule 1 (and where applicable, Schedule 2) of the Insolvency Act
          1986.

9.7  Security: The Funding 2 Security Trustee may from time to time and at any
     time require any such Receiver to give security for the due performance
     of its duties and may fix the nature and amount of the security to be so
     given but the Funding 2 Security Trustee shall not be bound in any such
     case to require any such security.

9.8  Application by Receiver: Save so far as otherwise directed by the Funding
     2 Security Trustee, all monies from time to time received by such
     Receiver shall be paid over to the Funding 2 Security Trustee to be held
     by it on the trusts declared under this Deed and to be distributed in
     accordance with Clause 8.3 (Funding 2 Post-Enforcement Priority of
     Payments) and Schedule 3 (Funding 2 Priority of Payments).

9.9  Payment to Receiver: The Funding 2 Security Trustee may pay over to such
     Receiver any monies constituting part of the Funding 2 Charged Property
     to the intent that the same may be applied for the purposes of this Deed
     by such Receiver and the Funding 2 Security Trustee may from time to time
     determine what funds the Receiver shall be at liberty to keep in hand
     with a view to the performance of its duties as such Receiver.

9.10 No Restrictions: None of the restrictions imposed by the 1925 Act in
     relation to the appointment of receivers or the giving of notice or
     otherwise shall apply in relation to the Receiver.

9.11 Appointment of Administrator:

     (a)  Subject to any relevant provisions of the Insolvency Act 1986, the
          Funding 2 Security Trustee may, by any instrument or deed of
          appointment, appoint one or more persons to be the administrator of
          Funding 2 at any time after:

                                      22

<PAGE>

          (i)  the service of a Funding 2 Intercompany Loan Enforcement
               Notice; or

          (ii) being requested to do so by Funding 2; or

         (iii) any application having been made to the court for an
               administration order under the Insolvency Act 1986; or

          (iv) any person having ceased to be an administrator as a result of
               any event specified in paragraph 90 of Schedule B1 to the
               Insolvency Act 1986; or

          (v)  any notice of intention to appoint an administrator having been
               given by any person or persons entitled to make such
               appointment under the Insolvency Act 1986.

     (b)  Where any such appointment is made at a time when an administrator
          continues in office, the administrator shall act either jointly or
          concurrently with the administrator previously appointed hereunder,
          as the appointment specifies.

     (c)  Subject to any applicable order of the Court, the Funding 2 Security
          Trustee may replace any administrator, or seek an order replacing
          the administrator, in any manner allowed by the Insolvency Act 1986.

     (d)  Where the administrator was appointed by the Funding 2 Security
          Trustee under paragraph 14 of Schedule B1 to the Insolvency Act
          1986, the Funding 2 Security Trustee may, by notice in writing to
          Funding 2, replace the administrator in accordance with paragraph 92
          of Schedule B1 to the Insolvency Act 1986.

     (e)  Every such appointment shall take effect at the time and in the
          manner specified by the Insolvency Act 1986.

     (f)  If at any time and by virtue of any such appointment(s) any two or
          more persons shall hold office as administrators of the same assets
          or income, such administrators may act jointly or concurrently as
          the appointment specifies so that, if appointed to act concurrently,
          each one of such administrators shall be entitled (unless the
          contrary shall be stated in any of the deed(s) or other
          instrument(s) appointing them) to exercise all the functions
          conferred on an administrator by the Insolvency Act 1986.

     (g)  Every administrator shall have all the powers of an administrator
          under the Insolvency Act 1986.

     (h)  In exercising his functions hereunder and under the Insolvency Act
          1986, the administrator acts as agent of Funding 2 and does not act
          as agent of the Funding 2 Security Trustee.

     (i)  Every administrator shall be entitled to remuneration for his
          services in the manner fixed by or pursuant to the Insolvency Act
          1986 or the Insolvency Rules 1986.

                                      23

<PAGE>

9.12 Administration: Upon application being made to a court of competent
     jurisdiction for an administration order or the service of a notice of
     intention to appoint an administrator or the filing of documents with the
     court for the appointment of an administrator in relation to Funding 2 or
     other order having substantially the same effect to be made on
     application by a creditor or creditors of Funding 2, the Funding 2
     Security Trustee shall (except in the circumstances where the Funding 2
     Security Trustee has taken steps to appoint an administrator in
     accordance with Clause 9.11 (Appointment of Administrator)), subject to
     it being indemnified to its satisfaction, as soon as practicable appoint
     a Receiver in accordance with this Deed (who shall, to the extent
     permitted by law, be an "administrative receiver" under Section 29 (2) of
     the Insolvency Act 1986) of the whole of the Funding 2 Charged Property
     and, in the case of any application to the court or petition, the Funding
     2 Security Trustee shall instruct the Receiver to attend at the hearing
     of the application or the petition and take such steps as are necessary
     to prevent the appointment of an administrator. The Funding 2 Secured
     Creditors shall co-operate and do all acts and enter into such further
     documents, deeds or agreements as the Funding 2 Security Trustee may deem
     necessary or desirable to ensure that an administration order is not made
     or that an administrator is not otherwise appointed and that an
     administrative receiver is appointed. Paragraph 14 of Schedule B1 to the
     Insolvency Act 1986 applies to the floating charge created hereunder.

10.  Further Assurance and Power of Attorney

10.1 Further Assurance: Funding 2 covenants with and undertakes to the Funding
     2 Security Trustee from time to time (notwithstanding that the security
     may not have become enforceable and the Funding 2 Security Trustee may
     not have served a Funding 2 Intercompany Loan Enforcement Notice) upon
     demand:

     (a)  to execute, at Funding 2's cost, any document or do any act or thing
          which the Funding 2 Security Trustee or any Receiver may specify
          (including executing such Security Interests over its rights in and
          over the Funding 2 Charged Property and any other assets of Funding
          2 in such form as the Funding 2 Security Trustee and/or any Receiver
          may require) with a view to:

          (i)  registering, perfecting, protecting or improving any charge or
               security or Security Interest created or intended to be created
               by or pursuant to this Deed (including any act or document
               which may be required or desirable under the laws of any
               jurisdiction in which any property or assets may be located in
               order to confer on the Funding 2 Security Trustee security over
               such property and assets equivalent or similar to the security
               intended to be conferred by or pursuant to this Deed) and in
               such form as the Funding 2 Security Trustee or the Receiver may
               specify; and/or

          (ii) facilitating the realisation of or enforcement of rights of,
               all or any part of the Funding 2 Charged Property or the
               exercise, or proposed exercise, of any of the powers, duties or
               discretions vested or intended to be vested in the Funding 2
               Security Trustee or such Receiver by or pursuant to this Deed
               or doing any act or thing deemed necessary by the Funding 2
               Security Trustee or the Receiver,

                                      24

<PAGE>

          (b)  to give or join in giving or procuring the giving of any
               notices to any persons and obtain or procure that there is
               obtained any necessary acknowledgements in relation to such
               notices, all in such form as the Funding 2 Security Trustee or
               the Receiver may require and at the cost of Funding 2,

          and for the purpose of this Clause 10.1 (Further Assurance) a
          certificate in writing signed by the Funding 2 Security Trustee to
          the effect that any particular assurance or thing is required by it
          shall be conclusive evidence of that fact.

10.2 Execution of Power of Attorney: Immediately upon execution of this Deed,
     Funding 2 shall execute and deliver to the Funding 2 Security Trustee the
     Power of Attorney in or substantially in the form set out in Schedule 1.

10.3 Charged Property on Trust: To the extent permitted to do so under the
     Funding 2 Transaction Documents, for the purpose of giving effect to this
     Deed, Funding 2 hereby declares that, after service of a Funding 2
     Intercompany Loan Enforcement Notice, it will hold all the Funding 2
     Charged Property (subject to the right of redemption) upon trust to
     convey, assign or otherwise deal with such Funding 2 Charged Property in
     such manner and to such person as the Funding 2 Security Trustee shall
     direct pursuant to this Deed, and declares that it shall be lawful for
     the Funding 2 Security Trustee to appoint a new trustee or trustees of
     the Funding 2 Charged Property in place of Funding 2.

11.  Crystallisation

11.1 Notice: In addition and without prejudice to any other event resulting in
     a crystallisation of the floating charge created by this Deed or any
     other right the Funding 2 Security Trustee may have, but subject to any
     prohibition or restriction imposed by applicable law, the Funding 2
     Security Trustee may, by notice in writing to Funding 2, declare that the
     floating charge hereby created shall be converted into first specific
     fixed charges over such of the undertaking, property and assets of
     Funding 2 as the Funding 2 Security Trustee may specify in such notice at
     any time if:

     (a)  a Potential Funding 2 Intercompany Loan Event of Default has
          occurred; or

     (b)  it believes that the Funding 2 Charged Property or any part thereof
          is in danger of being seized or sold under any form of distress,
          execution or diligence levied or is otherwise in jeopardy or;

     (c)  it considers that it is desirable in order to protect the priority
          of the Funding 2 Security,

     provided that the floating charge created under this Deed may not be
     converted into a fixed charge or charges solely as a result of obtaining
     a moratorium (or anything done with a view to obtaining a moratorium)
     under the Insolvency Act 2000 except with leave of the court.

11.2 Automatic Crystallisation: In addition and without prejudice to any other
     event resulting in a crystallisation of the floating charge contained
     herein and without prejudice to any rule of law which may have a similar
     effect, but subject to any prohibition or restriction imposed by
     applicable law, the floating charge created under

                                      25

<PAGE>

     this Deed shall automatically and without notice be converted with
     immediate effect into a fixed charge as regards:

     (a)  all property, assets or undertaking of Funding 2, subject to the
          floating charge, upon:

          (i)  Funding 2 ceasing to carry on its business or a material part
               thereof as a going concern;

          (ii) the presentation of a petition for the compulsory winding-up of
               Funding 2;

         (iii) the convening of a meeting for the passing of a resolution for
               the voluntary winding-up of Funding 2;

          (iv) the making of an application for an administration order or the
               filing of documents with the court for the appointment of an
               administrator or the service of a notice of intention to
               appoint an administrator in relation to Funding 2;

          (v)  the presentation or making of an application for a warrant of
               execution, writ of fieri facias, garnishee order or charging
               order in respect of any of the assets of Funding 2 subject to
               the floating charge;

          (vi) the occurrence of a Funding 2 Intercompany Loan Event of
               Default; and/or

     (b)  any property, assets or undertaking of Funding 2, which become
          subject to an Encumbrance in favour of any person other than the
          Funding 2 Security Trustee or which is/are the subject of a sale,
          transfer or other disposition, in either case, contrary to the
          covenants and undertakings contained in the Funding 2 Transaction
          Documents, immediately prior to such Encumbrance arising or such
          sale, transfer or other disposition being made,

     provided that the floating charge created under this Deed may not be
     converted into a fixed charge or charges solely as a result of obtaining
     a moratorium (or anything done with a view to obtaining a moratorium)
     under the Insolvency Act 2000 except with leave of the court.

12.  Provisions relating to the Security

12.1 Continuing Security: The Funding 2 Security shall be:

     (a)  in addition to and independent of and shall not operate so as to
          prejudice or affect or merge in any other security, right of
          recourse or other right whatsoever which may be held by any of the
          Funding 2 Secured Creditors or the Funding 2 Security Trustee on
          their behalf in respect of the whole or any part of the Funding 2
          Secured Obligations and shall not be affected by any release,
          reassignment, retrocession or discharge of such other security; and

     (b)  a continuing security for the Funding 2 Secured Obligations and
          shall remain in force as continuing security for the Funding 2
          Secured Creditors and shall

                                      26

<PAGE>

          not be considered as satisfied or discharged by any intermediate
          payment or settlement of the whole or any part of the Funding 2
          Secured Obligations or the existence at any time of a credit balance
          on any current or other account or any other matter or thing
          whatsoever.

12.2 Consolidation: Section 93 of the 1925 Act shall not apply in relation to
     the Funding 2 Security.

12.3 Ruling Off: If the Funding 2 Security Trustee receives notice of any
     Encumbrance affecting the whole or any part of the Funding 2 Charged
     Property or any security granted hereunder in contravention of the
     provisions hereof:

     (a)  the Funding 2 Security Trustee may open a new account in the name of
          Funding 2 and, if it does not, it shall nevertheless be deemed to
          have done so at the time it received such notice; and

     (b)  all payments made by Funding 2 to the Funding 2 Security Trustee
          after the Funding 2 Security Trustee receives such notice shall be
          credited or deemed to have been credited to the new account, and in
          no circumstances whatsoever shall operate to reduce the Funding 2
          Secured Obligations as at the time the Funding 2 Security Trustee
          received such notice.

12.4 Avoidance of Payments: Any settlement, discharge or release between (a)
     Funding 2 and (b) the Funding 2 Security Trustee or any Receiver (the
     "Relevant Person(s)") shall be conditional upon no security or payment
     granted or made to the Relevant Person(s) by Funding 2 or any other
     person being avoided or reduced by virtue of any provisions or enactments
     relating to bankruptcy, insolvency or liquidation for the time being in
     force and, in the event of such security or payment being so avoided or
     reduced, the Relevant Person(s) shall be entitled to recover the value or
     amount of such security or payment from Funding 2 and from the security
     subsequently as if such settlement, discharge or release had not
     occurred.

12.5 Retention of Charges: If the Funding 2 Security Trustee shall have
     reasonable grounds for believing that Funding 2 may be insolvent or
     deemed to be insolvent pursuant to the provisions of the Insolvency Act
     1986 (and production of a solvency certificate of a duly authorised
     officer of Funding 2 shall be prima facie evidence of the solvency of
     Funding 2) as at the date of any payment made by Funding 2 to the Funding
     2 Security Trustee or otherwise in respect of the Funding 2 Secured
     Obligations and that as a result, such payment may be capable of being
     avoided or clawed back, the Funding 2 Security Trustee shall be at
     liberty to retain the charges contained in or created pursuant to this
     Deed until the expiry of a period of one month plus such statutory period
     within which any assurance, security, guarantee or payment can be avoided
     or invalidated after the payment and discharge in full of all Funding 2
     Secured Obligations notwithstanding any release, settlement, discharge or
     arrangement which may be given or made by the Funding 2 Security Trustee
     on, or as a consequence of, such payment or discharge of liability
     provided that, if at any time within such period, a petition or an
     application shall be presented to a competent court for an order for the
     winding up or the making of an administration order in respect of Funding
     2, or if Funding 2 shall commence to be wound up or to go into
     administration or any analogous proceedings shall be commenced by or
     against Funding 2, as the case may be, the Funding 2 Security Trustee
     shall be at liberty to

                                      27

<PAGE>

     continue to retain such security for such further period as the Funding 2
     Security Trustee may determine and such security shall be deemed to
     continue to have been held as security for the payment and discharge to
     the Funding 2 Security Trustee of all Funding 2 Secured Obligations.

12.6 Possession: Entry into possession of the Funding 2 Charged Property or
     any part thereof shall not render the Funding 2 Security Trustee or any
     Receiver of Funding 2 liable to account as mortgagee or creditor in
     possession for anything except actual receipts. If and whenever the
     Funding 2 Security Trustee or the Receiver enters into possession of the
     Funding 2 Charged Property, it shall be entitled at any time to go out of
     such possession.

12.7 Change of Name, etc.: This Deed shall remain valid and enforceable
     notwithstanding any change in the name, composition or constitution of
     the Funding 2 Security Trustee or Funding 2 or any amalgamation, merger
     or consolidation by the Funding 2 Security Trustee or Funding 2, with any
     other corporation (whether, in the case of Funding 2, permitted under the
     Funding 2 Transaction Documents or not).

13.  Protection of Third Parties

13.1 No Enquiry: No purchaser from, or other person dealing with, the Funding
     2 Security Trustee or a Receiver shall be concerned to enquire whether
     any of the powers exercised or purported to be exercised under this Deed
     has arisen or become exercisable, whether the Funding 2 Secured
     Obligations remain outstanding or have become payable, whether the
     Funding 2 Security Trustee or the Receiver is authorised to act or as to
     the propriety or validity of the exercise or purported exercise of any
     power; and the title and the position of such a purchaser or other person
     shall not be impeachable by reference to any of those matters and all the
     protection to purchasers contained in Sections 104 and 107 of the 1925
     Act shall apply to any person purchasing from or dealing with the Funding
     2 Security Trustee or any such Receiver.

13.2 Receipts to Third Parties: Upon any sale, calling in, collection,
     enforcement or other realisation of the Funding 2 Charged Property in
     accordance with the terms hereof and upon any other dealing or
     transaction under or pursuant to this Deed, the receipt of the Funding 2
     Security Trustee or any Receiver shall be an absolute and a conclusive
     discharge to a purchaser or other person dealing with the Funding 2
     Security Trustee or such Receiver and shall relieve it of any obligation
     to see to the application of any monies paid to or by the direction of
     the Funding 2 Security Trustee or such Receiver.

14.  Set-Off

     The Funding 2 Security Trustee may at any time following the service of a
     Funding 2 Intercompany Loan Enforcement Notice without notice and
     notwithstanding any settlement of account or other matter whatsoever
     combine or consolidate all or any existing accounts of Funding 2 whether
     in its own name or jointly with others and held by it or any Funding 2
     Secured Creditor and may set-off or transfer all or any part of any
     credit balance or any sum standing to the credit of any such account
     (whether or not the same is due to Funding 2 from the Funding 2 Security
     Trustee or relevant Funding 2 Secured Creditor and whether or not the
     credit balance and the account in debit or the Funding 2 Secured
     Obligations are expressed in the same

                                      28

<PAGE>

     currency in which case the Funding 2 Security Trustee is hereby
     authorised to effect any necessary conversions at its prevailing rates of
     exchange) in or towards satisfaction of any of the Funding 2 Secured
     Obligations (and on or at any time after the Funding 2 Security has
     become enforceable in accordance with Clause 7.2 (Enforceable) the
     Funding 2 Security Trustee may make such application notwithstanding any
     specified maturity of any deposits) but subject always to the Funding 2
     Priority of Payments and may in its absolute discretion estimate the
     amount of any liability of Funding 2 which is contingent or unascertained
     and thereafter set-off such estimated amount and no amount shall be
     payable by the Funding 2 Security Trustee to Funding 2 unless and until
     all Funding 2 Secured Obligations have been ascertained and fully repaid
     or discharged.

15.  Representations and Covenants

15.1 Representations and Warranties:

     (a)  Funding 2 hereby represents to the Funding 2 Security Trustee that
          it is, as of the date hereof, the beneficial owner of all of the
          Funding 2 Charged Property free and clear of all liens, claims,
          charges or Encumbrances except for the Funding 2 Security, and
          undertakes that it will retain all rights associated with ownership
          of the Funding 2 Charged Property free and clear of all liens,
          claims, charges and Encumbrances except for the Funding 2 Security.

     (b)  Funding 2 represents that it has taken all necessary steps to enable
          it to create the Funding 2 Security in accordance with this Deed and
          has taken no action or steps which will or may prejudice its right,
          title and interest in, to and under the Funding 2 Charged Property.

     (c)  Funding 2 represents that is Centre of Main Interests (as defined in
          the EU Regulation) is in the UK.

15.2 Negative Covenants: Funding 2 hereby undertakes that, for so long as any
     Funding 2 Secured Obligation remains outstanding, Funding 2 shall not,
     save to the extent contemplated in or provided in the Funding 2
     Transaction Documents or unless it has obtained the prior written consent
     of the Funding 2 Security Trustee:

     (a)  open or maintain any bank account or deposit account with any bank
          or any other financial institution other than the Funding 2 Bank
          Accounts or the Funding 2 Swap Collateral Accounts or close the
          Funding 2 Bank Accounts or the Funding 2 Swap Collateral Accounts
          other than in accordance with the Funding 2 Transaction Documents;

     (b)  either in a single transaction or in a series of transactions,
          whether related or not and whether voluntarily or involuntarily,
          sell, transfer, lease or otherwise dispose of or grant any option
          over all or any part of its assets, properties or undertakings or
          any interest, estate, right, title or benefit therein or agree or
          purport to do any of the foregoing, other than as provided for
          pursuant to the Funding 2 Transaction Documents;

     (c)  create or permit to subsist any Security Interest over or in respect
          of any of its assets (unless arising by operation of law) other than
          as provided pursuant to

                                      29

<PAGE>

          the Funding 2 Transaction Documents provided that upon it making
          available any Loan Tranche or entering into any new Funding 2
          Intercompany Loan Agreement, or entering into any Bridging
          Arrangement Funding 2 shall be entitled to create the Security
          Interests (if any) contemplated under the applicable Deed of
          Accession;

     (d)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not
          hold any property if doing so would cause it to be engaged or deemed
          to be engaged in a trade or business within the United States as
          determined under United States tax principles; or

     (e)  consent to any amendment to, or agree to waive or authorise any
          breach of any provision of any of the Funding 2 Transaction
          Documents without the prior written consent of the Funding 2
          Security Trustee.

15.3 Positive covenants: Funding 2 covenants and undertakes with the Funding 2
     Security Trustee for the benefit of the Funding 2 Secured Creditors that
     it shall:

     (a)  file or procure the filing with the Registrar of Companies pursuant
          to Chapter I of Part XII of the Companies Act 1985 of duly completed
          Forms 395 together with an executed original of this Funding 2 Deed
          of Charge and the required fee within 21 days after the date of this
          Funding 2 Deed of Charge;

     (b)  on the date hereof join with the Funding 2 Security Trustee in
          giving notice of the assignments by way of security and the security
          created under or pursuant to this Deed to each of the Seller, the
          Administrator, Funding, the Security Trustee and each Collection
          Bank and any other party to any Funding 2 Transaction Document not
          being a party to this Deed, and on any date hereafter (to the extent
          only that such notice and acknowledgement is not given under or
          pursuant to this Deed) join with the Funding 2 Security Trustee in
          giving notice of the assignments by way of security and the security
          created under this Deed to any party to a Funding 2 Transaction
          Document entered into by Funding 2 after the date hereof, in the
          form (or substantially in the form) set out in Schedule 4 (Form of
          Notice of Assignment);

     (c)  cause to be prepared and certified by its auditors in respect of
          each Financial Year accounts in such form as will comply with
          relevant legal and accounting requirements for the time being;

     (d)  at all times keep or procure the keeping of such books of account
          and records as may be necessary to comply with all applicable laws
          and so as to enable financial statements to be prepared and allow
          the Funding 2 Security Trustee and any person or persons appointed
          by the Funding 2 Security Trustee free access to such books of
          account and records at all reasonable times during normal business
          hours upon reasonable notice in writing, provided that such
          inspection shall only be for the purposes of carrying out its duties
          under this Deed and any information so obtained shall only be used
          and passed on to any other person for the purpose of the Funding 2
          Security Trustee carrying out its duties under this Deed;

                                      30

<PAGE>

     (e)  give notice in writing to the Funding 2 Security Trustee of the
          occurrence of any Funding 2 Intercompany Loan Event of Default or
          Potential Funding 2 Intercompany Loan Event of Default immediately
          upon becoming aware thereof and without waiting for the Funding 2
          Security Trustee to take any further action;

     (f)  immediately on receipt or notice of the same, supply to the Funding
          2 Security Trustee full details of any application to the court for
          an administration order under paragraph 10 of Schedule B1 of the
          Insolvency Act 1986 made in respect of Funding 2 and (without
          prejudice to paragraph 12(2) of Schedule B1 to the Insolvency Act
          1986) of any proposed or actual appointment of an administrator by
          the holder of a qualifying floating charge (within the meaning of
          paragraph 14 of Schedule B1 to the Insolvency Act 1986) or (without
          prejudice to paragraph 26(1) of Schedule B1 to the Insolvency Act
          1986) by Funding 2 or its directors;

     (g)  give to the Funding 2 Security Trustee (i) within seven days after
          demand by the Funding 2 Security Trustee therefor and (ii) (without
          the necessity for any such demand) promptly after the publication of
          its audited accounts in respect of each Financial Year and in any
          event not later than the date required by statute to file or publish
          (whichever is earlier) such audited accounts after the end of each
          such Financial Period a certificate signed by two directors of
          Funding 2 to the effect that as at a date not more than seven days
          before delivering such certificate (the "certification date") there
          did not exist and had not existed since the certification date of
          the previous certificate (or in the case of the first such
          certificate the date hereof) any Funding 2 Intercompany Loan Event
          of Default or any Potential Funding 2 Intercompany Loan Event of
          Default (or if such then exists or existed specifying the same) and
          that during the period from and including the certification date of
          the last such certificate (or in the case of the first such
          certificate the date hereof) to and including the certification date
          of such certificate Funding 2 has complied with all its obligations
          contained in this Deed and each of the other Funding 2 Transaction
          Documents or (if such is not the case) specifying the respects in
          which it has not so complied;

     (h)  at all times execute all such further documents and do all such
          further acts and things as may in the opinion of the Funding 2
          Security Trustee be necessary at any time or times to give effect to
          the terms and conditions of this Deed and the other Funding 2
          Transaction Documents;

     (i)  at all times comply with the provisions of this Deed and the other
          Funding 2 Transaction Document which are expressed to be binding on
          it and to observe and perform the same;

     (j)  so far as permitted by applicable law, at all times give to the
          Funding 2 Security Trustee such information as it requires for the
          performance of its functions;

     (k)  duly and promptly pay and discharge all Taxes imposed upon it or its
          assets unless such Taxes are, in the opinion of the Funding 2
          Security Trustee, being contested in good faith by Funding 2;

                                      31

<PAGE>

     (l)  in the event of termination of the Funding 2 Bank Account Agreement,
          subject to and in accordance with the provisions of the Funding 2
          Bank Account Agreement use its reasonable endeavours to enter into a
          replacement Funding 2 Bank Account Agreement;

     (m)  in the event of termination of the Cash Management Agreement,
          subject to and in accordance with the provisions of the Cash
          Management Agreement, use its reasonable endeavours to enter into a
          replacement Cash Management Agreement;

     (n)  in the event of the termination of the Funding 2 Basis Rate Swap
          Agreement, notify the Funding 2 Security Trustee and the Rating
          Agencies and use reasonable endeavours to enter into a replacement
          basis rate swap agreement upon terms acceptable to the Rating
          Agencies and the Funding 2 Security Trustee with a swap provider
          whom the Rating Agencies have previously confirmed, to Funding 2 and
          the Funding 2 Security Trustee, will not cause the then current
          ratings of the Notes of any Funding 2 Issuer to be downgraded,
          withdrawn or qualified; and

     (o)  at all times have its Centre of Main Interests (as defined in the EU
          Regulation) in the UK.

16.  Terms of Appointment

16.1 By way of supplement to the Trustee Act 1925 and the Trustee Act 2000 it
     is expressly declared as set out in the following provisions of this
     Clause 16 (Terms of Appointment).

16.2 Reliance on Information:

     (a)  The Funding 2 Security Trustee may in relation to this Deed act on
          the opinion or advice of, or a certificate or any information
          obtained from, any lawyer, banker, valuer, surveyor, securities
          company, broker, auctioneer, accountant or other expert in the
          United Kingdom or elsewhere, whether obtained by the Funding 2
          Security Trustee or any Receiver, and shall not be responsible for
          any loss occasioned by so acting. Any such opinion, advice,
          certificate or information may be sent or obtained by letter,
          facsimile reproduction or in any other form and the Funding 2
          Security Trustee shall not be liable for acting in good faith on any
          opinion, advice, certificate or information purporting to be so
          conveyed although the same shall contain some error or shall not be
          authentic provided that such error or lack of authenticity is not
          manifest.

     (b)  The Funding 2 Security Trustee may call for and shall be entitled to
          rely upon, unless any of its officers in charge of the
          administration of this Deed shall have actual knowledge or express
          notice to the contrary, a certificate signed by two directors of
          Funding 2 or a certificate of any other person in respect of every
          matter and circumstance for which a certificate is expressly
          provided for under this Deed or the other Funding 2 Transaction
          Documents and to call for and rely upon, unless any of its officers
          in charge of the administration of this Deed shall have actual
          knowledge or express notice to the contrary, a certificate of
          Funding 2 or any other person as to any other fact or matter

                                      32

<PAGE>

          prima facie within the knowledge of Funding 2 or such person as
          sufficient evidence thereof and the Funding 2 Security Trustee shall
          not be bound in any such case to call for further evidence or be
          responsible for any loss, liability, costs, damages, expenses or
          inconvenience that may be caused by it failing to do so.

     (c)  The Funding 2 Security Trustee may call for and shall be entitled to
          rely, unless any of its officers in charge of the administration of
          this Deed shall have actual knowledge or express notice to the
          contrary, upon any document provided to it by Funding 2, the
          Mortgages Trustee or the Cash Manager in respect of every matter and
          circumstance prima facie within the knowledge of Funding 2, the
          Mortgages Trustee or the Cash Manager and the Funding 2 Security
          Trustee shall not be bound in any such case to call for further
          evidence or be responsible for any loss, liability, costs, damages,
          expenses or inconvenience that may be caused by it failing to do so.

     (d)  The Funding 2 Security Trustee shall be entitled to act on any
          Principal Directions provided in accordance with Clause 16.9
          (Funding Security Trustee to act on Issuer Security Trustee
          direction) without further enquiry and to assume that any such
          Principal Directions are (a) given in accordance with the provisions
          of this Deed and (b) given, where appropriate, in accordance with
          the directions of the Noteholders of the relevant class, and the
          Funding 2 Security Trustee shall not be liable to any person for any
          action taken or omitted under or in connection with this Deed in
          accordance with any such Principal Directions. The Funding 2
          Security Trustee shall be entitled to act upon any notice, request
          or other communication of any party to this Deed for the purposes of
          this Deed or any of the Transaction Documents if such notice,
          request or other communication purports to be signed or sent by or
          on behalf of any authorised signatory of such party.

16.3 Powers and Duties:

     (a)  The Funding 2 Security Trustee shall not have any responsibility for
          or have any duty to make any investigation in respect of or in any
          way be liable whatsoever for the nature, status, creditworthiness or
          solvency of Funding 2. Each Funding 2 Secured Creditor shall be
          solely responsible for making its own independent appraisal of and
          investigation into the financial condition, creditworthiness,
          affairs, status and nature of Funding 2 and the Funding 2 Security
          Trustee shall not at any time have any responsibility for the same
          and each Funding 2 Secured Creditor shall not rely on the Funding 2
          Security Trustee in respect thereof.

     (b)  The Funding 2 Security Trustee shall not be responsible for the
          scope or accuracy of any recitals, statements, warranty,
          representation or covenant of any party (other than the Funding 2
          Security Trustee) contained herein or in any other Funding 2
          Transaction Document or any other document entered into in
          connection therewith and shall assume the accuracy and correctness
          thereof.

     (c)  The Funding 2 Security Trustee shall (save as expressly otherwise
          provided herein or in the other Transaction Documents) as regards
          all trusts, powers,

                                      33

<PAGE>

          authorities and discretions vested in it by this Deed, the other
          Transaction Documents or by operation of law, have absolute and
          uncontrolled discretion as to the exercise or non-exercise thereof
          and the Funding 2 Security Trustee shall not be responsible for any
          liability that may result from the exercise or non-exercise thereof
          but whenever the Funding 2 Security Trustee is under the provisions
          of this Deed bound to act at the request or direction any party, the
          Funding 2 Security Trustee shall nevertheless not be so bound unless
          first indemnified and/or provided with security to its satisfaction
          against all actions, proceedings, claims and demands to which it may
          render itself liable and all costs, charges, damages, expenses and
          liabilities which it may incur by so doing.

     (d)  The Funding 2 Security Trustee may accept without enquiry,
          requisition or objection such title as Funding 2 may have to the
          Funding 2 Charged Property or any part thereof from time to time and
          shall not be required to investigate or make any enquiry into or be
          liable for any defect or failure in the right or title of Funding 2
          to the Funding 2 Charged Property or any part thereof from time to
          time whether or not any defect was known to the Funding 2 Security
          Trustee or might have been discovered upon examination, inquiry or
          investigation and whether or not capable of remedy.

     (e)  The Funding 2 Security Trustee shall not be responsible for
          exercising the rights of any of the parties under the Transaction
          Documents or considering the basis upon which the approvals or
          consents are granted by any of the parties under the Transaction
          Documents.

     (f)  The Funding 2 Security Trustee shall not be bound to give notice to
          any person of the execution of this Deed nor shall it have any duty
          to make any investigation in respect of or in any way be liable
          whatsoever for the registration, filing, protection or perfection of
          the Funding 2 Security or Funding 2 Transaction Documents relating
          to the Funding 2 Charged Property or the priority of the security
          thereby and shall not be liable for any failure, omission or defect
          in perfecting, protecting, procuring the registration of or further
          assuring the security created or purported to be created by or
          pursuant to this Deed or other documents entered into in connection
          herewith.

     (g)  The Funding 2 Security Trustee shall not have any duty to make any
          investigation in respect of or in any way be liable whatsoever for
          the failure to call for delivery of documents of title to or require
          any transfers, legal mortgages, charges or other further assurances
          in relation to any of the Funding 2 Charged Property or any other
          document.

     (h)  The Funding 2 Security Trustee shall be under no obligation to
          monitor or supervise and shall not have any duty to make any
          investigation in respect of or in any way be liable whatsoever for
          the performance or observance by Funding 2 or any other person of
          the provisions of this Deed or any other Funding 2 Transaction
          Document and shall be entitled to assume that each person is
          properly performing and complying with its obligations.

     (i)  The Funding 2 Security Trustee shall not have any responsibility for
          or have any duty to make any investigation in respect of or in any
          way be liable

                                      34

<PAGE>

          whatsoever for the existence, accuracy or sufficiency of any legal
          or other opinions, searches, reports, certificates, valuations or
          investigations delivered or obtained or required to be delivered or
          obtained at any time in connection with the Funding 2 Charged
          Property.

     (j)  The Funding 2 Security Trustee shall not be liable or responsible
          for any loss, cost, damage, expense or inconvenience which may
          result from anything done or omitted to be done by it under this
          Deed or under any of the other Funding 2 Transaction Documents save
          where the same arises as a result of the Funding 2 Security
          Trustee's fraud, wilful default or gross negligence.

     (k)  The Funding 2 Security Trustee shall have no responsibility
          whatsoever to any Funding 2 Secured Creditor as regards any
          deficiency which might arise because the Funding 2 Security Trustee
          is subject to any Tax in respect of the Funding 2 Charged Property
          or any part thereof or any income therefrom or any proceeds thereof
          or is required by law to make any withholding or deduction from any
          payment to any Funding 2 Secured Creditor.

     (l)  The Funding 2 Security Trustee will not be responsible or liable for
          any inadequacy or unfitness of any Funding 2 Charged Property as
          security or any decline in value or any loss realised upon any
          disposition of the Funding 2 Charged Property.

     (m)  The Funding 2 Security Trustee shall not be obliged to perfect the
          legal title to any Mortgage in its name or any of the Related
          Security if, in its opinion, such perfection would or might result
          in the Funding 2 Security Trustee becoming liable to or incurring
          any obligation to Funding 2 under a Mortgage or any of the Related
          Security and/or in its opinion, there is or would be insufficient
          cash to discharge, in accordance with the provisions of this Deed
          such liabilities or obligations as and when they arise.

     (n)  Notwithstanding the generality of the above, the Funding 2 Security
          Trustee shall not be responsible for the execution, legality,
          effectiveness, adequacy, genuineness, validity, enforceability or
          suitability of any of the Transaction Documents or any of the
          documents relating to the Mortgage Loans or Mortgages or other
          documents entered into in connection therewith or any security or
          the priority thereof constituted or purported to be constituted
          thereby or pursuant thereto nor shall it be responsible or liable to
          any person because of any invalidity of any provisions of such
          documents or the unenforceability thereof, whether arising from
          statute, law or decision of any court and (without prejudice to the
          generality of the foregoing) the Funding 2 Security Trustee shall
          not have any responsibility for, or have any duty to make any
          investigation in respect of or in any way be liable whatsoever for:

          (i)  the nature, status, creditworthiness or solvency of Funding 2
               or any other person or entity who has at any time provided any
               security or support whether by way of guarantee, charge or
               otherwise in respect of any advance made to Funding 2;

          (ii) the title, ownership, value, sufficiency or existence of any
               Mortgaged Property;

                                      35

<PAGE>

         (iii) the registration, filing, protection or perfection of any
               Mortgage Loans or Mortgages or the priority of the security
               created thereby whether in respect of any initial advance or
               any subsequent advance or any other sums or liabilities;

          (iv) the scope or accuracy of any representation, warranties or
               statements made by or on behalf of Funding 2 in any application
               for any advance or in any mortgage or charge or any document
               entered into in connection therewith;

          (v)  the performance or observance by Funding 2 or any other person
               of any provisions of any Mortgage Loans or Mortgages or in any
               document entered into in connection therewith or the fulfilment
               or satisfaction of any conditions contained therein or relating
               thereto or as to the existence or occurrence at any time of any
               default, event of default or similar event contained therein or
               waiver or consent which has at any time been granted in
               relation to any of the foregoing;

          (vi) the existence, accuracy or sufficiency of any legal or other
               opinions, searches, reports, certificates, valuations or
               investigations delivered or obtained or required to be
               delivered or obtained at any time in connection with Mortgage
               Loans or Mortgages;

         (vii) the title of the Seller or the Mortgages Trustee to Mortgage
               Loans or Mortgages;

        (viii) the suitability, adequacy or sufficiency of any Lending
               Criteria and any arrears and enforcement procedures operated by
               the Seller or compliance therewith or compliance with any
               applicable criteria for any Further Advances or the legality or
               recoverability or enforceability thereof or the priority of the
               security in relation thereto;

          (ix) the compliance of the provisions and contents of and the manner
               and formalities applicable to the execution of the Mortgage
               Loans or Mortgages and any documents connected therewith or the
               making of any advance intended to be secured thereby, with the
               relevant mortgage indemnity policies and with any applicable
               laws or regulations (including without prejudice to the
               generality of the foregoing, the Consumer Credit Act 1974);

          (x)  the failure by the Seller to obtain or comply with any licence,
               consent or other authority in connection with the origination,
               sale or purchase of any of the Mortgage Loans or Mortgages or
               the making of any advances in connection therewith or the
               failure to effect or procure registration of or to give notice
               to any person in relation to or otherwise protect the security
               created or purported to be created by or pursuant to any of the
               Mortgage Loans or Mortgages or other documents entered into in
               connection therewith;

          (xi) the failure to call for delivery of documents of title to or
               require any transfers, legal mortgages, charges or other
               further assurances in

                                      36

<PAGE>

               relation to any of the assets the subject matter of any of the
               Funding 2 Transaction Documents or any other document;

         (xii) any accounts, books, records or files maintained by the
               Seller, the Administrator or any other person in respect of any
               of the Mortgage Loans or Mortgages; or

        (xiii) any other matter or thing relating to or in any way connected
               with any Mortgage Loans or Mortgages or any document entered
               into in connection therewith whether or not similar to the
               foregoing.

     (o)  The Funding 2 Security Trustee shall not be responsible for, nor
          shall it have any liability with respect to, any loss or theft of
          the Funding 2 Charged Property and, without prejudice to any
          provisions relating to insurance under the Funding 2 Transaction
          Documents, the Funding 2 Security Trustee shall not be under any
          obligation to insure any of the Funding 2 Charged Property or any
          deeds or documents of title or other evidence in respect of the
          Security or to require any other person to maintain such insurance
          and the Funding 2 Security Trustee shall not be responsible for any
          loss, expense or liability which may be suffered as a result of the
          lack of or inadequacy of such insurance.

     (p)  The Funding 2 Security Trustee shall not be responsible for any
          liability occasioned to the Funding 2 Charged Property however
          caused, whether by an act or omission of Funding 2 or any other
          party to the Transaction Documents or any other person (including
          any bank, broker, depositary, warehouseman or other intermediary or
          any clearing system or operator thereof) or otherwise irrespective
          of whether the Funding 2 Charged Property is held by or to the order
          of any such persons, unless such loss is caused by the fraud, wilful
          default or gross negligence of the Funding 2 Security Trustee.

     (q)  The Funding 2 Security Trustee shall not be responsible for the
          receipt or application by Funding 2 of the proceeds of any
          Intercompany Loan or any Start-up Loan.

     (r)  The Funding 2 Security Trustee shall have full power to determine
          all questions and doubts arising in relation to any of the
          provisions of this Deed and the other Funding 2 Transaction
          Documents and every such determination, whether made upon a question
          actually raised or implied in the acts or proceedings of the Funding
          2 Security Trustee, shall be conclusive and shall bind the Funding 2
          Security Trustee and the Funding 2 Secured Creditors.

     (s)  The Funding 2 Security Trustee may determine whether or not a
          default in the performance by Funding 2 of any obligation under the
          provisions of this Deed or any other Funding 2 Transaction Document
          is capable of remedy and/or whether the same is materially
          prejudicial to the interests of the Funding 2 Secured Creditors or
          any of them and if the Funding 2 Security Trustee shall certify that
          any such default is, in its opinion, not capable of remedy and/or
          materially prejudicial to the interests of the Funding 2 Secured
          Creditors or

                                      37

<PAGE>

          any of them, such certificate shall be conclusive and binding upon
          the Funding 2 Secured Creditors.

     (t)  The Funding 2 Security Trustee shall be entitled to assume for the
          purposes of exercising any power, trust, authority, duty or
          discretion under or in relation to these presents or any of the
          other Transaction Documents, that such exercise will not be
          materially prejudicial to the interests of the Noteholders if the
          Rating Agencies have confirmed in writing that the then current
          ratings of the Notes would not be reduced, withdrawn or qualified by
          such exercise.

     (u)  Unless provided otherwise in any Transaction Document, where a
          Funding 2 Intercompany Loan Event of Default or a Completion Event
          refers to materiality or like terminology, any determination of
          materiality or like terminology or the absence thereof will be in
          the opinion of Funding 2 as certified to the Funding 2 Security
          Trustee, which certificate shall be conclusive evidence of the
          occurrence of (or absence of) such circumstances.

     (v)  The Funding 2 Security Trustee shall have no liability whatsoever
          for any loss, cost, damages or expenses directly or indirectly
          suffered or incurred by any person as a result of the delivery by
          the Funding 2 Security Trustee to Funding 2 or any other party to
          the Transaction Documents of a certificate as to material prejudice
          or as to no material prejudice pursuant to the Conditions or any
          Transaction Document and any such certificate shall be binding on
          the Funding 2 Secured Creditors.

     (w)  The Funding 2 Security Trustee may, in the conduct of its trust
          business, instead of acting personally, employ and pay an agent,
          whether or not a lawyer or other professional person, to transact or
          conduct, or concur in transacting or conducting, any business and to
          do or concur in doing all acts required to be done by the Funding 2
          Security Trustee (including the receipt and payment of monies). The
          Funding 2 Security Trustee shall not be responsible for any
          misconduct or omission on the part of any person appointed by it or
          be bound to supervise the proceedings or acts of any such persons
          and shall not be responsible for any loss, costs, liability or
          expenses incurred by any misconduct or default on the part of any
          such person, provided that the Funding 2 Security Trustee has
          exercised reasonable care in selecting any such agent.

     (x)  Any trustee of this Deed being a lawyer, accountant, broker or other
          person engaged in any profession or business shall be entitled to
          charge and be paid all usual professional and other charges for
          business transacted and acts done by him or his firm in connection
          with the trusts of this deed and the Funding 2 Transaction Documents
          and also his charges in addition to disbursements for all other work
          and business done and all time spent by him or his firm in
          connection with matters arising in connection with this Deed and the
          other Funding 2 Transaction Documents, including matters which might
          or should have been attended to in person by a trustee not being a
          lawyer, accountant, broker or other professional person.

     (y)  The Funding 2 Security Trustee may, in the execution of all or any
          of the trusts, powers, authorities and discretions vested in it by
          this Deed or any of

                                      38

<PAGE>

          the other Funding 2 Transaction Documents, act by responsible
          officers or a responsible officer for the time being of the Funding
          2 Security Trustee. The Funding 2 Security Trustee may also,
          whenever it thinks expedient in the interests of the Funding 2
          Secured Creditors, whether by power of attorney or otherwise,
          delegate to any person or persons all or any of the trusts, rights,
          powers, duties, authorities and discretions vested in it by this
          Deed or any of the other Funding 2 Transaction Documents. Any such
          delegation may be made upon such terms and conditions and subject to
          such regulations (including power to sub-delegate) as the Funding 2
          Security Trustee may think fit in the interests of the Funding 2
          Secured Creditors, provided that the Funding 2 Security Trustee
          shall have exercised reasonable care in the selection of such
          delegate and, where a power to sub-delegate has been given, shall
          oblige the delegate to exercise reasonable care in the selection of
          any sub-delegate. The Funding 2 Security Trustee shall not be bound
          to supervise the proceedings of, or be responsible for any loss,
          costs, liability or expenses incurred by any misconduct or default
          on the part of, such delegate or sub-delegate. The Funding 2
          Security Trustee shall give prompt notice to Funding 2 of the
          appointment of any delegate as aforesaid and shall procure that any
          delegate shall also give prompt notice of the appointment of any
          sub-delegate to Funding 2.

     (z)  Where it is necessary or desirable for any purpose in connection
          with this Deed to convert any sum from one currency to another it
          shall (unless otherwise provided by this Funding 2 Deed of Charge or
          required by law) be converted at such rate or rates in accordance
          with such method and as at such date for the determination of such
          rate of exchange, as may be specified by the Funding 2 Security
          Trustee in its absolute discretion but having regard to current
          rates of exchange if available and the Funding 2 Security Trustee
          shall not be liable for any loss occasioned by the said conversion
          and any rate, method and date so specified shall be binding on
          Funding 2 and the Funding 2 Secured Creditors.

     (aa) Any consent given by the Funding 2 Security Trustee for the purposes
          of this Deed or any of the other Transaction Documents may be given
          on such terms and subject to such conditions (if any) as the Funding
          2 Security Trustee thinks fit and may be given retrospectively.

     (bb) The Funding 2 Security Trustee shall not be liable for any error of
          judgment made in good faith by any officer or employee of the
          Funding 2 Security Trustee assigned by the Funding 2 Security
          Trustee to administer its corporate trust matters unless the Funding
          2 Security Trustee was grossly negligent in ascertaining the
          pertinent facts.

     (cc) The Funding 2 Security Trustee shall not (unless required by law or
          ordered to do so by a court of competent jurisdiction) be required
          to disclose to any Funding 2 Secured Creditor or other person any
          information made available to the Funding 2 Security Trustee by
          Funding 2 or any other person in connection with the trusts of this
          Deed or the Funding 2 Transaction Documents and no Funding 2 Secured
          Creditor or other person shall be entitled to take any action to
          obtain from the Funding 2 Security Trustee any such information.

                                      39

<PAGE>

     (dd) Notwithstanding anything else in this Deed or the other Funding 2
          Transaction Documents, the Funding 2 Security Trustee may refrain
          from doing anything which would or might in its opinion be contrary
          to any law of any jurisdiction or any directive or regulation of any
          governmental agency or which would or might otherwise render it
          liable to any person and may do anything which is, in its opinion,
          necessary to comply with any such law, directive or regulation.

     (ee) The powers conferred by this Deed upon the Funding 2 Security
          Trustee or any Receiver shall be in addition to and not in
          substitution for any powers which may from time to time be conferred
          on the Funding 2 Security Trustee or any such Receiver by statute or
          under common law.

     (ff) The Funding 2 Security Trustee has no duties or responsibilities
          except those expressly set out in this Deed or in the Funding 2
          Transaction Documents.

     (gg) The Funding 2 Security Trustee shall not be responsible for the
          maintenance of the rating of the Notes.

16.4 No Financial Liability: Notwithstanding anything else herein contained,
     the Funding 2 Security Trustee may refrain from taking any action or
     exercising any right, power, authority or discretion vested in it under
     this Deed, any other Transaction Document, any Funding 2 Charged Property
     or any other agreement relating to the transactions herein or therein
     contemplated until it has been indemnified and/or secured to its
     satisfaction against and all liabilities which might be brought, made or
     conferred against or suffered, incurred or sustained by it as a result.
     Notwithstanding any other provision of this Deed or of any other
     Transaction Document, nothing shall require the Funding 2 Security
     Trustee to risk its own funds or otherwise incur any financial liability
     in the performance of any of its duties or in the exercise of any of its
     rights or powers or otherwise in connection with this Deed or any other
     Funding 2 Transaction Document (including, without limitation, forming
     any opinion or employing any legal, financial or other adviser), if it
     shall believe that repayment of such funds or adequate indemnity against
     such risk or liability is not assured to it. Further, without prejudice
     to the right of indemnity by law given to trustees, Funding 2 hereby
     covenants further, to reimburse, pay or discharge (on a full indemnity
     basis) on demand the Funding 2 Security Trustee and every attorney,
     receiver, manager, agent, delegate or other person appointed by it under
     this Deed from and against all liabilities, losses, damages, costs,
     expenses, actions, proceedings, claims and demands (including without
     limitation legal fees and any applicable value added tax or similar tax)
     incurred by or made against it or him in the execution or purported
     execution of the trusts of this Deed or of its or his powers or in
     respect of any matter or thing done or omitted in any way relating to
     this Deed or any of the other Funding 2 Transaction Documents except such
     as may arise from the gross negligence or wilful misconduct or fraud of
     any such indemnified person.

16.5 Assumption of No Default:

     (a)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Intercompany Loan Event of Default or Potential Funding
          2 Intercompany Loan Event of Default has happened and, until it
          shall have actual knowledge or express notice to the contrary, the
          Funding 2 Security Trustee shall be entitled to assume that no such
          Funding 2 Intercompany Loan Event of Default or Potential Funding 2
          Intercompany Loan Event of

                                      40

<PAGE>

          Default has happened and that Funding 2 is observing and performing
          all the obligations on its part contained in any Funding 2
          Intercompany Loan Agreement and no event has happened as a
          consequence of which Intercompany Loan may become repayable.

     (b)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Completion Event or any failure by the Seller to comply
          with any of its obligations under the Mortgage Sale Agreement or any
          event which with the giving of notice or expiry of any grace period
          or certification as specified in respect of such Completion Event or
          Seller failure of its obligations would constitute the same has
          happened and, until it shall receive express notice to the contrary
          from any party to the Transaction Documents, the Funding 2 Security
          Trustee shall be entitled to assume that no such Completion Event or
          Seller failure of its obligations or such other event as described
          above has happened and that Funding 2, the Administrator or the
          Seller (as the case may be) is observing and performing all of their
          respective obligations contained in each of the Transaction
          Documents to which they are a party.

     (c)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any material breach of any of the representations and
          warranties referred to in Clause 8 (Warranties and Repurchase by the
          Seller) of the Mortgage Sale Agreement or any event which with the
          giving of notice or expiry of any grace period or certification as
          specified in such representation and warranties would constitute the
          same has happened and, until it shall receive express notice to the
          contrary from any party to the Transaction Documents, the Funding 2
          Security Trustee shall be entitled to assume that no such breach or
          such other event as described above has happened and that the Seller
          is observing and performing its obligations contained in the
          Mortgage Sale Agreement.

     (d)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Administrator Termination Event or any event which with
          the giving of notice or expiry of any grace period or certification
          as specified in respect of such Administrator Termination Event
          would constitute the same has happened and, until it shall receive
          express notice to the contrary pursuant to Clause 19.5 (Notification
          of Termination Event) of the Administration Agreement, the Funding 2
          Security Trustee shall be entitled to assume that no such
          Administrator Termination Event under the Administration Agreement
          or such other event as described above has happened and that the
          Administrator is observing and performing all of its obligations
          contained in each of the Transaction Documents to which it is a
          party.

     (e)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Cash Manager Termination Event or any event which with
          the giving of notice or expiry of any grace period or certification
          as specified in such Cash Manager Termination Event would constitute
          the same has happened and, until it shall receive express notice to
          the contrary pursuant to Clause 12.4 (Note of Event of Default) of
          the Cash Management Agreement, the Funding 2 Security Trustee shall
          be entitled to assume that no such Cash Manager Termination Event or
          such other event as described above has happened

                                      41

<PAGE>

          and that the Cash Manager is observing and performing its
          obligations contained in the Cash Management Agreement.

     (f)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Termination Event under the Funding 2 Bank Account
          Agreement or any event which with the giving of notice or expiry of
          any grace period or certification as specified in the Funding 2 Bank
          Account Agreement, would constitute the same has happened and, until
          it shall receive express notice to the contrary pursuant to Clause
          [   ] of the Funding 2 Bank Account Agreement, the Funding 2 Security
          Trustee shall be entitled to assume that no such termination event
          under the Funding 2 Bank Account Agreement or such other event as
          described above has happened and that the Account Bank is observing
          and performing its obligations contained in the Funding 2 Bank
          Account Agreement.

     (g)  The Funding 2 Security Trustee shall not be bound to ascertain
          whether any Flexible Mortgages Loans or part thereof is
          unenforceable and/or does not fall within the first ranking charge
          by way of legal mortgage or standard security over the relevant
          Mortgaged Property has happened and, until it shall receive express
          notice to the contrary from any party to the Transaction Documents,
          the Funding 2 Security Trustee shall be entitled to assume that no
          such event has happened.

16.6 Commercial Transactions: The Funding 2 Security Trustee shall not, and no
     director, officer or employee of any corporation being a Funding 2
     Security Trustee hereof shall by reason of the fiduciary position of the
     Funding 2 Security Trustee be in any way precluded from making any
     commercial contracts or entering into any commercial transactions with
     any party to the Funding 2 Transaction Documents, whether directly or
     through any subsidiary or associated company, or from accepting the
     trusteeship of any other debenture stock, debentures or securities of any
     party to the Funding 2 Transaction Documents, and without prejudice to
     the generality of these provisions, it is expressly declared that such
     contracts and transactions include any contract or transaction in
     relation to the placing, underwriting, purchasing, subscribing for or
     dealing with or lending monies upon or making payments in respect of or
     any stock, shares, debenture stock, debentures or other securities of any
     party to the Funding 2 Transaction Documents or any contract of banking
     or insurance of any party to the Funding 2 Transaction Documents and
     neither the Funding 2 Security Trustee nor any such director, officer or
     employee shall be accountable to any Funding 2 Secured Creditor or to any
     party to the Funding 2 Transaction Documents for any profit, fees,
     commissions, interest, discounts or share of brokerage earned, arising or
     resulting from any such contracts or transactions, and the Funding 2
     Security Trustee and any such director, officer or employee shall also be
     at liberty to retain the same without accounting therefor.

16.7 Trustee Liable for Negligence: None of the provisions of this Deed shall,
     in any case in which the Funding 2 Security Trustee has failed to show
     the degree of care and diligence required of it as security trustee under
     this Deed, having regard to the provisions of this Deed conferring on the
     Funding 2 Security Trustee any powers, authorities or discretions,
     relieve or indemnify the Funding 2 Security Trustee against any
     liabilities which by virtue of any rule of law would otherwise attach to
     it in

                                      42

<PAGE>

     respect of any gross negligence, default, breach of duty or breach of
     trust of which it may be guilty in relation to its duties under this
     Deed.

16.8 Delegation of Certain Functions to Authorised Third Party: Without
     prejudice to the provisions of this Deed, references to the Funding 2
     Security Trustee taking action in connection with any duty of the Seller
     or Administrator under any Transaction Document shall be read subject to
     Clause 25 (Security Trustee: Authorised Third Party) and Schedule 4
     (Authorised Third Party) of the Administration Agreement.

16.9 Funding 2 Security Trustee to act on Issuer Security Trustee direction:
     Notwithstanding any other provision in any other Funding 2 Transaction
     Document, the Funding 2 Secured Creditors and Funding 2 acknowledge that
     when exercising its opinion and/or when exercising the rights, benefits,
     power, trusts, authorities, directions and obligations expressed to be
     granted by this Deed, the other Funding Transaction 2 Documents or by
     operation of law, the Funding 2 Security Trustee shall (by virtue of the
     assignment by way of security by each Funding 2 Issuer of its right,
     title, interest and benefit in its related Funding 2 Intercompany Loan to
     the relevant Issuer Security Trustee pursuant to the relevant Issuer Deed
     of Charge), for so long as there are any Funding 2 Intercompany Loans
     outstanding, have regard to the interests of or directions received from
     the relevant Issuer Security Trustee(s) and shall not be responsible for
     any loss, costs, damages, expenses or inconveniences that may result from
     the exercise or non-exercise thereof provided that:

     (a)  if there is a conflict between the interests (as directed by the
          Issuer Security Trustee(s)) of holders of Notes issues by more than
          one Funding 2 Issuer or a conflict in directions received from the
          Issuer Security Trustee(s), the Funding 2 Security Trustee shall
          have regard only to the interests or directions, as applicable, of
          the Issuer Security Trustee or Issuer Security Trustee(s) acting as
          trustees in respect of the Issuer Security granted in relation to
          the highest ranking class of Notes outstanding (the "Principal
          Directions"); and

     (b)  if there is any conflict between the Principal Directions, due to
          more than one Funding 2 Issuer having Notes of the same class as
          their highest ranking class, the Funding 2 Security Trustee shall
          have regard only to the Principal Directions of the Issuer Security
          Trustee(s) representing the holders of the greatest aggregate
          principal amount outstanding of the highest ranking class of Notes,
          and for this purpose, the principal amount outstanding of any Note
          not denominated in Sterling shall be converted into Sterling at the
          rate specified in the relevant swap agreement applicable to such
          Note or, if at the relevant time there is no such currency swap
          agreement in effect, at the "spot rate" at which the relevant
          currency is converted into Sterling on the foreign exchange markets.

     AND PROVIDED FURTHER THAT

          (i)  the Funding 2 Security Trustee shall not be bound to act unless
               it is first indemnified and/or secured to its satisfaction
               against all actions, proceedings, claims and demands to which
               it may render itself liable and all costs, charges, damages,
               expenses and liabilities which it may incur by so doing; and

                                      43

<PAGE>

          (ii) at any time when all Funding 2 Intercompany Loans have been
               repaid in full and/or there is no further claim outstanding
               under any Funding 2 Intercompany Loan Agreement, this Clause
               16.9 (Funding 2 Security Trustee to act on Issuer Security
               Trustee's Discretion) shall no longer apply and the Funding 2
               Security Trustee shall no longer be required to act at the
               request or direction of any Issuer Security Trustee but instead
               shall act at the request or direction of the Funding 2 Secured
               Creditor which ranks next highest in the Funding 2
               Post-Enforcement Priority of Payments.

17.  Modification and Waiver

17.1 Modifications to Transaction Documents: Subject as expressly provided
     otherwise in any Transaction Document, the Funding 2 Security Trustee (at
     the direction of the Issuer Security Trustee(s)) may from time to time
     and at any time without any consent or sanction of the Funding 2 Secured
     Creditors concur with any person in making or sanctioning any
     modification or amendment:

     (a)  to any of the Transaction Documents provided that the Funding 2
          Security Trustee is of the opinion that such modification will not
          be materially prejudicial to the interests of the Noteholders;

     (b)  to any of the Transaction Documents which in the Funding 2 Security
          Trustee's opinion is made to correct a manifest error or is of a
          formal, minor or technical nature or an error established as such to
          the satisfaction of the Funding Security Trustee ; or

     (c)  to any of the Transaction Documents which it may be necessary to
          make or which are required by the Rating Agencies in respect of any
          person who has executed a Deed of Accession pursuant to Clause 3
          (Security) hereto.

     Any such modification or amendment shall be binding on Funding 2 and the
     Funding 2 Secured Creditors and, unless the Funding 2 Security Trustee
     otherwise agrees, notice thereof shall be given by Funding 2 to the
     Funding 2 Secured Creditors as soon as practicable thereafter. Each of
     the Funding 2 Secured Creditors agrees from time to time to do and
     perform such other and further acts and execute and deliver any and all
     such other instruments as may be required to carry out and effect the
     intent and purpose of this Clause 17.1 (Modifications to Transaction
     Documents).

17.2 Authorisation or Waiver of Breach: Subject to Clause 14.10 (Acceleration)
     of the Global Intercompany Loan Agreement, the Funding 2 Security Trustee
     (at the direction of the Issuer Security Trustee(s)) may, without the
     consent of the Funding 2 Secured Creditors, without prejudice to its
     right in respect of any further or other breach, from time to time and at
     any time, but only if and in so far as in its opinion the interests of
     the Noteholders will not be materially prejudiced thereby authorise or
     waive, on such terms and conditions (if any) as shall seem expedient to
     it, any proposed or actual breach of any of the covenants or provisions
     contained in or arising pursuant to any of the Transaction Documents. Any
     such authorisation or waiver shall be binding on the Funding 2 Secured
     Creditors and, unless the Funding 2 Security Trustee otherwise agrees,
     notice thereof shall be given by Funding 2 to the Funding 2 Secured
     Creditors as soon as practicable thereafter.

                                      44

<PAGE>

17.3 Amendments and Waiver: Except as expressly provided in the preceding
     provisions of this Clause 17 (Modification and Waiver) or any other
     provision of this Deed, no amendment or waiver of any provision of this
     Deed nor consent to any departure by any of the parties therefrom shall
     in any event be effective unless the same shall be in writing and signed
     by each of the parties hereto. In the case of a waiver or consent, such
     waiver or consent shall be effective only in the specific instance and as
     against the party or parties giving it for the specific purpose for which
     it is given.

18.  Remuneration of the Funding 2 Security Trustee

18.1 Remuneration: Funding 2 shall (subject as hereinafter provided) pay to
     the Funding 2 Security Trustee an annual fee of such amount as shall from
     time to time be agreed by Funding 2 and the Funding 2 Security Trustee.
     Such remuneration shall be payable on Payment Dates subject to and in
     accordance with the Funding 2 Pre-Enforcement Revenue Priority of
     Payments or, as the case may be, the Funding 2 Post-Enforcement Priority
     of Payments. Such remuneration shall accrue from day to day and be
     payable up to and including the date when all of the Funding 2 Secured
     Obligations have been paid or discharged and the Funding 2 Security
     Trustee has released, reassigned and/or discharged the Funding 2 Charged
     Property as provided in Clause 4 (Release of Funding 2 Charged Property).

18.2 Additional Remuneration: In the event of the occurrence of a Funding 2
     Intercompany Loan Event of Default or a Potential Funding 2 Intercompany
     Loan Event of Default or the Funding 2 Security Trustee giving a Funding
     2 Intercompany Loan Enforcement Notice or the Funding 2 Security Trustee
     using its reasonable endeavours to appoint and maintain an Authorised
     Third Party or considering it expedient or necessary or being requested
     by Funding 2 to undertake duties which the Funding 2 Security Trustee and
     Funding 2 agree to be of an exceptional nature or otherwise outside the
     scope of the normal duties of the Funding 2 Security Trustee under this
     Deed, Funding 2 shall pay to the Funding 2 Security Trustee such
     additional remuneration as shall be agreed between them. In the event of
     the Funding 2 Security Trustee failing to agree upon whether such duties
     shall be of an exceptional nature or otherwise outside the scope of the
     normal duties of the Funding 2 Security Trustee under this Deed, or upon
     such additional remuneration, then such matter shall be determined by a
     merchant bank (acting as an expert and not as an arbitrator) selected by
     the Funding 2 Security Trustee and approved by Funding 2 or, failing such
     approval, nominated (on the application of the Funding 2 Security
     Trustee) by the President for the time being of the Law Society of
     England and Wales (the expense involved in such nomination and the fees
     of such merchant bank being payable by Funding 2) and the determination
     of any such merchant bank shall be final and binding upon the Funding 2
     Security Trustee and Funding 2.

18.3 Expenses: Funding 2 shall on written request, pay all other costs,
     charges and expenses (including legal and travelling expenses and the
     cost of using its reasonable endeavours to appoint and maintain an
     Authorised Third Party) (against production of invoices) which the
     Funding 2 Security Trustee or any persons appointed by it to whom any
     trust, power, authority or discretion may be delegated by it in relation
     to this Deed may properly incur including but not limited to:

                                      45

<PAGE>

     (a)  the negotiation, preparation and execution of, the exercise of its
          powers and the performance of its duties under this Deed and any
          other Funding 2 Transaction Documents to which the Funding 2
          Security Trustee is a party;

     (b)  the use of its reasonable endeavours to appoint and maintain an
          Authorised Third Party pursuant to Schedule 4 of the Administration
          Agreement;

     (c)  the use of its reasonable endeavours to appoint a substitute Cash
          Manager pursuant to the Cash Management Agreement;

     (d)  the use of its reasonable endeavours to appoint a substitute
          Administrator pursuant to the Administration Agreement;

     (e)  the preservation or attempted preservation of the Funding 2 Security
          or any of the Funding 2 Charged Property;

     (f)  any other action taken by or on behalf of the Funding 2 Security
          Trustee with a view to the recovery of the Funding 2 Secured
          Obligations or for enforcing the Funding 2 Security; and

     (g)  legal and travelling expenses or documentary expenses paid by the
          Funding 2 Security Trustee in connection with the Funding 2 Charged
          Property.

18.4 Indemnity: Funding 2 shall indemnify the Funding 2 Security Trustee and
     any Receiver in respect of all proceedings, claims, actions, demands,
     losses, costs, charges, expenses and liabilities to which it (or any
     person appointed by it to whom any trust, power, authority or discretion
     may be delegated by it in the execution or purported execution of the
     trusts, powers, authorities or discretions vested in it by or pursuant to
     this Deed and any of the other Funding 2 Transaction Documents to which
     the Funding 2 Security Trustee is a party) may be or become liable or
     which may be properly incurred by it (or any such person as aforesaid) in
     the execution or purported execution of any of its trusts, powers,
     authorities and discretions hereunder or its functions under any such
     appointment or in respect of any other matter or thing done or omitted in
     any way relating to this Deed and any of the other Funding 2 Transaction
     Documents to which the Funding 2 Security Trustee is a party save where
     the same arises as a result of the fraud, gross negligence or wilful
     default by the Funding 2 Security Trustee or, as the case may be, such
     Receiver or any of their officers or employees or the breach by the
     Funding 2 Security Trustee of the terms of this Deed.

18.5 Stamp Duties: Funding 2 shall, to the extent permitted by applicable
     United Kingdom law, pay all stamp duties and other duties or taxes of a
     similar nature, including for the avoidance of doubt any duty levied
     under the Stamp Act 1891 as amended and supplemented, (if any) payable on
     or arising out of or in consequence of:

     (a)  the creation of the security constituted by or pursuant to this
          Deed; and

     (b)  the execution and delivery of this Deed and documents executed
          pursuant hereto and the other Funding 2 Transaction Documents
          (except where the

                                      46

<PAGE>

          obligation to pay all stamp duties and other duties or taxes of a
          similar nature is expressed to be the obligation of a person other
          than Funding 2).

18.6 VAT: All sums payable by Funding 2 under this Deed are deemed to be
     exclusive of any amount in respect of VAT. If, pursuant to any provision
     of this Deed, the Funding 2 Security Trustee or the Receiver of Funding 2
     makes any taxable or deemed taxable supply to Funding 2, then Funding 2
     shall pay to the Funding 2 Security Trustee or the Receiver of Funding 2
     (as the case may be) (in addition to the consideration for the supply) an
     amount equal to the VAT charged in respect of such taxable or deemed
     taxable supply against production of a valid VAT invoice.

18.7 Interest: Subject as provided in Clause 18.8 (Payment), all sums payable
     by Funding 2 under this Clause 18 (Remuneration of the Funding 2 Security
     Trustee) shall be payable on demand or, in the case of any remuneration
     payable under Clause 18.1 (Remuneration) on the due date specified
     therein and shall carry interest at the rate per annum, which is one per
     cent. per annum above the base rate from time to time of the National
     Westminster Bank Plc from the date on which they were paid, charged or
     incurred by the Funding 2 Security Trustee or any Receiver or, in the
     case of remuneration, the due date for payment thereof, to the date of
     actual payment.

18.8 Payment: Notwithstanding the other provisions of this Deed, any amount
     owing by Funding 2 pursuant to this Clause 18 (Remuneration of the
     Funding 2 Security Trustee) shall only be payable by Funding 2 subject to
     and in accordance with the Funding 2 Pre-Enforcement Revenue Priority of
     Payments or, as the case may be, the Funding 2 Post-Enforcement Priority
     of Payments.

18.9 Survival: Unless otherwise specifically stated in any discharge of this
     Deed, the provisions of this Clause 18 (Remuneration of the Funding 2
     Security Trustee) shall continue in full force and effect notwithstanding
     such discharge.

19.  Appointment, Removal and Retirement of Funding 2 Security Trustee

19.1 Power of Funding 2: The power of appointing a new Funding 2 Security
     Trustee and removing the Funding 2 Security Trustee or any new Funding 2
     Security Trustee shall be vested in Funding 2 but such appointment or
     removal must be approved by the Issuer Security Trustee, after
     consultation with each of the Funding 2 Secured Creditors (such approval
     not to be unreasonably withheld or delayed). A trust corporation may be
     appointed sole trustee hereof but subject thereto there shall be at least
     two trustees hereof, one at least of which shall be a trust corporation.
     Any appointment of a new Funding 2 Security Trustee and any retirement of
     an existing Funding 2 Security Trustee hereof shall as soon as
     practicable thereafter be notified by Funding 2 to the Funding 2 Secured
     Creditors.

19.2 U.S. Investment Company Act: Any new Funding 2 Security Trustee must (i)
     meet the requirements of section 26(a)(1) of the U.S. Investment Company
     Act of 1940, as amended; (ii) not be an "affiliate" (as defined in Rule
     405 of the U.S. Securities Act of 1933, as amended) of any Funding 2
     Issuer or of any person involved in the organisation or operation of any
     Funding 2 Issuer; (iii) not offer or provide credit or credit enhancement
     to any Funding 2 Issuer; and (iv) execute an agreement or instrument
     concerning the Notes containing provisions to the effect set forth in
     section 26(a)(3) of the U.S. Investment Company Act of 1940, as amended.

                                      47

<PAGE>

19.3 Powers of Funding 2 Security Trustee to appoint: Notwithstanding the
     provisions of Clause 19.1 (Power of Funding 2), the Funding 2 Security
     Trustee may (as attorney for Funding 2) upon giving prior notice to
     Funding 2 but without the consent of Funding 2 or the Funding 2 Secured
     Creditors appoint any person established or resident in any jurisdiction
     (whether a trust corporation or not) to act either as a separate trustee
     or as a co-trustee jointly with the Funding 2 Security Trustee:

     (a)  if the Funding 2 Security Trustee considers such appointment to be
          in the interests of the Funding 2 Secured Creditors; or

     (b)  for the purposes of conforming to any legal requirement, restriction
          or condition in any jurisdiction in which any particular act or acts
          are to be performed or any Funding 2 Charged Property is or is to be
          located; or

     (c)  for the purposes of obtaining a judgement in any jurisdiction or the
          enforcement in any jurisdiction either of a judgement already
          obtained or of the provisions of this Deed or any of the other
          Funding 2 Transaction Documents to which the Funding 2 Security
          Trustee is a party or obligations arising pursuant thereto or of any
          of the Funding 2 Security.

     Funding 2 hereby irrevocably appoints the Funding 2 Security Trustee to
     be its attorney in its name and on its behalf to execute any such
     instrument of appointment. Such a person shall (subject always to the
     provisions of this Deed and any other Funding 2 Transaction Document to
     which the Funding 2 Security Trustee is a party) have such trusts,
     powers, authorities and discretions (not exceeding those conferred on the
     Funding 2 Security Trustee by this Deed or any of the other Funding 2
     Transaction Documents to which the Funding 2 Security Trustee is a party)
     and such duties and obligations as shall be conferred or imposed on it by
     the instrument of appointment. The Funding 2 Security Trustee shall have
     power in like manner to remove any such person. Such proper remuneration
     as the Funding 2 Security Trustee may pay to any such person, together
     with any attributable costs, charges and expenses incurred by it in
     performing its function as such separate trustee or co-trustee, shall for
     the purposes of this Deed be treated as costs, charges and expenses
     incurred by the Funding 2 Security Trustee.

19.4 Multiple Trustees: Whenever there shall be more than two trustees hereof,
     the majority of such trustees shall (provided such majority includes a
     trust corporation) be competent to execute and exercise all the trusts,
     powers, authorities and discretions vested by this Deed and any of the
     other Funding 2 Transaction Documents in the Funding 2 Security Trustee
     generally.

19.5 Retirement of Funding 2 Security Trustee: Subject as provided in Clause
     19.6 (Retirement or Removal not Effective), any Funding 2 Security
     Trustee for the time being of this Deed may retire at any time upon
     giving not less than three calendar months' prior notice in writing to
     Funding 2 without assigning any reason therefor and without being
     responsible for any costs resulting from such retirement.

19.6 Retirement or Removal not Effective: The retirement or removal of any
     Funding 2 Security Trustee shall not become effective unless (1) there
     remains at least one trustee hereof being a trust corporation in office
     upon such retirement or removal and (2) there remains at least one
     trustee of each Issuer Trust Deed and each Issuer Deed

                                      48

<PAGE>

     of Charge being the same trust corporation. Funding 2 covenants that, in
     the event of a trustee (being a sole trustee or the only trust
     corporation) giving notice under Clause 19.5 (Retirement of Funding 2
     Security Trustee) or being removed as referred to in Clause 19.1 (Power
     of Funding 2) it shall use its best endeavours to procure a new Funding 2
     Security Trustee of this Deed (being a trust corporation) to be appointed
     as soon as reasonably practicable thereafter (for the avoidance of doubt,
     in the same terms as this Deed). If within 60 days of having given notice
     of its intention to retire, Funding 2 has failed to appoint a replacement
     Funding 2 Security Trustee, the outgoing Funding 2 Security Trustee will
     be entitled to appoint its successor (provided that the Rating Agencies
     confirm that the then current ratings of the Notes of any Funding 2
     Issuer shall not be either downgraded, reviewed or withdrawn as a result
     of such appointment).

19.7 Funding 2 Security Trustee, Note Trustee and Issuer Security Trustee: If
     the Funding 2 Security Trustee retires or is removed in accordance with
     the provisions of this Clause 19 (Appointment, Removal and Retirement of
     Funding 2 Security Trustee) then each Note Trustee and each Issuer
     Security Trustee shall retire at the same time in accordance with the
     provisions of the applicable Issuer Trust Deed and the applicable Issuer
     Deed of Charge. If a Note Trustee retires or is removed in accordance
     with the provisions of the applicable Issuer Trust Deed and/or an Issuer
     Security Trustee retires or is removed in accordance with the provisions
     of the applicable Issuer Deed of Charge, then the Funding 2 Security
     Trustee shall retire at the same time in accordance with the provisions
     of this Clause 19 (Appointment, Removal and Retirement of Funding 2
     Security Trustee). In each case the successor Funding 2 Security Trustee,
     each successor Note Trustee and each successor Issuer Security Trustee
     shall be the same person or persons.

19.8 Merger: Any corporation into which the Funding 2 Security Trustee may be
     merged or converted or with which it may be consolidated, or any
     corporation resulting from any merger, conversion or consolidation to
     which the Funding 2 Security Trustee shall be a party, or any corporation
     succeeding to all or substantially all the corporate trust business of
     the Funding 2 Security Trustee, shall be the successor of the Funding 2
     Security Trustee hereunder, provided such corporation shall be otherwise
     qualified and eligible under this Clause 19 (Appointment, Renewal and
     Retirement of Funding 2 Security Trustee), without the execution or
     filing of any paper or any further act on the part of any of the parties
     hereto.

20.  Miscellaneous Provisions

20.1 Evidence of Indebtedness: In any action, proceedings or claim relating to
     this Deed or the Funding 2 Security, a statement as to any amount due to
     any Funding 2 Secured Creditor or of the Funding 2 Secured Obligations or
     any part thereof or a statement of any amounts which have been notified
     to the Funding 2 Security Trustee as being amounts due to any Funding 2
     Secured Creditor which is certified as being correct by an officer of the
     Funding 2 Security Trustee or an officer of the relevant Funding 2
     Secured Creditor shall, save in the case of manifest error, be conclusive
     evidence that such amount is in fact due and payable.

20.2 Liability: All the liabilities and obligations of Funding 2 under or by
     virtue of this Deed shall not be impaired by:

                                      49

<PAGE>

     (a)  any failure of this Deed to be legal, valid, binding and enforceable
          as regards Funding 2 whether as a result of a lack of corporate
          powers or of directors' authority, defective execution or for any
          other reason whatsoever;

     (b)  any giving of time, forbearance, indulgence or waiver as regards
          Funding 2;

     (c)  a discharge or release of Funding 2; or

     (d)  any other matter or event whatsoever whether similar to the
          foregoing or not which might have the effect of impairing all or any
          of its liabilities or obligations except proper and valid payment or
          discharge of all Funding 2 Secured Obligations and amounts
          whatsoever which this Deed provides are to be paid by Funding 2 or
          an absolute discharge or release of Funding 2 signed by the Funding
          2 Secured Creditors and the Funding 2 Security Trustee.

20.3 Funding 2 Secured Creditors: Each Funding 2 Secured Creditor shall be
     bound by the provisions of this Deed as if it contained covenants by each
     Funding 2 Secured Creditor in favour of the Funding 2 Security Trustee
     and every other Funding 2 Secured Creditor to observe and be bound by all
     the provisions of this Funding 2 Deed expressed to apply to Funding 2
     Secured Creditors.

21.  Rights cumulative

     The respective rights of the Funding 2 Security Trustee, each Issuer
     Security Trustee, the Funding 2 Secured Creditors and any Receiver to
     this Deed are cumulative and may be exercised as often as each considers
     appropriate and are in addition to their respective rights under the
     general law. No failure on the part of the Funding 2 Security Trustee,
     each Issuer Security Trustee, the Funding 2 Secured Creditors or any
     Receiver to exercise, and no delay in exercising, any right hereunder
     shall operate as a waiver thereof, nor shall any single or partial
     exercise of any such right preclude any other or further exercise thereof
     or the exercise of any other right. The remedies in this Deed are
     cumulative and not exclusive of any remedies provided by law.

22.  Assignment

     None of the Funding 2 Secured Creditors may assign, encumber or transfer
     all or any part of its rights or benefits and/or transfer its obligations
     under this Deed without the prior written consent of the Funding 2
     Security Trustee, save that each Funding 2 Issuer may assign its rights
     under this Deed without such consent to the applicable Issuer Security
     Trustee under the applicable Issuer Deed of Charge.

23.  Non Petition Covenant; Corporate Obligations

23.1 [Each of the parties hereto hereby agrees that it shall not institute
     against the Mortgages Trustee or any Funding 2 Issuer any winding-up,
     administration, insolvency or similar proceedings in any jurisdiction for
     so long as any sum is outstanding under any Funding 2 Intercompany Loan
     Agreement or for two years plus one day since the last day on which any
     such sum was outstanding provided that the Funding 2 Security Trustee may
     prove or lodge a claim in the event of a liquidation initiated by any
     other person.]

                                      50

<PAGE>

23.2 Corporate Obligations: To the extent permitted by law, no recourse under
     any obligation, covenant, or agreement of any person contained in this
     Deed shall be had against any shareholder, officer or director of such
     person as such, by the enforcement of any assessment or by any legal
     proceeding, by virtue of any statute or otherwise; it being expressly
     agreed and understood that this Agreement is a corporate obligation of
     each person expressed to be a party hereto and no personal liability
     shall attach to or be incurred by the shareholders, officers, agents or
     directors of such person as such, or any of them, under or by reason of
     any of the obligations, covenants or agreements of such person contained
     in this Deed, or implied therefrom, and that any and all personal
     liability for breaches by such person of any of such obligations,
     covenants or agreements, either under any applicable law or by statute or
     constitution, of every such shareholder, officer, agent or director is
     hereby expressly waived by each person expressed to be a party hereto as
     a condition of and consideration for the execution of this Deed.

24.  Notices

     Any notices or other communication or document to be given or delivered
     pursuant to this Deed to any of the parties hereto shall be sufficiently
     served if sent by prepaid first class post, by hand or by facsimile
     transmission and shall be deemed to be given (in the case of facsimile
     transmission) when despatched or (where delivered by hand) on the day of
     delivery if delivered before 17.00 hours on a London Business Day or on
     the next London Business Day if delivered thereafter or (in the case of
     first class post) when it would be received in the ordinary course of the
     post and shall be sent:

     (a)  in the case of Funding 2, to Granite Finance Funding 2 Limited
          situated at Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
          number 020 7606 0643) for the attention of The Company Secretary
          with a copy to Northern Rock plc, Northern Rock House, Gosforth,
          Newcastle upon Tyne NE3 4PL (facsimile number 0191 213 2203) for the
          attention of the Group Secretary;

     (b)  in the case of the Funding 2 Security Trustee, to The Bank of New
          York situated at 48th Floor, One Canada Square, London E14 5AL
          attention Corporate Trust (Global Structured Finance) (facsimile
          number 020 7964 6399);

     (c)  in the case of the Issuer Security Trustee, to The Bank of New York
          situated at 48th Floor, One Canada Square, London E14 5AL attention
          Corporate Trust (Global Structured Finance) (facsimile number 020
          7964 6399);

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

     (e)  in the case of the Mortgages Trustee, to Granite Finance Trustees
          Limited situated at 22 Grenville Street, St. Helier, Jersey JE4 8PX,
          Channel Islands, (facsimile number 01534 609333) for the attention
          of The Company Secretary with a copy to Northern Rock plc, Northern
          Rock House, Gosforth, Newcastle

                                      51

<PAGE>

          upon Tyne NE3 4PL (facsimile number 0191 213 2203) for the attention
          of the Group Secretary;

     (f)  in the case of the Cash Manager, to Northern Rock plc situated at
          Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
          (facsimile number 0191 213 2203) for the attention of the Group
          Secretary;

     (g)  in the case of the Account Bank, to Lloyds TSB Bank plc situated at
          City Office, Bailey Drive, Gillingham Business Park, Kent ME8 0LS
          (facsimile number 0207 775 3642) for the attention of Jason Eperon;

     (h)  in the case of the Funding 2 GIC Provider, to Northern Rock plc
          situated at Northern Rock House, Gosforth, Newcastle Upon Tyne NE3
          4PL (facsimile number 0191 213 2203) for the attention of the Group
          Secretary;

     (i)  in the case of the Corporate Services Provider, to Law Debenture
          Corporate Services Limited situated at Fifth Floor, 100 Wood Street,
          London EC2V 7EX (facsimile number 020 7606 0643) for the attention
          of the Company Secretary;

     (j)  in the case of Moody's, to Moody's Investor Services situated at 1st
          Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB (facsimile
          number 020 7772 5400) for the attention of David Harrison, Asset
          Backed Finance;

     (k)  in the case of S&P, to Standard & Poor's situated at Garden House,
          18 Finsbury Circus, London EC2M 7NJ (facsimile number 020 7826 3598)
          for the attention of Heather Dyke; and

     (l)  in the case of Fitch, to Fitch Ratings Limited situated at Eldon
          House, 2 Eldon Street, London EC2M 7UA (facsimile number:020 7417
          6262) for the attention of European Structured Finance Surveillance,

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party
     to the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 24.

25.  Third Party Rights

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

26.  Execution in Counterparts; Severability

26.1 Counterparts:

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

     (b)  Notwithstanding the provisions of Clause 26.1(a), this Deed shall be
          fully effective and binding on Funding 2 upon its execution and
          delivery of at least

                                      52

<PAGE>

          one copy of this Deed, notwithstanding that this Deed has not then
          been executed and delivered by any other party thereto or that such
          other party has executed or executes or has delivered or delivers a
          counterpart of this Deed.

26.2 Severability: Where any provision in or obligation under this Deed shall
     be invalid, illegal or unenforceable in any jurisdiction, the validity,
     legality and enforceability of the remaining provisions or obligations
     under this Deed, or of such provision or obligation in any other
     jurisdiction, shall not be affected or impaired thereby.

27.  Governing Law and Submission to Jurisdiction

27.1 Governing Law: This Deed is governed by, and shall be construed in
     accordance with, English law provided that any terms hereof which are
     particular to the laws of Scotland shall be construed in accordance with
     Scots law.

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

27.3 Process Agent: The Mortgages Trustee irrevocably and unconditionally
     appoints Mourant & Co. Capital (SPV) Limited at 69 Park Lane, Croydon,
     CR9 1TQ or otherwise at its registered office for the time being as its
     agent for service of process in England in respect of any proceedings in
     respect of this Deed undertakes that in the event of Mourant & Co.
     Capital (SPV) Limited ceasing so to act it will appoint another person
     with a registered office in London as its agent for service of process.

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

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

Funding 2
<TABLE>
<CAPTION>

Executed by
<S>                                                        <C>
GRANITE FINANCE FUNDING 2 LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________

                                      53

<PAGE>

                                      54

<PAGE>

The Funding 2 Security Trustee and the Issuer Security Trustee and the Note
Trustee in respect of the Master Issuer

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By_______________________________________
Signed for and on its behalf by one of duly
authorised signatories
                                                           Name_____________________________________

The Master Issuer

Executed by
GRANITE MASTER ISSUER PLC
as its deed as follows:                                    By_______________________________________
Signed for and on its behalf by one of its directors         for and on behalf of LDC Securitisation
and by another of its directors/its secretary                Director No. 1 Ltd

                                                           Name_____________________________________

                                                           By_______________________________________
                                                             for and on behalf of LDC Securitisation
                                                             Director No. 2 Ltd

                                                           Name_____________________________________

                                      55

<PAGE>

The Mortgages Trustee

Executed by
GRANITE FINANCE TRUSTEES LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________

The Cash Manager, the Funding 2 Basis Rate Swap Provider, the Account Bank and
the Funding 2 GIC Provider

The Mortgages Trustee

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its duly              Duly Authorised Attorney/Signatory
authorised attorneys/signatories
                                                           Name_________________________________

Signature
           ----------------------------------------------
           Witness
Full name
           ----------------------------------------------
Occupation Solicitor
           ----------------------------------------------
Address    c/o Sidley Austin Brown & Wood
           ----------------------------------------------
           Woolgate Exchange
           ----------------------------------------------
           25 Basinghall Street
           ----------------------------------------------
           London EC2V 5HA
           ----------------------------------------------

                                      56

<PAGE>

The Corporate Services Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________
</TABLE>

                                      57

<PAGE>

                                  SCHEDULE 1

                      FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on [o] by Granite Finance Funding 2 Limited.
(registered number 5249387), a private limited liability company incorporated
under the laws of England and Wales whose registered office is at Fifth Floor,
100 Wood Street, London EC2V 7EX (the "Principal").

WHEREAS

(1)  By virtue of a deed of charge dated [o] between Granite Finance Funding 2
     Limited, and The Bank of New York (in its capacity as Funding 2 Security
     Trustee) (as amended and supplemented from time to time, the "Funding 2
     Deed of Charge"), provision was made for the execution by the Principal
     of this Power of Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed
     to the contrary) have the same meanings respectively as the words and
     phrases in the Funding 2 Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Funding 2 Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Funding 2 Deed of Charge and the other Funding 2
     Transaction Documents to which the Principal is a party from time to time
     appoints The Bank of New York and any other person or persons for the
     time being the Funding 2 Security Trustee or Funding 2 Security Trustees
     of and under the Funding 2 Deed of Charge (the "Attorney") and each and
     every person to whom the Funding 2 Security Trustee shall from time to
     time have delegated the exercise of the power of attorney conferred by
     this Power of Attorney (each a "Delegate") and any receiver including any
     administrative receiver and any manager (the "Receiver") and/or
     administrator (the "Administrator") appointed from time to time by the
     Attorney or on its behalf its true and lawful attorney for and in the
     Principal's name or otherwise jointly and severally to sign, seal,
     execute, deliver, perfect and do any assurance, act, matter or thing
     which the Attorney, Delegate, Receiver or Administrator considers in each
     case to be necessary for the protection or preservation of the Attorney's
     and the Funding 2 Secured Creditors' interests and rights (as described
     in the Funding 2 Deed of Charge) in and to the Funding 2 Charged Property
     or which ought to be done by the Principal under the covenants,
     undertakings and provisions contained in the Funding 2 Deed of Charge and
     the other Funding 2 Transaction Documents to which the Principal is a
     party from time to time and generally to in its name and on its behalf to
     exercise all or any of the powers, authorities or discretions conferred
     by or pursuant to the Funding 2 Deed of Charge on the Funding 2 Security
     Trustee and/or any Receiver whether on or at any time after the Funding 2
     Security has become enforceable in accordance with Clause 7.2
     (Enforcement) of the Funding 2 Deed of Charge or in any other
     circumstances where the Attorney has become entitled to take any of the
     steps referred to in the Funding 2 Deed of Charge including (without
     limitation) any or all of the following:

                                      58

<PAGE>

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Funding 2 Charged Property and/or fully and
          effectively vesting, transferring or assigning the Funding 2 Charged
          Property or any part thereof and/or the Principal's estate, right,
          title, benefit and/or interest therein or thereto in or to the
          Attorney and its successors in title or other person or persons
          entitled to the benefit thereof or for carrying into effect any
          other dealing with the Funding 2 Charged Property whatsoever
          permitted under the Funding 2 Deed of Charge in the same manner and
          as fully and effectively as the Principal could have done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Funding 2 Deed of
          Charge) from time to time to appoint a substitute attorney (each a
          "Substitute") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney
          by this Power of Attorney and/or to revoke any such appointment at
          any time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or
     Administrator and/or Substitute, or a person dealing with any of them and
     the successors and assigns of such a person, all acts properly done and
     documents executed or signed by the Attorney, a Delegate, a Receiver, an
     Administrator or a Substitute in the purported exercise of any power
     conferred by this Power of Attorney shall for all purposes be valid and
     binding on the Principal and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or
     Substitute appointed from time to time by the Attorney and their
     respective estates (each an "Indemnified Party") against all actions,
     proceedings, claims, costs, expenses and liabilities of every description
     arising from the exercise, or the purported exercise, of any of the
     powers conferred by this Power of Attorney, save where the same arises as
     the result of the fraud, negligence or wilful default of the relevant
     Indemnified Party or its officers or employees.

4.   The provisions of Clause 3 shall continue in force after the revocation
     or termination, howsoever arising, of this Power of Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and
     the interpretation thereof and to all acts of the Attorney and each
     Delegate, Receiver and/or Administrator and/or Substitute carried out or
     purported to be carried out under the terms hereof.

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any
     Delegate, Receiver or Administrator or Substitute shall properly and
     lawfully do or cause to be done in and concerning the Funding 2 Charged
     Property.

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

                                      59

<PAGE>

<TABLE>
<CAPTION>
Executed by
<S>                                                        <C>
GRANITE FINANCE FUNDING 2 LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________
</TABLE>

                                      60

<PAGE>

                                  SCHEDULE 2

                           FORM OF DEED OF ACCESSION

THIS DEED OF ACCESSION is made on [           ]

BETWEEN:

(1)  GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249387) a private
     limited liability company incorporated under the laws of England and
     Wales whose London branch is at Fifth Floor, 100 Wood Street, London EC2V
     7EX;

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

(3)  GRANITE MASTER ISSUER PLC (registered number 525066B), a public limited
     company incorporated under the laws of England and Wales, whose
     registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

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

(5)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as (1) Cash Manager (2) Funding 2 GIC Provider (3) Funding 2
     Basis Rate Swap Provider and (4) Account Bank; and

(6)  LAW DEBENTURE CORPORATE SERVICES LIMITED, a private limited company
     incorporated under the laws of England and Wales whose registered office
     is Fifth Floor, 100 Wood Street, London EC2V 7EX in its capacity as
     Corporate Services Provider; and

(7)  [Any other additional secured creditor of Funding 2](the "New Funding 2
     Secured Creditor").

NOW THIS DEED OF ACCESSION WITNESSES AS FOLLOWS

WHEREAS:

(A)  [Pursuant to the terms of a [describe agreement] (the "Agreement") dated
     [ ] made between Funding 2 and the New Funding 2 Secured Creditor,
     Funding 2 has agreed to [describe nature of the obligations of Funding 2
     under the Agreement].

(B)  This Deed is supplemental to a deed of charge dated [o] between, amongst
     others, Granite Finance Funding 2 Limited and The Bank of New York (in
     its capacity as Funding 2 Security Trustee) (as amended and supplemented
     from time to time the

                                      61

<PAGE>

     "Funding 2 Deed of Charge"), pursuant to which Funding 2 agreed to
     provide the Funding 2 Security Trustee with the benefit of the Funding 2
     Security to secure Funding 2's obligations to the Funding 2 Secured
     Creditors including the New Funding 2 Secured Creditor.

(C)  The terms of the Funding 2 Deed of Charge permit Funding 2 to secure its
     obligations to a New Funding 2 Secured Creditor thereunder.

(D)  The New Funding 2 Secured Creditor has agreed to enter into this Deed of
     Accession (this "Deed") to accede to the provisions of the Funding 2 Deed
     of Charge.

(E)  The Funding 2 Secured Creditors have agreed to enter into this Deed [and
     to agree consequential changes to the Funding 2 Priority of Payments set
     out in Part I, Part II and Part III of Schedule 3 of the Funding 2 Deed
     of Charge as are required and any [other] amendment as may be required to
     give effect to this Deed] [and to acknowledge the Security Interests
     created hereunder].

1.   Interpretation

     The Master Definitions Schedule signed for the purposes of identification
     by Brown and Wood and Clifford Chance Limited Liability Partnership on 26
     March 2001 (as the same may be amended, varied or supplemented from time
     to time with the consent of the parties hereto) are expressly and
     specifically incorporated into this Deed and, accordingly, the
     expressions defined in the Master Definitions Schedule (as so amended,
     varied or supplemented) shall, except where the context otherwise
     requires and save where otherwise defined herein, have the same meanings
     in this Deed, including the recitals hereto and this Deed shall be
     construed in accordance with the interpretation provisions set out in
     Clause 2 (Interpretation and Construction) of the Master Definitions
     Schedule.

2.   Representations and Warranties

2.1  The New Funding 2 Secured Creditor hereby represents and warrants to the
     Funding 2 Security Trustee and each of the Funding 2 Secured Creditors in
     respect of itself that as of the date of this Deed:

     (a)  pursuant to the terms of the Agreement, Funding 2 has agreed to pay
          to the New Funding 2 Secured Creditor the amount (if any) [describe
          in relation to the Agreement]; and

     (b)  the Agreement expressly provides that all amounts due from Funding 2
          thereunder are to be secured by or pursuant to the Funding 2 Deed of
          Charge.

2.2  Funding 2 hereby represents and warrants to the Funding 2 Security
     Trustee and each of the Funding 2 Secured Creditors that as at the date
     of this Deed, the conditions to incurring further secured financial
     indebtedness set out in Clause 3 (Security) of the Funding 2 Deed of
     Charge are satisfied.

                                      62

<PAGE>

3.   Accession

     In consideration of the New Funding 2 Secured Creditor being accepted as
     a Funding 2 Secured Creditor for the purposes of the Funding 2 Deed of
     Charge by the parties thereto as from [date], the New Funding 2 Secured
     Creditor:

     (a)  confirms that as from [date], it intends to be a party to the
          Funding 2 Deed of Charge as a Funding 2 Secured Creditor;

     (b)  undertakes to comply with and be bound by all of the provisions of
          the Master Definitions Schedule (as the same may be amended, varied
          or restated from time to time) and the Funding 2 Deed of Charge in
          its capacity as a Funding 2 Secured Creditor, as if it had been an
          original party thereto;

     (c)  undertakes to perform comply with and be bound by all of the
          provisions of the Funding 2 Deed of Charge in its capacity as a
          Funding 2 Secured Creditor, as if it had been an original party
          thereto including, without limitation, Clause 20.3 (Funding 2
          Secured Creditors) (including without limitation Clauses 8.3
          (Funding 2 Post-Enforcement Priority of Payments), 8.6 (Funding 2
          Security Trustee Rights upon Enforcement) and Clause 6 (Restrictions
          on Exercise of Certain Rights)); and

     (d)  agrees that the Funding 2 Security Trustee shall be the Funding 2
          Security Trustee of the Funding 2 Deed of Charge for all Funding 2
          Secured Creditors upon and subject to the terms set out in the
          Funding 2 Deed of Charge.

4.   [Security(1)

     (a)  Funding 2 by way of first fixed security for the payment or
          discharge of the Funding 2 Secured Obligations, subject to Clause 4
          Release of Charged Property of the Funding 2 Deed of Charge, hereby
          [Insert appropriate security provisions and details of further
          assets]; and

     (b)  Each of the dispositions of or charges over property effected in or
          pursuant to this Deed is made with full title guarantee (or, in
          relation to assets or rights situated in or governed by the laws of
          Scotland, with absolute warrandice). ]

5.   [Application(2)

     Prior to and following enforcement of the Funding 2 Security all amounts
     at any time held by Funding 2, the Cash Manager or the Funding 2 Security
     Trustee in respect of the security created under this Deed shall be held
     and/or applied by such person subject to and in accordance with the
     relevant provisions of the Funding 2 Deed of Charge.]

6.   Scope of the Funding 2 Deed of Charge

-----------------------------
(1) Include if necessary.

(2) Include if necessary.

                                      63

<PAGE>

     Funding 2, the New Funding 2 Secured Creditor and the Funding 2 Secured
     Creditors (including the Funding 2 Security Trustee) hereby agree that
     for the relevant purposes under the Funding 2 Deed of Charge and the
     Master Definitions Schedule:

     (a)  the Agreement shall be treated as a Funding 2 Transaction Document;
          [and]

     (b)  [the property and assets of Funding 2 expressed to be assigned by
          way of security or charged pursuant to this Deed of Accession shall
          constitute Funding 2 Charged Property;][and]

     (c)  the New Funding 2 Secured Creditor shall be treated as a Funding 2
          Secured Creditor.

7.   Notices and Acknowledgements

     (a)  The execution of this Deed by the New Funding 2 Secured Creditor
          shall constitute notice to such New Funding 2 Secured Creditor of
          the assignments made by Funding 2 pursuant to Clause 3 (Security) of
          the Funding 2 Deed of Charge. The execution of this Deed by each
          other Funding 2 Secured Creditor shall constitute notice to such
          Funding 2 Secured Creditor of the assignments made by Funding 2
          pursuant to this Deed.

     (b)  By its execution of this Deed, the New Funding 2 Secured Creditor
          acknowledges that it has notice of and consents to the assignments,
          charges and Security Interests made or granted by Funding 2 pursuant
          to Clause 3 (Security) of the Funding 2 Deed of Charge and also
          acknowledges that as at the date hereof it has not received from any
          other person any notice of any assignment or charge of any of the
          property the subject of such Security Interests. By its execution of
          this Deed, each other Funding 2 Secured Creditor acknowledges that
          it has notice of and consents to the assignments, charges and
          Security Interests made or granted by Funding 2 pursuant to this
          Deed of Accession and also acknowledges that as at the date hereof
          it has not received from any other person any notice of any
          assignment or charge of any of the property the subject of such
          Security Interests.

     (c)  Notwithstanding the assignments and charges granted pursuant to
          Clause 3 (Security) of the Funding 2 Deed of Charge or pursuant to
          this Deed of Accession, the parties hereto acknowledge that, subject
          as provided otherwise in the Funding 2 Deed of Charge, each Funding
          2 Secured Creditor and each other party to any Funding 2 Transaction
          Document may continue to make all payments becoming due to Funding 2
          under any Funding 2 Transaction Document in the manner envisaged by
          such Funding 2 Transaction Document until the receipt of written
          notice from the Funding 2 Security Trustee or any Receiver requiring
          payments to be made otherwise.

[8.  Amendment to the Funding 2 Priority of Payments

                                      64

<PAGE>

     The Funding 2 Secured Creditors agree to amend and restate the Funding 2
     Priority of Payments set out in Part I and Part II of Schedule 3 of the
     Funding 2 Deed of Charge in accordance with Appendix 1 hereto.]3

9.   Notices and Demands

     Any notice or communication under or in connection with this Deed, the
     Funding 2 Deed of Charge shall be given in the manner and at the times
     set out in Clause 24 (Notices) of the Funding 2 Deed of Charge to the
     addresses given in this Clause or at such other address as the recipient
     may have notified to the other parties hereto and/or thereto in writing.

     The address referred to in this Clause 9 for the New Funding 2 Secured
     Creditor is:

     [                   ]

     For the attention of:      [            ]

     Telephone:                 [            ]

     Facsimile:                 [            ]

     or such other address and/or numbers as the New Funding 2 Secured
     Creditor may notify to the parties to the Funding 2 Deed of Charge in
     accordance with the provisions thereof.

10.  Non Petition Covenant

     Each of the parties hereto hereby agrees that it shall not institute
     against the Mortgages Trustee or any Funding 2 Issuer any winding-up,
     administration, insolvency or similar proceedings in any jurisdiction for
     so long as any sum is outstanding under any Funding 2 Intercompany Loan
     Agreement or for two years plus one day since the last day on which any
     such sum was outstanding provided that the Funding 2 Security Trustee may
     prove or lodge a claim in the event of a liquidation initiated by any
     other person.

11.  Third Party Rights

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

12.  Execution in Counterparts

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

13.  Choice of Law

-----------------------------
(3)Include if necessary.

                                      65

<PAGE>

     This Deed of Accession is governed by and shall be construed in
     accordance with English law.

                                      66

<PAGE>

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

New Funding 2 Secured Creditor

<TABLE>
<CAPTION>

[Executed by
<S>                                                        <C>
[NEW FUNDING 2 SECURED CREDITOR]
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary]
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________

Funding 2

Executed by
GRANITE FINANCE FUNDING 2 LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________

The Funding 2 Security Trustee and the Issuer Security Trustee in respect of
the Master Issuer

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its duly
authorised signatories
                                                           Name_________________________________

                                      67

<PAGE>

The Master Issuer

Executed by
GRANITE FINANCE MASTER ISSUER PLC
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________

                                                           Name_________________________________

The Mortgages Trustee

Executed by
GRANITE FINANCE TRUSTEES LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________

The Cash Manager, the Funding 2 Basis Rate Swap Provider, the Account Bank and
the Funding 2 GIC Provider

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its duly              Duly Authorised Attorney/Signatory
authorised attorneys/signatories
                                                           Name_________________________________

Signature
           ----------------------------------------------
           Witness
Full name
           ----------------------------------------------
Occupation Solicitor
           ----------------------------------------------
Address    c/o Sidley Austin Brown & Wood
           ----------------------------------------------
           Woolgate Exchange
           ----------------------------------------------
           25 Basinghall Street
           ----------------------------------------------
           London EC2V 5HA
           ----------------------------------------------

                                      68

<PAGE>

The Corporate Services Provider

Executed by
LAW DEBENTURE CORORATE
SERVICES LIMITED
as its deed as follows:                                    By___________________________________
Signed for and on its behalf by one of its directors         Director
and by another of its directors/its secretary
                                                           Name_________________________________

                                                           By___________________________________
                                                             Director/Secretary

                                                           Name_________________________________
</TABLE>

                                      69

<PAGE>

                                      70

<PAGE>

                                  Appendix 1

             [Amended and Restated Funding 2 Priority of Payments]

                                      71

<PAGE>

                                  SCHEDULE 3

                        FUNDING 2 PRIORITY OF PAYMENTS

                                    Part I

            Funding 2 Pre-Enforcement Revenue Priority of Payments

Distribution of Funding 2 Available Revenue Receipts prior to Enforcement of
the Funding 2 Security

     On each Payment Date or, in respect of amounts due to third parties by
Funding 2 under paragraph (C), when due, prior to enforcement of the Funding 2
Security, the Cash Manager will, subject to the Rules for Application of
Funding 2 Available Revenue Receipts (set out below), apply Funding 2
Available Revenue Receipts in the following order of priority (the "Funding 2
Pre-Enforcement Revenue Priority of Payments"):

(A)  first, to pay amounts due to the Funding 2 Security Trustee (together
     with interest and (to the extent not already inclusive) VAT on those
     amounts) and to provide for any amounts due or to become due during the
     following Interest Period to the Funding 2 Security Trustee under this
     Funding 2 Deed of Charge or any other Transaction Document;

(B)  second, to pay amounts due to the Master Issuer in respect of the Master
     Issuer's obligations specified in paragraphs (A) through (D) of the
     Issuer Pre-Enforcement Revenue Priority of Payments or, as the case may
     be, paragraphs (A) through (C) of the Issuer Post-Enforcement Priority of
     Payments;

(C)  third, to pay amounts due to any third party creditors of Funding 2
     (other than those referred to later in this order of priority of payments
     or in the Funding 2 Pre-Enforcement Principal Priority of Payments) of
     which the Cash Manager has notice prior to the relevant Payment Date,
     which amounts have been incurred without breach by Funding 2 of the
     Transaction Documents to which it is a party (and for which payment has
     not been provided for elsewhere) and to provide for any such amounts
     expected to become due and payable by Funding 2 during the following
     Interest Period and to pay or discharge any liability of Funding 2 for
     corporation tax on any chargeable income or gain of Funding 2;

(D)  fourth, to pay amounts due to the Funding 2 Liquidity Facility Provider
     under the Funding 2 Liquidity Facility Agreement, if any (except for
     amounts drawn thereunder to repay Funding 2 Liquidity Facility Principal
     Payments and any [Funding 2 Liquidity Facility Subordinated Amounts]);

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

(F)  sixth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of amounts, if any, due to (i)
     the Account Bank under the terms

                                      72
<PAGE>

     of the Funding 2 Bank Account Agreement and (ii) the Corporate Services
     Provider under the terms of the Corporate Services Agreement;

(G)  seventh, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of all amounts (including such
     part of any termination payment) due under the Funding 2 (Mortgage Rates)
     Basis Rate Swap and the Funding 2 (LIBOR Rate) Basis Rate Swap to the
     Funding 2 Basis Rate Swap Provider but excluding any Funding 2 Basis Rate
     Swap Excluded Termination Amount;

(H)  eighth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of interest due and payable on
     the AAA Loan Tranches;

(I)  ninth, towards a credit to the AAA Principal Deficiency Subledger in an
     amount sufficient to eliminate any debit on that subledger;

(J)  tenth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of interest due and payable on
     the AA Loan Tranches;

(K)  eleventh, after taking account of the replenishment of the Funding 2
     Liquidity Reserve Fund on that Payment Date from Funding 2 Available
     Principal Receipts, to replenish the Funding 2 Liquidity Reserve Fund, if
     any, up to the Funding 2 Liquidity Reserve Required Amount [but only to
     the extent that there are class [o] notes outstanding on such Payment
     Date];

(L)  twelfth, towards a credit to the AA Principal Deficiency Subledger in an
     amount sufficient to eliminate any debit on that subledger;

(M)  thirteenth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of interest due and payable on
     the A Loan Tranches;

(N)  fourteenth, towards a credit to the A Principal Deficiency Subledger in
     an amount sufficient to eliminate any debit on that subledger;

(O)  fifteenth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of interest due and payable on
     the BBB Loan Tranches;

(P)  sixteenth, towards a credit to the BBB Principal Deficiency Subledger in
     an amount sufficient to eliminate any debit on that subledger;

(Q)  seventeenth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of interest due and payable on
     the BB Loan Tranches;

(R)  eighteenth, towards a credit to the BB Principal Deficiency Subledger in
     an amount sufficient to eliminate any debit on that subledger;

(S)  nineteenth, to pay amounts due to the Master Issuer in respect of the
     Issuer's obligations to make payments under the Start-Up Loan
     Agreement(s) specified in item (K) of the Issuer Pre-Enforcement Revenue
     Priority of Payments or, as the case may be, item (O) of the Issuer
     Post-Enforcement Priority of Payments;

                                      73

<PAGE>

(T)  twentieth, after taking account any replenishment of the Funding 2
     Reserve Fund on that Payment Date from Funding 2 Available Principal
     Receipts, to credit the Funding 2 Reserve Ledger up to the Funding 2
     Reserve Maximum Amount or if a Funding 2 Step-up Trigger Event has
     occurred, to credit the Funding 2 Reserve Ledger up to and including an
     additional amount equal to the sum of (i) the Funding 2 Reserve Maximum
     Amount and (ii) the product of [ ]% and (ii) the principal amount
     outstanding under the Global Intercompany Loan;

(U)  [twenty-first, to the Master Issuer in respect of its obligations (if
     any) to make a termination payment to any Issuer Swap Provider (but
     excluding any Issuer Swap Excluded Termination Amount);

(V)  twenty-second, in no order of priority among them but in proportion to
     the respective amounts due, to pay amounts due (without double counting)
     to:

     (i)  the Master Issuer in respect of its obligations (if any) to pay any
          Issuer Swap Excluded Termination Amount;

     (ii) the Funding 2 Liquidity Facility Provider, if any, any Funding 2
          Liquidity Facility Subordinated Amounts due under the Funding 2
          Liquidity Facility Agreement; and

    (iii) the Funding 2 Basis Rate Swap Provider in respect of any Funding 2
          Basis Rate Swap Excluded Termination Amount;

(W)  twenty-third, towards payment to Funding 2 of an amount equal to 0.01%
     per annum of the Funding 2 Available Revenue Receipts (excluding, for
     this purpose, amounts standing to the credit of the Funding 2 Reserve
     Ledger), which amount will be retained by Funding 2 as profit, less
     corporation tax in respect of those profits provided for or paid at
     paragraph (C) above (which amounts may be distributed to the shareholders
     of Funding 2 by way of dividend);

(X)  twenty-fourth, towards payment of any Deferred Contribution due to the
     Mortgages Trustee pursuant to the terms of the Mortgages Trust Deed; and

(Y)  last, towards payment to the shareholders of Funding 2 of any dividend
     declared by Funding 2.

Rules for Application of Funding 2 Available Revenue Receipts

(1)  If on any Payment Date any Funding 2 Available Revenue Receipts are
     applied by Funding 2 in reducing any deficiency recorded on the Principal
     Deficiency Sub-ledger of any Tier of Loan Tranche (but only to the extent
     of any deficiency which has arisen as a result of Losses on the Mortgage
     Loans allocated by Funding 2 to that Principal Deficiency Sub-ledger but
     not as a result of any other principal deficiency of any other Tier of
     Loan Tranches), then the Funding 2 Available Revenue Receipts so applied
     shall constitute repayments of principal under the relevant Loan Tranches
     and shall reduce the outstanding principal balance of those Loan Tranches
     accordingly.

(2)  To the extent that, on any Payment Date Funding 2 Available Revenue
     Receipts will be insufficient to pay items [(H), (J), (M), (O) and (Q)]
     of the Funding 2 Pre-Enforcement Revenue Priority of Payments, then the
     Cash Manager shall provide for

                                      74

<PAGE>

     that deficit by applying amounts standing to the credit of (a) first, the
     Funding 2 Principal Ledger and (b) second, any amounts standing to the
     credit of the Funding 2 Cash Accumulation Ledger as applicable. Funding 2
     Principal Receipts may not be used to pay interest on any Loan Tranche if
     such payment would create or increase a principal deficiency in respect
     of a higher ranking Tier of Loan Tranches. For the purposes of this rule,
     the amount of Funding 2 Available Principal Receipts that may be applied
     to any deficit of Funding 2 Available Revenue Receipts will be reduced by
     the amount that would be available to be drawn from the Issuer Reserve
     Fund to cover any deficit in Issuer Available Revenue Receipts to pay
     items [(A)] through [(I)] of the Issuer Pre-Enforcement Revenue Priority
     of Payments, if no Funding 2 Available Principal Receipts were to be
     applied to such deficit in Funding 2 Available Revenue Receipts.

                                      75

<PAGE>

                                    Part II

           Funding 2 Pre-Enforcement Principal Priority of Payments

     The following sections (I) through (IV) below set out priorities of
payments for Funding Available Principal Receipts under the following
circumstances and are collectively referred to as the "Funding 2
Pre-Enforcement Principal Priority of Payments":

(I)   Repayment of Loan Tranches of each Tier prior to the occurrence of a
      Trigger Event and prior to the service on Funding 2 of a Funding 2
      Intercompany Loan Enforcement Notice or the service on the Master Issuer
      of an Issuer Enforcement Notice;

(II)  Repayment of Loan Tranches of each Tier following the occurrence of a
      Non-Asset Trigger Event but prior to the service on Funding 2 of a
      Funding 2 Intercompany Loan Enforcement Notice or the service on the
      Master Issuer of an Issuer Enforcement Notice;

(III) Repayment of Loan Tranches of each Tier following the occurrence of an
      Asset Trigger Event but prior to the service on Funding 2 of a Funding
      Intercompany Loan Enforcement Notice or the service on the Master Issuer
      of an Issuer Enforcement Notice; and

(IV)  Repayment of Loan Tranches of each Tier following the service on the
      Master Issuer of an Issuer Enforcement Notice but prior to the service on
      Funding 2 of a Funding 2 Intercompany Loan Enforcement Notice.

I.   Repayment of Loan Tranches of each Tier prior to the occurrence of a
     Trigger Event and prior to the service on Funding 2 of a Funding 2
     Intercompany Loan Enforcement Notice or the service on the Master Issuer
     of an Issuer Enforcement Notice

On each Payment Date prior to the occurrence of a Trigger Event or the service
on Funding 2 of a Funding 2 Intercompany Loan Enforcement Notice or the
service on the Master Issuer of an Issuer Enforcement Notice, the Cash Manager
shall apply Funding 2 Available Principal Receipts in the following order of
priority:

(A)  first, in accordance with the terms of the Funding 2 Liquidity Facility
     Agreement, towards repayment of the amounts outstanding under the Funding
     2 Liquidity Facility (if any) that were drawn in order to make Funding 2
     Liquidity Facility Principal Payments;

(B)  second, to the extent that monies have been drawn from the Funding 2
     Reserve Fund to make Funding 2 Reserve Principal Payments, towards the
     replenishment of the Funding 2 Reserve Fund up to the Funding 2 Reserve
     Maximum Amount;

(C)  third, if a Funding 2 Liquidity Reserve Rating Event has occurred and is
     continuing (i) to initially fund the Funding 2 Liquidity Reserve Fund up
     to the Funding 2 Liquidity Reserve Required Amount and (ii) once it has
     been initially funded, to the extent that Funding 2 Available Revenue
     Receipts are insufficient to do so, to

                                      76

<PAGE>

     replenish the Funding 2 Liquidity Reserve Fund up to the Funding 2
     Liquidity Reserve Required Amount;

(D)  fourth, towards repayment of all AAA Loan Tranches that are then due and
     payable in an order of priority based on their Final Repayment Date, so
     that the earliest maturing AAA Loan Tranche is paid first (and if any AAA
     Loan Tranches have the same Final Repayment Date, then those Loan
     Tranches will be paid in no order of priority among them but in
     proportion to their respective amounts due);

(E)  fifth, towards repayment of all AA Loan Tranches that are then due and
     payable in no order of priority among them but in proportion to the
     respective amounts due;

(F)  sixth, towards repayment of all A Loan Tranches that are then due and
     payable in no order of priority among them but in proportion to the
     respective amounts due;

(G)  seventh, towards repayment of all BBB Loan Tranches that are then due and
     payable in no order of priority among them but in proportion to the
     respective amounts due;

(H)  eighth, towards repayment of all BB Loan Tranches that are then due and
     payable in no order of priority among them but in proportion to the
     respective amounts due;

(I)  ninth, towards a credit to the Funding 2 Cash Accumulation Ledger until
     the balance is equal to Funding 2's Cash Accumulation Requirement (as
     calculated after any payments are made at paragraph (D) of this priority
     of payments); and

(J)  tenth, the remainder to be credited to the Funding 2 Principal Ledger.

II.  Repayment of Loan Tranches of each Tier following the occurrence of a
     Non-Asset Trigger Event but prior to the service on Funding 2 of a
     Funding 2 Intercompany Loan Enforcement Notice or the service on the
     Master Issuer of an Issuer Enforcement Notice

     Following the occurrence of a Non-Asset Trigger Event (where no Asset
     Trigger Event has occurred) under the Mortgages Trust Deed but prior to
     the service on Funding 2 of a Funding 2 Intercompany Loan Enforcement
     Notice or the service on the Master Issuer of an Issuer Enforcement
     Notice, the Bullet Loan Tranches and the Scheduled Repayment Loan
     Tranches and the Controlled Repayment Loan Tranches in respect of the
     Global Intercompany Loan will be deemed to be Pass-Through Loan Tranches
     and on each Payment Date Funding 2 will be required to apply Funding 2
     Available Principal Receipts in the following order of priority:

     (A)  first, in accordance with the terms of the Funding 2 Liquidity
          Facility Agreement, towards repayment of the amounts outstanding
          under the Funding 2 Liquidity Facility (if any) that were drawn in
          order to make Funding 2 Liquidity Facility Principal Payments;

     (B)  second, to the extent that monies have been drawn from the Funding 2
          Reserve Fund to make Funding 2 Reserve Principal Payments, towards
          the replenishment of the Funding 2 Reserve Fund up to the Funding 2
          Reserve Maximum Amount;

                                      77

<PAGE>

     (C)  third, if a Funding 2 Liquidity Reserve Rating Event has occurred
          and is continuing (i) to initially fund the Funding 2 Liquidity
          Reserve Fund up to the Funding 2 Liquidity Reserve Required Amount
          and (ii) once it has been initially funded, to the extent that
          Funding 2 Available Revenue Receipts are insufficient to do so, to
          replenish the Funding 2 Liquidity Reserve Fund up to the Funding 2
          Liquidity Reserve Required Amount;

     (D)  fourth, in order of their Final Repayment Date, beginning with the
          earliest such date (and if two or more AAA Loan Tranches have the
          same Final Repayment Date, in proportion to the respective amounts
          due) to repay the AAA Loan Tranches until the AAA Loan Tranches are
          fully repaid;

     (E)  fifth, in no order of priority among them but in proportion to the
          amounts due, to repay the AA Loan Tranches until the AA Loan
          Tranches are fully repaid;

     (F)  sixth, in no order of priority among each of them but in proportion
          to the respective amounts due, to repay the A Loan Tranches until
          the A Loan Tranches are fully repaid;

     (G)  seventh, in no order of priority among them but in proportion to the
          respective amounts due, to repay the BBB Loan Tranches until the BBB
          Loan Tranches are fully repaid; and

     (H)  eighth, in no order of priority among them but in proportion to the
          respective amounts due, to repay the BB Loan Tranches until the BB
          Loan Tranches are fully repaid,

III. Repayment of Loan Tranches of each Tier following the occurrence of an
     Asset Trigger Event but prior to the service on Funding 2 of a Funding 2
     Intercompany Loan Enforcement Notice or the service on the Master Issuer
     of an Issuer Enforcement Notice

     Following the occurrence of an Asset Trigger Event (whether or not a
     Non-Asset Trigger Event occurs or has occurred) but prior to the service
     on Funding 2 of a Funding 2 Intercompany Loan Enforcement Notice or the
     service on the Master Issuer of an Issuer Enforcement Notice, the Bullet
     Loan Tranches and the Scheduled Repayment Loan Tranches and the
     Controlled Repayment Loan Tranches in respect of the Global Intercompany
     Loan will be deemed to be Pass-Through Loan Tranches and on each Payment
     Date Funding 2 will be required to apply Funding 2 available principal
     receipts in the following order of priority:

     (A)  first, in accordance with the terms of the Funding 2 Liquidity
          Facility Agreement, towards repayment of the amounts outstanding
          under the Funding 2 Liquidity Facility (if any) that were drawn in
          order to make Funding 2 Liquidity Facility Principal Payments;

     (B)  second, to the extent that monies have been drawn from the Funding 2
          Reserve Fund to make Funding 2 Reserve Principal Payments, towards
          the replenishment of the Funding 2 Reserve Fund up to the Funding 2
          Reserve Maximum Amount;

                                      78

<PAGE>

     (C)  third, if a Funding 2 Liquidity Reserve Rating Event has occurred
          and is continuing (i) to initially fund the Funding 2 Liquidity
          Reserve Fund up to the Funding 2 Liquidity Reserve Required Amount
          and (ii) once it has been initially funded, to the extent that
          Funding 2 Available Revenue Receipts are insufficient to do so, to
          replenish the Funding 2 Liquidity Reserve Fund up to the Funding 2
          Liquidity Reserve Required Amount;

     (D)  fourth, in no order of priority among them, but in proportion to the
          respective amounts due to repay the AAA Loan Tranches until the AAA
          Loan Tranches are fully repaid;

     (E)  fifth, in no order of priority among them, but in proportion to the
          respective amounts due, to repay the AA Loan Tranches until the AA
          Loan Tranches are fully repaid;

     (F)  sixth, in no order of priority among them, but in proportion to the
          respective amounts due, to repay the A Loan Tranches until the A
          Loan Tranches are fully repaid;

     (G)  seventh, in no order of priority among them, but in proportion to
          the respective amounts due, to repay the BBB Loan Tranches until the
          BBB are fully repaid; and

     (H)  eighth, in no order of priority among them, but in proportion to the
          respective amounts due to repay the BB Loan Tranches until the BB
          Loan Tranches are fully repaid.

IV.  Repayment of Loan Tranches of each Tier following the service on the
     Master Issuer of an Issuer Enforcement Notice but prior to the service on
     Funding 2 of a Funding 2 Intercompany Loan Enforcement Notice

     If an Issuer Enforcement Notice is served on the Master Issuer, then that
     will not result in automatic enforcement of the Funding 2 Security under
     this Funding 2 Deed of Charge. In those circumstances, however, any
     Bullet Loan Tranches and any Scheduled Repayment Loan Tranches and any
     Controlled Repayment Loan Tranches under the Global Intercompany Loan
     will be deemed to be Pass-Through Loan Tranches and on each Payment Date
     Funding 2 will be required to apply Funding 2 Available Principal
     Receipts in the following order of priority:

     (A)  first, in accordance with the terms of the Funding 2 Liquidity
          Facility Agreement, towards repayment of the amounts outstanding
          under the Funding 2 Liquidity Facility (if any) that were drawn in
          order to make Funding 2 Liquidity Facility Principal Payments;

     (B)  second, to the extent that monies have been drawn from the Funding 2
          Reserve Fund to make Funding 2 Reserve Principal Payments, towards
          the replenishment of the Funding 2 Reserve Fund up to the Funding 2
          Reserve Maximum Amount;

     (C)  third, if a Funding 2 Liquidity Reserve Rating Event has occurred
          and is continuing (i) to initially fund the Funding 2 Liquidity
          Reserve Fund up to the

                                      79

<PAGE>

          Funding 2 Liquidity Reserve Required Amount and (ii) once it has
          been initially funded, to the extent that Funding 2 Available
          Revenue Receipts are insufficient to do so, to replenish the Funding
          2 Liquidity Reserve Fund up to the Funding 2 Liquidity Reserve
          Required Amount;

     (D)  fourth, in no order of priority among them, but in proportion to the
          respective amounts due, to repay the AAA Loan Tranches until the AAA
          Loan Tranches are fully repaid;

     (E)  fifth, in no order of priority among them, but in proportion to the
          respective amounts due, to repay the AA Loan Tranches until the AA
          Loan Tranches are fully repaid;

     (F)  sixth, in no order of priority among them, but in proportion to the
          respective amounts due, to repay the A Loan Tranches until the A
          Loan Tranches are fully repaid; and

     (G)  seventh, in no order of priority among them, but in proportion to
          the respective amounts due, to repay the BBB Loan Tranches until the
          BBB Loan Tranches are fully repaid; and

     (H)  eighth, in no order of priority among them, but in proportion to the
          respective amounts due to repay the BB Loan Tranches until the BB
          Loan Tranches are fully repaid.

     If Funding 2 receives a Full Repayment Amount under the Global
     Intercompany Loan, then Funding 2 will not apply the Full Repayment
     Amount as described above under Funding 2 Principal Priority of Payments.
     Rather, Funding 2 will apply the Full Repayment Amount to repay the
     relevant Loan Tranche. If at any time only one Loan Tranche is
     outstanding, then Funding 2 shall apply the Full Repayment Amount first
     to repay the Funding 2 Liquidity Facility Provider any amounts
     outstanding under the Funding 2 Liquidity Facility to the extent that
     such funds were drawn in order to repay the principal amounts of any
     previous Loan Tranches and the remainder shall be applied to repay the
     relevant Loan Tranche. Pending an application of the Full Repayment
     Amount, as described above, such proceeds shall be credited to the
     Funding 2 GIC Account and shall not be available for any other purpose.

Rules for Application of Funding 2 Available Principal Receipts

In the applicable circumstances, the following rules apply in determining the
amounts to be paid under paragraphs (D), (E), (F), (G) and (H) of the priority
of payments set out in (I) through (IV) above:

(1)  Deferral of repayment of Original Pass-Through Loan Tranches, Original
     Scheduled Repayment Loan Tranches and/or Original Controlled Repayment
     Loan Tranches in certain circumstances

     (A)  If on a Payment Date:

          (1)  there is a debit balance on the BB Principal Deficiency
               Sub-ledger, the BBB Principal Deficiency Sub-

                                      80

<PAGE>

               ledger, the A Principal Deficiency Sub-ledger or the AA
               Principal Deficiency Sub-ledger after application of the
               Funding 2 Available Revenue Receipts on that Payment Date; or

          (2)  the [Adjusted Funding 2 Reserve Fund Level is less than the
               Funding 2 Reserve Fund Threshold]; or

          (3)  the aggregate outstanding principal balance of Mortgage Loans
               in the Mortgages Trust, in respect of which the aggregate
               amount in arrears is more than three times the monthly payment
               then due, is more than [4] per cent. of the aggregate
               outstanding principal balance of Mortgage Loans in the
               Mortgages Trust,

     then until the relevant circumstances as described in sub-paragraphs (1),
     (2) or (3) above has been cured or otherwise ceases to exist, if:

     (a)  any AAA Loan Tranche (whether or not such AAA Loan Tranche is then
          due and payable) remains outstanding after making the payments under
          paragraphs (D) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments, the AA Loan Tranches will not be entitled to principal
          repayments under paragraph (E) of the Funding 2 Pre-Enforcement
          Principal Priority of Payments;

     (b)  any term AAA Loan Tranche or any AA Loan Tranche (whether or not
          such AAA Loan Tranche or AA Loan Tranche is then due and payable )
          remains outstanding after making the payments under paragraphs (D)
          and (E) of the Funding 2 Pre-Enforcement Principal Priority of
          Payments, then the A Loan Tranches will not be entitled to principal
          repayments under paragraph (F) of the Funding 2 Pre-Enforcement
          Principal Priority of Payments;

     (c)  any AAA Loan Tranche, any AA Loan Tranche, any A Loan Tranche
          (whether or not such AAA Loan Tranche, AA Loan Tranche or A Loan
          Tranche is then due and payable) remains outstanding after making
          the payments under paragraphs (D), (E) and (F) of the Funding 2
          Pre-Enforcement Principal Priority of Payments, then the BBB Loan
          Tranches will not be entitled to principal repayments under
          paragraph (G) of the Funding 2 Pre-Enforcement Principal Priority of
          Payments; and/or

     (d)  any AAA Loan Tranche, any AA Loan Tranche, any A Loan Tranche or any
          BBB Loan Tranche (whether or not such AAA Loan Tranche, AA Loan
          Tranche, A Loan Tranche or BBB Loan Tranche is then due and payable)
          remains outstanding after making the payments under paragraphs (D),
          (E), (F) and (G) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments, then the BB loan tranches will not be entitled to
          principal repayments under paragraph (H) of the Funding 2
          Pre-Enforcement Principal Priority of Payments.

(B)  On a Payment Date:

     (1)  for any AA Loan Tranche, the amount of principal due and payable (or
          any part thereof) in respect of the AA Loan Tranche may only be paid
          if, after giving effect to such payment and the payment to be made
          in such date in respect of the related series and class of notes,
          the Class A Available

                                      81

<PAGE>

          Subordinated Amount is at least equal to the Class A Required
          Subordinated Amount;

     (2)  for any A Loan Tranche, the amount of principal due and payable (or
          any part thereof) in respect of the A Loan Tranche may only be paid
          if, after giving effect to such payment and the payment to be made
          in such date in respect of the related series and class of notes,
          the Class A Available Subordinated Amount is at least equal to the
          Class A Required Subordinated Amount and the Class B Available
          Subordinated Amount is at least equal to the Class B Required
          Subordinated Amount;

     (3)  for any BBB Loan Tranche, the amount of principal due and payable
          (or any part thereof) in respect of the BBB Loan Tranche may only be
          paid if, after giving effect to such payment and the payment to be
          made in such date in respect of the related series and class of
          notes, the Class A Available Subordinated Amount is at least equal
          to the Class A Required Subordinated Amount, the Class B Available
          Subordinated Amount is at least equal to the Class B Required
          Subordinated Amount and the Class M Available Subordinated Amount is
          at least equal to the Class M Required Subordinated Amount; and

     (4)  for any BB Loan Tranche, the amount of principal due and payable (or
          any part thereof) in respect of the BB Loan Tranche may only be paid
          if, after giving effect to such payment and the payment to be made
          on such date in respect of the related series and class of notes,
          the Class A Available Subordinated Amount is at least equal to the
          Class A Required Subordinated Amount, the Class B Available
          Subordinated Amount is at least equal to the Class B Required
          Subordinated Amount, the Class M Available Subordinated Amount is at
          least equal to the Class M Required Subordinated Amount and the
          Class C Available Subordinated Amount is at least equal to the Class
          C Required Subordinated Amount,

     save that, in calculating the Class A Available Subordinated Amount, the
     Class B Available Subordinated Amount, the Class M Available Subordinated
     Amount, and the Class C Available Subordinated Amount for the purposes of
     each of paragraphs (1), (2), (3) and (4) above, Excess Spread will be
     deemed to be zero.

(C)  If on any Payment Date:

     (1)  one or more Bullet Repayment Loan Amounts are within a Cash
          Accumulation Period at that time;

     (2)  the quarterly CPR is less than [15] per cent.; and

     (3)  there is a Cash Accumulation Shortfall at that time,

     then, on or before their Step-Up Dates, the Original Scheduled Repayment
     Loan Tranches, the Original Controlled Repayment Loan Tranches and the
     Original Pass-Through Loan Tranches will be entitled to principal
     repayments under paragraphs (D), (E), (F), (G) and (H) (as applicable) of
     the Funding 2 Pre-Enforcement Principal Priority of Payments only if
     there is no Cash Accumulation Shortfall.

                                      82

<PAGE>

(2)  Repayment of Pass-Through Loan Tranches after the occurrence of a Step-Up
     Date

     Following the occurrence of the Step-Up Date under a Loan Tranche ("Loan
     Tranche A") but prior to the time which Rule (3) becomes applicable and
     provided that the Funding 2 Share of the Trust Property is greater than
     zero, the aggregate amount repayable on a Payment Date in relation to
     Loan Tranche A under paragraphs (D), (E), (F), (G) and (H) of the Funding
     2 Pre-Enforcement Principal Priority of Payments shall be limited to an
     amount calculated as follows:

                                   A x B x C
                                   ---------
                                       D

     where, in respect of any Distribution Date:

     A  =   the aggregate amount of Mortgages Trustee Principal Receipts
            received by the Mortgages Trustee in the relevant Trust Calculation
            Period (excluding any Initial Contribution or Further Contribution);

     B  =   the Funding 2 Share Percentage calculated as at the start of the
            relevant Trust Calculation Period or, as applicable the Weighted
            Average Funding 2 Share Percentage;

     C  =   the outstanding principal balance of Loan Tranche A; and

     D  =   the aggregate outstanding principal balance of the Global
            Intercompany Loan.

(3)  Repayment of Loan Tranches after a Note Acceleration Notice has been
     served in respect of one or more series and classes of notes

     If a Note Acceleration Notice has been served in respect of one or more
     series and classes of notes then this Rule (3) will apply. In these
     circumstances:

     (i)  the service of a Note Acceleration Notice will not result in
          automatic enforcement of the Issuer Security or the Funding 2
          Security;

     (ii) following the service of a Note Acceleration Notice in respect of a
          Series and Class of Notes, the aggregate amount payable on a Payment
          Date in relation to any the related Loan Tranche under paragraphs
          (D), (E), (F), (G) and (H) of the Funding 2 Pre-Enforcement
          Principal Priority of Payments shall calculated in accordance with
          Rule (2) above.

(4)  Deferral of repayment of subordinated tiers of Loan Tranches in certain
     circumstances

     If on any Payment Date the Issuer Reserve Requirement and the Issuer
     Arrears Test are not satisfied and the Class A Notes of any Series have
     not been paid in full, then:

     (i)  the AA Loan Tranches will not be entitled to principal repayments
          under item (E) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments;

     (ii) the A Loan Tranches will not be entitled to principal repayments
          under item (F) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments;

                                      83

<PAGE>

    (iii) the BBB Loan Tranches will not be entitled to principal repayments
          under item (G) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments;

     (iv) the BB Loan Tranches will not be entitled to principal repayments
          under item (H) of the Funding 2 Pre-Enforcement Principal Priority
          of Payments;

     The "Issuer Arrears Test" is satisfied on a payment date if the Issuer or
     the Issuer Cash Manager on its behalf calculates on the Distribution Date
     immediately preceding that Payment Date that, as of the last day of the
     Trust Calculation Period immediately preceding that Distribution Date (i)
     the aggregate current balance of the Mortgage Loans which are then in
     arrears for at least 3 months is less than 4% of the aggregate current
     balance of all Mortgage Loans, unless the Rating Agencies have confirmed
     that the then current ratings of the Notes will not be adversely affected
     by the Issuer Arrears Test not having been met; and (ii) the aggregate
     interest arrears in respect of all the Mortgage Loans in the Mortgage
     Trust as a percentage of the aggregate gross interest due on all Mortgage
     Loans during the previous 12 months does not exceed 2%, or such other
     percentage as is then acceptable to the then current Rating Agencies at
     such time.

     The "Issuer Reserve Requirement" is satisfied on a Payment Date if, after
     taking account of the application of any Funding 2 Available Revenue
     Receipts to the credit of the Funding 2 Reserve Ledger and the
     application of any Issuer Available Revenue receipts to the credit of the
     Issuer Reserve Ledger, the aggregate amount of funds in the [Funding 2
     Reserve Fund and the Issuer Reserve Fund is equal to the Programme
     Reserve Required Amount.]

Allocations involving Rule (2) or Rule (3)

[Where Rule (2) or Rule (3) applies at a level of any priority of payments,
the funds available for making payments at that level shall first be allocated
without reference to Rule (2) or Rule (3) (as applicable). However, if the
amount so allocated to one or more Loan Tranches exceeds the amount permitted
under Rule (2) or Rule (3) (as applicable) to be paid in respect of those Loan
Tranches (the "Capped Loan Tranches"), the excess shall then be reallocated
among any other relevant Loan Tranches at that level using the method of
allocation as applies at that level but without reference to the Capped Loan
Tranches in calculating such reallocation. If a further such excess arises as
a result of the reallocation process, the reallocation process shall be
repeated at that level in relation to each such further excess that arises
until no further funds can be allocated at that level following which the
remaining excess shall then be applied at the next level of that priority of
payments.]

                                      84

<PAGE>

                                   Part III

                Funding 2 Post-Enforcement Priority of Payments

At any time after the Funding 2 Security has become enforceable in accordance
with Clause 7.2 (Enforceable) and provided that a Funding 2 Intercompany Loan
Enforcement Notice has not been withdrawn, all Funding 2 Available Revenue
Receipts, Funding 2 Available Principal Receipts and all other monies
(excluding Swap Collateral standing to the credit of the Funding 2 Swap
Collateral Accounts) paid to or received or recovered by or on behalf of
Funding 2 or the Funding 2 Security Trustee or any Receiver appointed on its
behalf, including all proceeds following any sale, realisation or enforcement
of the Funding 2 Security and all amounts not previously distributed and/or
standing to the credit of any Funding 2 Bank Account (excluding Swap
Collateral (if any) standing to the credit of the Funding 2 Swap Collateral
Accounts) and all monies standing to the credit of the Funding 2 Reserve
Ledger (if any) and the Funding 2 Liquidity Reserve Ledger (if any) shall (if
not already received by the Funding 2 Security Trustee) be paid to and held by
the Funding 2 Security Trustee on trust to apply the same (save to the extent
required otherwise by applicable law) in accordance with the rules and the
order of priority set forth in the Funding 2 Post-Enforcement Priority of
Payments.

The Funding 2 Security Trustee (or the Cash Manager on its behalf) will,
subject to the Rules for Application of Funding 2 Available Revenue Receipts
and Funding 2 Available Principal Receipts set out in Part I and Part II of
this Schedule, respectively, apply all such amounts received or recovered
(excluding Swap Collateral standing to the credit of the Funding 2 Swap
Collateral Accounts) following enforcement of the Funding 2 Security on each
Payment Date in accordance with the following order of priority (the "Funding
2 Post-Enforcement Priority of Payments"):

(A)  first, to pay amounts due to the Funding 2 Security Trustee and any
     Receiver appointed by the Funding 2 Security Trustee, together with
     interest and (to the extent not already inclusive) VAT on those amounts,
     and to provide for any amounts due or to become due to the Funding 2
     Security Trustee and the Receiver in the following Interest Period under
     the Funding 2 Deed of Charge or any other Transaction Document;

(B)  second, to pay amounts due to the Issuer in respect of the Issuer's
     obligations specified in items (A) through (D) of the Issuer
     Pre-Enforcement Revenue Priority of Payments or, as the case may be,
     items (A) through (C) of the Issuer Post-Enforcement Priority of
     Payments;

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

(D)  fourth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of amounts (if any) due to (i)
     the Account Bank under the terms of the Funding 2 Bank Account Agreement
     and (ii) to the Corporate Services Provider under the Corporate Services
     Agreement;

                                      85

<PAGE>

(E)  fifth, towards payment of amounts (if any) due to the Funding 2 Liquidity
     Facility Provider under the Funding 2 Liquidity Facility (if any) (except
     for any Funding 2 Liquidity Subordinated Amounts);

(F)  sixth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of amounts due to the Funding 2
     Basis Rate Swap Provider under the Funding 2 (Mortgage Rates) Basis Rate
     Swap and the Funding 2 (LIBOR Rate) Basis Rate Swap (including any
     termination payment but excluding any Funding 2 Basis Rate Swap Excluded
     Termination Amount);

(G)  seventh, in no order of priority between them but in proportion to the
     respective amounts due towards payment of amounts of interest, principal
     and fees due on the AAA Loan Tranches;

(H)  eighth, in no order of priority between them but in proportion to the
     respective amounts due towards payment of amounts of interest, principal
     and fees due on the AA Loan Tranches;

(I)  ninth, in no order of priority between them but in proportion to the
     respective amounts due towards payment of amounts of interest, principal
     and fees due on the A Loan Tranches;

(J)  tenth, in no order of priority between them but in proportion to the
     respective amounts due towards payment of amounts of interest, principal
     and fees due on the BBB Loan Tranches;

(K)  eleventh, in no order of priority between them but in proportion to the
     respective amounts due towards payment of amounts of interest, principal
     and fees due on the BB Loan Tranches;

(L)  twelfth, to pay amounts due to the Issuer in respect of the Issuer's
     obligations specified in item ([K]) of the Issuer Pre-Enforcement Revenue
     Priority of Payments or, as the case may be, item ([O] of the Issuer
     Post-Enforcement Priority of Payments.

(M)  thirteenth, in no order of priority among them but in proportion to the
     respective amounts due, towards payment of amounts due (without double
     counting) to:

     (i)  the Master Issuer in respect of its obligations (if any) to pay any
          Issuer Swap Excluded Termination Amount;

     (ii) the Funding 2 Liquidity Facility Provider, if any, any Funding 2
          Liquidity Facility Subordinated Amounts due under the Funding 2
          Liquidity Facility Agreement;

    (iii) the Funding 2 Basis Rate Swap Provider in respect of any Funding 2
          Basis Rate Swap Excluded Termination Amount;

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

(O)  last, to pay any amount remaining following the application of principal
     and revenue set forth in paragraphs (A) through (N) above, to Funding 2;

                                      86

<PAGE>

                                  SCHEDULE 4

                         FORM OF NOTICE OF ASSIGNMENT

To:      [Addressee(s)]

In respect of the [Description of Funding 2 Transaction Document or Funding 2
Charged Property]

[Date]

Dear Sirs,

Terms and expressions used in this letter are as defined in the deed of charge
(the "Funding 2 Deed of Charge") between Granite Finance Funding 2 Limited
("Funding 2"), The Bank of New York (the "Funding 2 Security Trustee") and
others dated [o].

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Funding 2 Deed of Charge, Funding 2 has assigned
absolutely, by way of security for the payment and performance of certain
obligations of Funding 2 described in the Funding 2 Deed of Charge (the
"Funding 2 Secured Obligations"), to the Funding 2 Security Trustee all its
right, title, benefit and interest under the [Agreement(s)] (the "Funding 2
Transaction Documents") [including its right, title interest and benefit in
relation to [describe property] and including, without limitation, all rights
to receive payment of any amounts which may become payable to Funding 2
thereunder, all payments received by Funding 2 thereunder, all rights to serve
notices and/or make demands thereunder and/or to take such steps as are
required to cause payments to become due and payable thereunder and all rights
of action in respect of any breach thereof and all rights to receive damages
or obtain relief in respect thereof and the proceeds of any of the foregoing,
(hereinafter called the "Relevant Funding 2 Property").

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (i)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to Funding 2 under the
          aforesaid agreements to or to the order of the Funding 2 Security
          Trustee; and

     (ii) you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Funding 2 Property.

Notwithstanding the assignments made by Funding 2 and referred to in this
notice, the Funding 2 Security Trustee hereby confirms and you further
acknowledge that:

          (a)  you may continue to make all payments becoming due to Funding 2
               in respect of the Relevant Funding 2 Property in the manner
               envisaged by the relevant Funding 2 Transaction Document(s);
               and

          (b)  Funding 2 shall be entitled to exercise its rights, powers and
               discretions and perform its obligations in relation to the
               Relevant Funding 2 Property and

                                      87

<PAGE>

               under the Funding 2 Transaction Documents in accordance with
               the provisions of the Funding 2 Transaction Documents,

but only until such time as you receive notice from the Funding 2 Security
Trustee to the contrary or to the effect that the created under the Funding 2
Deed of Charge has become enforceable, in which event from receipt of such
notice you agree that you will pay all monies becoming due and payable to
Funding 2 in respect of the Relevant Funding 2 Property in accordance with any
instructions received from the Funding 2 Security Trustee.

This letter is governed by, and shall be construed in accordance with, English
law.

Please acknowledge receipt of this notice by executing and returning the copy
of this letter attached hereto.

Yours faithfully,

<TABLE>
<CAPTION>
Executed by
<S>                                                        <S>
GRANITE FINANCE FUNDING 2
LIMITED
as follows:                                                By___________________________________
Signed for and on its behalf by one of its duly              Duly Authorised Attorney/Signatory
authorised attorneys/signatories
                                                           Name_________________________________

Executed by
THE BANK OF NEW YORK
as follows:                                                By___________________________________
Signed for and on its behalf by one of its duly              Duly Authorised Attorney/Signatory
authorised attorneys/signatories
                                                           Name_________________________________
</TABLE>

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Funding 2 Property.

In respect of the [Agreement]:

For and on behalf of:

[Party to Funding 2 Transaction Document]

By:

                                      88

<PAGE>

                                  SCHEDULE 5

                       UTILISATION OF FUNDING 2 RESERVES

1.   Funding 2 Reserve Fund:

1.1  Prior to the service of a Funding 2 Intercompany Loan Enforcement Notice,
     amounts standing to the credit of the Funding 2 Reserve Fund may be
     utilised:

     (a)  through inclusion in the calculation of Funding 2 Available Reserve
          Receipts, to meet and thereby to satisfy any deficit on the Funding
          2 Principal Deficiency Ledger;

     (b)  through inclusion in the calculation of Funding 2 Available
          Principal Receipts, to meet, and thereby to satisfy, any deficit:

          (i)  prior to the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Loan Tranches; and

          (ii) on or after the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Loan Tranches on their respective Final Repayment Dates.

1.2  Following the service of a Funding 2 Intercompany Loan Enforcement
     Notice, to the extent not applied on a Payment Date in accordance with
     1.1 above, amounts standing to the credit of the Funding 2 Reserve Ledger
     shall only be applied in making payments of principal due under the
     Funding 2 Intercompany Loan Agreements to fund payments of principal due
     on the Notes of any Funding 2 Issuer on any Payment Date.

2.   Funding 2 Liquidity Reserve Fund:

2.1  Prior to the service of a Funding 2 Intercompany Loan Enforcement Notice,
     the Funding 2 Liquidity Reserve Fund (if any is required to be
     established) shall only be applied on any Payment Date to:

     (a)  to help meet any deficit in Funding 2 Available Revenue Receipts to
          pay amounts due under the Global Intercompany Loan Agreement, but
          only to the extent that such amounts are necessary to fund the
          payment by Funding 2 AAA Loan Tranches and/or the AA Loan Tranches
          of interest and fees due on the relevant Payment Date in respect of
          the and to help meet any deficit recorded on the Funding 2 Principal
          Deficiency Ledger in respect of the AAA Loan Tranches;

     (b)  (provided that there are no Class A Notes outstanding) to help meet
          any deficit in Funding 2 Available Revenue Receipts which are
          allocated to pay all interest and fees due under the Global
          Intercompany Loan Agreement; and

     (c)  to help meet any deficit in Funding 2 Available Principal Receipts
          available for:

                                      89

<PAGE>

          (i)  prior to the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Loan Tranches; and

          (ii) on or after the occurrence of a Trigger Event, repayment of
               principal due and payable in respect of the Original Bullet
               Loan Tranches on their respective Final Repayment Dates.

2.2  Following the service of a Funding 2 Intercompany Loan Enforcement
     Notice, to the extent not applied on a Payment Date in accordance with
     2.1 above, amounts standing to the credit of the Funding 2 Liquidity
     Reserve Ledger shall only be applied in making payments of principal due
     under the Funding 2 Intercompany Loan Agreements in order to fund
     payments of principal due on the Notes of any Funding 2 Issuer on any
     Payment Date.]

3.   Adjustment of the Funding 2 Reserve

     Funding 2 may, at any time, adjust the Target Reserve Required Percentage
     or the method of calculating the Target Reserve Required Amount or the
     Funding 2 Maximum Amount without the consent of the Funding 2 Secured
     Creditors, so long as it obtains confirmation from the Rating Agencies
     that such adjustments will not cause a reduction, qualification or
     withdrawal of the ratings of any outstanding Notes.

                                      90

<PAGE>

          Definitions (to be incorporated into a Master Definitions
                 Schedule/Issuer Master Definitions Schedule)

"AAA Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which
has been structured so as to reflect the payment obligations on the Notes of
the relevant Funding 2 Issuer which are rated AAA by S&P, Aaa by Moody's and
AAA by Fitch at their date of issue;

"AAA Principal Deficiency Sub-Ledger" means the sub-ledger of the Funding 2
Principal Deficiency Ledger corresponding to the AAA Loan Tranches;

"AA Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which
has been structured so as to reflect the payment obligations on the Notes of
the relevant Funding 2 Issuer which are rated AA by S&P, Aa2 by Moody's and AA
by Fitch at their date of issue;

"AA Principal Deficiency Sub-Ledger" means the sub-ledger of the Funding 2
Principal Deficiency Ledger corresponding to the AA Loan Tranches;

"A Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which has
been structured so as to reflect the payment obligations on the Notes of the
relevant Funding 2 Issuer which are rated A by S&P, A2 by Moody's and A by
Fitch at their date of issue;

"A Principal Deficiency Sub-Ledger" means the sub-ledger of the Funding 2
Principal Deficiency Ledger corresponding to the A Loan Tranches;

["Adjusted Funding 2 Reserve Fund Level" means the sum of:

(a)  the amount standing to the credit of the Funding 2 Reserve Ledger; and

(b)  the amount (if any) then to be credited in accordance with item [(B)] of
     the relevant Funding 2 Pre-Enforcement Principal Priority Of Payments;]

"Anticipated Cash Accumulation Period" means, on any Trust Determination Date,
the anticipated number of months required to accumulate sufficient principal
receipts to pay the relevant Bullet Repayment Loan Amount, which will be equal
to:

                                   J + K - L
                             --------------------
                                  M x (N x O)

calculated in months and rounded up to the nearest whole number, where:

     J  = the relevant Bullet Repayment Loan Amount;

     K  = the aggregate Principal Amount Outstanding on that Trust
          Determination Date of:

          (i)  each other Bullet Repayment Loan Amount that was not fully
               repaid on its Bullet Repayment Date; and

                                      91

<PAGE>

          (ii) each other Bullet Repayment Loan Amount, the Bullet Repayment
               Date of which falls on or before the Bullet Repayment Date of
               the relevant Bullet Repayment Loan Amount;

     L  = the amounts standing to the credit of the  Funding 2 Cash
          Accumulation Ledger at the start of that Trust Determination Date
          which are available to repay Bullet Repayment Loan Amounts;

     M  = means the sum of each Monthly CPR on the 12 most recent Trust
          Determination Dates which have occurred prior to that date divided
          by 12;

     N  = [0.85]; and

     O  = the aggregate Outstanding Principal Balance of the Mortgage Loans
          comprising  the Trust Property on the previous Trust Determination
          Date.

"Authorised Third Party" means any Person appointed by a Funding Security
Trustee pursuant to the terms of Schedule 4 of the Administration Agreement
and whom the Rating Agencies have previously confirmed in writing to (where
the Security Trustee is the Funding Security Trustee) Funding and the Security
Trustee or (where the Security Trustee is the Funding 2 Security Trustee)
Funding 2 and the Funding 2 Security Trustee will not cause the then current
ratings of the Notes of any Issuer to be downgraded, withdrawn or qualified
provided that if the responsibilities that such appointed Person will assume
include setting the interest rate applicable to any Mortgage Loan, such Person
must be a lender in the UK residential mortgage market;

"BBB Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which
has been structured so as to reflect the payment obligations on the Notes of
the relevant Funding 2 Issuer which are rated BBB by S&P, Baa2 by Moody's and
BBB by Fitch at their date of issue;

"BBB Principal Deficiency Sub-Ledger" means the sub-ledger of the Funding 2
Principal Deficiency Ledger corresponding to the BBB Loan Tranches;

"BB Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which
has been structured so as to reflect the payment obligations on the Notes of
the relevant Funding 2 Issuer which are rated BB by S&P, Ba2 by Moody's and BB
by Fitch at their date of issue;

"BB Principal Deficiency Sub-Ledger" means the sub-ledger of the Funding 2
Principal Deficiency Ledger corresponding to the BB Loan Tranches;

"Bridging Arrangements" means certain financial arrangements which may, at any
time after the Funding 2 Program Date, be entered into between, amongst
others, Funding and Funding 2 pursuant to which Funding 2 to is permitted to
raise funds (by way of loan or otherwise) and advance (by way of loan or some
other form of financial accommodation) such funds to Funding for use by
Funding for certain agreed purposes;

""Bullet Loan Tranche" means, in relation to Funding 2, any Loan Tranche which
is scheduled to be repaid in full on one Payment Date. Bullet Loan Tranches
will be deemed to be Pass-through Loan Tranches if:

                                      92

<PAGE>

(a)  a date specified in relation to the same in the applicable Loan Tranche
     Supplement occurs;

(b)  a Trigger Event occurs;

(c)  the Issuer Security, in respect of the Funding 2 Issuer which has funded
     such Bullet Loan Tranche, is enforced;

(d)  a Note Acceleration Notice is served in respect of the related Series and
     Class of Notes; or

(e)  a Step-Up Date (if any) in relation to such Loan Tranche occurs;

"Bullet Repayment Date" means, for any Bullet Loan Tranche, the Payment Date
specified as such for such Loan Tranche in the applicable Loan Tranche
Supplement;

"Bullet Repayment Loan Amount" means, in relation to Funding 2, the amount
required to be repaid on the Bullet Repayment Date in respect of a Bullet Loan
Tranche in order to pay such Bullet Loan Tranche in full;

"Cash Accumulation Liability" means, on any Payment Date prior to any payment
under [item (D) of the of the Funding 2 Pre-Enforcement Principal Priority of
Payments], the aggregate of each Bullet Repayment Loan Amount which is within
a Cash Accumulation Period;

"Cash Accumulation Period" means, in relation to an Original Bullet Loan
Tranche, the earlier to occur of:

(a)  the commencement of the Anticipated Cash Accumulation Period relating to
     the relevant Bullet Repayment Loan Amount; and

(b)  [six] months prior to the Bullet Repayment Date of that Original Bullet
     Loan Tranche; and

ending when Funding 2 has fully repaid the relevant Bullet Repayment Loan
Amount.

"Cash Accumulation Requirement" means on a Trust Determination Date:

(a)  the outstanding principal amounts in relation to each Bullet Repayment
     Loan Amount that is within a Cash Accumulation Period;

(b)  [plus amounts due in items [(A), (B) and (C)] of the Funding 2
     Pre-Enforcement Principal Priority of Payments;]

(c)  less the amount standing to the credit of the Funding 2 Cash Accumulation
     Ledger at the last Payment Date (which amount was not to be distributed
     on that Payment Date to fund the Bullet Repayment Loan Amount of any Loan
     Tranche);

"Cash Accumulation Shortfall" means at any time that the Funding 2 Cash
Accumulation Ledger Amount is less than the Cash Accumulation Liability;

                                      93

<PAGE>

"Class A Available Subordinated Amount" means, on any date and in relation to
the Master Issuer, the sum of (a) the aggregate of the Principal Amounts
Outstanding of the Class B Notes of all Series issued by the Master Issuer,
the Class M Notes of all Series issued by the Master Issuer, the Class C Notes
of all Series issued by the Master Issuer and the Class D Notes of all Series
issued by the Master Issuer (after giving effect to payments of principal
being made on such Notes on such date); and (b) the aggregate amount of the
Funding 2 Reserve Fund and the Issuer Reserve Fund on such date; and (c)
Excess Spread;

"Class B Available Subordinated Amount" means, on any date and in relation to
the Master Issuer, the sum of (a) the aggregate of the Principal Amounts
Outstanding of the Class M Notes of all Series issued by the Master Issuer,
the Class C Notes of all Series issued by the Master Issuer and the Class D
Notes of all Series issued by the Master Issuer (after giving effect to
payments of principal being made on such Notes on such date); and (b) the
aggregate amount of the Funding 2 Reserve Fund and the Issuer Reserve Fund on
such date; and (c) Excess Spread;

"Class C Available Subordinated Amount" means, on any date and in relation to
the Master Issuer, the sum of (a) the aggregate of the Principal Amounts
Outstanding of the Class D Notes of all Series issued by the Master Issuer
(after giving effect to payments of principal being made on such Notes on such
date); and (b) the aggregate amount of the Funding 2 Reserve Fund and the
Issuer Reserve Fund on such date; and (c) Excess Spread;

"Class M Available Subordinated Amount" means, on any date and in relation to
the Master Issuer, the sum of (a) the aggregate of the Principal Amounts
Outstanding of the Class C Notes of all Series issued by the Master Issuer and
the Class D Notes of all Series issued by the Master Issuer (after giving
effect to payments of principal being made on such Notes on such date); and
(b) the aggregate amount of the Funding 2 Reserve Fund and the Issuer Reserve
Fund on such date; and (c) Excess Spread;

"Controlled Repayment Date" means, for any Controlled Repayment Loan Tranche
the Payment Dates specified as such for such Loan Tranche in the applicable
Loan Tranche Supplement;

"Controlled Repayment Loan Tranches" means, in relation to Funding 2, any Loan
Tranche which by its terms imposes a limit on the amount of principal which
may be repaid on such Loan Tranche on any Payment Date. Controlled Repayment
Loan Tranches will be deemed to be Pass-Through Loan Tranches if:

(a)  a date specified in relation to the same in the applicable Loan Tranche
     Supplement occurs;

(b)  a Trigger Event occurs;

(c)  the Issuer Security, in respect of the Funding 2 Issuer which has funded
     such Controlled Amortisation Loan Tranche, is enforced;

(d)  a Note Acceleration Notice is served in respect of the related Series and
     Class of Notes; or

(e)  a Step-Up Date (if any) in relation to such Loan Tranche occurs.

                                      94

<PAGE>

"Credit Support Annex" means, in relation to the Funding 2 Basis Rate Swap
Agreement, the 1995 Credit Support Annex (Bilateral Form-Transfer) between
Funding 2 and the Funding Basis Rate Swap Provider and, in relation to an
Issuer Swap Agreement, means the 1995 Credit Support Annex (Bilateral
Form-Transfer) between the Issuer and the applicable Issuer Swap Provider;

"Deed of Accession" means, in relation to the Funding 2 Deed of Charge, a deed
executed by, inter alios, Funding 2, the Funding 2 Security Trustee and the
Issuer Security Trustee in respect of each Funding 2 Issuer and any New
Funding 2 Secured Creditor in the form set out in Schedule 2 to the Funding 2
Deed of Charge or any other form of deed as agreed between the parties;

"EU Regulation" means Council regulation (EC) No. 1346/2000 of 29 May 2000 on
Insolvency Proceedings.

"Full Repayment Amount" means the proceeds of a Loan Tranche which is to be
used to refinance another Loan Tranche;

"Funding 2 Available Principal Receipts" in respect of a Payment Date will be
calculated by the Cash Manager or otherwise on behalf of Funding 2 (or,
following enforcement of the Funding 2 Security, the Funding 2 Security
Trustee) on the Distribution Date immediately preceding that Payment Date and
will be an amount equal to the sum of:

(a)  all Funding 2 Principal Receipts standing to the credit of the Funding 2
     Cash Accumulation Ledger which are to be applied on the next Payment Date
     to repay a Bullet Repayment Loan Amount or to make a payment under items
     (A), (B) or (C) of the Funding 2 Pre-Enforcement Principal Priority of
     Payments and, if such Payment Date occurs on or after a Trigger Event,
     the remainder of such receipts standing to the credit of the Funding 2
     Cash Accumulation Ledger;

(b)  all other Mortgages Trustee Principal Receipts received by Funding 2 from
     the Mortgages Trustee during the Interest Period ending on the relevant
     Payment Date standing to the credit of the Funding 2 Principal Ledger;

(c)  the amounts, if any, credited to the Funding 2 Principal Deficiency
     Ledger pursuant to items [(I), (L), (N),(P) (R)] of the Funding 2
     Pre-Enforcement Revenue Priority of Payments;

(d)  in so far as needed to make a Funding 2 Reserve Principal Payment, any
     amount available to be drawn under the Funding 2 Reserve Fund less any
     amounts applied or to be applied on the relevant Payment Date in payment
     of interest and expenses under the Funding 2 Pre-Enforcement Revenue
     Priority of Payments, plus any amounts to be credited to the Funding 2
     Reserve Ledger on the relevant Payment Date;

(e)  in so far as needed to make a Funding 2 Liquidity Reserve Principal
     Payment, any amount available to be drawn under the Funding 2 Liquidity
     Reserve Fund less any amounts applied or to be applied on the relevant
     Payment Date in payment of interest and expenses under the Funding 2
     Pre-Enforcement Revenue Priority of Payments, plus any amounts to be
     credited to the Funding 2 Liquidity Reserve Fund Ledger on that relevant
     Payment Date;

                                      95

<PAGE>

(f)  in so far as needed to make a Funding 2 Liquidity Facility Principal
     Payment, any amount available to be drawn under the Funding 2 Liquidity
     Facility less any amounts applied or to be applied on the relevant
     Payment Date in payment of interest and expenses under the Funding 2
     Pre-Enforcement Revenue Priority of Payments, plus any amounts to be
     repaid to the Funding 2 Liquidity Facility Provider under item (A) of the
     relevant Funding 2 Pre-Enforcement Principal Priority of Payments on that
     relevant Payment Date, to the extent that such amounts are available to
     be drawn;

     less

(g)  amounts to be applied on the relevant payment date to any items [(H),
     (J), (M), (O) and (Q)] of the Funding 2 Pre-Enforcement Revenue Priority
     of Payments.

"Funding 2 Available Revenue Receipts" in respect of any Payment Date will be
calculated by the Cash Manager on the Distribution Date immediately preceding
such Payment Date and will be an amount equal to the sum of:

(a)  all Mortgages Trustee Available Revenue Receipts distributed to Funding 2
     during the Interest Period ending on the relevant Payment Date;

(b)  other net income of Funding 2 including all amounts of interest received
     on the Funding 2 GIC Account and the Funding 2 Transaction Account,
     and/or all income from Funding 2's Authorized Investments, on each
     Distribution Date during the Interest Period ending on such Payment Date,
     in each case to be received on or prior to such Payment Date; and

(c)  amounts received from the Funding 2 Basis Rate Swap Provider under the
     Funding 2 Basis Rate Swap Agreement (excluding Swap Collateral standing
     to the credit of the Funding 2 Swap Collateral Accounts) including any
     early termination amounts (other than such early termination amounts
     applied or to be applied by Funding 2 in the purchase of one or more
     replacement hedge transactions) recovered by Funding 2 under the Funding
     2 Basis Rate Swap Agreement;

(d)  (only to the extent required after making the calculation set out in
     paragraph [__] to Schedule [__] of the Funding 2 Deed of Charge the
     aggregate of amounts standing to the credit of the Funding 2 Principal
     Ledger or the Funding 2 Cash Accumulation Ledger (as applicable) which
     are to be applied on the relevant payment date to pay items (H), (J),
     (M), (O), and (Q) of the Funding 2 Pre-Enforcement Revenue Priority of
     Payments;

(e)  the amount available to be drawn under the Funding 2 Reserve Fund,
     subject to any limits or conditions on the purposes for which the Funding
     2 Reserve Fund may be utilized; and

(f)  the amount available to be drawn under the Funding 2 Liquidity Reserve
     Fund, if any, subject to any limits or conditions on the purposes for
     which the Funding 2 Liquidity Reserve Fund may be utilized.

(g)  in so far as is needed, any amount available to be drawn under the
     Funding 2 Liquidity Facility, if any, for the payment of interest and
     expenses.

                                      96

<PAGE>

"Funding 2 Bank Account Agreement" means the agreement entered into on or
about the Funding 2 Programme Date between the Account Bank, Funding 2 and the
Funding 2 Security Trustee which governs the operation of the Funding 2 Bank
Accounts;

"Funding 2 Bank Accounts" means the Funding 2 GIC Account and the Funding
Transaction Account and each such additional or replacement account in the
name of Funding that may be opened with the prior approval of the Funding 2
Security Trustee after the Funding 2 Programme Date;

"Funding 2 Basis Rate Swap Agreement" means the ISDA Master Agreement,
Schedule and Confirmations thereto each entered into on or about the Funding 2
Programme Date and any Credit Support Annex or other credit support documents
entered into at any time among Funding 2 and the Funding 2 Basis Rate Swap
Provider and/or any credit support provider and shall include any additional
basis rate swap agreement entered into by Funding 2 from time to time in
accordance with the Transaction Documents;

"Funding 2 Basis Rate Swap Excluded Termination Amount" means, in relation to
the Funding 2 Basis Rate Swap Agreement, following the application of all or
part of any Swap Replacement Premium in accordance with Clause [o] of the
Funding 2 Deed of Charge and Clause [o] of the Cash Management Agreement,
covering an amount equal to any termination payment due and payable to the
Funding 2 Basis Rate Swap Provider as a result of a Swap Provider Default in
respect of the Funding 2 Basis Rate Swap Provider;

"Funding 2 Basis Rate Swap Provider" means Northern Rock and/or, as
applicable, any other basis rate swap provider appointed from time to time by
Funding 2 in accordance with the Transaction Documents;

"Funding 2 Cash Accumulation Ledger" means the ledger on which the Cash
Manager will record the amounts accumulated by Funding 2 to pay Bullet
Repayment Loan Amounts.

"Funding 2 Cash Accumulation Ledger Amount" means, at any time, the amount
standing to the credit of the Funding 2 Cash Accumulation Ledger at that time
(immediately prior to any drawing to be applied on that Payment Date and prior
to any payment under [item (I) of the Funding 2 Pre-Enforcement Principal
Priority of Payments]);

"Funding 2 Charged Property" means the property, assets and undertakings of
Funding 2 which from time to time are or are expressed to be mortgaged,
charged, assigned, pledged or otherwise encumbered to, or in favour of the
Funding 2 Security Trustee for itself and for the Funding 2 Secured Creditors
under the Funding 2 Deed of Charge or any other Funding 2 Transaction
Document;

"Funding 2 GIC Account" means the account in the name of Funding 2 (sort code
30-00-59, account number [o]) held at Northern Rock, and maintained subject to
the Funding 2 Guaranteed Investment Contract and the Funding 2 Bank Account
Agreement and such additional or replacement accounts as may for the time
being be in place with the prior consent of the Funding 2 Security Trustee;

"Funding 2 GIC Provider" means, Northern Rock or such other person or persons
as are for the time being the GIC Provider to Funding 2 under the Funding 2
Guaranteed Investment Contract;

                                      97

<PAGE>

"Funding 2 Guaranteed Investment Contract" means the guaranteed investment
contract entered into on or about the Funding 2 Program Date between Funding
2, the Funding 2 GIC Provider, the Cash Manager and the Funding 2 Security
Trustee under which the Funding 2 GIC Provider agrees to pay Funding 2 a
guaranteed rate of interest on the balance from time to time of the Funding 2
GIC Account and shall include any additional guaranteed investment contract
entered into by Funding 2 in accordance with the Transaction Documents;

"Funding 2 Intercompany Loan" means a loan (or the aggregate of a number of
separate loans) of the net proceeds of any issue (or all issues) of Notes by a
Funding 2 Issuer, such loan(s) being advanced to Funding 2 by such Funding 2
Issuer pursuant to the terms of a Funding 2 Intercompany Loan Agreement;

"Funding 2 Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding 2 and a Funding 2 Issuer in relation to a Funding
2 Intercompany Loan;

"Funding 2 Intercompany Loan Enforcement Notice" means an enforcement notice
served by the Funding 2 Security Trustee on Funding 2 in relation to the
enforcement of the Funding 2 Security following the occurrence of a Funding 2
Intercompany Loan Event of Default;

"Funding 2 Intercompany Loan Event of Default" means, in relation to the
Global Intercompany Loan Agreement, the occurrence of an event of default
specified as such in Clause 15 (Default) of the Global Intercompany Loan
Agreement and, in relation to any other Funding 2 Intercompany Loan Agreement,
the occurrence of an event of default specified as such in such Funding 2
Intercompany Loan Agreement;

"Funding 2 Issuer" means a wholly-owned subsidiary of Funding 2, which is
established to issue Notes and to make a Funding 2 Intercompany Loan to
Funding 2;

"Funding 2 Liquidity Facility" means a liquidity facility entered into by
Funding 2 at any time after the Funding 2 Program Date;

"Funding 2 Liquidity Facility Agreement" means any agreement entered into by
Funding 2 relating to the provision of a Funding 2 Liquidity Facility;

"Funding 2 Liquidity Facility Principal Payment means the payments specified
as such in the Funding 2 Liquidity Facility Agreement (if any);

"Funding 2 Liquidity Facility Provider" means such person or persons for the
time being the provider of liquidity under any Funding 2 Liquidity Facility
Agreement;

"Funding 2 Liquidity Reserve Rating Event" means [o];

"Funding 2 Liquidity Facility Subordinated Amounts" means the amounts
specified as such in any Funding 2 Liquidity Facility Agreement (if any);

"Funding 2 Liquidity Reserve Fund" means the liquidity reserve fund which
Funding 2 will be required to establish if the long term, unsecured,
unsubordinated and unguaranteed debt obligations of the Seller cease to be
rated at least A3 by Moody's or A- by Fitch (unless Moody's or Fitch, as
applicable, confirms that the then-current ratings of the Notes of any Funding
2 Issuer will not be adversely affected). The Funding 2 Liquidity Reserve
Fund, if any, will be funded to the relevant Funding 2 Liquidity Reserve
Required Amount;

                                      98

<PAGE>

"Funding 2 Liquidity Reserve Ledger" means the ledger maintained by the Cash
Manager in the name of Funding 2 pursuant to the Cash Management Agreement to
record the amount standing to the credit of the Funding 2 Liquidity Reserve
Fund from time to time;

"Funding 2 Liquidity Reserve Required Amount" means [o];

"Funding 2 Post-Enforcement Priority of Payments" means the rules and the
order of priority in which Funding 2 Available Revenue Receipts, Funding 2
Available Principal Receipts and all other monies, income, receipts and
recoveries of Funding 2 or the Funding 2 Security Trustee or any Receiver of
Funding 2 and the proceeds of enforcement of the Funding 2 Security are to be
applied following service of an Intercompany Loan Enforcement Notice or
otherwise following an enforcement of the Funding 2 Security as set out in
Part [o] of Schedule [o] (Funding 2 Priority of Payments) to the Funding 2
Deed of Charge, as the same may be amended, varied or superseded from time to
time in accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Pre-Enforcement Principal Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Principal Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[o] of Schedule [o] (Funding 2 Priority of Payments) to the Funding 2 Deed of
Charge, as the same may be amended, varied or superseded from time to time in
accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Pre-Enforcement Revenue Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Revenue Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[o] of Schedule [o] (Funding 2 Priority of Payments) to the Funding 2 Deed of
Charge, as the same may be amended, varied or superseded from time to time in
accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Principal Deficiency Ledger" means the ledger maintained by the
Cash Manager in the name of Funding 2 which will be established on the Funding
2 Program Date and will be sub-divided into sub ledgers corresponding to the
AAA Loan Tranches, the AA Loan Tranches, the A Loan Tranches, the BBB Loan
Tranches and the BB Loan Tranches in order to record Losses on Mortgage Loans
allocated to Funding 2, the application of Funding 2 Available Principal
Receipts in paying interest on the Funding 2 Intercompany Loans and certain
amounts ranking in priority thereto in accordance with the Funding 2
Pre-Enforcement Revenue Priority of Payments and the application of Funding 2
Principal Receipts to fund or replenish the [Funding 2 Liquidity Reserve Fund]
(if any);

"Funding 2 Principal Receipts" means the Principal Receipts received by
Funding 2 from the Mortgages Trustee on each Distribution Date;

"Funding 2 Priority of Payments" means, as applicable, any of the Funding 2
Pre-Enforcement Revenue Priority of Payments, the Funding 2 Pre-Enforcement
Principal Priority of Payments or the Funding 2 Post-Enforcement Priority of
Payments;

"Funding 2 Reserve Fund" means the reserve fund established in the name of
Funding 2 on the Funding 2 Program Date in an amount up to the Funding 2
Reserve Maximum Amount, which prior to enforcement may be allocated to help
meet any deficit in Funding Available Revenue Receipts and thereby any deficit
recorded on the Funding 2 Principal Deficiency

                                      99

<PAGE>

Ledgers and/or utilised to fund expenses in connection with the issuance of
Notes by Funding 2 Issuers;

["Funding 2 Reserve Fund Threshold" means, on any date, the lesser of:

(a)  the Funding 2 Reserve Fund Maximum Amount; or

(b)  the highest amount which the Adjusted Funding 2 Reserve Fund Level has
     been since the first Payment Date upon which interest is due and payable
     in respect of Loan Tranches advanced or the Closing Date relating to the
     then most recent issue of Notes;]

"Funding 2 Reserve Ledger" means the ledger maintained by the Cash Manager in
the name of Funding 2 pursuant to the Cash Management Agreement to record the
amount standing to the credit of the Funding 2 Reserve Fund from time to time;

"Funding 2 Reserve Maximum Amount" means, as at any date, the amount (if any)
by which the Target Reserve Required Amount (as at such date) exceeds the
Issuer Reserve Minimum Amount (as at such date);

"Funding 2 Secured Creditors" means the Funding 2 Security Trustee (and any
Receiver of Funding 2 appointed pursuant to the Funding 2 Deed of Charge),
Granite Master Issuer plc, the Corporate Services Provider in relation to
Funding 2, the Account Bank, the Funding 2 GIC Provider, the Mortgages
Trustee, the Funding 2 Basis Rate Swap Provider, the Cash Manager and each New
Funding 2 Secured Creditor who accedes to the Funding 2 Deed of Charge from
time to time pursuant to a Deed of Accession (including, for the avoidance of
doubt, any new Funding 2 Issuer);

"Funding 2 Secured Obligations" means any and all of the monies, obligations
and liabilities which Funding 2 covenants to pay or discharge under or
pursuant to Clause 2 (Covenant to pay and to Perform) of the Funding 2 Deed of
Charge and all other amounts owed by it to the Funding 2 Secured Creditors
pursuant to the Funding 2 Transaction Documents;

"Funding 2 Security" means the security granted by Funding 2 under or pursuant
to the Funding 2 Deed of Charge in favour of the Funding 2 Security Trustee
for the benefit of the Funding 2 Secured Creditors or any of them including
the security granted by Funding 2 under or pursuant to any Deed of Accession;

"Funding 2 Security Trustee" means, The Bank of New York, acting through its
office at 48th Floor, One Canada Square, London E14 5AL, or such other persons
and all other persons for the time being acting as the security trustee or
security trustees pursuant to the Funding 2 Deed of Charge;

"Funding 2 Step-up Trigger Event" means, in relation to a Funding 2 Issuer, an
event which occurs if such Funding 2 Issuer fails to exercise its option to
redeem any Series and Class of Notes on the relevant Step-Up Date pursuant to
the terms and conditions of its Notes;

"Funding 2 Swap Collateral Accounts" means the Funding 2 Swap Collateral Cash
Account and the Funding 2 Swap Collateral Securities Account;

                                     100

<PAGE>

"Funding 2 Swap Collateral Cash Account" means an account opened in the name
of Funding 2 for the purpose of holding Swap Collateral in Cash and maintained
in accordance with the terms of the Cash Management Agreement;

"Funding 2 Transaction Account" means the account in the name of Funding 2
(account no. [o], sort code [o]) held with the Account Bank and maintained
subject to the terms of the Funding 2 Bank Account Agreement and the Funding 2
Deed of Charge or any additional or replacement account as may for the time
being be in place with the prior consent of the Funding 2 Security Trustee;

"Funding 2 Transaction Documents" means [o];

"Global Intercompany Loan" means, at any time, the aggregate of the
Outstanding Principal Balance of the Loan Tranches made by the Master Issuer
to Funding 2 under the Global Intercompany Loan Agreement.

"Global Intercompany Loan Agreement" means the Funding 2 Intercompany Loan
Agreement entered into on the Funding 2 Program Date between the Master
Issuer, Funding 2, the Funding 2 Security Trustee and the Agent Bank;

"Issuer Deed of Charge" means, in relation to a Funding 2 Issuer, the deed of
charge entered into between such Issuer, the relevant Issuer Security Trustee
and the other relevant Issuer Secured Creditors and the Schedules thereto and
including each Deed of Accession entered into in connection therewith as may
be amended, restated, novated, varied or supplemented from time to time;

"Issuer Enforcement Notice" means, in relation to a Funding 2 Issuer, a notice
issued by the applicable Note Trustee to the such Issuer, its Issuer Security
Trustee and the Funding 2 Security Trustee declaring all Notes issued by such
Issuer to be due and payable pursuant to the terms and conditions of such
Notes;

"Issuer Reserve Minimum Amount" means, on any date and subject to amendment as
described in Clause [ ] of the Issuer Cash Management Agreement, the amount
calculated as the product of (a) one per cent. and (b) the aggregate Principal
Amount Outstanding of the Notes (including the Principal Amount Outstanding of
Notes issued on such date);

"Issuer Security" means in relation any Issuer, the security created by such
Issuer pursuant to the relevant Issuer Deed of Charge for the benefit of the
Issuer Secured Creditors;]

"Issuer Swap Agreements", in respect of any Funding 2 Issuer, means the ISDA
Master Agreements, Schedules thereto and Confirmations thereunder relating to
the Issuer Swaps to be entered into on or about each Closing Date, and any
Credit Support Annexes or other credit support documents entered into at any
time, as amended from time to time, among the Issuer, the applicable Issuer
Swap Provider and the applicable Issuer Security Trustee and/or any credit
support provider and includes any additional and/or replacement Issuer Swap
Agreement entered into by the Issuer from time to time in connection with the
Notes;

"Issuer Swap Provider" means, in respect of any Funding 2 Issuer, the
institutions identified in respect of each Issuer Swap in the Note Supplement
and the Issuer Swap Agreement related to the relevant Series and Class of
Notes;

                                     101

<PAGE>

"Issuer Swap Excluded Termination Amount" means, in relation to an Issuer Swap
Agreement, following the application of all or any part of any Swap
Replacement Premium in accordance with the applicable Issuer Deed of Charge
and the applicable Issuer Cash Management Agreement, an amount equal to any
termination payment due and payable to the relevant Issuer Swap Provider as a
result of a Swap Provider Default in relation to that Issuer Swap Provider;

"Issuer Swaps" means the currency and interest rate swaps entered into between
a Funding 2 Issuer and an Issuer Swap Provider which enable such Funding 2
Issuer to receive and pay amounts under the relevant Funding 2 Intercompany
Loan Agreement in sterling and to receive and pay amounts under the Notes
issued by such Issuer not denominated in sterling in the applicable Specified
Currency;

"Issuer Trust Deed", in relation to any Issuer, means the trust deed entered
into between the Issuer and the Note Trustee which constitutes the Notes
issued and to be issued by such Issuer;

"Loan Tranches" means the AAA loan tranches, the AA loan tranches, the A loan
tranches, the BBB loan tranches and the BB loan tranches, being the advances
made by a Funding 2 Issuer to Funding 2, pursuant to the Funding 2
Intercompany Loan Agreement between such Issuer and Funding 2, each being
funded from proceeds received by such Funding 2 Issuer from the issue of a
Series and Class of Notes;

"Master Issuer" means Granite Master Issuer plc.

"Monthly CPR" means, on any Trust Determination Date, the total Mortgages
Trustee Principal Receipts received by the Mortgages Trustee during the
immediately preceding Trust Calculation Period date divided by the aggregate
Outstanding Principal Balance of the Mortgage Loans comprised in the Trust
Property as at the immediately preceding Trust Determination Date.

"New Funding 2 Secured Creditor" means any person identified as such in any
Deed of Accession executed pursuant to the Funding 2 Deed of Charge by such
person and the other parties thereto;

"Original Bullet Loan Tranche" means a Loan Tranche which has, at any time,
been a Bullet Loan Tranche, even if such Loan Tranche has subsequently become
a Pass-Through Loan Tranche;

"Original Controlled Repayment Loan Tranche" means a Loan Tranche which has,
at any time, been a Controlled Repayment Loan Tranche, even if such Loan
Tranche has subsequently become a Pass-Through Loan Tranche;

"Original Pass-Through Loan Tranche" means a Loan Tranche which, at the time
it was advanced, was a Pass-Through Loan Tranche;

"Original Scheduled Repayment Loan Tranche" means a Loan Tranche which has, at
any time, been a Scheduled Repayment Loan Tranche, even if such Loan Tranche
has subsequently become a Pass-Through Loan Tranche;

"Pass-Through Loan Tranche" means, in relation to Funding 2, a Loan Tranche
which has no specified repayment dates other than the Final Repayment Date. If
a date specified in

                                     102

<PAGE>

relation to a Bullet Loan Tranche, a Scheduled Repayment Loan Tranche or a
Controlled Amortisation Loan Tranches in the applicable Loan Tranche
Supplement occurs or a Trigger Event occurs or the Funding 2 Security is
enforced or a Note Acceleration Notice is served in respect of the related
Series and Class of Notes or a Step-Up Date (if any) in relation to such Loan
Tranche occurs, then that Loan Tranche will be deemed to be Pass-Through Loan
Tranches;

"Potential Funding 2 Intercompany Loan Event of Default" means the occurrence
of any event which with the giving of notice, any relevant certificate, the
lapse of time or fulfilment of any other condition (or any combination of the
foregoing) would become a Funding 2 Intercompany Loan Event of Default;

"Principal Directions" with respect to the Funding 2 Security Trustee, has the
meaning given to it in Clause [16.9] of the Funding 2 Deed of Charge;

["Programme Reserve Required Amount" means, as at any date, the amount
calculated as [o];]

"Scheduled Repayment Date" means the dates specified as such in the Loan
Tranche Supplement for a Scheduled Repayment Loan Tranche;

"Scheduled Repayment Loan Tranches" means, in relation to Funding 2, any Loan
Tranche which is scheduled to be repaid on two or more instalments on
Scheduled Repayment Dates. Scheduled Repayment Loan Tranches will be deemed to
be Pass-Through Loan Tranches if:

(a)  a date specified in relation to the same in the applicable Loan Tranche
     Supplement occurs;

(b)  a Trigger Event occurs;

(c)  the Issuer Security, in respect of the Funding 2 Issuer which has funded
     such Scheduled Repayment Loan Tranches, is enforced;

(d)  a Note Acceleration Notice is served in respect of the related Series and
     Class of Notes; or

(e)  a Step-Up Date (if any) in relation to such Loan Tranche occurs.

"Swap Agreements" means the Funding 2 Basis Rate Swap Agreement and each
Issuer Swap Agreement;

"Swap Collateral" means, in respect of the Funding 2 Basis Rate Swap
Agreement, any asset (including, without limitation, Cash and/or securities)
delivered to Funding 2 by the Funding 2 Basis Rate Swap Provider in accordance
with the terms of the Funding 2 Basis Rate Swap Agreement in respect of the
Funding 2 Basis Rate Swap Provider's obligations under the Funding 2 Basis
Rate Swap Agreement;

"Swap Provider Default" means the occurrence of an Event of Default or [swap
provider termination event] (each as defined in the relevant Swap Agreement)
where the relevant Swap Provider is the Defaulting Party or the Affected Party
(each as defined in the relevant Swap Agreement);

                                     103

<PAGE>

"Swap Providers" means any of the Currency Swap Providers and/or the Basis
Rate Swap Providers and/or the Interest Rate Swap Providers and/or the Issuer
Swap Providers, as the context requires, or any other Swap Provider appointed
from time to time in accordance with the Transaction Documents or relevant
Issuer Transaction Documents;

"Swap Replacement Premium" means any payment received from a replacement swap
provider upon entry into an agreement with such replacement swap provider
replacing a Swap Agreement;

"Target Reserve Required Amount" means, as at any date, an amount equal to the
product of (a) the Target Reserve Required Percentage and (b) the Principal
Amount Outstanding of the Global Intercompany Loan (including the Principal
Amount Outstanding of any Loan Tranche (or the increase in the Principal
Amount Outstanding of any existing Loan Tranche that is made on such date);

"Target Reserve Required Percentage" means, on any date and subject to
amendment as described in Clause [ ] of the Cash Management Agreement, the
percentage specified as such in the most recent prospectus supplement;

"Tier" means all the Loan Tranches having the same designated credit rating;

                                     104

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]