Document:

EXHIBIT 4.1

                    RESIDENTIAL ASSET SECURITIES CORPORATION,

                                   Depositor,

                        RESIDENTIAL FUNDING COMPANY, LLC,

                                Master Servicer,

                                       and

                           [_________________________]

                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                          Dated as of [____] 1, 200[_]

                 Mortgage Asset-Backed Pass-Through Certificates

                               Series 200[_]-KS[_]

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I DEFINITIONS ....................................................     3

   Section 1.01. Definitions .............................................     3

   Section 1.02. Determination of LIBOR ..................................    43

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES    44

   Section 2.01. Conveyance of Mortgage Loans ............................    44

   Section 2.02. Acceptance by Trustee ...................................    47

   Section 2.03. Representations, Warranties and Covenants of the
                 Master Servicer and the Depositor .......................    48

   Section 2.04. Representations and Warranties of Residential Funding ...    50

   Section 2.05. Execution and Authentication of Certificates;
                 Conveyance of REMIC I Regular Interests .................    51

   Section 2.06. Purposes and Powers of the Trust ........................    52

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS ...............    53

   Section 3.01. Master Servicer to Act as Servicer ......................    53

   Section 3.02. Subservicing Agreements Between Master Servicer and
                 Subservicers; Enforcement of Subservicers' Obligations ..    55

   Section 3.03. Successor Subservicers ..................................    56

   Section 3.04. Liability of the Master Servicer ........................    56

   Section 3.05. No Contractual Relationship Between Subservicer
                 and Trustee or Certificateholders .......................    57

   Section 3.06. Assumption or Termination of Subservicing Agreements
                 by Trustee ..............................................    57

   Section 3.07. Collection of Certain Mortgage Loan Payments; Deposits
                 to Custodial Account ....................................    57

   Section 3.08. Subservicing Accounts; Servicing Accounts ...............    59

   Section 3.09. Access to Certain Documentation and Information
                 Regarding the Mortgage Loans ............................    61

   Section 3.10. Permitted Withdrawals from the Custodial Account ........    61

   Section 3.11. Maintenance of Primary Insurance Coverage ...............    63

   Section 3.12. Maintenance of Fire Insurance and Omissions and
                 Fidelity Coverage .......................................    63

   Section 3.13. Enforcement of Due-on-Sale Clauses; Assumption and
                 Modification Agreements; Certain Assignments ............    64

   Section 3.14. Realization Upon Defaulted Mortgage Loans ...............    66

   Section 3.15. Trustee to Cooperate; Release of Mortgage Files .........    68

   Section 3.16. Servicing and Other Compensation; Compensating Interest .    69

                                       -i-
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                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

   Section 3.17. Reports to the Trustee and the Depositor ................    70

   Section 3.18. Annual Statement as to Compliance .......................    70

   Section 3.19. Annual Independent Public Accountants' Servicing Report .    71

   Section 3.20. Right of the Depositor in Respect of the Master Servicer     71

   Section 3.21. [Reserved] ..............................................    72

   Section 3.22. Advance Facility ........................................    72

ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS ................................    76

   Section 4.01. Certificate Account .....................................    76

   Section 4.02. Distributions ...........................................    76

   Section 4.03. Statements to Certificateholders; Statements to Rating
                 Agencies; Exchange Act Reporting ........................    80

   Section 4.04. Distribution of Reports to the Trustee and the Depositor;
                 Advances by the Master Servicer .........................    83

   Section 4.05. Allocation of Realized Losses ...........................    85

   Section 4.06. Reports of Foreclosures and Abandonment of Mortgaged
                 Property ................................................    86

   Section 4.07. Optional Purchase of Defaulted Mortgage Loans ...........    87

   Section 4.08. [Reserved] ..............................................    87

   Section 4.09. [Reserved] ..............................................    87

   Section 4.10. [Hedge Agreement.] ......................................    87

ARTICLE V THE CERTIFICATES ...............................................    88

   Section 5.01. The Certificates ........................................    88

   Section 5.02. Registration of Transfer and Exchange of Certificates ...    90

   Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates .......    97

   Section 5.04. Persons Deemed Owners ...................................    97

   Section 5.05. Appointment of Paying Agent .............................    97

ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER .........................    98

   Section 6.01. Respective Liabilities of the Depositor and the
                 Master Servicer .........................................    98

   Section 6.02. Merger or Consolidation of the Depositor or the
                 Master Servicer; Assignment of Rights and Delegation
                 of Duties by Master Servicer ............................    98

   Section 6.03. Limitation on Liability of the Depositor, the Master
                 Servicer and Others .....................................    99

   Section 6.04. Depositor and Master Servicer Not to Resign .............    99

ARTICLE VII DEFAULT ......................................................   100

   Section 7.01. Events of Default .......................................   100

                                      -ii-
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                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

   Section 7.02. Trustee or Depositor to Act; Appointment of Successor ...   101

   Section 7.03. Notification to Certificateholders ......................   102

   Section 7.04. Waiver of Events of Default .............................   103

ARTICLE VIII CONCERNING THE TRUSTEE ......................................   104

   Section 8.01. Duties of Trustee .......................................   104

   Section 8.02. Certain Matters Affecting the Trustee ...................   105

   Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans ...   106

   Section 8.04. Trustee May Own Certificates ............................   107

   Section 8.05. Master Servicer to Pay Trustee's Fees and Expenses;
                 Indemnification .........................................   107

   Section 8.06. Eligibility Requirements for Trustee ....................   108

   Section 8.07. Resignation and Removal of the Trustee ..................   108

   Section 8.08. Successor Trustee .......................................   109

   Section 8.09. Merger or Consolidation of Trustee ......................   109

   Section 8.10. Appointment of Co-Trustee or Separate Trustee ...........   109

   Section 8.11. Appointment of Custodians ...............................   110

   Section 8.12. Appointment of Office or Agency .........................   111

   Section 8.13. DTC Letter of Representations ...........................   111

   Section 8.14. [Hedge Agreement.] ......................................   111

ARTICLE IX TERMINATION ...................................................   112

   Section 9.01. Termination Upon Purchase or Liquidation of All
                 Mortgage Loans ..........................................   112

   Section 9.02. Additional Termination Requirements .....................   116

ARTICLE X REMIC PROVISIONS ...............................................   117

   Section 10.01. REMIC Administration ...................................   117

   Section 10.02. Master Servicer, REMIC Administrator and Trustee
                  Indemnification ........................................   120

ARTICLE XI MISCELLANEOUS PROVISIONS ......................................   121

   Section 11.01. Amendment ..............................................   121

   Section 11.02. Recordation of Agreement; Counterparts .................   123

   Section 11.03. Limitation on Rights of Certificateholders .............   123

   Section 11.04. Governing Law ..........................................   124

   Section 11.05. Notices ................................................   124

   Section 11.06. Notices to Rating Agencies .............................   124

   Section 11.07. Severability of Provisions .............................   125

                                      -iii-
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                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

   Section 11.08. Supplemental Provisions for Resecuritization ...........   125

ARTICLE XII COMPLIANCE WITH REGULATION AB ................................     1

   Section 12.01. Intent of the Parties; Reasonableness ..................     1

   Section 12.02. Additional Representations and Warranties of the Trustee     1

   Section 12.03. Information to Be Provided by the Trustee ..............     2

   Section 12.04. Report on Assessment of Compliance and Attestation .....     2
   Section 12.05. Indemnification; Remedies ..............................     2

Exhibit A Form of Class A Certificate ....................................   A-1

Exhibit B Form of Class M Certificate ....................................   B-1

Exhibit C-1 Form of Rule 144A Global Class B Certificate ................. C-1-1

Exhibit C-2 Form of Temporary Regulation S Global Class B Certificate .... C-2-1

Exhibit C-3 Form of Rule 144A Global Class B Certificate ................. C-3-1

Exhibit D-1 Form of Rule 144A Global Class SB Certificate ................ D-1-1

Exhibit D-2 Form of Temporary Regulation S Global Class SB Certificate ... D-2-1

Exhibit D-3 Form of Permanent Regulation S Global Class SB Certificate ... D-3-1

Exhibit D-4 Form of Class R Certificate .................................. D-4-1

Exhibit E Form of Custodial Agreement ....................................   E-1

Exhibit F Mortgage Loan Schedule .........................................   F-1

Exhibit G Form of Request for Release ....................................   G-1

Exhibit H-1 Form of Transfer Affidavit and Agreement ..................... H-1-1

Exhibit H-2 Form of Transferor Certificate ............................... H-2-1

Exhibit I Form of Investor Representation Letter .........................   I-1

Exhibit J Form of Transferor Representation Letter .......................   J-1

Exhibit K Text of Amendment to Pooling and Servicing Agreement
          Pursuant to Section 11.01(e) for a Limited Guaranty ............   K-1

Exhibit L Form of Limited Guaranty .......................................   L-1

Exhibit M Form of Lender Certification for Assignment of Mortgage Loan ...   M-1

Exhibit N Form of Rule 144A Investment Representation ....................   N-1

Exhibit O [Reserved] .....................................................   O-1

Exhibit P Form of ERISA Letter ...........................................   P-1

Exhibit Q [Reserved] .....................................................   Q-1

Exhibit R Assignment Agreement ...........................................   R-1

Exhibit S Servicing Criteria .............................................   S-1

                                      -iv-
<PAGE>

                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

Exhibit T-1 Form of 10-K Certification ................................... T-1-1

Exhibit T-2 Form of Back-Up Certification ................................ T-2-1

Exhibit U Information to be Provided by the Master Servicer to the Rating
          Agencies Relating to Reportable Modified Mortgage Loans ........   U-1

Exhibit V Form of Certificate to be Given by Certificate Owner ...........   V-1

Exhibit W Form of Certificate to be Given by Euroclear or Cedel ..........   W-1

Exhibit X Form of Certificate to be Given by Transferree of
          Beneficial Interest in a Regulation S Book-Entry Certificate ...   X-1

Exhibit Y Form of Transfer Certificate for Exchange or Transfer from
          144A Book-Entry Certificate to Regulation S Book-Entry
          Certificate ....................................................   Y-1

Exhibit Z Form of Initial Purchaser Exchange Instructions ................   Z-1

                                       -v-
<PAGE>

      This  Pooling and  Servicing  Agreement,  effective as of [___] 1, 200[_],
among RESIDENTIAL ASSET SECURITIES CORPORATION,  as the depositor (together with
its permitted  successors and assigns,  the  "Depositor"),  RESIDENTIAL  FUNDING
COMPANY,  LLC, as master  servicer  (together with its permitted  successors and
assigns,  the "Master  Servicer"),  and  [_______________],  a national  banking
association  organized under the laws of the United States, as trustee (together
with its permitted successors and assigns, the "Trustee").

                             PRELIMINARY STATEMENT:

      The  Depositor   intends  to  sell  mortgage   asset-backed   pass-through
certificates  (collectively,  the  "Certificates"),  to be issued  hereunder  in
multiple  Classes,  which in the aggregate  will evidence the entire  beneficial
ownership  interest in the Mortgage Loans (as defined  herein) and certain other
related assets.

                                     REMIC I

      As provided herein, the REMIC Administrator will make an election to treat
the segregated pool of assets consisting of the Mortgage Loans and certain other
related assets (exclusive of the Hedge Agreement) subject to this Agreement as a
real  estate  mortgage  investment  conduit (a "REMIC")  for federal  income tax
purposes,  and such  segregated  pool of assets will be designated as "REMIC I."
The  Class  [R-I]  Certificates  will  represent  the sole  Class  of  "residual
interests" in REMIC I for purposes of the REMIC  Provisions (as defined  herein)
under federal  income tax law. The following  table  irrevocably  sets forth the
designation,  remittance rate (the  "Uncertificated  REMIC I Pass-Through Rate")
and initial Uncertificated Principal Balance for each of the "regular interests"
in REMIC I (the  "REMIC I Regular  Interests").  The "latest  possible  maturity
date" (determined solely for purposes of satisfying  Treasury regulation Section
1.860G-1(a)(4)(iii))  for each REMIC I Regular  Interest  shall be the  Maturity
Date. None of the REMIC I Regular Interests will be certificated.

<TABLE>
<CAPTION>
                      Uncertificated REMIC I         Initial Uncertificated REMIC I            Latest Possible
   Designation           Pass-Through Rate                 Principal Balance                    Maturity Date
   -----------        ----------------------         ------------------------------            ---------------
<S>                           <C>                             <C>                                <C>
       [LT1]                  [___](1)                         $[________]                        [___] 20[_]
       [LT2]                  [___](1)                         $[________]                        [___] 20[_]
       [LT3]                  [___]%                           $[________]                        [___] 20[_]
       [LT4]                  [___](1)                         $[________]                        [___] 20[_]
</TABLE>

----------
(1)   Calculated  as  provided  in the  definition  of  Uncertificated  REMIC  I
      Pass-Through Rate.

                                       1
<PAGE>

                                    REMIC II

      As provided herein, the REMIC Administrator will make an election to treat
the segregated pool of assets  consisting of the REMIC I Regular  Interests as a
REMIC for federal income tax purposes,  and such  segregated pool of assets will
be designated as REMIC II. The Class [R-II] Certificates will represent the sole
Class of "residual  interests" in REMIC II for purposes of the REMIC  Provisions
under federal  income tax law. The following  table  irrevocably  sets forth the
designation, Pass-Through Rate, aggregate Initial Certificate Principal Balance,
certain features, month of Final Scheduled Distribution Date and initial ratings
for each Class of Certificates  comprising the interests  representing  "regular
interests" in REMIC II. The "latest possible maturity date"  (determined  solely
for purposes of satisfying Treasury Regulation Section  1.860G-1(a)(4)(iii)) for
each Class of REMIC II Regular Interests shall be the Maturity Date.

<TABLE>
<CAPTION>
                                              Aggregate Initial                                Month of          Initial Ratings
                              Pass-Through       Certificate                                Final Scheduled     -----------------
  Designation       Type          Rate        Principal Balance           Features         Distribution Date     S&P      Moody's
--------------  ----------   ---------------- -----------------  ------------------------  -----------------    -----     -------
<S>            <C>          <C>                  <C>             <C>                        <C>                 <C>         <C>
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Senior/Adjustable Rate]   [______] 20[__]     [AAA]      [Aaa]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Senior/Adjustable Rate]   [______] 20[__]     [AAA]      [Aaa]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Senior/Adjustable Rate]   [______] 20[__]     [AAA]      [Aaa]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]     [AA+]      [Aa1]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]      [AA]      [Aa2]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]     [AA-]      [Aa3]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]      [A+]      [A1]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]      [A]       [A2]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]      [A-]      [A3]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]     [BBB+]    [Baa1]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]     [BBB]     [Baa2]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Mezzanine/Adjustable      [______] 20[__]     [BBB-]    [Baa3]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Subordinate/Adjustable    [______] 20[__]     [BB+]      [Ba1]
                                                                 Rate]
  Class [__]    Regular(1)   Adjustable(2)(3)    $[_________]    [Subordinate/Adjustable    [______] 20[__]      [BB]      [Ba2]
                                                                 Rate]
  Class [__]    Regular (4)        (4)           $[_________]    [Subordinate]              [______] 20[__]      [NR]      [NR]
</TABLE>

----------
(1)   The [Class A, Class M and Class B] Certificates  will represent  ownership
      of REMIC II Regular Interests [together with certain rights to payments to
      be made from amounts  received  under the, Hedge  Agreement  which will be
      deemed made for  federal  income tax  purposes  outside of REMIC II by the
      holder of the Class SB Certificates as the owner of the Hedge Agreement].

(2)   [The REMIC II Regular  Interests  ownership of which is represented by the
      Class A, Class M and Class B  Certificates,  will accrue interest at a per
      annum rate equal to the lesser of (i) LIBOR plus the applicable Margin and
      (ii) the  REMIC Net WAC Cap Rate and the  provisions  for the  payment  of
      Basis  Risk  Shortfalls  herein,  which  payments  will not be part of the
      entitlement   of  the  REMIC  II   Regular   Interests   related  to  such
      Certificates.]

(3)   [The Class A, Class M and Class B  Certificates  will also  entitle  their
      holders to certain  payments from the Holder of the Class SB  Certificates
      from  amounts to which the related  REMIC II Regular  Interest is entitled
      and from amounts received under the Hedge  Agreement,  which will not be a
      part of their ownership of the REMIC II Regular Interests.]

(4)   The  Class SB  Certificates  will  accrue  interest  as  described  in the
      definition of Accrued Certificate Interest. The Class SB Certificates will
      not accrue interest on their Certificate  Principal Balance.  The Class SB
      Certificates will represent ownership of two REMIC II Regular Interests, a
      principal only regular interest designated REMIC II Regular Interest SB-PO
      and an interest only regular interest designated REMIC II

                                       2
<PAGE>

      Regular  Interest SB-IO,  which will be entitled to  distributions  as set
      forth  herein.  The rights of the Holder of the Class SB  Certificates  to
      payments  from the Hedge  Agreement  shall be  outside  and apart from its
      rights under the REMIC II Regular Interests SB-IO and SB-PO.

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

                                   ARTICLE I

                                   DEFINITIONS

      Section 1.01.   Definitions.

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

      Accrued Certificate  Interest:  With respect to each Distribution Date and
each  Class  of  [Class  A  Certificates,  Class  M  Certificates  and  Class  B
Certificates,]  interest  accrued during the related  Interest Accrual Period on
the Certificate Principal Balance thereof immediately prior to such Distribution
Date at the related Pass-Through Rate for that Distribution Date.

      The amount of Accrued  Certificate  Interest on each Class of Certificates
shall be reduced by the amount of Prepayment  Interest Shortfalls on the related
Mortgage  Loans  during the prior  calendar  month to the extent not  covered by
Compensating  Interest pursuant to Section 3.16, and by Relief Act Shortfalls on
the related  Mortgage Loans during the related Due Period.  All such  reductions
with respect to the Mortgage Loans will be allocated  among the  Certificates in
proportion  to the  amounts  of  Accrued  Certificate  Interest  payable on such
Certificates on such Distribution Date absent such reductions.

      [Accrued Certificate Interest on each Class of Class A Certificates, Class
M Certificates and Class B Certificates for any Distribution  Date shall also be
reduced  by any  interest  shortfalls  resulting  from the  failure of the Hedge
Agreement  Provider to make the  required  Hedge  Payment for such  Distribution
Date,  with all such reductions  allocated to the Class A Certificates,  Class M
Certificates and Class B Certificates on a pro rata basis,  based on the portion
of the Hedge  Payment each such Class was  entitled to, but did not receive,  on
such Distribution Date.]

      Accrued  Certificate  Interest for any Distribution  Date shall further be
reduced by the  interest  portion of Realized  Losses  allocated to any Class of
Certificates pursuant to Section 4.05.

      Accrued  Certificate  Interest shall accrue on the basis of a 360-day year
and the actual number of days in the related Interest Accrual Period.

      With  respect  to each  Distribution  Date and the Class SB  Certificates,
interest  accrued  during the preceding  Interest  Accrual Period at the related
Pass-Through  Rate on the  Notional  Amount as specified  in the  definition  of
Pass-Through  Rate,  immediately prior to such Distribution Date, reduced by any
interest  shortfalls  with respect to the Mortgage Loans,  including  Prepayment
Interest Shortfalls to the extent not covered by Compensating  Interest pursuant
to Section 3.16 or by Excess Cash Flow pursuant to Section  4.02(c)(v) and (vi).
Accrued  Certificate  Interest on the Class SB Certificates  shall accrue on the
basis of a 360-day  year and the actual  number of days in the related  Interest
Accrual Period.

      Adjusted  Mortgage Rate: With respect to any Mortgage Loan and any date of
determination,  the Mortgage Rate borne by the related  Mortgage Note,  less the
rate at which the related Subservicing Fee accrues.

                                       3
<PAGE>

      Adjustment Date: With respect to each adjustable-rate  Mortgage Loan, each
date set  forth in the  related  Mortgage  Note on  which an  adjustment  to the
interest rate on such Mortgage Loan becomes effective.

      Advance: With respect to any Mortgage Loan, any advance made by the Master
Servicer, pursuant to Section 4.04.

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

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

      Amount  Held for Future  Distribution:  With  respect to any  Distribution
Date,  the total of the amounts  held in the  Custodial  Account at the close of
business  on the  preceding  Determination  Date on account  of (i)  Liquidation
Proceeds,  Subsequent Recoveries,  Insurance Proceeds,  REO Proceeds,  Principal
Prepayments,  Mortgage Loan purchases made pursuant to Section 2.02,  2.03, 2.04
or 4.07 and Mortgage  Loan  substitutions  made pursuant to Section 2.03 or 2.04
received  or made in the  month  of such  Distribution  Date  (other  than  such
Liquidation Proceeds,  Subsequent  Recoveries,  Insurance Proceeds, REO Proceeds
and purchases of Mortgage Loans that the Master Servicer has deemed to have been
received in the  preceding  month in accordance  with Section  3.07(b)) and (ii)
payments which  represent  early receipt of scheduled  payments of principal and
interest  due on a date or dates  subsequent  to the Due Date in the related Due
Period.

      Appraised Value: With respect to any Mortgaged Property, the lesser of (i)
the appraised value of such Mortgaged  Property based upon the appraisal made at
the time of the  origination  of the related  Mortgage  Loan, and (ii) the sales
price of the Mortgaged Property at such time of origination,  except in the case
of a Mortgaged  Property  securing a refinanced or modified  Mortgage Loan as to
which it is either the appraised value based upon the appraisal made at the time
of  origination  of the loan which was  refinanced  or modified or the appraised
value determined in an appraisal at the time of refinancing or modification,  as
the case may be.

      Assignment:   An  assignment  of  the  Mortgage,  notice  of  transfer  or
equivalent  instrument,  in recordable  form,  sufficient  under the laws of the
jurisdiction  wherein  the related  Mortgaged  Property is located to reflect of
record  the  sale  of the  Mortgage  Loan to the  Trustee  for  the  benefit  of
Certificateholders,   which   assignment,   notice  of  transfer  or  equivalent
instrument  may be in the  form  of one or  more  blanket  assignments  covering
Mortgages  secured  by  Mortgaged  Properties  located  in the same  county,  if
permitted by law and accompanied by an Opinion of Counsel to that effect.

      Assignment Agreement:  The Assignment and Assumption Agreement,  dated the
Closing Date,  between  Residential  Funding and the  Depositor  relating to the
transfer and assignment of the Mortgage Loans, attached hereto as Exhibit R.

      Available  Distribution  Amount: With respect to any Distribution Date, an
amount equal to (a) the sum of (i) the amount  relating to the Mortgage Loans on
deposit in the Custodial  Account as of the close of business on the immediately
preceding  Determination Date, including any Subsequent Recoveries,  and amounts
deposited  in the  Custodial  Account in  connection  with the  substitution  of
Qualified  Substitute Mortgage Loans, (ii) the amount of any Advance made on the
immediately preceding Certificate Account

                                       4
<PAGE>

Deposit Date with respect to the Mortgage Loans,  (iii) any amount  deposited in
the Certificate Account on the related Certificate Account Deposit Date pursuant
to the second  paragraph of Section  3.12(a) in respect of the  Mortgage  Loans,
(iv) any amount that the Master  Servicer is not  permitted to withdraw from the
Custodial  Account pursuant to Section 3.16(e) in respect of the Mortgage Loans,
and (v) any amount deposited in the Certificate Account pursuant to Section 4.07
or 9.01 in respect of the Mortgage Loans, reduced by (b) the sum as of the close
of business on the immediately  preceding  Determination  Date of (x) the Amount
Held for Future Distribution with respect to the Mortgage Loans, and (y) amounts
permitted to be withdrawn by the Master  Servicer from the Custodial  Account in
respect of the Mortgage  Loans  pursuant to clauses  [(ii)-(x)],  inclusive,  of
Section 3.10(a).

      Balloon  Loan:  Each of the  Mortgage  Loans  having an  original  term to
maturity that is shorter than the related amortization term.

      Balloon  Payment:  With respect to any Balloon Loan,  the related  Monthly
Payment payable on the stated maturity date of such Balloon Loan.

      Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

      Basis Risk  Shortfalls:  [With  respect to any  Distribution  Date and any
Class of [Class A Certificates,  Class M Certificates or Class B]  Certificates,
the sum of (a) with  respect to any  Distribution  Date on which the Net WAC Cap
Rate is used to determine the  Pass-Through  Rate of such Class, an amount equal
to the excess of (x) Accrued Certificate Interest for such Class calculated at a
per annum rate equal to the lesser of (i) LIBOR plus the related Margin for such
Distribution  Date and (ii) the Weighted Average Maximum Net Mortgage Rate, over
(y) Accrued Certificate Interest for such Class calculated using the Net WAC Cap
Rate plus, an amount equal to any reduction in the Accrued Certificate  Interest
of such Class due to the  failure of the Hedge  Agreement  Provider  to make any
related required Hedge Payment with respect to such  Distribution  Date, (b) any
shortfalls  for such Class  calculated  pursuant  to clause (a) above  remaining
unpaid from prior Distribution Dates, and (c) one month's interest on the amount
in clause  (b) (based on the number of days in the  preceding  Interest  Accrual
Period)  at a per annum rate  equal to LIBOR  plus the  related  Margin for such
Distribution Date.]

      Book-Entry  Certificate:  Any  Certificate  registered  in the name of the
Depository or its nominee.

      Business  Day: Any day other than (i) a Saturday or a Sunday or (ii) a day
on  which  banking  institutions  in the  State  of  California,  the  State  of
Minnesota,  the State of Texas,  the State of New York or the State of  Illinois
(and  such  other  state  or  states  in  which  the  Custodial  Account  or the
Certificate  Account are at the time  located) are required or authorized by law
or executive order to be closed.

      Capitalization  Reimbursement  Amount:  With  respect to any  Distribution
Date, the amount of Advances or Servicing Advances that were added to the Stated
Principal  Balance of the  Mortgage  Loans during the prior  calendar  month and
reimbursed  to  the  Master   Servicer  or  Subservicer  on  or  prior  to  such
Distribution Date pursuant to Section 3.10(a)(vii).

      Cash Liquidation: With respect to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition  occurred,  a determination  by the
Master  Servicer  that  it has  received  all  Insurance  Proceeds,  Liquidation
Proceeds  and  other  payments  or cash  recoveries  which the  Master  Servicer
reasonably and in good faith expects to be finally  recoverable  with respect to
such Mortgage Loan.

      Certificate: Any [Class A] Certificate,  [Class M] Certificate,  [Class B]
Certificate, Class SB Certificate or Class R Certificate.

                                       5
<PAGE>

      Certificate  Account:  The  account or  accounts  created  and  maintained
pursuant to Section 4.01, which shall be entitled "[______________], as trustee,
in trust for the registered holders of Residential Asset Securities Corporation,
Mortgage Asset-Backed Pass-Through Certificates, Series 200[_]-KS[__]" and which
account shall be held for the benefit of the  Certificateholders  and which must
be an Eligible Account.

      Certificate  Account Deposit Date: With respect to any Distribution  Date,
the Business Day prior thereto.

      Certificateholder  or Holder:  The Person in whose name a  Certificate  is
registered  in the  Certificate  Register,  except that  neither a  Disqualified
Organization  nor a  Non-United  States  Person  shall be a holder  of a Class R
Certificate for any purpose hereof. Solely for the purpose of giving any consent
or direction pursuant to this Agreement,  any Certificate,  other than a Class R
Certificate, registered in the name of the Depositor, the Master Servicer or any
Subservicer or any Affiliate  thereof shall be deemed not to be outstanding  and
the Percentage  Interest or Voting Rights  evidenced  thereby shall not be taken
into account in determining whether the requisite amount of Percentage Interests
or Voting  Rights  necessary to effect any such  consent or  direction  has been
obtained.  All  references  herein to  "Holders" or  "Certificateholders"  shall
reflect the rights of Certificate  Owners as they may  indirectly  exercise such
rights through the  Depository  and  participating  members  thereof,  except as
otherwise  specified  herein;  provided,  however,  that  the  Trustee  shall be
required to  recognize as a "Holder" or  "Certificateholder"  only the Person in
whose name a  Certificate  is  registered in the  Certificate  Register.  Unless
otherwise indicated in this Agreement, the Custodial Agreement or the Assignment
Agreement,  whenever  reference  is made to the actions  taken by the Trustee on
behalf of the Certificateholders.

      Certificate  Owner: With respect to a Book-Entry  Certificate,  the Person
who is the beneficial owner of such Certificate, as reflected on the books of an
indirect participating brokerage firm for which a Depository Participant acts as
agent, if any, and otherwise on the books of a Depository  Participant,  if any,
and otherwise on the books of the Depository.

      Certificate  Principal Balance:  With respect to any [Class A Certificate,
Class M Certificate or Class B Certificate],  on any date of  determination,  an
amount  equal  to  (i)  the  Initial  Certificate   Principal  Balance  of  such
Certificate  as  specified  on the face  thereof,  minus (ii) the sum of (x) the
aggregate of all amounts previously distributed with respect to such Certificate
(or any predecessor Certificate) and applied to reduce the Certificate Principal
Balance  thereof  pursuant  to  Section  4.02(c)  and (y) the  aggregate  of all
reductions  in  Certificate   Principal  Balance  deemed  to  have  occurred  in
connection  with  Realized  Losses  which  were  previously  allocated  to  such
Certificate  (or  any  predecessor  Certificate)  pursuant  to  this  Agreement;
provided,  that with respect to any Distribution Date, the Certificate Principal
Balance of any outstanding Class of [Class A Certificates,  Class M Certificates
and Class B Certificates]  [(with respect to the Class A Certificates,  on a pro
rata basis based on the amount of Realized Loss previously allocated thereto and
remaining  unreimbursed)] to which a Realized Loss was previously  allocated and
remains  unreimbursed  will be  increased,  to the  extent  of  Realized  Losses
previously allocated thereto and remaining unreimbursed,  but only to the extent
of Subsequent Recoveries received during the preceding calendar month.

      [With respect to any Class SB Certificate,  on any date of  determination,
an  amount  equal to the  Percentage  Interest  evidenced  by such  Certificate,
multiplied  by an  amount  equal  to (i) the  excess,  if any,  of (A) the  then
aggregate  Stated  Principal  Balance  of the  Mortgage  Loans over (B) the then
aggregate  Certificate  Principal Balance of the [Class A Certificates,  Class M
Certificates and Class B Certificates]  then  outstanding,  which represents the
sum of (i) the Initial Principal Balance of the REMIC II Regular Interest SB-PO,
as reduced by  Realized  Losses  allocated  thereto  and  payments  deemed  made
thereon, and

                                       6
<PAGE>

(ii)  accrued and unpaid  interest on the REMIC II Regular  Interest  SB-IO,  as
reduced by Realized Losses allocated thereto.]

      The Class R Certificates will not have a Certificate Principal Balance.

      Certificate  Register and Certificate  Registrar:  The register maintained
and the registrar appointed pursuant to Section 5.02.

      Class:  Collectively,  all of the Certificates or uncertificated interests
bearing the same designation.

      [Class A-1 Certificate:  Any one of the Class A-1 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class A-2 Certificate:  Any one of the Class A-2 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class A-3 Certificate:  Any one of the Class A-3 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      Class A Certificates:  Collectively,  the Class [__]  Certificates,  Class
[__] Certificates and Class [__] Certificates.

      [Class A Interest  Remittance  Amount:  With  respect to any  Distribution
Date,  the portion of the Available  Distribution  Amount for that  Distribution
Date  attributable to interest received or advanced with respect to the Mortgage
Loans plus,  with  respect to payments on the Class A  Certificates  pursuant to
Section  4.02(c)(iii)[(A)] only, the amount necessary to make such payments paid
from amounts received on the Hedge Agreement for such Distribution Date.]

      [Class A Principal  Distribution  Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger  Event  is  in  effect  for  that   Distribution   Date,  the  Principal
Distribution  Amount for that  Distribution Date or (b) on or after the Stepdown
Date if a Trigger Event is not in effect for that Distribution  Date, the lesser
of:

      (i)   the Principal Distribution Amount for that Distribution Date; and

      (ii)  the  excess,  if any,  of (A) the  aggregate  Certificate  Principal
            Balance  of the  Class  A  Certificates  immediately  prior  to that
            Distribution  Date over (B) the lesser of (x) the product of (1) the
            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage  Loans  after  giving  effect to
            distributions  to be  made  on that  Distribution  Date  and (y) the
            excess,  if any, of the aggregate  Stated  Principal  Balance of the
            Mortgage  Loans after giving effect to  distributions  to be made on
            that Distribution Date, over the Overcollateralization Floor.]

                                       7
<PAGE>

      [Class B-1 Certificate:  Any one of the Class B-1 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed  hereto as Exhibit C-1, C-2 or C-3, as provided in Section  5.02(e)
hereof,  and  evidencing (i) an interest  designated as a "regular  interest" in
REMIC II for  purposes  of the REMIC  Provisions  and (ii) the right to  receive
payments under the Hedge Agreement.]

      [Class B-1 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount and the Class M Principal  Distribution Amount or
(b) on or after the Stepdown  Date if a Trigger  Event is not in effect for that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date after distribution of the Class A Principal Distribution Amount
            and the Class M Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance  of  the  Class  A  Certificates   and  Class  M
            Certificates  (after  taking into account the payment of the Class A
            Principal Distribution Amount and the Class M Principal Distribution
            Amount for that Distribution Date) and (2) the Certificate Principal
            Balance  of the Class  B-1  Certificates  immediately  prior to that
            Distribution  Date over (B) the lesser of (x) the product of (1) the
            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage  Loans  after  giving  effect to
            distributions  to be  made  on that  Distribution  Date  and (y) the
            excess,  if any, of the aggregate  Stated  Principal  Balance of the
            Mortgage  Loans after giving effect to  distributions  to be made on
            that Distribution Date, over the Overcollateralization Floor.]

      [Class B-2 Certificate:  Any one of the Class B-2 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed  hereto as Exhibit C-1, C-2 or C-3, as provided in Section  5.02(e)
hereof,  and  evidencing (i) an interest  designated as a "regular  interest" in
REMIC II for  purposes  of the REMIC  Provisions  and (ii) the right to  receive
payments under the Hedge Agreement.]

      [Class B-2 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal Distribution Amount, the Class M Principal Distribution Amount and the
Class B-1 Principal  Distribution Amount or (b) on or after the Stepdown Date if
a Trigger Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M Principal  Distribution Amount and the Class B-1
            Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal Balance of the Class A Certificates,  Class M Certificates
            and Class B-1 Certificates (after taking into account the payment of
            the Class A  Principal  Distribution  Amount,  the Class M Principal
            Distribution Amount and the Class B-1 Principal  Distribution Amount
            for  that  Distribution  Date)  and  (2) the  Certificate  Principal
            Balance  of the Class  B-2  Certificates  immediately  prior to that
            Distribution  Date over (B) the lesser of (x) the product of (1) the
            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage

                                       8
<PAGE>

            Loans  after  giving  effect  to  distributions  to be  made on that
            Distribution  Date  and (y) the  excess,  if any,  of the  aggregate
            Stated  Principal  Balance of the Mortgage Loans after giving effect
            to  distributions  to be made on that  Distribution  Date,  over the
            Overcollateralization Floor.]

      Class B Certificates:  Collectively, the Class [__] Certificates and Class
[__] Certificates.

      [Class M-1 Certificate:  Any one of the Class M-1 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-1 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount or (b) on or after the Stepdown Date if a Trigger
Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal  Balance of the Class A  Certificates  (after  taking into
            account the payment of the Class A Principal Distribution Amount for
            that Distribution Date) and (2) the Certificate Principal Balance of
            the Class M-1 Certificates  immediately  prior to that  Distribution
            Date over (B) the lesser of (x) the  product  of (1) the  applicable
            Subordination  Percentage  and (2) the  aggregate  Stated  Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that  Distribution Date and (y) the excess, if any, of
            the aggregate Stated  Principal  Balance of the Mortgage Loans after
            giving effect to distributions to be made on that Distribution Date,
            over the Overcollateralization Floor.]

      [Class M-2 Certificate:  Any one of the Class M-2 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-2 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal Distribution Amount and the Class M-1 Principal Distribution Amount or
(b) on or after the Stepdown  Date if a Trigger  Event is not in effect for that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date after distribution of the Class A Principal Distribution Amount
            and the Class M-1 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal  Balance  of  the  Class  A  Certificates  and  Class  M-1
            Certificates  (after  taking into account the payment of the Class A
            Principal   Distribution   Amount   and  the  Class  M-1   Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-2  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the

                                       9
<PAGE>

            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage  Loans  after  giving  effect to
            distributions  to be  made  on that  Distribution  Date  and (y) the
            excess,  if any, of the aggregate  Stated  Principal  Balance of the
            Mortgage  Loans after giving effect to  distributions  to be made on
            that Distribution Date, over the Overcollateralization Floor.]

      [Class M-3 Certificate:  Any one of the Class M-3 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-3 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal  Distribution Amount and
the Class M-2 Principal Distribution Amount or (b) on or after the Stepdown Date
if a Trigger Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount,  the Class M-1 Principal  Distribution  Amount and the Class
            M-2 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates and Class M-2  Certificates  (after taking into account
            the payment of the Class A Principal  Distribution Amount, the Class
            M-1  Principal  Distribution  Amount  and the  Class  M-2  Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-3  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-4 Certificate:  Any one of the Class M-4 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-4 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution
Amount or (b) on or after the Stepdown  Date if a Trigger Event is not in effect
for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal   Distribution   Amount   and  the  Class  M-3   Principal
            Distribution Amount; and

                                       10
<PAGE>

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2  Certificates  and  Class M-3  Certificates
            (after  taking  into  account  the  payment of the Class A Principal
            Distribution  Amount, the Class M-1 Principal  Distribution  Amount,
            the  Class  M-2  Principal  Distribution  Amount  and the  Class M-3
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-4  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-5 Certificate:  Any one of the Class M-5 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-5 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal  Distribution  Amount, the Class M-3 Principal  Distribution
Amount and the Class M-4  Principal  Distribution  Amount or (b) on or after the
Stepdown  Date if a Trigger Event is not in effect for that  Distribution  Date,
the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution Amount, the Class M-3 Principal Distribution
            Amount and the Class M-4 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2  Certificates,  Class M-3  Certificates and
            Class M-4 Certificates (after taking into account the payment of the
            Class A  Principal  Distribution  Amount,  the Class  M-1  Principal
            Distribution  Amount, the Class M-2 Principal  Distribution  Amount,
            the  Class  M-3  Principal  Distribution  Amount  and the  Class M-4
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-5  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-6 Certificate:  Any one of the Class M-6 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-6 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A

                                       11
<PAGE>

Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal  Distribution  Amount, the Class M-3 Principal  Distribution
Amount, the Class M-4 Principal  Distribution Amount and the Class M-5 Principal
Distribution  Amount or (b) on or after the Stepdown  Date if a Trigger Event is
not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution Amount, the Class M-3 Principal Distribution
            Amount,  the Class M-4 Principal  Distribution  Amount and the Class
            M-5 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4  Certificates  and Class M-5  Certificates  (after  taking  into
            account the payment of the Class A  Principal  Distribution  Amount,
            the Class M-1 Principal Distribution Amount, the Class M-2 Principal
            Distribution  Amount, the Class M-3 Principal  Distribution  Amount,
            the  Class  M-4  Principal  Distribution  Amount  and the  Class M-5
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-6  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-7 Certificate:  Any one of the Class M-7 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-7 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal  Distribution  Amount, the Class M-3 Principal  Distribution
Amount,  the Class M-4 Principal  Distribution  Amount,  the Class M-5 Principal
Distribution Amount and the Class M-6 Principal Distribution Amount or (b) on or
after  the  Stepdown  Date  if a  Trigger  Event  is  not  in  effect  for  that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution Amount, the Class M-3 Principal Distribution
            Amount, the Class M-4 Principal  Distribution  Amount, the Class M-5
            Principal   Distribution   Amount   and  the  Class  M-6   Principal
            Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates,  Class M-5 Certificates and Class M-6 Certificates
            (after  taking  into  account  the  payment of the Class A Principal
            Distribution  Amount, the Class M-1 Principal  Distribution  Amount,
            the Class M-2 Principal Distribution Amount, the Class M-3 Principal
            Distribution  Amount, the Class M-4 Principal  Distribution  Amount,
            the  Class  M-5  Principal

                                       12
<PAGE>

            Distribution Amount and the Class M-6 Principal  Distribution Amount
            for  that  Distribution  Date)  and  (2) the  Certificate  Principal
            Balance  of the Class  M-7  Certificates  immediately  prior to that
            Distribution  Date over (B) the lesser of (x) the product of (1) the
            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage  Loans  after  giving  effect to
            distributions  to be  made  on that  Distribution  Date  and (y) the
            excess,  if any, of the aggregate  Stated  Principal  Balance of the
            Mortgage  Loans after giving effect to  distributions  to be made on
            that Distribution Date, over the Overcollateralization Floor.]

      [Class M-8 Certificate:  Any one of the Class M-8 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

      [Class M-8 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal  Distribution  Amount, the Class M-3 Principal  Distribution
Amount,  the Class M-4 Principal  Distribution  Amount,  the Class M-5 Principal
Distribution  Amount, the Class M-6 Principal  Distribution Amount and the Class
M-7  Principal  Distribution  Amount or (b) on or after the  Stepdown  Date if a
Trigger Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution Amount, the Class M-3 Principal Distribution
            Amount, the Class M-4 Principal  Distribution  Amount, the Class M-5
            Principal  Distribution Amount, the Class M-6 Principal Distribution
            Amount and the Class M-7 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates and
            Class M-7 Certificates (after taking into account the payment of the
            Class A  Principal  Distribution  Amount,  the Class  M-1  Principal
            Distribution  Amount, the Class M-2 Principal  Distribution  Amount,
            the Class M-3 Principal Distribution Amount, the Class M-4 Principal
            Distribution  Amount, the Class M-5 Principal  Distribution  Amount,
            the  Class  M-6  Principal  Distribution  Amount  and the  Class M-7
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-8  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-9 Certificate:  Any one of the Class M-9 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B and evidencing (i) an interest  designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive payments under the Hedge Agreement.]

                                       13
<PAGE>

      [Class M-9 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal  Distribution  Amount, the Class M-3 Principal  Distribution
Amount,  the Class M-4 Principal  Distribution  Amount,  the Class M-5 Principal
Distribution Amount, the Class M-6 Principal  Distribution Amount, the Class M-7
Principal Distribution Amount and the Class M-8 Principal Distribution Amount or
(b) on or after the Stepdown  Date if a Trigger  Event is not in effect for that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution Amount, the Class M-3 Principal Distribution
            Amount, the Class M-4 Principal  Distribution  Amount, the Class M-5
            Principal  Distribution Amount, the Class M-6 Principal Distribution
            Amount,  the Class M-7 Principal  Distribution  Amount and the Class
            M-8 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates,  Class M-5  Certificates,  Class M-6 Certificates,
            Class M-7 Certificates and Class M-8 Certificates (after taking into
            account the payment of the Class A  Principal  Distribution  Amount,
            the Class M-1 Principal Distribution Amount, the Class M-2 Principal
            Distribution  Amount, the Class M-3 Principal  Distribution  Amount,
            the Class M-4 Principal Distribution Amount, the Class M-5 Principal
            Distribution  Amount, the Class M-6 Principal  Distribution  Amount,
            the  Class  M-7  Principal  Distribution  Amount  and the  Class M-8
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-9  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      Class M Certificates:  Collectively,  the Class [___] Certificates,  Class
[___] Certificates,  Class [___] Certificates,  Class [___] Certificates,  Class
[___] Certificates,  Class [___] Certificates,  Class [___] Certificates,  Class
[___] Certificates and Class [___] Certificates.

      [Class M Principal  Distribution  Amount: With respect to any Distribution
Date,  the  sum of the  Class  M-1  Principal  Distribution  Amount,  Class  M-2
Principal  Distribution Amount,  Class M-3 Principal  Distribution Amount, Class
M-4 Principal  Distribution  Amount,  Class M-5 Principal  Distribution  Amount,
Class  M-6  Principal  Distribution  Amount,  Class M-7  Principal  Distribution
Amount,  Class  M-8  Principal  Distribution  Amount  and  Class  M-9  Principal
Distribution Amount for such Distribution Date.]

      [Class R Certificate:  Collectively,  the Class R-I Certificates and Class
R-II Certificates.]

      [Class R-I Certificate:  Any one of the Class R-I Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed  hereto as Exhibit D and  evidencing  an interest  designated  as a
"residual interest" in REMIC I for purposes of the REMIC Provisions.]

      [Class R-II Certificate:  Any one of the Class R-II Certificates  executed
by the Trustee and authenticated by the Certificate  Registrar  substantially in
the form annexed hereto as Exhibit D and

                                       14
<PAGE>

evidencing  an  interest  designated  as a "residual  interest"  in REMIC II for
purposes of the REMIC Provisions.]

      [Class SB Certificate:  Any one of the Class SB  Certificates  executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed  hereto as Exhibit D-1, D-2 or D-3, as provided in Section  5.02(e)
hereof, and evidencing an interest comprised of "regular  interests" in REMIC II
for purposes of the REMIC  Provisions,  together with certain rights to payments
under the Hedge Agreement.]

      Clearing   System   Certificate:   As  defined  in  Section   5.02(e)  and
substantially in the form of Exhibit W hereto.

      Clearstream: Clearstream Banking, societe anonyme.

      Closing Date: [__________], 200[__].

      Code: The Internal Revenue Code of 1986.

      Commission: The Securities and Exchange Commission.

      Compensating  Interest:  With respect to any Distribution Date, any amount
paid by the Master Servicer in accordance with Section 3.16(f).

      Corporate  Trust Office:  The principal  office of the Trustee at which at
any particular  time its corporate trust business with respect to this Agreement
shall  be  administered,  which  office  at the  date of the  execution  of this
instrument is located at [Address of Trustee], Attn: RASC 200[__]-KS[___].

      Credit Repository:  Equifax,  Transunion and Experian, or their successors
in interest.

      Curtailment:  Any Principal  Prepayment made by a Mortgagor which is not a
Principal Prepayment in Full.

      Custodial   Account:   The  custodial  account  or  accounts  created  and
maintained pursuant to Section 3.07 in the name of a depository institution,  as
custodian for the holders of the Certificates,  for the holders of certain other
interests in mortgage loans serviced or sold by the Master  Servicer and for the
Master  Servicer,  into which the  amounts  set forth in  Section  3.07 shall be
deposited directly. Any such account or accounts shall be an Eligible Account.

      Custodial  Agreement:  An  agreement  that may be  entered  into among the
Depositor, the Master Servicer, the Trustee and a Custodian in substantially the
form of Exhibit E hereto.

      Custodial  File:  Any mortgage  loan document in the Mortgage File that is
required to be  delivered  to the Trustee or the  Custodian  pursuant to Section
2.01(b) of this Agreement.

      Custodian:  [____________],  or any successor custodian appointed pursuant
to a Custodial Agreement.

      Cut-off Date: [_______], 200[__].

      Cut-off Date Balance: $[____________].

                                       15
<PAGE>

      Cut-off Date  Principal  Balance:  With respect to any Mortgage  Loan, the
unpaid principal  balance thereof at the Cut-off Date after giving effect to all
installments  of principal  due on or prior  thereto (or due in the month of the
Cut-off Date), whether or not received.

      Debt Service Reduction:  With respect to any Mortgage Loan, a reduction in
the  scheduled  Monthly  Payment for such  Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code,  except such a reduction
constituting a Deficient  Valuation or any reduction that results in a permanent
forgiveness of principal.

      Deficient  Valuation:  With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then outstanding  indebtedness  under the Mortgage Loan, or any reduction in
the amount of  principal to be paid in  connection  with any  scheduled  Monthly
Payment that constitutes a permanent  forgiveness of principal,  which valuation
or reduction results from a proceeding under the Bankruptcy Code.

      Definitive Certificate: Any definitive, fully registered Certificate.

      Deleted  Mortgage  Loan: A Mortgage Loan replaced or to be replaced with a
Qualified Substitute Mortgage Loan.

      Delinquent: As used herein, a Mortgage Loan is considered to be: "30 to 59
days" or "30 or more days"  delinquent  when a payment due on any  scheduled due
date remains  unpaid as of the close of business on the next  following  monthly
scheduled  due  date;  "60 to 89 days" or "60 or more  days"  delinquent  when a
payment due on any scheduled due date remains unpaid as of the close of business
on the second following monthly scheduled due date; and so on. The determination
as to whether a Mortgage  Loan  falls  into these  categories  is made as of the
close of  business  on the last  business  day of each  month.  For  example,  a
Mortgage Loan with a payment due on July 1 that remained  unpaid as of the close
of  business  on  August  31  would  then  be  considered  to be  30 to 59  days
delinquent.  Delinquency  information  as of the Cut-off Date is determined  and
prepared as of the close of business on the last business day immediately  prior
to the Cut-off Date.

      Depositor: As defined in the preamble hereto.

      Depository:  The  Depository  Trust Company,  or any successor  Depository
hereafter  named.  The  nominee  of  the  initial  Depository  for  purposes  of
registering those Certificates that are to be Book-Entry  Certificates is Cede &
Co. The Depository shall at all times be a "clearing  corporation" as defined in
Section  8-102(a)(5) of the Uniform Commercial Code of the State of New York and
a "clearing agency" registered  pursuant to the provisions of Section 17A of the
Exchange Act.

      Depository  Participant:   A  broker,  dealer,  bank  or  other  financial
institution  or other  Person  for whom from time to time a  Depository  effects
book-entry transfers and pledges of securities deposited with the Depository.

      Destroyed  Mortgage  Note:  A  Mortgage  Note the  original  of which  was
permanently lost or destroyed and has not been replaced.

      Determination  Date: With respect to any Distribution Date, the [20th] day
(or if such  [20th] day is not a Business  Day,  the  Business  Day  immediately
following such [20th] day) of the month of the related Distribution Date.

                                       16
<PAGE>

      Disqualified  Organization:  Any  organization  defined as a "disqualified
organization" under Section 860E(e)(5) of the Code, including,  if not otherwise
included,  any of the following:  (i) the United States,  any State or political
subdivision  thereof,  any  possession  of the United  States,  or any agency or
instrumentality of any of the foregoing (other than an instrumentality  which is
a  corporation  if all of its  activities  are  subject  to tax and,  except for
Freddie  Mac, a  majority  of its board of  directors  is not  selected  by such
governmental unit), (ii) a foreign government,  any international  organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives  described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on  unrelated  business  taxable  income) and
(iv)  rural   electric   and   telephone   cooperatives   described  in  Section
1381(a)(2)(C)  of the  Code.  A  Disqualified  Organization  also  includes  any
"electing large  partnership,"  as defined in Section 775(a) of the Code and any
other Person so  designated by the Trustee based upon an Opinion of Counsel that
the holding of an Ownership Interest in a Class R Certificate by such Person may
cause  any REMIC or any  Person  having an  Ownership  Interest  in any Class of
Certificates  (other than such Person) to incur a liability  for any federal tax
imposed  under the Code that would not otherwise be imposed but for the Transfer
of an Ownership  Interest in a Class R  Certificate  to such  Person.  The terms
"United  States,"  "State"  and  "international  organization"  shall  have  the
meanings set forth in Section 7701 of the Code or successor provisions.

      Distribution  Date:  The 25th day of any month  beginning in [___] 200[__]
or,  if such  25th day is not a  Business  Day,  the  Business  Day  immediately
following such 25th day.

      DTC Letter: The Letter of Representations,  dated [___________],  200[__],
among  the  Trustee  on behalf of the  Trust  Fund,  [________________],  in its
individual capacity as agent thereunder and the Depository.

      Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which the Monthly Payment is due.

      Due Period:  With respect to any Distribution  Date, the calendar month of
such Distribution Date.

      Eligible Account: An account that is any of the following:  (i) maintained
with a depository  institution the debt  obligations of which have been rated by
each  Rating  Agency in its  highest  rating  available,  or (ii) an  account or
accounts in a depository institution in which such accounts are fully insured to
the limits  established  by the FDIC,  provided that any deposits not so insured
shall, to the extent  acceptable to each Rating Agency, as evidenced in writing,
be maintained such that (as evidenced by an Opinion of Counsel  delivered to the
Trustee and each Rating Agency) the registered  Holders of  Certificates  have a
claim with  respect to the funds in such account or a perfected  first  security
interest   against  any   collateral   (which  shall  be  limited  to  Permitted
Investments)  securing  such  funds  that is  superior  to  claims  of any other
depositors or creditors of the depository institution with which such account is
maintained,  or (iii) in the case of the Custodial  Account,  a trust account or
accounts maintained in the corporate trust department of [____________], or (iv)
in the case of the Certificate  Account, a trust account or accounts  maintained
in the  corporate  trust  division  of  [_____________],  or (v) an  account  or
accounts  of a  depository  institution  acceptable  to each  Rating  Agency (as
evidenced  in writing by each Rating  Agency that use of any such account as the
Custodial Account or the Certificate Account will not reduce the rating assigned
to any  Class of  Certificates  by such  Rating  Agency  below  the lower of the
then-current  rating  or the  rating  assigned  to such  Certificates  as of the
Closing Date by such Rating Agency).

      Eligible Master Servicing  Compensation:  With respect to any Distribution
Date, the lesser of (a) one-twelfth of [___]% of the Stated Principal Balance of
the related Mortgage Loans immediately

                                       17
<PAGE>

preceding  such  Distribution  Date and (b) the sum of the Servicing Fee and all
income and gain on amounts  held in the  Custodial  Account and the  Certificate
Account and payable to the Certificateholders  with respect to such Distribution
Date;  provided that for purposes of this definition the amount of the Servicing
Fee will not be reduced  pursuant to Section  7.02(a)  except as may be required
pursuant to the last sentence of such Section.

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

      Euroclear: Euroclear Bank, S.A./NA, as operator of The Euroclear System.

      Event of Default: As defined in Section 7.01.

      [Excess Cash Flow: With respect to any Distribution  Date, an amount equal
to the sum of (A) the excess of (i) the Available  Distribution  Amount for that
Distribution  Date increased by the amount,  if any, paid from the Hedge Payment
for that Distribution Date pursuant to Section 4.02(c)(iii) over (ii) the sum of
(a) the  Interest  Distribution  Amount for that  Distribution  Date and (b) the
lesser  of  (1)  the  aggregate   Certificate   Principal  Balance  of  Class  A
Certificates, Class M Certificates and Class B Certificates immediately prior to
such  Distribution  Date  and (2)  the  Principal  Remittance  Amount  for  that
Distribution  Date to the extent  not  applied  to pay  interest  on the Class A
Certificates, Class M Certificates and Class B Certificates on such Distribution
Date  and (B) the  Overcollateralization  Reduction  Amount,  if any,  for  that
Distribution Date.]

      Excess  Overcollateralization  Amount:  With  respect to any  Distribution
Date,  the  excess,  if any,  of (a) the  Overcollateralization  Amount  on such
Distribution  Date over (b) the Required  Overcollateralization  Amount for such
Distribution Date.

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

      Exchange Date: As defined in Section 5.02(e)(ii).

      Expense  Fee Rate:  With  respect to any  Mortgage  Loan as of any date of
determination,  the sum of the  applicable  Servicing Fee Rate and the per annum
rate at which the applicable Subservicing Fee accrues.

      Fannie  Mae:  Fannie  Mae,  a  federally  chartered  and  privately  owned
corporation   organized  and  existing  under  the  Federal  National   Mortgage
Association Charter Act, or any successor thereto.

      FDIC: Federal Deposit Insurance Corporation or any successor thereto.

      Final  Distribution  Date:  The  Distribution  Date  on  which  the  final
distribution  in respect of the  Certificates  will be made  pursuant to Section
9.01, which Final  Distribution  Date shall in no event be later than the end of
the 90-day liquidation period described in Section 9.02.

      Final Scheduled Distribution Date: [Solely for purposes of the face of the
Certificates,  as  follows:  with  respect to the Class [__]  Certificates,  the
Distribution Date occurring in [_______] 20[__];  with respect to the Class [__]
Certificates,   the  Class  [__]  Certificates,   and  each  Class  of  Class  M
Certificates  and Class B  Certificates,  the  Distribution  Date  occurring  in
[______]  20[__].  No event of default under this Agreement will arise or become
applicable  solely by reason of the  failure to retire  the  entire  Certificate
Principal Balance of any Class of Class A Certificates,  Class M Certificates or
Class B Certificates on or before its Final Scheduled Distribution Date.]

                                       18
<PAGE>

      Fitch: Fitch Ratings, or its successors in interest.

      Foreclosure  Profits:  With  respect to any  Distribution  Date or related
Determination  Date and any Mortgage  Loan,  the excess,  if any, of Liquidation
Proceeds,  Insurance Proceeds and REO Proceeds (net of all amounts  reimbursable
therefrom  pursuant to Section  3.10(a)(ii)) in respect of each Mortgage Loan or
REO Property for which a Cash  Liquidation  or REO  Disposition  occurred in the
related  Prepayment  Period over the sum of the unpaid principal balance of such
Mortgage Loan or REO Property (determined, in the case of an REO Disposition, in
accordance  with Section 3.14) plus accrued and unpaid  interest at the Mortgage
Rate on such unpaid  principal  balance from the Due Date to which  interest was
last paid by the Mortgagor to the first day of the month  following the month in
which such Cash Liquidation or REO Disposition occurred.

      Form 10-K Certification: As defined in Section 4.03(e).

      Freddie Mac: Freddie Mac, a corporate instrumentality of the United States
created and existing  under Title III of the Emergency Home Finance Act of 1970,
as amended, or any successor thereto.

      Gross Margin:  With respect to each  adjustable-rate  Mortgage  Loan,  the
fixed  percentage  set forth in the related  Mortgage  Note and indicated on the
Mortgage Loan Schedule as the "NOTE  MARGIN,"  which  percentage is added to the
related  Index on each  Adjustment  Date to  determine  (subject  to rounding in
accordance  with the  related  Mortgage  Note,  the  Periodic  Cap,  the Maximum
Mortgage  Rate and the Minimum  Mortgage  Rate) the interest rate to be borne by
such Mortgage Loan until the next Adjustment Date.

      [Hedge Agreement: The confirmation,  dated as of the Closing Date, between
the  Trustee,  on behalf of the Trust Fund,  and the Hedge  Agreement  Provider,
relating  to the  Class  A  Certificates,  Class  M  Certificates  and  Class  B
Certificates or any replacement,  substitute, collateral or other arrangement in
lieu thereof.]

      [Hedge Payment:  For any Distribution Date, the payment, if any, due under
the Hedge Agreement in respect of such Distribution Date.]

      [Hedge  Agreement  Provider:  [_________________]  and its  successors and
assigns  or any  party  to any  replacement,  substitute,  collateral  or  other
arrangement in lieu thereof.]

      [Hedge Shortfall Amount: For any Distribution Date, the amount, if any, by
which the payment on the Class A Certificates,  Class M Certificates and Class B
Certificates pursuant to Section 4.02(c)(iii) is paid from the Hedge Payment for
such Distribution Date pursuant to the provisions  thereof or would have been so
paid but for the  failure  of the  Hedge  Agreement  Provider  to make a payment
required under the Hedge Agreement.]

      [Hedge Shortfall  Carry-Forward  Amount:  For any  Distribution  Date, the
aggregate Hedge Shortfall Amounts for prior Distribution Dates to the extent not
reimbursed to the Class SB Certificates pursuant to Section 4.02(c)(x).]

      HUD: The United States Department of Housing and Urban Development.

      Independent:  When used with respect to any specified Person, means such a
Person who (i) is in fact independent of the Depositor,  the Master Servicer and
the Trustee,  or any Affiliate thereof,  (ii) does not have any direct financial
interest or any  material  indirect  financial  interest in the  Depositor,  the
Master  Servicer or the  Trustee or in an  Affiliate  thereof,  and (iii) is not
connected with the Depositor, the

                                       19
<PAGE>

Master Servicer or the Trustee as an officer, employee,  promoter,  underwriter,
trustee, partner, director or person performing similar functions.

      Index:  With respect to any  adjustable-rate  Mortgage  Loan and as to any
Adjustment  Date therefor,  the related index as stated in the related  Mortgage
Note.

      Initial  Certificate  Principal  Balance:  With  respect  to each Class of
Certificates  (other than the Class R Certificates),  the Certificate  Principal
Balance of such Class of Certificates as of the Closing Date as set forth in the
Preliminary Statement hereto.

      [Initial Purchaser:  [______________], as initial purchaser of the Class B
Certificates and the Class SB Certificates.]

      Insurance  Proceeds:  Proceeds  paid  in  respect  of the  Mortgage  Loans
pursuant to any Primary  Insurance Policy or any other related  insurance policy
covering a  Mortgage  Loan,  to the  extent  such  proceeds  are  payable to the
mortgagee  under the  Mortgage,  any  Subservicer,  the Master  Servicer  or the
Trustee and are not applied to the restoration of the related Mortgaged Property
or released to the Mortgagor in accordance  with the procedures  that the Master
Servicer would follow in servicing mortgage loans held for its own account.

      [Interest Accrual Period:  With respect to the Distribution Date in [____]
200[__],  the period commencing the Closing Date and ending on the day preceding
the  Distribution  Date in [____] 200[__],  and with respect to any Distribution
Date after the Distribution Date in [____] 200[__], the period commencing on the
Distribution  Date in the month  immediately  preceding  the month in which such
Distribution  Date  occurs and  ending on the day  preceding  such  Distribution
Date.]

      Interest  Distribution  Amount:  For any  Distribution  Date,  the amounts
payable pursuant to Section 4.02(c)[(i)-(iii)].

      Interim Certification: As defined in Section 2.02.

      Late Collections:  With respect to any Mortgage Loan, all amounts received
during any Due  Period,  whether as late  payments  of  Monthly  Payments  or as
Insurance  Proceeds,  Liquidation  Proceeds or otherwise,  which  represent late
payments or  collections  of Monthly  Payments due but delinquent for a previous
Due Period and not previously recovered.

      LIBOR:  With respect to any Distribution  Date, the arithmetic mean of the
London  interbank  offered rate quotations for one-month U.S.  Dollar  deposits,
expressed on a per annum basis, determined in accordance with Section 1.02.

      LIBOR  Business Day: Any day other than (i) a Saturday or Sunday or (ii) a
day on which banking institutions in London,  England are required or authorized
by law to be closed.

      LIBOR  Certificates:  [Collectively,  the  Class A  Certificates,  Class M
Certificates and Class B Certificates.]

      LIBOR Rate Adjustment  Date: With respect to each  Distribution  Date, the
second LIBOR Business Day immediately  preceding the commencement of the related
Interest Accrual Period.

      Liquidation Proceeds:  Amounts (other than Insurance Proceeds) received by
the  Master  Servicer  in  connection  with the  taking of an  entire  Mortgaged
Property by exercise of the power of eminent

                                       20
<PAGE>

domain or  condemnation  or in connection  with the  liquidation  of a defaulted
Mortgage Loan through trustee's sale, foreclosure sale or otherwise,  other than
REO Proceeds and Subsequent Recoveries.

      Loan-to-Value  Ratio:  As  of  any  date,  the  fraction,  expressed  as a
percentage,  the  numerator  of which is the  current  principal  balance of the
related Mortgage Loan at the date of determination  and the denominator of which
is the Appraised Value of the related Mortgaged Property.

      Margin:  With respect to each  Distribution Date and the [Class A, Class M
and Class B  Certificates],  the  related  per annum rate set forth next to such
Distribution Date in the table below:

                                             Related Margin
    Class                            (1)                            (2)
-----------                   ----------------              ----------------
   A-[__]                        [_______]%                     [_______]%
   A-[__]                        [_______]%                     [_______]%
   A-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   M-[__]                        [_______]%                     [_______]%
   B-[__]                        [_______]%                     [_______]%
   B-[__]                        [_______]%                     [_______]%

      ----------
      (1)   For any  Distribution  Date  prior to the second  Distribution  Date
            after the first possible Optional Termination Date.

      (2)   For any Distribution  Date on or after the second  Distribution Date
            after the first possible Optional Termination Date.

      [Marker Rate:  With respect to the Class SB  Certificates  or the REMIC II
Regular Interest SB-IO and any Distribution  Date, a per annum rate equal to two
(2) times the weighted average of the Uncertificated  REMIC I Pass-Through Rates
for REMIC I Regular Interest LT2 and REMIC I Regular Interest LT3.]

      Master Servicer: As defined in the preamble hereto.

      Maturity  Date:  With respect to each Class of  Certificates  representing
ownership of REMIC II Regular  Interests or REMIC I Regular  Interests issued by
each of REMIC I and REMIC II,  the latest  possible  maturity  date,  solely for
purposes of Section  1.860G-1(a)(4)(iii)  of the Treasury Regulations,  by which
the   Certificate   Principal   Balance  of  each  such  Class  of  Certificates
representing  a regular  interest  in the Trust  Fund  would be reduced to zero,
which is,  for each  such  regular  interest,  [_______],  20[__],  which is the
Distribution  Date occurring in the month  following the last scheduled  monthly
payment of the Mortgage Loans.

      Maximum Mortgage Rate: With respect to any adjustable-rate  Mortgage Loan,
the per  annum  rate  indicated  on the  Mortgage  Loan  Schedule  as the  "NOTE
CEILING," which rate is the maximum

                                       21
<PAGE>

interest  rate that may be  applicable  to such Mortgage Loan at any time during
the life of such Mortgage Loan.

      Maximum Net Mortgage Rate:  With respect to any  adjustable-rate  Mortgage
Loan and any date of determination,  the Maximum Mortgage Rate minus the Expense
Fee  Rate.  With  respect  to any  fixed-rate  Mortgage  Loan  and  any  date of
determination, the Net Mortgage Rate.

      MERS:  Mortgage  Electronic  Registration  Systems,  Inc.,  a  corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

      MERS(R)   System:   The  system  of   recording   transfers  of  Mortgages
electronically maintained by MERS.

      MIN: The Mortgage Identification Number for Mortgage Loans registered with
MERS on the MERS(R) System.

      Minimum Mortgage Rate: With respect to any adjustable-rate  Mortgage Loan,
a per annum rate equal to the  greater of (i) the Note  Margin and (ii) the rate
indicated on the Mortgage  Loan  Schedule as the "NOTE FLOOR," which rate may be
applicable  to such  Mortgage  Loan at any time during the life of such Mortgage
Loan.

      Modified  Mortgage  Loan: Any Mortgage Loan that has been the subject of a
Servicing Modification.

      Modified Net Mortgage Rate:  With respect to any Mortgage Loan that is the
subject of a Servicing  Modification,  the Net Mortgage  Rate minus the rate per
annum by which the Mortgage Rate on such Mortgage Loan was reduced.

      MOM Loan:  With respect to any Mortgage Loan, MERS acting as the mortgagee
of such  Mortgage  Loan,  solely as nominee for the  originator of such Mortgage
Loan and its successors and assigns, at the origination thereof.

      Monthly  Payment:  With respect to any Mortgage  Loan  (including  any REO
Property)  and the Due Date in any Due  Period,  the  payment of  principal  and
interest due thereon in accordance  with the  amortization  schedule at the time
applicable thereto (after adjustment, if any, for Curtailments and for Deficient
Valuations  occurring  prior to such Due Date but before any  adjustment to such
amortization  schedule  by  reason of any  bankruptcy,  other  than a  Deficient
Valuation,  or similar  proceeding or any  moratorium or similar waiver or grace
period and before any Servicing Modification that constitutes a reduction of the
interest rate on such Mortgage Loan).

      Moody's: Moody's Investors Service, Inc., or its successors in interest.

      Mortgage:  With respect to each Mortgage Note, the mortgage, deed of trust
or other comparable  instrument  creating a first or junior lien on an estate in
fee simple or leasehold interest in real property securing a Mortgage Note.

      Mortgage File: The mortgage documents listed in Section 2.01 pertaining to
a particular Mortgage Loan and any additional  documents required to be added to
the Mortgage File pursuant to this Agreement.

                                       22
<PAGE>

      Mortgage Loans: Such of the mortgage loans transferred and assigned to the
Trustee  pursuant to Section  2.01 as from time to time are held or deemed to be
held as a part of the Trust Fund,  the Mortgage  Loans  originally so held being
identified in the initial  Mortgage  Loan  Schedule,  and  Qualified  Substitute
Mortgage Loans held or deemed held as part of the Trust Fund including,  without
limitation,  each related  Mortgage  Note,  Mortgage  and Mortgage  File and all
rights appertaining thereto.

      Mortgage Loan Schedule: The lists of the Mortgage Loans attached hereto as
Exhibit F (as  amended  from time to time to reflect the  addition of  Qualified
Substitute  Mortgage  Loans),  which  lists  shall set  forth at a  minimum  the
following information as to each Mortgage Loan:

      (i)       the Mortgage Loan identifying number ("RFC LOAN #");

      (ii)      [reserved];

      (iii)     the maturity of the Mortgage Note ("MATURITY DATE," or "MATURITY
                DT");

      (iv)      for the adjustable-rate  Mortgage Loans, the Mortgage Rate as of
                origination ("ORIG RATE");

      (v)       the Mortgage Rate as of the Cut-off Date ("CURR RATE");

      (vi)      the Net Mortgage Rate as of the Cut-off Date ("CURR NET");

      (vii)     the scheduled monthly payment of principal, if any, and interest
                as of the Cut-off Date ("ORIGINAL P & I" or "CURRENT P & I");

      (viii)    the Cut-off Date Principal Balance ("PRINCIPAL BAL");

      (ix)      the Loan-to-Value Ratio at origination ("LTV");

      (x)       a code  "T,"  "BT"  or  "CT"  under  the  column  "LN  FEATURE,"
                indicating  that the  Mortgage  Loan is  secured  by a second or
                vacation  residence  (the  absence  of any such  code  means the
                Mortgage Loan is secured by a primary residence);

      (xi)      a code "N" under the column  "OCCP  CODE,"  indicating  that the
                Mortgage Loan is secured by a non-owner  occupied residence (the
                absence of any such code means the  Mortgage  Loan is secured by
                an owner occupied residence);

      (xii)     for the  adjustable-rate  Mortgage Loans,  the Maximum  Mortgage
                Rate ("NOTE CEILING");

      (xiii)    for the adjustable-rate Mortgage Loans, the maximum Net Mortgage
                Rate ("NET CEILING");

      (xiv)     for the  adjustable-rate  Mortgage Loans, the Note Margin ("NOTE
                MARGIN");

      (xv)      for the  adjustable-rate  Mortgage Loans,  the first  Adjustment
                Date after the Cut-off Date ("NXT INT CHG DT");

      (xvi)     for  the  adjustable-rate   Mortgage  Loans,  the  Periodic  Cap
                ("PERIODIC DECR" or "PERIODIC INCR");

                                       23
<PAGE>

      (xvii)    [reserved]; and

      (xviii)   for the  adjustable-rate  Mortgage  Loans,  the  rounding of the
                semi-annual  or annual  adjustment  to the Mortgage  Rate ("NOTE
                METHOD").

      Such schedules may consist of multiple reports that collectively set forth
all of the information required.

      Mortgage  Note:  The  originally   executed  note  or  other  evidence  of
indebtedness  evidencing the  indebtedness of a Mortgagor under a Mortgage Loan,
together with any modification thereto.

      Mortgage Rate:  With respect to any Mortgage Loan, the interest rate borne
by the related Mortgage Note, or any modification thereto other than a Servicing
Modification.  The  Mortgage  Rate on the  adjustable-rate  Mortgage  Loans will
adjust on each Adjustment Date to equal the sum (rounded to the nearest multiple
of  one-eighth  of one percent  (0.125%) or up to the nearest  one-eighth of one
percent,  which are indicated by a "U" on the Mortgage Loan Schedule,  except in
the  case  of the  adjustable-rate  Mortgage  Loans  indicated  by an "X" on the
Mortgage Loan Schedule  under the heading "NOTE  METHOD"),  of the related Index
plus the Note  Margin,  in each case  subject to the  applicable  Periodic  Cap,
Maximum Mortgage Rate and Minimum Mortgage Rate.

      Mortgaged Property: The underlying real property securing a Mortgage Loan.

      Mortgagor: The obligor on a Mortgage Note.

      Net Mortgage  Rate:  With  respect to any Mortgage  Loan as of any date of
determination,  a per annum rate equal to the  Mortgage  Rate for such  Mortgage
Loan as of such date minus the related Expense Fee Rate.

      Net WAC Cap Rate: [With respect to any  Distribution  Date, the sum of (a)
the REMIC Net WAC Cap Rate and (b) the  product of (i) a per annum rate equal to
(A) the Hedge Payment, if any, with respect to such Distribution Date divided by
(B) the aggregate  Certificate  Principal  Balance of the Class A  Certificates,
Class  M  Certificates  and  Class  B  Certificates  immediately  prior  to such
Distribution  Date and (ii) a fraction  equal to 30 divided by the actual number
of days in the related Interest Accrual Period.]

      Non-United States Person: Any Person other than a United States Person.

      Nonrecoverable Advance: Any Advance previously made or proposed to be made
by the Master  Servicer or Subservicer in respect of a Mortgage Loan (other than
a Deleted  Mortgage  Loan)  which,  in the good  faith  judgment  of the  Master
Servicer,  will not,  or,  in the case of a  proposed  Advance,  would  not,  be
ultimately  recoverable  by the Master  Servicer from related Late  Collections,
Insurance Proceeds, Liquidation Proceeds or REO Proceeds. To the extent that any
Mortgagor  is not  obligated  under the  related  Mortgage  documents  to pay or
reimburse  any  portion of any  Servicing  Advances  that are  outstanding  with
respect  to the  related  Mortgage  Loan as a result of a  modification  of such
Mortgage Loan by the Master  Servicer,  which forgives  amounts which the Master
Servicer  or  Subservicer  had  previously  advanced,  and the  Master  Servicer
determines that no other source of payment or reimbursement for such advances is
available to it, such Servicing  Advances  shall be deemed to be  Nonrecoverable
Advances.  The  determination  by  the  Master  Servicer  that  it  has  made  a
Nonrecoverable  Advance  shall be  evidenced  by a  certificate  of a  Servicing
Officer,  Responsible  Officer or Vice  President  or its  equivalent  or senior
officer of the Master Servicer, delivered to the Depositor, the Trustee, and the
Master Servicer setting forth such determination,  which shall include any other
information  or  reports  obtained  by the  Master  Servicer  such  as  property
operating statements, rent rolls, property inspection

                                       24
<PAGE>

reports  and  engineering  reports,   which  may  support  such  determinations.
Notwithstanding  the  above,  the  Trustee  shall be  entitled  to rely upon any
determination  by the Master  Servicer  that any  Advance  previously  made is a
Nonrecoverable Advance or that any proposed Advance, if made, would constitute a
Nonrecoverable Advance.

      Nonsubserviced  Mortgage  Loan:  Any  Mortgage  Loan that,  at the time of
reference thereto, is not subject to a Subservicing Agreement.

      Note Margin: With respect to each adjustable-rate Mortgage Loan, the fixed
percentage set forth in the related  Mortgage Note and indicated on the Mortgage
Loan Schedule as the "NOTE  MARGIN,"  which  percentage is added to the Index on
each  Adjustment  Date to determine  (subject to rounding in accordance with the
related  Mortgage  Note,  the Periodic  Cap, the Maximum  Mortgage  Rate and the
Minimum Mortgage Rate) the interest rate to be borne by such Mortgage Loan until
the next Adjustment Date.

      [Notional  Amount:  With respect to the Class SB Certificates or the REMIC
II Regular  Interest  SB-IO,  immediately  prior to any  Distribution  Date, the
aggregate  of the  Uncertificated  Principal  Balances  of the  REMIC I  Regular
Interests.]

      Officers' Certificate:  A certificate signed by the Chairman of the Board,
the President, a Vice President,  Assistant Vice President,  Director,  Managing
Director, the Treasurer,  the Secretary,  an Assistant Treasurer or an Assistant
Secretary  of the  Depositor  or the  Master  Servicer,  as the case may be, and
delivered to the Trustee, as required by this Agreement.

      Opinion of Counsel: A written opinion of counsel acceptable to the Trustee
and the Master  Servicer and which  counsel may be counsel for the  Depositor or
the Master Servicer, provided that any opinion of counsel (i) referred to in the
definition of "Disqualified  Organization" or (ii) relating to the qualification
of any REMIC hereunder as a REMIC or compliance with the REMIC  Provisions must,
unless otherwise specified, be an opinion of Independent counsel.

      Optional  Termination  Date: Any  Distribution  Date on or after which the
Stated  Principal  Balance (after giving effect to  distributions  to be made on
such  Distribution  Date) of the  Mortgage  Loans is less than  [10.00]%  of the
Cut-off Date Balance.

      Outstanding Mortgage Loan: With respect to the Due Date in any Due Period,
a  Mortgage  Loan  (including  an REO  Property)  that was not the  subject of a
Principal  Prepayment in Full, Cash  Liquidation or REO Disposition and that was
not  purchased,  deleted or  substituted  for prior to such Due Date pursuant to
Section 2.02, 2.03, 2.04 or 4.07.

      Overcollateralization  Amount:  With respect to any Distribution Date, the
excess,  if any, of (a) the aggregate Stated  Principal  Balance of the Mortgage
Loans  before  giving  effect to  distributions  of principal to be made on such
Distribution  Date over (b) the aggregate  Certificate  Principal Balance of the
[Class  A  Certificates,   Class  M  Certificates   and  Class  B  Certificates]
immediately prior to such date.

      Overcollateralization Floor: An amount equal to the product of [0.50]% and
the Cut-off Date Balance.

      Overcollateralization  Increase  Amount:  With respect to any Distribution
Date,  the lesser of (a)  Excess  Cash Flow for that  Distribution  Date (to the
extent not used to cover the amounts  described in clauses (b)(iv) and (b)(v) of
the definition of Principal  Distribution  Amount as of such Distribution  Date)

                                       25
<PAGE>

and (b) the  excess of (1) the  Required  Overcollateralization  Amount for such
Distribution   Date  over  (2)  the   Overcollateralization   Amount   for  such
Distribution Date.

      Overcollateralization  Reduction Amount:  With respect to any Distribution
Date on which the Excess  Overcollateralization  Amount is,  after  taking  into
account all other  distributions to be made on such Distribution  Date,  greater
than zero,  the  Overcollateralization  Reduction  Amount  shall be equal to the
lesser of (i) the Excess Overcollateralization Amount for that Distribution Date
and (ii) the Principal Remittance Amount on such Distribution Date.

      Ownership  Interest:  With respect to any  Certificate,  any  ownership or
security  interest  in  such   Certificate,   including  any  interest  in  such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial, as owner or as pledgee.

      Pass-Through  Rate:  [With respect to each Class of Class A  Certificates,
Class M Certificates  and Class B Certificates  and any  Distribution  Date, the
lesser of (i) a per annum rate equal to LIBOR plus the  related  Margin for such
Distribution Date and (ii) the Net WAC Cap Rate for such Distribution Date.]

      [With  respect  to the  Class SB  Certificates  or the  REMIC  II  Regular
Interest  SB-IO  and any  Distribution  Date,  a per  annum  rate  equal  to the
percentage  equivalent  of a fraction,  the numerator of which is the sum of the
amounts  calculated  pursuant  to  clauses  (i)  through  (iii)  below,  and the
denominator of which is the aggregate  principal  balance of the REMIC I Regular
Interests.  For purposes of calculating the  Pass-Through  Rate for the Class SB
Certificates or the REMIC II Regular  Interest SB-IO,  the numerator is equal to
the sum of the following components:

      (i) the Uncertificated  Pass-Through Rate for REMIC I Regular Interest LT1
minus the  related  Marker  Rate,  applied  to a  notional  amount  equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT1;

      (ii) the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT2
minus the  related  Marker  Rate,  applied  to a  notional  amount  equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT2; and

      (iii) the  Uncertificated  Pass-Through  Rate for REMIC I Regular Interest
LT4 minus twice the related Marker Rate,  applied to a notional  amount equal to
the Uncertificated Principal Balance of REMIC I Regular Interest LT4.]

      Paying Agent:  [_________________] or any successor Paying Agent appointed
by the Trustee.

      Percentage  Interest:  With respect to any [Class A  Certificate,  Class M
Certificate or Class B Certificate], the undivided percentage ownership interest
in the related Class evidenced by such Certificate,  which percentage  ownership
interest shall be equal to the Initial  Certificate  Principal  Balance  thereof
divided by the aggregate  Initial  Certificate  Principal  Balance of all of the
Certificates of the same Class. The Percentage Interest with respect to a [Class
SB Certificate or Class R Certificate] shall be stated on the face thereof.

      Periodic  Cap: With respect to each  adjustable-rate  Mortgage  Loan,  the
periodic  rate cap that  limits the  increase  or the  decrease  of the  related
Mortgage  Rate on any  Adjustment  Date  pursuant  to the  terms of the  related
Mortgage Note.

                                       26
<PAGE>

      Permanent  Regulation S Global Offered  Certificate:  Any one of the Class
[B]  Certificates  substantially in the form of Exhibit C-3 hereto or any one of
the Class [SB]  Certificates  substantially  in the form of Exhibit  D-3 hereto,
and, in both cases, more fully described in Section 5.02(e) hereof.

      Permitted Investments: One or more of the following:

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

      (ii)  repurchase   agreements  on  obligations  specified  in  clause  (i)
            maturing  not more  than  one  month  from  the date of  acquisition
            thereof,  provided  that  the  unsecured  obligations  of the  party
            agreeing to  repurchase  such  obligations  are at the time rated by
            each Rating Agency in its highest short-term rating available;

      (iii) federal  funds,  certificates  of  deposit,  demand  deposits,  time
            deposits and bankers' acceptances (which shall each have an original
            maturity  of not more  than 90 days  and,  in the  case of  bankers'
            acceptances,  shall in no event have an  original  maturity  of more
            than  365  days  or a  remaining  maturity  of more  than  30  days)
            denominated  in  United  States  dollars  of  any  U.S.   depository
            institution  or trust  company  incorporated  under  the laws of the
            United  States or any state  thereof or of any domestic  branch of a
            foreign depository  institution or trust company;  provided that the
            debt obligations of such depository  institution or trust company at
            the date of  acquisition  thereof  have  been  rated by each  Rating
            Agency in its highest  short-term  rating  available;  and, provided
            further   that,  if  the  original   maturity  of  such   short-term
            obligations of a domestic branch of a foreign depository institution
            or trust company shall exceed 30 days, the short-term rating of such
            institution  shall  be A-1+ in the  case of  Standard  &  Poor's  if
            Standard & Poor's is a Rating Agency;

      (iv)  commercial paper and demand notes (having original maturities of not
            more than 365 days) of any corporation  incorporated  under the laws
            of the  United  States  or any  state  thereof  which on the date of
            acquisition  has been  rated by each  Rating  Agency in its  highest
            short term rating available; provided that such commercial paper and
            demand  notes  shall have a  remaining  maturity of not more than 30
            days;

      (v)   a money  market  fund or a qualified  investment  fund rated by each
            Rating Agency in its highest  long-term  rating available (which may
            be managed by the Trustee or one of its Affiliates); and

      (vi)  other  obligations or securities  that are acceptable to each Rating
            Agency as a Permitted  Investment  hereunder and will not reduce the
            rating  assigned to any Class of  Certificates by such Rating Agency
            below the lower of the then-current rating or the rating assigned to
            such  Certificates as of the Closing Date by such Rating Agency,  as
            evidenced in writing;

provided,  however,  that no  instrument  shall be a Permitted  Investment if it
represents,  either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest  payments derived from  obligations  underlying such instrument and the
principal and interest payments with respect to such instrument  provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.  References  herein to the highest  rating  available  on unsecured
long-term debt shall mean AAA in the case of Standard & Poor's and Fitch

                                       27
<PAGE>

and Aaa in the  case  of  Moody's,  and for  purposes  of  this  Agreement,  any
references herein to the highest rating available on unsecured  commercial paper
and short-term  debt  obligations  shall mean the following:  A-1 in the case of
Standard  &  Poor's,  P-1 in the case of  Moody's  and F-1 in the case of Fitch;
provided,  however,  that any  Permitted  Investment  that is a short-term  debt
obligation rated A-1 by Standard & Poor's must satisfy the following  additional
conditions: (i) the total amount of debt from A-1 issuers must be limited to the
investment of monthly principal and interest payments (assuming fully amortizing
collateral);  (ii) the total amount of A-1  investments  must not represent more
than 20% of the  aggregate  outstanding  Certificate  Principal  Balance  of the
Certificates and each investment must not mature beyond 30 days; (iii) the terms
of the debt must have a  predetermined  fixed dollar  amount of principal due at
maturity that cannot vary; and (iv) if the investments  may be liquidated  prior
to their maturity or are being relied on to meet a certain yield,  interest must
be tied to a single  interest rate index plus a single fixed spread (if any) and
must move  proportionately  with that index.  Any  Permitted  Investment  may be
purchased by or through the Trustee or its Affiliates.

      Permitted Transferee: Any Transferee of a Class R Certificate,  other than
a Disqualified Organization or Non-United States Person.

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

      Prepayment Assumption: [With respect to the [Class A, Class M and Class B]
Certificates,  the prepayment  assumption to be used for determining the accrual
of original issue discount and premium and market discount on such  Certificates
for  federal  income tax  purposes,  which (a) with  respect  to the  fixed-rate
Mortgage Loans, assumes a constant prepayment rate of one-tenth of 23% per annum
of the then  outstanding  Stated  Principal  Balance of the fixed-rate  Mortgage
Loans in the first month of the life of such  Mortgage  Loans and an  additional
one-tenth of 23% per annum in each month  thereafter  until the tenth month, and
beginning in the tenth month and in each month thereafter during the life of the
fixed-rate  Mortgage  Loans,  a constant  prepayment  rate of 23% per annum each
month ("23% HEP") and (b) with  respect to the  adjustable-rate  Mortgage  Loans
assumes a prepayment  assumption of 2% of the constant  prepayment rate in month
one, increasing by approximately  2.545% from month 2 until month 12, a constant
prepayment rate of 30% from month 12 to month 22, a constant  prepayment rate of
50% from month 23 to month 27, and a constant prepayment rate of 35% thereafter,
used for  determining  the accrual of original  issue  discount  and premium and
market  discount  on the Class A, Class M and Class B  Certificates  for federal
income tax  purposes.  The  constant  prepayment  rate  assumes  that the stated
percentage of the outstanding  Stated Principal  Balance of the  adjustable-rate
Mortgage Loans is prepaid over the course of a year.]

      Prepayment Interest  Shortfall:  With respect to any Distribution Date and
any Mortgage Loan (other than a Mortgage Loan relating to an REO Property)  that
was the  subject  of (a) a  Principal  Prepayment  in Full  during  the  related
Prepayment  Period, an amount equal to the excess of one month's interest at the
related  Net  Mortgage  Rate (or  Modified  Net  Mortgage  Rate in the case of a
Modified  Mortgage Loan) on the Stated  Principal  Balance of such Mortgage Loan
over the amount of  interest  (adjusted  to the related  Net  Mortgage  Rate (or
Modified Net Mortgage Rate in the case of a Modified Mortgage Loan)) paid by the
Mortgagor for such Prepayment Period to the date of such Principal Prepayment in
Full or (b) a Curtailment  during the prior calendar  month,  an amount equal to
one month's  interest at the related Net Mortgage Rate (or Modified Net Mortgage
Rate in the case of a Modified Mortgage Loan) on the amount of such Curtailment.

      Prepayment  Period:  With respect to any  Distribution  Date, the calendar
month preceding the month of distribution.

                                       28
<PAGE>

      Primary  Insurance  Policy:  Each  primary  policy  of  mortgage  guaranty
insurance as indicated by a numeric code on the Mortgage  Loan Schedule with the
exception of code "A23," "A34" or "A96" under the column "MI CO CODE."

      Principal  Distribution Amount: With respect to any Distribution Date, the
lesser of (a) the excess of (x) the Available  Distribution  Amount over (y) the
Interest Distribution Amount, and (b) the sum of:

      (i)   the principal  portion of each Monthly Payment  received or Advanced
            with respect to the related Due Period on each Outstanding  Mortgage
            Loan;

      (ii)  the Stated Principal Balance of any Mortgage Loan repurchased during
            the related Prepayment Period (or deemed to have been so repurchased
            in accordance with Section 3.07(b))  pursuant to Section 2.02, 2.03,
            2.04 or 4.07  and  the  amount  of any  shortfall  deposited  in the
            Custodial  Account in connection with the  substitution of a Deleted
            Mortgage  Loan  pursuant to Section  2.03 or 2.04 during the related
            Prepayment Period;

      (iii) the principal  portion of all other unscheduled  collections,  other
            than  Subsequent  Recoveries,  on  the  Mortgage  Loans  (including,
            without  limitation,  Principal  Prepayments in Full,  Curtailments,
            Insurance Proceeds,  Liquidation Proceeds and REO Proceeds) received
            during  the  related  Prepayment  Period  (or deemed to have been so
            received) to the extent applied by the Master Servicer as recoveries
            of principal of the Mortgage Loans pursuant to Section 3.14;

      (iv)  the lesser of (1) the Subsequent  Recoveries  for such  Distribution
            Date and (2) the principal  portion of any Realized Losses allocated
            to any  Class  of  Certificates  on a prior  Distribution  Date  and
            remaining unpaid;

      (v)   the lesser of (1) the Excess  Cash Flow for such  Distribution  Date
            (to the extent not used  pursuant to clause (iv) of this  definition
            on such  Distribution  Date) and (2) the  principal  portion  of any
            Realized  Losses  incurred (or deemed to have been  incurred) on any
            Mortgage  Loans in the calendar month  preceding  such  Distribution
            Date; and

      (vi)  the lesser of (1) the Excess  Cash Flow for that  Distribution  Date
            (to the extent  not used  pursuant  to clauses  (iv) and (v) of this
            definition    on    such    Distribution    Date)    and   (2)   the
            Overcollateralization Increase Amount for such Distribution Date;

minus

      (vii) (A) the  amount of any  Overcollateralization  Reduction  Amount for
            such  Distribution  Date and (B) the  amount  of any  Capitalization
            Reimbursement Amount for such Distribution Date.

      Principal  Prepayment:  Any payment of  principal  or other  recovery on a
Mortgage Loan,  including a recovery that takes the form of Liquidation Proceeds
or Insurance  Proceeds,  which is received in advance of its  scheduled Due Date
and is not  accompanied  by an  amount  as to  interest  representing  scheduled
interest  on such  payment  due on any  date or dates  in any  month  or  months
subsequent to the month of prepayment.

      Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

                                       29
<PAGE>

      Principal  Remittance  Amount:  With respect to any Distribution Date, all
amounts described in clauses (b)(i) through (iii) of the definition of Principal
Distribution Amount for that Distribution Date.

      [Private Offered  Certificates:  The Class B Certificates and the Class SB
Certificates, collectively.]

      Program  Guide:  The  AlterNet  Seller  Guide  as  incorporated  into  the
Residential   Funding  Seller  Guide  for  mortgage   collateral   sellers  that
participate in Residential  Funding's AlterNet Mortgage Program, and Residential
Funding's  Servicing  Guide  and  any  other  subservicing   arrangements  which
Residential  Funding has arranged to  accommodate  the servicing of the Mortgage
Loans and in each case all  supplements  and  amendments  thereto  published  by
Residential Funding.

      Purchase  Price:  With  respect  to any  Mortgage  Loan (or REO  Property)
required to be or  otherwise  purchased  on any date  pursuant to Section  2.02,
2.03,  2.04 or  4.07,  an  amount  equal  to the sum of (i)  100% of the  Stated
Principal Balance thereof plus the principal portion of any related unreimbursed
Advances and (ii) unpaid  accrued  interest at either (a) the Adjusted  Mortgage
Rate (or  Modified Net Mortgage  Rate in the case of a Modified  Mortgage  Loan)
plus the rate per annum at which the Servicing Fee is calculated,  or (b) in the
case of a purchase  made by the Master  Servicer,  at the Net Mortgage  Rate (or
Modified Net Mortgage  Rate in the case of a Modified  Mortgage  Loan),  in each
case on the  Stated  Principal  Balance  thereof  to the  first day of the month
following  the month of purchase  from the Due Date to which  interest  was last
paid by the Mortgagor.

      Qualified  Substitute  Mortgage  Loan:  A  Mortgage  Loan  substituted  by
Residential  Funding or the Depositor for a Deleted Mortgage Loan which must, on
the  date  of  such  substitution,  as  confirmed  in an  Officers'  Certificate
delivered to the  Trustee,  (i) have an  outstanding  principal  balance,  after
deduction of the  principal  portion of the monthly  payment due in the month of
substitution  (or in the case of a  substitution  of more than one Mortgage Loan
for a Deleted Mortgage Loan, an aggregate outstanding  principal balance,  after
such deduction),  not in excess of the Stated  Principal  Balance of the Deleted
Mortgage  Loan (the  amount of any  shortfall  to be  deposited  by  Residential
Funding,  in the Custodial  Account in the month of  substitution);  (ii) have a
Mortgage  Rate and a Net  Mortgage  Rate no lower  than and not more than 1% per
annum higher than the Mortgage Rate and Net Mortgage Rate, respectively,  of the
Deleted Mortgage Loan as of the date of substitution; (iii) have a Loan-to-Value
Ratio at the time of  substitution  no higher than that of the Deleted  Mortgage
Loan at the time of substitution;  (iv) have a remaining term to stated maturity
not  greater  than (and not more than one year less  than)  that of the  Deleted
Mortgage  Loan;  (v) comply with each  representation  and warranty set forth in
Sections 2.03 and 2.04 hereof and Section 4 of the Assignment  Agreement  (other
than the  representations  and  warranties set forth therein with respect to the
number of loans (including the related  percentage) in excess of zero which meet
or do not meet a specified  criteria);  (vi) not be 30 days or more  Delinquent;
(vii) not be subject to the  requirements of HOEPA (as defined in the Assignment
Agreement); (viii) have a policy of title insurance, in the form and amount that
is in material  compliance with the Program Guide,  that was effective as of the
closing of such Mortgage  Loan, is valid and binding,  and remains in full force
and effect,  unless the Mortgage  Property is located in the State of Iowa where
an attorney's  certificate  has been provided as described in the Program Guide;
(ix) if the Deleted Loan is not a Balloon Loan,  not be a Balloon Loan; (x) with
respect to  adjustable  rate Mortgage  Loans,  have a Mortgage Rate that adjusts
with the same  frequency  and based upon the same  Index as that of the  Deleted
Mortgage Loan; (xi) with respect to adjustable rate Mortgage Loans,  have a Note
Margin not less than that of the Deleted  Mortgage  Loan;  (xii) with respect to
adjustable rate Mortgage  Loans,  have a Periodic Rate Cap that is equal to that
of the Deleted  Mortgage Loan;  (xiii) with respect to adjustable  rate Mortgage
Loans,  have a next Adjustment  Date no later than that of the Deleted  Mortgage
Loan;  and (xiv) be secured by a lien with the same lien priority as the Deleted
Loan.

                                       30
<PAGE>

      Rating Agency: [Each of Standard & Poor's and Moody's]. If any agency or a
successor is no longer in existence,  "Rating Agency" shall be such  statistical
credit rating agency, or other comparable  Person,  designated by the Depositor,
notice  of  which  designation  shall be given  to the  Trustee  and the  Master
Servicer.

      Realized Loss:  With respect to each Mortgage Loan (or REO Property) as to
which a Cash  Liquidation or REO Disposition  has occurred,  an amount (not less
than zero) equal to (i) the Stated  Principal  Balance of the Mortgage  Loan (or
REO Property) as of the date of Cash Liquidation or REO  Disposition,  plus (ii)
interest  (and REO Imputed  Interest,  if any) at the Net Mortgage Rate from the
Due Date as to which interest was last paid or advanced to Certificateholders up
to the last day of the month in which the Cash  Liquidation (or REO Disposition)
occurred on the Stated Principal Balance of such Mortgage Loan (or REO Property)
outstanding  during each Due Period that such interest was not paid or advanced,
minus (iii) the proceeds,  if any,  received during the month in which such Cash
Liquidation (or REO Disposition)  occurred,  to the extent applied as recoveries
of interest at the Net Mortgage Rate and to principal of the Mortgage  Loan, net
of the portion  thereof  reimbursable  to the Master Servicer or any Subservicer
with respect to related  Advances,  Servicing  Advances or other  expenses as to
which the Master Servicer or Subservicer is entitled to reimbursement thereunder
but which have not been  previously  reimbursed.  With respect to each  Mortgage
Loan which is the  subject of a  Servicing  Modification,  (a) (1) the amount by
which the interest portion of a Monthly Payment or the principal balance of such
Mortgage  Loan was reduced or (2) the sum of any other  amounts  owing under the
Mortgage Loan that were forgiven and that constitute Servicing Advances that are
reimbursable  to the Master  Servicer or a Subservicer,  and (b) any such amount
with  respect to a Monthly  Payment that was or would have been due in the month
immediately  following the month in which a Principal Prepayment or the Purchase
Price of such Mortgage Loan is received or is deemed to have been received. With
respect  to each  Mortgage  Loan which has  become  the  subject of a  Deficient
Valuation,  the  difference  between the principal  balance of the Mortgage Loan
outstanding  immediately  prior to such  Deficient  Valuation  and the principal
balance of the Mortgage Loan as reduced by the Deficient Valuation. With respect
to each Mortgage  Loan which has become the object of a Debt Service  Reduction,
the amount of such Debt Service Reduction.  Notwithstanding the above, neither a
Deficient Valuation nor a Debt Service Reduction shall be deemed a Realized Loss
hereunder  so long as the Master  Servicer  has  notified the Trustee in writing
that the Master  Servicer is diligently  pursuing any remedies that may exist in
connection  with the  representations  and warranties made regarding the related
Mortgage  Loan and either (A) the related  Mortgage  Loan is not in default with
regard to payments due  thereunder or (B)  delinquent  payments of principal and
interest  under the related  Mortgage  Loan and any  premiums on any  applicable
primary hazard  insurance  policy and any related escrow  payments in respect of
such Mortgage Loan are being advanced on a current basis by the Master  Servicer
or a  Subservicer,  in either case  without  giving  effect to any Debt  Service
Reduction.

      [Realized Losses allocated to the Class SB Certificates shall be allocated
first to the REMIC II Regular  Interest  SB-IO in  reduction  of the accrued but
unpaid  interest  thereon until such accrued and unpaid interest shall have been
reduced to zero and then to the REMIC II Regular  Interest SB-PO in reduction of
the Principal Balance thereof.]

      To the extent the Master  Servicer  receives  Subsequent  Recoveries  with
respect to any Mortgage  Loan,  the amount of the Realized  Loss with respect to
that Mortgage Loan will be reduced to the extent such  recoveries are applied to
reduce the  Certificate  Principal  Balance of any Class of  Certificates on any
Distribution Date.

      Record  Date:  With  respect  to each  Distribution  Date  and  the  LIBOR
Certificates,  the Business Day immediately  preceding such  Distribution  Date.
With  respect to each  Distribution  Date and the  Certificates  (other than the
LIBOR Certificates), the close of business on the last Business Day of the

                                       31
<PAGE>

month next  preceding the month in which the related  Distribution  Date occurs,
except in the case of the first Record Date which shall be the Closing Date.

      Reference Bank Rate: As defined in Section 1.02.

      Regular  Certificates:  The [Class A  Certificates,  Class M Certificates,
Class B Certificates and Class SB] Certificates.

      Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to time, and
subject to such  clarification  and  interpretation as have been provided by the
Commission in the adopting  release  (Asset-Backed  Securities,  Securities  Act
Release No.  33-8518,  70 Fed. Reg.  1,506,  1,531  (January 7, 2005)) or by the
staff of the  Commission,  or as may be provided by the  Commission or its staff
from time to time.

      Regulation S Global Offered Certificate: Any Temporary Regulation S Global
Offered Certificate or Permanent Regulation S Global Offered Certificate.

      Relief Act: The  Servicemembers  Civil Relief Act,  formerly  known as the
Soldiers' and Sailors' Civil Relief Act of 1940.

      Relief Act Shortfalls: Interest shortfalls on the Mortgage Loans resulting
from the Relief Act or similar legislation or regulations.

      REMIC: A "real estate mortgage  investment  conduit" within the meaning of
Section 860D of the Code. As used herein, the term "REMIC" shall mean REMIC I or
REMIC II.

      REMIC  Administrator:  Residential  Funding  Company,  LLC. If Residential
Funding Company, LLC is found by a court of competent  jurisdiction to no longer
be able to fulfill its obligations as REMIC  Administrator  under this Agreement
the Master Servicer or Trustee acting as successor Master Servicer shall appoint
a  successor   REMIC   Administrator,   subject  to   assumption  of  the  REMIC
Administrator obligations under this Agreement.

      [REMIC I: The  segregated  pool of assets subject  hereto,  constituting a
portion of the primary trust created  hereby and to be  administered  hereunder,
exclusive  of the Hedge  Agreement,  which are not  assets  of any  REMIC,  with
respect to which a separate REMIC election is to be made, consisting of:

            (i) the Mortgage Loans and the related Mortgage Files;

            (ii) all  payments  on and  collections  in respect of the  Mortgage
      Loans due after the Cut-off Date (other than  Monthly  Payments due in the
      month of the Cut-off Date) as shall be on deposit in the Custodial Account
      or in the  Certificate  Account and  identified  as belonging to the Trust
      Fund;

            (iii)  property  which  secured a  Mortgage  Loan and which has been
      acquired for the benefit of the  Certificateholders by foreclosure or deed
      in lieu of foreclosure;

            (iv) the hazard insurance  policies and Primary  Insurance  Policies
      pertaining to the Mortgage Loans, if any; and

            (v) all proceeds of clauses (i) through (iv) above.]

                                       32
<PAGE>

      [REMIC I Distribution  Amount:  For any  Distribution  Date, the Available
Distribution  Amount shall be distributed  to the REMIC I Regular  Interests and
the Class R-I Certificates in the following amounts and priority:

            (i) to the extent of the Available  Distribution Amount, to REMIC II
as the holder of REMIC I Regular  Interests  LT1, LT2, LT3 and LT4, pro rata, in
an  amount  equal  to  (A)  their  Uncertificated   Accrued  Interest  for  such
Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from
previous Distribution Dates; and

            (ii) to the extent of the Available  Distribution  Amount  remaining
after the  distributions  made pursuant to clause (i) above,  to REMIC II as the
holder of the REMIC I Regular Interests, in an amount equal to:

                  (A) in respect of the REMIC I Regular  Interests  LT2, LT3 and
LT4, their respective Principal Distribution Amounts;

                  (B) in  respect  of the  REMIC  I  Regular  Interest  LT1  any
remainder until the Uncertificated Principal Balance thereof is reduced to zero;

                  (C) any remainder in respect of the REMIC I Regular  Interests
LT2,  LT3 and  LT4,  pro  rata  according  to  their  respective  Uncertificated
Principal  Balances as reduced by the distributions  deemed made pursuant to (A)
above, until their respective  Uncertificated  Principal Balances are reduced to
zero; and

            (iii)  any  remaining  amounts  to  the  Holders  of the  Class  R-I
Certificates.]

      [REMIC I Principal  Reduction  Amounts:  For any  Distribution  Date,  the
amounts by which the principal  balances of the REMIC I Regular  Interests  LT1,
LT2, LT3 and LT4, respectively, will be reduced on such Distribution Date by the
allocation of Realized Losses and the  distribution of principal,  determined as
follows:

      For purposes of the succeeding  formulas the following  symbols shall have
the meanings set forth below:

      Y1 = the aggregate  principal  balance of the REMIC I Regular Interest LT1
after distributions on the prior Distribution Date.

      Y2 = the  principal  balance  of the  REMIC I Regular  Interest  LT2 after
distributions on the prior Distribution Date.

      Y3 = the  principal  balance  of the  REMIC I Regular  Interest  LT3 after
distributions on the prior Distribution Date.

      Y4 = the  principal  balance  of the  REMIC I Regular  Interest  LT4 after
distributions on the prior Distribution Date (note: Y3 = Y4).

      (delta)Y1 = the REMIC I Regular Interest LT1 Principal Reduction Amount.

      (delta)Y2 = the REMIC I Regular Interest LT2 Principal Reduction Amount.

      (delta)Y3 = the REMIC I Regular Interest LT3 Principal Reduction Amount.

                                       33
<PAGE>

      (delta)Y4 = the REMIC I Regular Interest LT4 Principal Reduction Amount.

      P0 = the aggregate principal balance of the REMIC I Regular Interests LT1,
LT2, LT3 and LT4 after  distributions  and the allocation of Realized  Losses on
the prior Distribution Date.

      P1 = the aggregate principal balance of the REMIC I Regular Interests LT1,
LT2, LT3 and LT4 after distributions and the allocation of Realized Losses to be
made on such Distribution Date.

      (delta)P = P0 - P1 = the aggregate of the REMIC I Regular  Interests  LT1,
LT2, LT3 and LT4 Principal Reduction Amounts.

      = the  aggregate  of the  principal  portions  of  Realized  Losses  to be
allocated to, and the principal distributions to be made on, the Certificates on
such Distribution  Date (including  distributions of accrued and unpaid interest
on the Class SB Certificates for prior Distribution Dates).

      R0 = the Net WAC Cap Rate (stated as a monthly  rate) after giving  effect
to amounts  distributed and Realized Losses allocated on the prior  Distribution
Date.

      R1 = the Net WAC Cap Rate (stated as a monthly  rate) after giving  effect
to  amounts  to be  distributed  and  Realized  Losses to be  allocated  on such
Distribution Date.

      a = (Y2 + Y3)/P0.  The initial  value of a on the Closing  Date for use on
the first Distribution Date shall be 0.0001.

      y0 = the lesser of (A) the sum for all Classes of Certificates, other than
the Class SB  Certificates,  of the  product  for each Class of (i) the  monthly
interest  rate (as limited by the REMIC Net WAC Rate,  if  applicable)  for such
Class applicable for distributions to be made on such Distribution Date and (ii)
the aggregate  Certificate  Principal Balance for such Class after distributions
and the  allocation of Realized  Losses on the prior  Distribution  Date and (B)
R0*P0.

      y1 = the lesser of (A) the sum for all Classes of Certificates, other than
the Class SB  Certificates,  of the  product  for each Class of (i) the  monthly
interest rate (as limited by the REMIC Net WAC Cap Rate, if applicable) for such
Class   applicable  for   distributions  to  be  made  on  the  next  succeeding
Distribution Date and (ii) the aggregate  Certificate Principal Balance for such
Class after  distributions  and the allocation of Realized  Losses to be made on
such Distribution Date and (B) R1*P1.

      Then, based on the foregoing definitions:

      (delta)Y1 = (delta)P - (delta)Y2 - (delta)Y3 - (delta)Y4;

      (delta)Y2 = (a/2){( a0R1 - a1R0)/R0R1};

      (delta)Y3 = a(delta)P - (delta)Y2; and

      (delta)Y4 = (delta)Y3.

      if both  (delta)Y2  and  (delta)Y3,  as so  determined,  are  non-negative
numbers. Otherwise:

      (1)   If (delta)Y2, as so determined, is negative, then

      (delta)Y2 = 0;

                                       34
<PAGE>

      (delta)Y3 = a{y1R0P0 - y0R1P1}/{y1R0};

      (delta)Y4 = (delta)Y3; and

      (delta)Y1 = (delta)P - (delta)Y2 - (delta)Y3 - (delta)Y4.

      (2) If (delta)Y3, as so determined, is negative, then

      (delta)Y3 = 0;

      (delta)Y2 = a{y1R0P0 - y0R1P1}/{2R1R0P1 - y1R0};

      (delta)Y4 = (delta)Y3; and

      (delta)Y1 = (delta)P - (delta)Y2 - (delta)Y3 - (delta)Y4.]

      [REMIC I Realized  Losses:  Realized Losses on the Mortgage Loans shall be
allocated to the REMIC I Regular  Interests as follows:  The interest portion of
Realized  Losses on the Mortgage  Loans,  if any,  shall be allocated  among the
REMIC I Regular  Interests  LT1, LT2 and LT4 pro rata according to the amount of
interest accrued but unpaid thereon, in reduction thereof.  Any interest portion
of such  Realized  Losses in  excess of the  amount  allocated  pursuant  to the
preceding  sentence shall be treated as a principal  portion of Realized  Losses
not  attributable  to any specific  Mortgage Loan and allocated  pursuant to the
succeeding  sentences.  The principal portion of Realized Losses on the Mortgage
Loans, if any, shall be allocated  first, to the REMIC I Regular  Interests LT2,
LT3 and LT4 pro rata according to their respective  Principal  Reduction Amounts
to the extent thereof in reduction of the  Uncertificated  Principal  Balance of
such REMIC I Regular  Interests  and,  second,  the  remainder,  if any, of such
principal  portion of such  Realized  Losses  shall be  allocated to the REMIC I
Regular  Interest  LT1 in  reduction  of the  Uncertificated  Principal  Balance
thereof.]

      [REMIC I Regular Interests: REMIC I Regular Interest LT1, REMIC II Regular
Interest LT2, REMIC II Regular Interest LT3 and REMIC II Regular Interest LT4.]

      [REMIC I Regular  Interest LT1: A regular interest in REMIC I that is held
as an asset of REMIC II,  that has an  initial  principal  balance  equal to the
related  Uncertificated  Principal  Balance,  that bears interest at the related
Uncertificated  REMIC I Pass-Through  Rate, and that has such other terms as are
described herein.]

      [REMIC I Regular  Interest  LT1  Principal  Distribution  Amount:  For any
Distribution  Date,  the  excess,  if any, of the REMIC I Regular  Interest  LT1
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC I Regular Interest LT1 on such Distribution Date.]

      [REMIC I Regular  Interest LT2: A regular interest in REMIC I that is held
as an asset of REMIC II,  that has an  initial  principal  balance  equal to the
related  Uncertificated  Principal  Balance,  that bears interest at the related
Uncertificated  REMIC I Pass-Through  Rate, and that has such other terms as are
described herein.]

      [REMIC I Regular  Interest  LT2  Principal  Distribution  Amount:  For any
Distribution  Date,  the  excess,  if any, of the REMIC I Regular  Interest  LT2
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC I Regular Interest LT2 on such Distribution Date.]

                                       35
<PAGE>

      [REMIC I Regular Interest LT3: A regular interest in REMIC II that is held
as an asset of REMIC II,  that has an  initial  principal  balance  equal to the
related  Uncertificated  Principal  Balance,  that bears interest at the related
Uncertificated  REMIC I Pass-Through  Rate, and that has such other terms as are
described herein.]

      [REMIC I Regular  Interest  LT3  Principal  Distribution  Amount:  For any
Distribution  Date,  the  excess,  if any, of the REMIC I Regular  Interest  LT3
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC I Regular Interest LT3 on such Distribution Date.]

      [REMIC I Regular Interest LT4: A regular interest in REMIC II that is held
as an asset of REMIC II,  that has an  initial  principal  balance  equal to the
related  Uncertificated  Principal  Balance,  that bears interest at the related
Uncertificated  REMIC I Pass-Through  Rate, and that has such other terms as are
described herein.]

      [REMIC I Regular  Interest  LT4  Principal  Distribution  Amount:  For any
Distribution  Date,  the  excess,  if any, of the REMIC I Regular  Interest  LT4
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC I Regular Interest LT4 on such Distribution Date.]

      [REMIC II: The segregated  pool of assets subject  hereto,  constituting a
portion of the primary trust created  hereby and to be  administered  hereunder,
with respect to which a separate REMIC election is to be made, consisting of the
REMIC I Regular Interests.]

      [REMIC II Regular Interest SB-PO: A separate  non-certificated  beneficial
ownership  interest in REMIC II issued  hereunder  and  designated as a REMIC II
Regular  Interest.  REMIC II Regular Interest SB-PO shall have no entitlement to
interest,  and shall be entitled to  distributions  of principal  subject to the
terms  and  conditions   hereof,  in  aggregate  amount  equal  to  the  initial
Certificate  Principal  Balance of the Class SB Certificates as set forth in the
Preliminary Statement hereto.]

      [REMIC II Regular Interest SB-IO: A separate  non-certificated  beneficial
ownership  interest in REMIC II issued  hereunder  and  designated as a REMIC II
Regular  Interest.  REMIC II Regular Interest SB-IO shall have no entitlement to
principal,  and shall be entitled to  distributions  of interest  subject to the
terms  and  conditions  hereof,  in  aggregate  amount  equal  to  the  interest
distributable  with respect to the Class SB  Certificates  pursuant to the terms
and conditions hereof.]

      [REMIC II Regular  Interests:  REMIC II Regular Interests SB-IO and SB-PO,
together  with the  regular  interests  in REMIC II  represented  by the Class A
Certificates,  Class M Certificates  and Class B  Certificates  exclusive of the
rights of such  Certificates to payments of Basis Risk Shortfall  Amounts and to
payments derived from the Hedge Agreement.]

      REMIC  Administrator:  Residential  Funding  Company,  LLC. If Residential
Funding Company, LLC is found by a court of competent  jurisdiction to no longer
be able to fulfill its obligations as REMIC  Administrator  under this Agreement
the Master Servicer or Trustee acting as successor Master Servicer shall appoint
a  successor   REMIC   Administrator,   subject  to   assumption  of  the  REMIC
Administrator obligations under this Agreement.

      [REMIC Interest Amount:  For any Distribution Date and each Class of Class
A  Certificates,  Class M  Certificates  and Class B  Certificates,  the Accrued
Certificate  Interest for such Class reduced by the portion thereof attributable
to the excess,  if any, of the related  Pass-Through  Rate for such Distribution
Date over the related REMIC Net WAC Cap Rate for such Distribution Date.]

                                       36
<PAGE>

      [REMIC Net WAC Cap Rate: For any Distribution Date, a per annum rate equal
to the product of (i) the  weighted  average of the Net  Mortgage  Rates (or, if
applicable, the Modified Net Mortgage Rates) on the Mortgage Loans using the Net
Mortgage  Rates in effect for the Monthly  Payments due on such  Mortgage  Loans
during the related Due Period,  weighted on the basis of the  respective  Stated
Principal  Balances thereof for such Distribution Date and (ii) a fraction equal
to 30 divided  by the  actual  number of days in the  related  Interest  Accrual
Period.]

      REMIC  Provisions:  Provisions  of the federal  income tax law relating to
real estate mortgage investment conduits,  which appear at Sections 860A through
860G of  Subchapter  M of Chapter 1 of the Code,  and  related  provisions,  and
temporary and final  regulations (or, to the extent not  inconsistent  with such
temporary or final  regulations,  proposed  regulations) and published  rulings,
notices and  announcements  promulgated  thereunder,  as the foregoing may be in
effect from time to time.

      REO  Acquisition:  The acquisition by the Master Servicer on behalf of the
Trustee for the benefit of the  Certificateholders  of any REO Property pursuant
to Section 3.14.

      REO Disposition:  With respect to any REO Property, a determination by the
Master  Servicer  that it has received  substantially  all  Insurance  Proceeds,
Liquidation Proceeds,  REO Proceeds and other payments and recoveries (including
proceeds  of a final  sale)  which the  Master  Servicer  expects  to be finally
recoverable from the sale or other disposition of the REO Property.

      REO Imputed Interest: With respect to any REO Property, for any period, an
amount  equivalent  to interest (at a rate equal to the Net  Mortgage  Rate that
would have been applicable to the related Mortgage Loan had it been outstanding)
on the  unpaid  principal  balance  of the  Mortgage  Loan  as of  the  date  of
acquisition thereof for such period.

      REO Proceeds:  Proceeds,  net of expenses,  received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged  Property)  which  proceeds  are  required  to be  deposited  into the
Custodial Account only upon the related REO Disposition.

      REO  Property:  A Mortgaged  Property  acquired by the Master  Servicer on
behalf of the  Trust  Fund for the  benefit  of the  Certificateholders  through
foreclosure  or deed  in lieu of  foreclosure  in  connection  with a  defaulted
Mortgage Loan.

      Reportable  Modified  Mortgage  Loan:  Any Mortgage Loan that (a) has been
subject to an interest rate reduction,  (b) has been subject to a term extension
or (c) has had amounts owing on such Mortgage  Loan  capitalized  by adding such
amount to the Stated Principal Balance of such Mortgage Loan; provided, however,
that a Mortgage  Loan  modified  in  accordance  with (a) above for a  temporary
period shall not be a Reportable  Modified  Mortgage  Loan if such Mortgage Loan
has not been  delinquent  in payments of  principal  and interest for six months
since the date of such  modification if that interest rate reduction is not made
permanent thereafter.

      Repurchase Event: As defined in the Assignment Agreement.

      Request for Release: A request for release,  the form of which is attached
as  Exhibit G hereto,  or an  electronic  request  in a form  acceptable  to the
Custodian.

      Required  Insurance  Policy:  With  respect  to  any  Mortgage  Loan,  any
insurance policy which is required to be maintained from time to time under this
Agreement, the Program Guide or the related Subservicing Agreement in respect of
such Mortgage Loan.

                                       37
<PAGE>

      [Required  Overcollateralization  Amount: With respect to any Distribution
Date, (a) prior to the Stepdown Date, an amount equal to [___]% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the Cut-off Date, (b) on or
after the Stepdown Date if a Trigger Event is not in effect,  the greater of (i)
an amount equal to [____]% of the aggregate outstanding Stated Principal Balance
of the  Mortgage  Loans  after  giving  effect  to  distributions  made  on that
Distribution Date and (ii) the  Overcollateralization  Floor and (c) on or after
the  Stepdown  Date if a Trigger  Event is in  effect,  an  amount  equal to the
Required   Overcollateralization   Amount   from   the   immediately   preceding
Distribution Date. The Required  Overcollateralization  Amount may be reduced so
long as written  confirmation  is  obtained  from each  Rating  Agency that such
reduction shall not reduce the ratings  assigned to any Class of Certificates by
such  Rating  Agency  below the lower of the then  current  rating or the rating
assigned to such Certificates as of the Closing Date by such Rating Agency.]

      Residential Funding:  Residential Funding Company, LLC, a Delaware limited
liability  company,  in its  capacity  as  seller of the  Mortgage  Loans to the
Depositor and any successor thereto.

      Responsible Officer: When used with respect to the Trustee, any officer of
the  Corporate  Trust  Department  of the  Trustee,  including  any Senior  Vice
President,  any Vice  President,  any Assistant  Vice  President,  any Assistant
Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of
the Trustee, in each case, with direct  responsibility for the administration of
this Agreement.

      RFC Exemption: As defined in Section 5.02(f)(ii).

      Rule 144A:  Rule 144A under the  Securities Act of 1933, as in effect from
time to time.

      Rule  144A  Global  Offered   Certificate:   Any  one  of  the  Class  [B]
Certificates  substantially  in the form of Exhibit C-1 hereto or any one of the
Class SB Certificates  substantially in the form of Exhibit D-1 hereto,  and, in
both cases, more fully described in Section 5.02(e) hereof.

      Securitization  Transaction:  Any  transaction  involving  a sale or other
transfer  of  mortgage  loans  directly or  indirectly  to an issuing  entity in
connection with an issuance of publicly  offered or privately  placed,  rated or
unrated mortgage-backed securities.

      Seller:  With  respect  to any  Mortgage  Loan,  a Person,  including  any
Subservicer,  that  executed a Seller's  Agreement  applicable  to such Mortgage
Loan.

      Seller's Agreement:  An agreement for the origination and sale of Mortgage
Loans generally in the form of the seller  contract  referred to or contained in
the  Program  Guide,  or in such other form as has been  approved  by the Master
Servicer and the Depositor.

      Senior Enhancement  Percentage:  [For any Distribution Date, the fraction,
expressed  as a  percentage,  the  numerator  of  which  is the  sum of (i)  the
aggregate  Certificate  Principal Balance of the [Class M Certificates and Class
B] Certificates and (ii) the Overcollateralization Amount, in each case prior to
the distribution of the Principal  Distribution Amount on such Distribution Date
and the denominator of which is the aggregate  Stated  Principal  Balance of the
Mortgage  Loans  after  giving  effect  to  distributions  to be  made  on  that
Distribution Date.]

      Servicing  Accounts:  The  account  or  accounts  created  and  maintained
pursuant to Section 3.08.

      Servicing  Advances:  All  customary,  reasonable  and  necessary  "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other  unanticipated  event  by the  Master  Servicer  or a  Subservicer  in the
performance  of its servicing  obligations,  including,  but not limited to, the

                                       38
<PAGE>

cost of (i) the preservation, restoration and protection of a Mortgaged Property
or, with respect to a cooperative loan, the related cooperative apartment,  (ii)
any enforcement or judicial proceedings,  including foreclosures,  including any
expenses  incurred  in  relation  to any such  proceedings  that result from the
Mortgage Loan being  registered on the MERS(R) System,  (iii) the management and
liquidation of any REO Property,  (iv) any mitigation procedures  implemented in
accordance  with Section 3.07, and (v)  compliance  with the  obligations  under
Sections 3.01, 3.08, 3.11, 3.12(a) and 3.14,  including,  if the Master Servicer
or any Affiliate of the Master Servicer provides services such as appraisals and
brokerage services that are customarily provided by Persons other than servicers
of mortgage loans, reasonable compensation for such services.

      Servicing Criteria:  The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

      Servicing  Fee: With respect to any Mortgage Loan and  Distribution  Date,
the fee payable  monthly to the Master  Servicer in respect of master  servicing
compensation  that  accrues at an annual  rate equal to the  Servicing  Fee Rate
multiplied  by the  Stated  Principal  Balance of such  Mortgage  Loan as of the
related  Due Date in the related  Due  Period,  as may be  adjusted  pursuant to
Section 3.16(e).

      Servicing Fee Rate:  With respect to any Mortgage Loan, the per annum rate
designated  on the  Mortgage  Loan  Schedule  as the "MSTR  SERV FEE," as may be
adjusted with respect to successor Master Servicers as provided in Section 7.02,
which rate shall never be greater than the Mortgage Rate of such Mortgage Loan.

      Servicing  Modification:  Any  reduction  of the  interest  rate on or the
outstanding  principal  balance of a Mortgage  Loan,  any extension of the final
maturity  date of a Mortgage  Loan,  and any  increase  to the Stated  Principal
Balance of a  Mortgage  Loan by adding to the Stated  Principal  Balance  unpaid
principal and interest and other amounts owing under the Mortgage  Loan, in each
case pursuant to a  modification  of a Mortgage Loan that is in default,  or for
which, in the judgment of the Master Servicer, default is reasonably foreseeable
in accordance with Section 3.07(a).

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

      Sixty-Plus Delinquency  Percentage:  With respect to any Distribution Date
and  the  Mortgage  Loans,  the  arithmetic  average,  for  each  of  the  three
Distribution  Dates  ending  with  such  Distribution  Date,  of  the  fraction,
expressed as a percentage,  equal to (x) the aggregate Stated Principal  Balance
of the  Mortgage  Loans  that  are 60 or more  days  delinquent  in  payment  of
principal and interest for that Distribution  Date,  including Mortgage Loans in
foreclosure and REO, over (y) the aggregate Stated  Principal  Balance of all of
the Mortgage Loans immediately preceding that Distribution Date.

      Standard & Poor's:  Standard & Poor's Ratings Services,  a division of The
McGraw-Hill Companies, Inc. or its successors in interest.

      Startup Date: The day designated as such pursuant to Article X hereof.

      Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property,  as of any date of determination,  (i) the sum of (a) the Cut-off Date
Principal  Balance of the  Mortgage  Loan and (b) any amount by which the Stated
Principal  Balance  of the  Mortgage  Loan  has  been  increased  pursuant  to a
Servicing  Modification,  minus (ii) the sum of (a) the principal portion of the
Monthly Payments due with

                                       39
<PAGE>

respect to such Mortgage Loan or REO Property during each Due Period ending with
the Due Period relating to the most recent Distribution Date which were received
or with respect to which an Advance was made, (b) all Principal Prepayments with
respect to such  Mortgage  Loan or REO  Property,  and all  Insurance  Proceeds,
Liquidation  Proceeds  and REO  Proceeds,  to the  extent  applied by the Master
Servicer as recoveries of principal in accordance with Section 3.14 with respect
to such  Mortgage  Loan or REO  Property,  in each case which  were  distributed
pursuant to Section 4.02 on any previous Distribution Date, and (c) any Realized
Loss incurred with respect to such Mortgage Loan allocated to Certificateholders
with respect thereto for any previous Distribution Date.

      Stepdown Date:  [That  Distribution  Date which is the earlier to occur of
(a) the Distribution Date immediately  succeeding the Distribution Date on which
the aggregate Certificate Principal Balance of the Class A Certificates has been
reduced  to zero and (b) the  later to  occur  of (i) the  Distribution  Date in
[____]  20[__]  and  (ii)  the  first  Distribution  Date on  which  the  Senior
Enhancement Percentage is equal to or greater than [___]%.]

      Subordination:  The  provisions  described in Section 4.05 relating to the
allocation of Realized Losses.

      Subordination  Percentage:   With  respect  to  each  Class  of  [Class  A
Certificates,  Class M Certificates  and Class B]  Certificates,  the respective
percentage set forth below.

      Class Percentage

      [___] [___]%

      Subsequent  Recoveries:  As of any Distribution  Date, amounts received by
the Master  Servicer  (net of any related  expenses  permitted to be  reimbursed
pursuant  to Section  3.10) or surplus  amounts  held by the Master  Servicer to
cover estimated expenses  (including,  but not limited to, recoveries in respect
of the representations and warranties made by the related Seller pursuant to the
applicable  Seller's  Agreement and assigned to the Trustee  pursuant to Section
2.04)  specifically  related to a Mortgage  Loan that was the  subject of a Cash
Liquidation or an REO  Disposition  prior to the related  Prepayment  Period and
that resulted in a Realized Loss.

      Subserviced  Mortgage  Loan:  Any  Mortgage  Loan  that,  at the  time  of
reference thereto, is subject to a Subservicing Agreement.

      Subservicer:  Any Person with whom the Master  Servicer has entered into a
Subservicing Agreement and who generally satisfied the requirements set forth in
the Program Guide in respect of the  qualification  of a  Subservicer  as of the
date of its approval as a Subservicer by the Master Servicer.

      Subservicer Advance: Any delinquent  installment of principal and interest
on a Mortgage  Loan which is  advanced by the  related  Subservicer  (net of its
Subservicing Fee) pursuant to the Subservicing Agreement.

      Subservicing   Account:   An  account  established  by  a  Subservicer  in
accordance with Section 3.08.

         Subservicing  Agreement:   The  written  contract  between  the  Master
Servicer and any Subservicer relating to servicing and administration of certain
Mortgage  Loans  as  provided  in  Section  3.02,  generally  in the form of the
servicer contract referred to or contained in the Program Guide or in such other
form as has been approved by the Master Servicer and the Depositor.

                                       40
<PAGE>

      Subservicing  Fee:  With  respect to any  Mortgage  Loan,  the fee payable
monthly to the related Subservicer (or, in the case of a Nonsubserviced Mortgage
Loan, to the Master Servicer) in respect of subservicing and other  compensation
that accrues with respect to each Distribution Date at an annual rate designated
as "SUBSERV FEE" on the Mortgage Loan Schedule.

      Tax Returns:  The federal  income tax return on Internal  Revenue  Service
Form 1066,  U.S.  Real Estate  Mortgage  Investment  Conduit  Income Tax Return,
including  Schedule Q thereto,  Quarterly Notice to Residual Interest Holders of
REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed
on behalf of any REMIC hereunder due to its  classification as a REMIC under the
REMIC  Provisions,  together  with any and all  other  information,  reports  or
returns that may be required to be furnished to the  Certificateholders or filed
with the Internal  Revenue Service or any other  governmental  taxing  authority
under any applicable provisions of federal, state or local tax laws.

      Telerate Screen Page 3750: As defined in Section 1.02.

      Temporary  Regulation S Global Offered  Certificate:  Any one of the Class
[B]  Certificates  substantially in the form of Exhibit C-2 hereto or any one of
the Class SB Certificates  substantially in the form of Exhibit D-2 hereto, and,
in both cases, more fully described in Section 5.02(e) hereof.

      Transaction Party: As defined in Section 12.02(a).

      Transfer: Any direct or indirect transfer, sale, pledge,  hypothecation or
other form of assignment of any Ownership Interest in a Certificate.

      Transfer Affidavit and Agreement: As defined in Section 5.02(f).

      Transferee: Any Person who is acquiring by Transfer any Ownership Interest
in a Certificate.

      Transferor:  Any Person who is  disposing  by  Transfer  of any  Ownership
Interest in a Certificate.

                                       41
<PAGE>

      Trigger  Event:  [A  Trigger  Event  is in  effect  with  respect  to  any
Distribution  Date on or after the  Stepdown  Date if either (a) the  product of
3.10  and  the  Sixty-Plus  Delinquency   Percentage,   as  determined  on  that
Distribution Date, equals or exceeds the Senior Enhancement  Percentage for that
Distribution Date or (b) on or after the Distribution Date in [___] 20[__],  the
aggregate amount of Realized Losses on the Mortgage Loans as a percentage of the
Cut-Off Date Balance exceeds the applicable amount set forth below:

      [___]20[__]to[___]20[__]:     [___]% with respect to [___] 20[__], plus an
                                    additional 1/12th of [___]% for each month
                                    thereafter.

      [___]20[__]to[___]20[__]:     [___]% with respect to [___] 20[__], plus an
                                    additional 1/12th of [___]% for each month
                                    thereafter.

      [___]20[__]to[___]20[__]:     [___]% with respect to [___] 20[__], plus an
                                    additional 1/12th of [___]% for each month
                                    thereafter.

      [___]20[__]to [___]20[__]:    [___]% with respect to [___] 20[__], plus an
                                    additional 1/12th of [___]% for each month
                                    thereafter.

      [___]20[__] and thereafter:   [___]%.]

      Trustee: As defined in the preamble hereto.

      Trustee Information: As specified in Section 12.05(a)(i)(A).

      Trust Fund: The segregated pool of assets subject  hereto,  consisting of:
(i) the Mortgage Loans and the related Mortgage Files;  (ii) all payments on and
collections  in respect of the Mortgage  Loans due after the Cut-off Date (other
than  Monthly  Payments  due in the  month of the  Cut-off  Date) as shall be on
deposit in the Custodial Account or in the Certificate Account and identified as
belonging to the Trust Fund;  (iii)  property  which secured a Mortgage Loan and
which has been acquired for the benefit of the Certificateholders by foreclosure
or deed in lieu of foreclosure;  (iv) the hazard insurance  policies and Primary
Insurance  Policies  pertaining  to the  Mortgage  Loans,  if  any;  and (v) all
proceeds of clauses (i) through (iv) above.

      [Uncertificated  Accrued  Interest:  With  respect  to any REMIC I Regular
Interest  for  any  Distribution  Date,  one  month's  interest  at the  related
Uncertificated  REMIC I Pass-Through Rate for such Distribution Date, accrued on
its  Uncertificated  Principal  Balance  immediately  prior to such Distribution
Date.  Uncertificated  Accrued Interest for the REMIC I Regular  Interests shall
accrue on the basis of a 360-day year  consisting of twelve 30-day  months.  For
purposes of calculating the amount of  Uncertificated  Accrued  Interest for the
REMIC I Regular  Interests for any  Distribution  Date, any Prepayment  Interest
Shortfalls and Relief Act Shortfalls (to the extent not covered by  Compensating
Interest)  relating to the  Mortgage  Loans for any  Distribution  Date shall be
allocated among REMIC I Regular  Interests LT1, LT2, LT3 and LT4 pro rata, based
on, and to the extent of, Uncertificated Accrued Interest, as calculated without
application  of this  sentence.  Uncertificated  Accrued  Interest  on  REMIC II
Regular

                                       42
<PAGE>

Interest  SB-PO  shall  be zero.  Uncertificated  Accrued  Interest  on REMIC II
Regular  Interest  SB-IO  for  each   Distribution   Date  shall  equal  Accrued
Certificate Interest for the Class SB Certificates.]

      [Uncertificated  Principal  Balance:  The principal  amount of any REMIC I
Regular Interest outstanding as of any date of determination. The Uncertificated
Principal  Balance of each  REMIC I Regular  Interest  shall  never be less than
zero. With respect to the REMIC II Regular Interest SB-PO the initial amount set
forth  with  respect  thereto  in  the  Preliminary   Statement  as  reduced  by
distributions  deemed  made in respect  thereof  pursuant  to  Section  4.02 and
Realized Losses allocated thereto pursuant to Section 4.05.]

      [Uncertificated   REMIC  I   Pass-Through   Rate:   With  respect  to  any
Distribution  Date and (i) REMIC I Regular  Interests  LT1 and LT2, the weighted
average of the Net Mortgage  Rates of the Mortgage  Loans,  (ii) REMIC I Regular
Interest LT3, zero (0.00%),  and (iii) REMIC I Regular  Interest LT4,  twice the
weighted average of the Net Mortgage Rates of the Mortgage Loans.]

      Uniform  Single  Attestation  Program for  Mortgage  Bankers:  The Uniform
Single  Attestation  Program for Mortgage Bankers,  as published by the Mortgage
Bankers  Association  of America and  effective  with respect to fiscal  periods
ending on or after December 15, 1995.

      Uninsured  Cause:  Any cause of damage to  property  subject to a Mortgage
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies.

      United  States  Person:  A citizen or  resident  of the United  States,  a
corporation,   partnership  or  other  entity   (treated  as  a  corporation  or
partnership for United States federal income tax purposes)  created or organized
in, or under the laws of, the United States, any state thereof,  or the District
of  Columbia  (except in the case of a  partnership,  to the extent  provided in
Treasury  regulations) provided that, for purposes solely of the restrictions on
the transfer of Class R Certificates,  no partnership or other entity treated as
a partnership  for United States federal income tax purposes shall be treated as
a  United  States  Person  unless  all  persons  that  own an  interest  in such
partnership  either directly or through any entity that is not a corporation for
United  States  federal  income tax  purposes  are  required  by the  applicable
operative  agreement to be United States Persons, or an estate that is described
in Section  7701(a)(30)(D)  of the Code, or a trust that is described in Section
7701(a)(30)(E) of the Code.

      Voting Rights: The portion of the voting rights of all of the Certificates
which is  allocated  to any  Certificate.  [98.00]% of all of the Voting  Rights
shall  be  allocated  among  Holders  of  the  Class  A  Certificates,  Class  M
Certificates  and  Class  B  Certificates,  in  proportion  to  the  outstanding
Certificate Principal Balances of their respective Certificates;  [1]% of all of
the  Voting   Rights  shall  be  allocated  to  the  Holders  of  the  Class  SB
Certificates; and [0.50]% of all of the Voting Rights shall be allocated to each
of the Holders of the Class R-I Certificates and the Class R-II Certificates; in
each case to be allocated  among the  Certificates  of such Class in  accordance
with their respective Percentage Interests.]

      Weighted Average Maximum Net Mortgage Rate: For any Distribution Date, the
weighted  average  of the  Maximum  Net  Mortgage  Rates of the  adjustable-rate
Mortgage  Loans,  or Net Mortgage Rates in the case of the  fixed-rate  Mortgage
Loans, multiplied by a fraction equal to 30 divided by the actual number of days
in the related Interest Accrual Period.

      Section 1.02.   Determination of LIBOR.

      LIBOR applicable to the calculation of the Pass-Through  Rate on the LIBOR
Certificates for any Interest Accrual Period will be determined as of each LIBOR
Rate Adjustment  Date. On each LIBOR Rate Adjustment Date, or if such LIBOR Rate
Adjustment Date is not a Business Day, then on the next

                                       43
<PAGE>

succeeding  Business Day,  LIBOR shall be  established by the Trustee and, as to
any Interest  Accrual  Period,  will equal the rate for one month United  States
dollar  deposits that appears on the Telerate Screen Page 3750 as of 11:00 a.m.,
London time, on such LIBOR Rate  Adjustment  Date.  "Telerate  Screen Page 3750"
means the display  designated  as page 3750 on the Bridge  Telerate  Service (or
such other page as may  replace  page 3750 on that  service  for the  purpose of
displaying London interbank offered rates of major banks). If such rate does not
appear  on such  page (or  such  other  page as may  replace  that  page on that
service, or if such service is no longer offered,  LIBOR shall be so established
by use of such other service for displaying  LIBOR or comparable rates as may be
selected by the Trustee after  consultation with the Master Servicer),  the rate
will be the Reference Bank Rate. The "Reference Bank Rate" will be determined on
the basis of the rates at which  deposits  in U.S.  Dollars  are  offered by the
reference  banks  (which  shall be any three  major  banks  that are  engaged in
transactions  in the London  interbank  market,  selected by the  Trustee  after
consultation  with the Master  Servicer) as of 11:00 a.m.,  London time,  on the
LIBOR Rate Adjustment Date to prime banks in the London  interbank  market for a
period of one month in amounts  approximately equal to the aggregate Certificate
Principal Balance of the LIBOR Certificates then outstanding.  The Trustee shall
request the principal  London office of each of the reference banks to provide a
quotation of its rate. If at least two such  quotations  are provided,  the rate
will be the arithmetic mean of the quotations rounded up to the next multiple of
1/16%. If on such date fewer than two quotations are provided as requested,  the
rate will be the arithmetic  mean of the rates quoted by one or more major banks
in New York City,  selected by the Trustee  after  consultation  with the Master
Servicer,  as of 11:00 a.m.,  New York City time, on such date for loans in U.S.
Dollars  to  leading  European  banks  for a  period  of one  month  in  amounts
approximately equal to the aggregate  Certificate Principal Balance of the LIBOR
Certificates then outstanding.  If no such quotations can be obtained,  the rate
will be LIBOR for the prior Distribution Date;  provided however,  if, under the
priorities  described  above,  LIBOR for a  Distribution  Date would be based on
LIBOR for the previous Distribution Date for the third consecutive  Distribution
Date, the Trustee,  shall select an alternative comparable index (over which the
Trustee has no control), used for determining one-month Eurodollar lending rates
that is calculated and published (or otherwise made available) by an independent
party.  The  establishment  of LIBOR by the Trustee on any LIBOR Rate Adjustment
Date  and  the  Trustee's  subsequent  calculation  of  the  Pass-Through  Rates
applicable to the LIBOR  Certificates for the relevant  Interest Accrual Period,
in the absence of manifest error, will be final and binding.  Promptly following
each LIBOR Rate  Adjustment  Date the Trustee  shall supply the Master  Servicer
with the results of its  determination of LIBOR on such date.  Furthermore,  the
Trustee  shall  supply  to  any   Certificateholder  so  requesting  by  calling
1-800-934-6802  the Pass-Through Rate on the LIBOR  Certificates for the current
and the immediately preceding Interest Accrual Period.

                                       44
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

      Section 2.01.   Conveyance of Mortgage Loans.

      (a) The Depositor,  concurrently  with the execution and delivery  hereof,
does hereby assign to the Trustee in respect of the Trust Fund without  recourse
all the right,  title and  interest of the  Depositor in and to (i) the Mortgage
Loans,  including  all interest and principal on or with respect to the Mortgage
Loans due on or after the Cut off Date (other than  Monthly  Payments due in the
month  of the Cut off  Date);  and  (ii)  all  proceeds  of the  foregoing.  The
Depositor,  the Master  Servicer  and the Trustee  agree that it is not intended
that any  Mortgage  Loan be  included  in the Trust  Fund  that is either  (i) a
High-Cost  Home Loan as defined in the New Jersey Home  Ownership  Act effective
November 27, 2003,  (ii) a High-Cost Home Loan as defined in the New Mexico Home
Loan  Protection Act effective  January 1, 2004,  (iii) a High-Cost Home Loan as
defined  in the  Massachusetts  Predatory  Home  Loan  Practices  Act  effective
November  7, 2004 or (iv) a High-Cost  Home Loan as defined in the Indiana  High
Cost Home Loan Law Act effective January 1, 2005.

      (b) In connection with such  assignment,  and  contemporaneously  with the
delivery of this  Agreement,  except as set forth in Section  2.01(c)  below and
subject to Section 2.01(d) below,  the Depositor does hereby (1) with respect to
each  Mortgage  Loan,  deliver to the Master  Servicer  (or an  Affiliate of the
Master  Servicer) each of the documents or instruments  described in clause (ii)
below (and the Master Servicer shall hold (or cause such Affiliate to hold) such
documents  or  instruments  in trust for the use and  benefit of all present and
future  Certificateholders),  (2) with respect to each MOM Loan, deliver to, and
deposit with, the Trustee, or the Custodian,  as the duly appointed agent of the
Trustee for such purpose, the documents or instruments  described in clauses (i)
and (v) below, (3) with respect to each Mortgage Loan that is not a MOM Loan but
is registered on the MERS(R) System,  deliver to, and deposit with, the Trustee,
or the Custodian,  as the duly appointed  agent of the Trustee for such purpose,
the  documents or  instruments  described in clauses (i), (iv) and (v) below and
(4)  with  respect  to each  Mortgage  Loan  that is not a MOM  Loan  and is not
registered on the MERS(R) System,  deliver to, and deposit with, the Trustee, or
the Custodian,  as the duly appointed agent of the Trustee for such purpose, the
documents or instruments described in clauses (i), (iii), (iv) and (v) below.

      (i) The original Mortgage Note,  endorsed without recourse to the order of
the Trustee and showing an unbroken  chain of  endorsements  from the originator
thereof  to the  Person  endorsing  it to the  Trustee,  or with  respect to any
Destroyed Mortgage Note, an original lost note affidavit from the related Seller
or  Residential  Funding  stating  that the  original  Mortgage  Note was  lost,
misplaced or destroyed, together with a copy of the related Mortgage Note.

      (ii) The original Mortgage, noting the presence of the MIN of the Mortgage
Loan  and  language  indicating  that  the  Mortgage  Loan is a MOM  Loan if the
Mortgage Loan is a MOM Loan, with evidence of recording  indicated thereon, or a
copy of the original Mortgage with evidence of recording indicated thereon.

      (iii)  The  assignment  (which  may be  included  in one or  more  blanket
assignments if permitted by applicable  law) of the Mortgage to the Trustee with
evidence  of  recording  indicated  thereon  or a copy of such  assignment  with
evidence of recording indicated thereon.

      (iv) The  original  recorded  assignment  or  assignments  of the Mortgage
showing an unbroken chain of title from the  originator to the Person  assigning
it to the Trustee (or to MERS, if the Mortgage Loan is registered on the MERS(R)
System and noting the presence of a MIN) with evidence of

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recordation noted thereon or attached  thereto,  or a copy of such assignment or
assignments of the Mortgage with evidence of recording indicated thereon.

      (v) The original of each modification,  assumption  agreement or preferred
loan  agreement,  if any,  relating  to such  Mortgage  Loan,  or a copy of each
modification, assumption agreement or preferred loan agreement.

      The Depositor may, in lieu of delivering the original of the documents set
forth in Section  2.01(b)(iii),  (iv) and (v) (or copies thereof) to the Trustee
or the Custodian,  deliver such documents to the Master Servicer, and the Master
Servicer  shall  hold such  documents  in trust for the use and  benefit  of all
present  and  future  Certificateholders  until such time as is set forth in the
next  sentence.  Within thirty  Business  Days  following the earlier of (i) the
receipt of the  original of all of the  documents  or  instruments  set forth in
Section 2.01(b)(iii), (iv) and (v) (or copies thereof) for any Mortgage Loan and
(ii) a written request by the Trustee to deliver those documents with respect to
any or all of the  Mortgage  Loans then being held by the Master  Servicer,  the
Master Servicer shall deliver a complete set of such documents to the Trustee or
the Custodian, as duly appointed agent of the Trustee.

      (c)  Notwithstanding  the provisions of Section 2.01(b), in the event that
in  connection  with any Mortgage  Loan,  if the  Depositor  cannot  deliver the
original of the Mortgage, any assignment, modification,  assumption agreement or
preferred loan agreement (or copy thereof as permitted by Section  2.01(b)) with
evidence of recording  thereon  concurrently  with the execution and delivery of
this  Agreement  because of (i) a delay  caused by the public  recording  office
where such Mortgage, assignment, modification, assumption agreement or preferred
loan agreement as the case may be, has been delivered for recordation, or (ii) a
delay in the  receipt of certain  information  necessary  to prepare the related
assignments, the Depositor shall deliver or cause to be delivered to the Trustee
or the respective Custodian a copy of such Mortgage,  assignment,  modification,
assumption agreement or preferred loan agreement.

      The  Depositor  shall  promptly  cause to be recorded  in the  appropriate
public office for real  property  records the  Assignment  referred to in clause
(iii) of Section  2.01(b),  except (a) in states where, in an Opinion of Counsel
acceptable to the Master Servicer, such recording is not required to protect the
Trustee's  interests in the Mortgage  Loan or (b) if MERS is  identified  on the
Mortgage or on a properly recorded assignment of the Mortgage, as applicable, as
the  mortgagee  of record  solely as nominee  for  Residential  Funding  and its
successors and assigns.  If any Assignment is lost or returned unrecorded to the
Depositor  because  of  any  defect  therein,  the  Depositor  shall  prepare  a
substitute  Assignment  or cure such defect,  as the case may be, and cause such
Assignment to be recorded in accordance with this paragraph. The Depositor shall
promptly deliver or cause to be delivered to the applicable  person described in
Section  2.01(b),  any  Assignment  or substitute  Assignment  (or copy thereof)
recorded in connection with this paragraph, with evidence of recording indicated
thereon  upon  receipt  thereof  from the  public  recording  office or from the
related Subservicer or Seller.

      If the Depositor delivers to the Trustee or Custodian any Mortgage Note or
Assignment  of  Mortgage  in blank,  the  Depositor  shall,  or shall  cause the
Custodian to,  complete the  endorsement of the Mortgage Note and the Assignment
of  Mortgage  in the  name  of the  Trustee  in  conjunction  with  the  Interim
Certification issued by the Custodian, as contemplated by Section 2.02.

      In connection  with the assignment of any Mortgage Loan  registered on the
MERS(R)  System,  the  Depositor  further  agrees  that  it will  cause,  at the
Depositor's  own expense,  within 30 Business Days after the Closing  Date,  the
MERS(R)  System to indicate that such  Mortgage  Loans have been assigned by the
Depositor to the Trustee in  accordance  with this  Agreement for the benefit of
the  Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this

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Agreement) in such computer files (a) the code in the field which identifies the
specific Trustee and (b) the code in the field "Pool Field" which identifies the
series of the  Certificates  issued in connection with such Mortgage Loans.  The
Depositor  further  agrees  that it will not,  and will not  permit  the  Master
Servicer to, and the Master  Servicer  agrees that it will not,  alter the codes
referenced in this  paragraph  with respect to any Mortgage Loan during the term
of this  Agreement  unless  and  until  such  Mortgage  Loan is  repurchased  in
accordance with the terms of this Agreement.

      (d) It is intended that the conveyances by the Depositor to the Trustee of
the Mortgage  Loans as provided for in this Section 2.01 and the  Uncertificated
Regular  Interests be construed as a sale by the Depositor to the Trustee of the
Mortgage Loans and the  Uncertificated  Regular Interests for the benefit of the
Certificateholders.  Further,  it is not intended  that any such  conveyance  be
deemed  to be a pledge of the  Mortgage  Loans  and the  Uncertificated  Regular
Interests by the  Depositor to the Trustee to secure a debt or other  obligation
of the Depositor.  Nonetheless,  (a) this Agreement is intended to be and hereby
is a security  agreement  within the meaning of Articles 8 and 9 of the New York
Uniform  Commercial Code and the Uniform Commercial Code of any other applicable
jurisdiction;  (b) the  conveyances  provided  for in this Section 2.01 shall be
deemed to be (1) a grant by the Depositor to the Trustee of a security  interest
in all of the Depositor's  right  (including the power to convey title thereto),
title and interest,  whether now owned or hereafter acquired,  in and to (A) the
Mortgage Loans, including the related Mortgage Note, the Mortgage, any insurance
policies and all other  documents in the related  Mortgage File, (B) all amounts
payable pursuant to the Mortgage Loans in accordance with the terms thereof, (C)
any  Uncertificated  Regular  Interests  and any and  all  general  intangibles,
payment intangibles,  accounts,  chattel paper, instruments,  documents,  money,
deposit accounts,  certificates of deposit, goods, letters of credit, advices of
credit  and  investment   property  and  other  property  of  whatever  kind  or
description  now existing or hereafter  acquired  consisting of, arising from or
relating  to any of the  foregoing,  and (D)  all  proceeds  of the  conversion,
voluntary or involuntary, of the foregoing into cash, instruments, securities or
other property,  including without limitation all amounts from time to time held
or invested in the Certificate Account or the Custodial Account,  whether in the
form of cash, instruments, securities or other property and (2) an assignment by
the  Depositor  to the  Trustee  of any  security  interest  in any  and  all of
Residential Funding's right (including the power to convey title thereto), title
and interest,  whether now owned or hereafter  acquired,  in and to the property
described  in the  foregoing  clauses  (1)(A),  (B),  (C)  and  (D)  granted  by
Residential Funding to the Depositor pursuant to the Assignment  Agreement;  (c)
the  possession by the Trustee,  the Custodian or any other agent of the Trustee
of Mortgage  Notes or such other items of  property as  constitute  instruments,
money,  payment  intangibles,  negotiable  documents,  goods,  deposit accounts,
letters  of  credit,  advices  of  credit,  investment  property,   certificated
securities  or chattel  paper shall be deemed to be  "possession  by the secured
party," or  possession  by a purchaser  or a person  designated  by such secured
party,  for  purposes  of  perfecting  the  security  interest  pursuant  to the
Minnesota Uniform  Commercial Code and the Uniform  Commercial Code of any other
applicable jurisdiction as in effect (including, without limitation,  Sections 8
106, 9 313 and 9 106 thereof);  and (d)  notifications  to persons  holding such
property,  and  acknowledgments,  receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, securities intermediaries,  bailees or agents of, or persons
holding  for, (as  applicable)  the Trustee for the purpose of  perfecting  such
security interest under applicable law.

      The Depositor and, at the Depositor's  direction,  Residential Funding and
the Trustee  shall,  to the extent  consistent  with this  Agreement,  take such
reasonable  actions as may be necessary to ensure that, if this  Agreement  were
deemed  to  create  a  security   interest  in  the   Mortgage   Loans  and  the
Uncertificated  Regular  Interests and the other property  described above, such
security  interest would be deemed to be a perfected  security interest of first
priority under applicable law and will be maintained as such throughout the term
of this  Agreement.  Without  limiting  the  generality  of the  foregoing,  the
Depositor  shall  prepare and deliver to the Trustee not less than 15 days prior
to any filing date and, the Trustee shall forward for filing,  or shall cause to
be forwarded for filing, at the expense of the Depositor,  all filings necessary
to

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maintain the  effectiveness of any original filings  necessary under the Uniform
Commercial  Code as in effect  in any  jurisdiction  to  perfect  the  Trustee's
security  interest  in or  lien on the  Mortgage  Loans  and the  Uncertificated
Regular  Interests,  as evidenced by an Officers'  Certificate of the Depositor,
including  without  limitation (x) continuation  statements,  and (y) such other
statements  as may be  occasioned  by (1) any  change  of  name  of  Residential
Funding,  the Depositor or the Trustee (such  preparation and filing shall be at
the expense of the Trustee,  if occasioned  by a change in the Trustee's  name),
(2) any  change of  location  of the place of  business  or the chief  executive
office of Residential Funding or the Depositor, (3) any transfer of any interest
of Residential Funding or the Depositor in any Mortgage Loan or (4) any transfer
of any interest of  Residential  Funding or the Depositor in any  Uncertificated
Regular Interests.

      Section 2.02.   Acceptance by Trustee.

      The Trustee  acknowledges  receipt  (or,  with  respect to Mortgage  Loans
subject  to  a  Custodial  Agreement,   and  based  solely  upon  a  receipt  or
certification executed by the Custodian,  receipt by the respective Custodian as
the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(b)(i)  above  (except  that for  purposes of such  acknowledgement  only, a
Mortgage  Note may be endorsed in blank and an  Assignment of Mortgage may be in
blank) and declares that it, or the Custodian as its agent,  holds and will hold
such  documents  and the other  documents  constituting  a part of the Custodial
Files  delivered  to it, or a Custodian  as its agent,  in trust for the use and
benefit of all present and future  Certificateholders.  The Trustee or Custodian
(the Custodian being so obligated under a Custodial  Agreement)  agrees, for the
benefit of  Certificateholders,  to review each  Custodial  File delivered to it
pursuant to Section  2.01(b)  within 90 days after the Closing Date to ascertain
that all required documents (specifically as set forth in Section 2.01(b)), have
been executed and received, and that such documents relate to the Mortgage Loans
identified  on the  Mortgage  Loan  Schedule,  as  supplemented,  that have been
conveyed  to it, and to  deliver  to the  Trustee a  certificate  (the  "Interim
Certification")  to the  effect  that all  documents  required  to be  delivered
pursuant to Section  2.01(b) above have been executed and received and that such
documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
except  for any  exceptions  listed  on  Schedule  A  attached  to such  Interim
Certification.  Upon  delivery of the  Custodial  Files by the  Depositor or the
Master  Servicer,  the Trustee  shall  acknowledge  receipt (or, with respect to
Mortgage Loans subject to a Custodial Agreement, and based solely upon a receipt
or certification executed by the Custodian,  receipt by the respective Custodian
as the duly  appointed  agent of the  Trustee) of the  documents  referred to in
Section 2.01(b) above.

      If the Custodian,  as the Trustee's agent, finds any document or documents
constituting a part of a Custodial File to be missing or defective, upon receipt
of notification from the Custodian as specified in the succeeding sentence,  the
Trustee  shall  promptly so notify or cause the  Custodian  to notify the Master
Servicer and the Depositor.  Pursuant to Section 2.3 of the Custodial Agreement,
the Custodian will notify the Master Servicer,  the Depositor and the Trustee of
any such omission or defect found by it in respect of any Custodial File held by
it in respect of the items  received by it pursuant to the Custodial  Agreement.
If such omission or defect materially and adversely affects the interests in the
related  Mortgage  Loan of the  Certificateholders,  the Master  Servicer  shall
promptly notify the related Subservicer or Seller of such omission or defect and
request that such  Subservicer or Seller correct or cure such omission or defect
within 60 days from the date the Master  Servicer was notified of such  omission
or defect  and,  if such  Subservicer  or Seller  does not  correct or cure such
omission or defect within such period,  that such Subservicer or Seller purchase
such  Mortgage  Loan from the Trust Fund at its Purchase  Price,  in either case
within 90 days from the date the Master  Servicer was notified of such  omission
or defect; provided that if the omission or defect would cause the Mortgage Loan
to be other than a "qualified  mortgage" as defined in Section 860G(a)(3) of the
Code,  any such cure or repurchase  must occur within 90 days from the date such
breach was  discovered.  The Purchase  Price for any such Mortgage Loan shall be
deposited  or caused to be  deposited  by the Master  Servicer in the  Custodial
Account maintained by it pursuant to

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Section 3.07 and,  upon receipt by the Trustee of written  notification  of such
deposit signed by a Servicing Officer,  the Master Servicer,  the Trustee or the
Custodian,  as the  case may be,  shall  release  the  contents  of any  related
Mortgage  File in its  possession  to the owner of such  Mortgage  Loan (or such
owner's  designee) and the Trustee shall execute and deliver such instruments of
transfer or  assignment  prepared by the Master  Servicer,  in each case without
recourse,  as shall be  necessary  to vest in the  Subservicer  or Seller or its
designee,  as the case may be, any Mortgage  Loan released  pursuant  hereto and
thereafter  such  Mortgage  Loan  shall  not be  part  of  the  Trust  Fund.  In
furtherance  of the foregoing and Section 2.04, if the  Subservicer or Seller or
Residential  Funding that  repurchases the Mortgage Loan is not a member of MERS
and the Mortgage is registered on the MERS(R) System,  the Master  Servicer,  at
its own  expense and  without  any right of  reimbursement,  shall cause MERS to
execute and deliver an assignment of the Mortgage in recordable form to transfer
the Mortgage from MERS to such Subservicer or Seller or Residential  Funding and
shall cause such Mortgage to be removed from  registration on the MERS(R) System
in accordance with MERS' rules and regulations. It is understood and agreed that
the obligation of the Subservicer or Seller, to so cure or purchase any Mortgage
Loan as to which a material and adverse  defect in or omission of a  constituent
document  exists  shall  constitute  the sole remedy  respecting  such defect or
omission   available  to   Certificateholders   or  the  Trustee  on  behalf  of
Certificateholders.

      Section  2.03.  Representations,  Warranties  and  Covenants of the Master
                      Servicer and the Depositor.

      (a) The Master Servicer hereby  represents and warrants to the Trustee for
the benefit of the Certificateholders that as of the Closing Date:

      (i) The Master  Servicer is a limited  liability  company duly  organized,
validly  existing and in good standing under the laws governing its creation and
existence and is or will be in  compliance  with the laws of each state in which
any  Mortgaged  Property  is  located  to the  extent  necessary  to ensure  the
enforceability  of each  Mortgage  Loan in  accordance  with  the  terms of this
Agreement;

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

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

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

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<PAGE>

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

      (vi) The Master  Servicer  shall  comply in all  material  respects in the
performance of this Agreement with all reasonable rules and requirements of each
insurer under each Required Insurance Policy;

      (vii) No information,  certificate of an officer,  statement  furnished in
writing or report delivered to the Depositor,  any Affiliate of the Depositor or
the  Trustee  by the  Master  Servicer  will,  to the  knowledge  of the  Master
Servicer,  contain any untrue  statement  of a material  fact or omit a material
fact  necessary to make the  information,  certificate,  statement or report not
misleading;

      (viii) The Master  Servicer has examined each  existing,  and will examine
each  new,  Subservicing  Agreement  and is or will be  familiar  with the terms
thereof. The terms of each existing  Subservicing  Agreement and each designated
Subservicer  are  acceptable  to the Master  Servicer  and any new  Subservicing
Agreements will comply with the provisions of Section 3.02;

      (ix) The Master  Servicer is a member of MERS in good  standing,  and will
comply  in all  material  respects  with the  rules  and  procedures  of MERS in
connection  with the servicing of the Mortgage  Loans that are  registered  with
MERS; and

      (x)  The  Servicing  Guide  of  the  Master  Servicer  requires  that  the
Subservicer  for each  Mortgage Loan  accurately  and fully reports its borrower
credit files to each of the Credit Repositories in a timely manner.

      It is understood  and agreed that the  representations  and warranties set
forth in this Section 2.03(a) shall survive delivery of the respective Custodial
Files to the Trustee or the  Custodian.  Upon discovery by either the Depositor,
the  Master  Servicer,  the  Trustee  or  the  Custodian  of  a  breach  of  any
representation  or warranty set forth in this Section  2.03(a) which  materially
and adversely  affects the interests of the  Certificateholders  in any Mortgage
Loan, the party  discovering such breach shall give prompt written notice to the
other parties (the Custodian  being so obligated  under a Custodial  Agreement).
Within 90 days of its  discovery  or its receipt of notice of such  breach,  the
Master  Servicer  shall either (i) cure such breach in all material  respects or
(ii) to the extent  that such  breach is with  respect  to a Mortgage  Loan or a
related  document,  purchase  such  Mortgage  Loan  from the  Trust  Fund at the
Purchase Price and in the manner set forth in Section 2.02; provided that if the
breach would cause the Mortgage Loan to be other than a "qualified  mortgage" as
defined in Section  860G(a)(3)  of the Code,  any such cure or  repurchase  must
occur within 90 days from the date such breach was discovered. The obligation of
the Master  Servicer to cure such breach or to so purchase  such  Mortgage  Loan
shall constitute the sole remedy in respect of a breach of a representation  and
warranty set forth in this Section 2.03(a)  available to the  Certificateholders
or the Trustee on behalf of the Certificateholders.

      (b) The Depositor  hereby  represents  and warrants to the Trustee for the
benefit of the Certificateholders  that as of the Closing Date (or, if otherwise
specified  below,  as of the date so specified):  (i)  immediately  prior to the
conveyance  of the Mortgage  Loans to the Trustee,  the Depositor had good title
to, and was the sole owner of, each  Mortgage Loan free and clear of any pledge,
lien,  encumbrance  or security  interest  (other than rights to  servicing  and
related  compensation) and such conveyance  validly  transfers  ownership of the
Mortgage Loans to the Trustee free and clear of any pledge, lien, encumbrance or
security  interest;  and  (ii)  each  Mortgage  Loan  constitutes  a  "qualified
mortgage"  under  Section  860G(a)(3)(A)  of the  Code and  Treasury  Regulation
Section 1.860G 2(a)(1), (2), (4), (5), (6), (7) and (9), without reliance on the
provisions of Treasury Regulation Section 1.860G

                                       50
<PAGE>

2(a)(3) or Treasury  Regulation  Section 1.860G  2(f)(2) or any other  provision
that  would  allow a  Mortgage  Loan to be  treated  as a  "qualified  mortgage"
notwithstanding its failure to meet the requirements of Section 860G(a)(3)(A) of
the Code and Treasury Regulation Section 1.860G 2(a)(1), (2), (4), (5), (6), (7)
and (9).

      It is understood  and agreed that the  representations  and warranties set
forth in this Section 2.03(b) shall survive delivery of the respective Custodial
Files to the Trustee or the Custodian.

      Upon discovery by any of the Depositor,  the Master Servicer,  the Trustee
or the Custodian of a breach of any of the  representations  and  warranties set
forth in this  Section  2.03(b)  which  materially  and  adversely  affects  the
interests of the  Certificateholders in any Mortgage Loan, the party discovering
such breach shall give prompt written notice to the other parties (the Custodian
being so obligated under a Custodial Agreement);  provided, however, that in the
event of a breach  of the  representation  and  warranty  set  forth in  Section
2.03(b)(ii),  the party  discovering  such breach shall give such notice  within
five days of discovery. Within 90 days of its discovery or its receipt of notice
of breach,  the  Depositor  shall  either (i) cure such  breach in all  material
respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in Section  2.02;  provided that the Depositor
shall have the option to  substitute  a Qualified  Substitute  Mortgage  Loan or
Loans  for such  Mortgage  Loan if such  substitution  occurs  within  two years
following the Closing Date;  provided that if the omission or defect would cause
the Mortgage Loan to be other than a "qualified  mortgage" as defined in Section
860G(a)(3) of the Code,  any such cure,  substitution  or repurchase  must occur
within 90 days from the date such breach was discovered.  Any such  substitution
shall be  effected  by the  Depositor  under the same  terms and  conditions  as
provided  in  Section  2.04 for  substitutions  by  Residential  Funding.  It is
understood  and agreed that the  obligation of the Depositor to cure such breach
or to so purchase or substitute  for any Mortgage Loan as to which such a breach
has occurred and is continuing shall constitute the sole remedy  respecting such
breach  available  to the  Certificateholders  or the  Trustee  on behalf of the
Certificateholders.  Notwithstanding  the foregoing,  the Depositor shall not be
required  to cure  breaches  or purchase or  substitute  for  Mortgage  Loans as
provided  in  this  Section  2.03(b)  if  the  substance  of  the  breach  of  a
representation  set forth above also constitutes fraud in the origination of the
Mortgage Loan.

      Section 2.04.   Representations and Warranties of Residential Funding.

      The  Depositor,  as assignee of  Residential  Funding under the Assignment
Agreement,   hereby   assigns   to  the   Trustee   for  the   benefit   of  the
Certificateholders  all of its  right,  title and  interest  in  respect  of the
Assignment  Agreement  applicable  to a  Mortgage  Loan as and to the extent set
forth in the Assignment  Agreement.  Insofar as the Assignment Agreement relates
to the  representations and warranties made by Residential Funding in respect of
such Mortgage Loan and any remedies  provided  thereunder for any breach of such
representations  and warranties,  such right, title and interest may be enforced
by the Master Servicer on behalf of the Trustee and the Certificateholders. Upon
the  discovery  by the  Depositor,  the  Master  Servicer,  the  Trustee  or the
Custodian of a breach of any of the  representations  and warranties made in the
Assignment  Agreement in respect of any Mortgage Loan or of any Repurchase Event
which materially and adversely  affects the interests of the  Certificateholders
in such  Mortgage  Loan,  the party  discovering  such breach  shall give prompt
written  notice to the other parties (the Custodian  being so obligated  under a
Custodial  Agreement).  The Master  Servicer shall promptly  notify  Residential
Funding of such breach or Repurchase Event and request that Residential  Funding
either (i) cure such breach or Repurchase Event in all material  respects within
90 days  from the date the  Master  Servicer  was  notified  of such  breach  or
Repurchase  Event or (ii) purchase such Mortgage Loan from the Trust Fund at the
Purchase Price and in the manner set forth in Section 2.02.

      Upon the discovery by the Depositor,  the Master Servicer,  the Trustee or
the  Custodian of a breach of any of such  representations  and  warranties  set
forth in the Assignment Agreement in respect of

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<PAGE>

any Mortgage Loan which  materially  and adversely  affects the interests of the
Certificateholders  in such Mortgage  Loan,  the party  discovering  such breach
shall give prompt written  notice to the other parties (the  Custodian  being so
obligated  under a Custodial  Agreement).  The Master  Servicer  shall  promptly
notify  Residential  Funding of such breach of a representation  or warranty set
forth in the Assignment  Agreement and request that  Residential  Funding either
(i) cure such breach in all material  respects  within 90 days from the date the
Master  Servicer was notified of such breach or (ii) purchase such Mortgage Loan
from the Trust Fund  within 90 days of the date of such  written  notice of such
breach at the  Purchase  Price and in the  manner  set  forth in  Section  2.02;
provided  that  Residential  Funding  shall  have the  option  to  substitute  a
Qualified  Substitute  Mortgage  Loan or Loans  for such  Mortgage  Loan if such
substitution  occurs within two years following the Closing Date;  provided that
if the  breach  would  cause the  Mortgage  Loan to be other  than a  "qualified
mortgage"  as  defined  in  Section  860G(a)(3)  of the  Code,  any such cure or
substitution  must occur within 90 days from the date the breach was discovered.
If the breach of representation and warranty that gave rise to the obligation to
repurchase or substitute a Mortgage Loan pursuant to Section 4 of the Assignment
Agreement  was the  representation  and  warranty  set forth in clause  (xlv) of
Section 4 thereof,  then the Master  Servicer  shall  request  that  Residential
Funding pay to the Trust Fund, concurrently with and in addition to the remedies
provided in the preceding sentence, an amount equal to any liability, penalty or
expense  that was  actually  incurred  and paid out of or on behalf of the Trust
Fund,  and that directly  resulted from such breach,  or if incurred and paid by
the Trust Fund  thereafter,  concurrently  with such payment.  In the event that
Residential Funding elects to substitute a Qualified Substitute Mortgage Loan or
Loans for a Deleted  Mortgage Loan  pursuant to this Section  2.04,  Residential
Funding shall  deliver to the Trustee for the benefit of the  Certificateholders
with respect to such Qualified  Substitute  Mortgage Loan or Loans, the original
Mortgage Note, the Mortgage,  an Assignment of the Mortgage in recordable  form,
and such other  documents and  agreements as are required by Section 2.01,  with
the Mortgage Note endorsed as required by Section 2.01. No substitution  will be
made in any calendar month after the Determination Date for such month.  Monthly
Payments due with respect to Qualified Substitute Mortgage Loans in the month of
substitution  shall not be part of the Trust  Fund and will be  retained  by the
Master  Servicer and remitted by the Master  Servicer to Residential  Funding on
the  next  succeeding   Distribution   Date.  For  the  month  of  substitution,
distributions to the Certificateholders  will include the Monthly Payment due on
a Deleted Mortgage Loan for such month and thereafter  Residential Funding shall
be entitled to retain all amounts  received in respect of such Deleted  Mortgage
Loan.  The Master  Servicer shall amend or cause to be amended the Mortgage Loan
Schedule  for the  benefit of the  Certificateholders  to reflect the removal of
such Deleted  Mortgage Loan and the  substitution  of the  Qualified  Substitute
Mortgage  Loan or Loans  and the  Master  Servicer  shall  deliver  the  amended
Mortgage Loan  Schedule to the Trustee.  Upon such  substitution,  the Qualified
Substitute  Mortgage  Loan or  Loans  shall  be  subject  to the  terms  of this
Agreement and the related  Subservicing  Agreement in all respects,  Residential
Funding shall be deemed to have made the  representations  and  warranties  with
respect  to the  Qualified  Substitute  Mortgage  Loan  (other  than  those of a
statistical  nature)  contained  in the  Assignment  Agreement as of the date of
substitution,  and the  covenants,  representations  and warranties set forth in
this Section 2.04, and in Section 2.03(b) hereof.

      In connection with the  substitution  of one or more Qualified  Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer shall
determine  the amount (if any) by which the aggregate  principal  balance of all
such Qualified  Substitute Mortgage Loans as of the date of substitution is less
than the aggregate Stated  Principal  Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments
due  in  the  month  of   substitution   that  are  to  be  distributed  to  the
Certificateholders  in the month of  substitution).  Residential  Funding  shall
deposit or cause the related Seller to deposit the amount of such shortfall into
the  Custodial  Account on the day of  substitution,  without any  reimbursement
therefor.  Residential  Funding  shall give  notice in writing to the Trustee of
such event, which notice shall be accompanied by an Officers'  Certificate as to
the  calculation  of such  shortfall  and  (subject to Section  10.01(f))  by an
Opinion of Counsel to the effect that such  substitution  will not cause (a) any
federal tax to be imposed on the Trust Fund, including without

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<PAGE>

limitation,  any federal tax imposed on "prohibited  transactions" under Section
860F(a)(1)  of the Code or on  "contributions  after  the  startup  date"  under
Section 860G(d)(1) of the Code or (b) any portion of any REMIC created hereunder
to fail to qualify as a REMIC at any time that any Certificate is outstanding.

      It is  understood  and  agreed  that  the  obligation  of  the  Seller  or
Residential Funding, as the case may be, to cure such breach or purchase (and in
the case of  Residential  Funding to  substitute  for) such  Mortgage Loan as to
which such a breach has occurred and is  continuing  and to make any  additional
payments required under the Assignment  Agreement in connection with a breach of
the  representation  and warranty in clause  (xlvii) of Section 4 thereof  shall
constitute   the  sole  remedy   respecting   such  breach   available   to  the
Certificateholders  or the Trustee on behalf of the  Certificateholders.  If the
Master  Servicer is  Residential  Funding,  then the Trustee shall also have the
right to give the notification and require the purchase or substitution provided
for in the  second  preceding  paragraph  in the  event  of such a  breach  of a
representation  or  warranty  made  by  Residential  Funding  in the  Assignment
Agreement.  In  connection  with the  purchase of or  substitution  for any such
Mortgage Loan by  Residential  Funding,  the Trustee shall assign to Residential
Funding  all of the  right,  title  and  interest  in  respect  of the  Seller's
Agreement and the Assignment Agreement applicable to such Mortgage Loan.

      Section 2.05.   Execution  and  Authentication of Certificates; Conveyance
                      of REMIC I Regular Interests.

      (a) The Trustee  acknowledges  the  assignment to it of the Mortgage Loans
and the delivery of the  Custodial  Files to it, or the Custodian on its behalf,
subject to any exceptions noted, together with the assignment to it of all other
assets  included  in the Trust  Fund,  receipt of which is hereby  acknowledged.
Concurrently with such delivery and in exchange therefor, the Trustee,  pursuant
to the written request of the Depositor executed by an officer of the Depositor,
has executed and caused to be  authenticated  and delivered to or upon the order
of the Depositor the  [Certificates in authorized  denominations  which evidence
ownership of the entire Trust Fund.]

      (b) [The Depositor,  concurrently  with the execution and delivery hereof,
does hereby  transfer,  assign,  set over and  otherwise  convey in trust to the
Trustee without  recourse all the right,  title and interest of the Depositor in
and to the REMIC I Regular  Interests  for the  benefit  of the  holders  of the
Regular  Certificates and the Class R-II certificates.  The Trustee acknowledges
receipt of the REMIC I Regular Interests (each of which are  uncertificated) and
declares that it holds and will hold the same in trust for the exclusive use and
benefit  of  the  holders  of  the  Regular  Certificates  and  the  Class  R-II
Certificates.  The interests  evidenced by the Class R-II Certificate,  together
with the  Regular  Certificates,  constitute  the  entire  beneficial  ownership
interest in REMIC II.]

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<PAGE>

      Section 2.06.   Purposes and Powers of the Trust.

      The  purpose  of the  trust,  as  created  hereunder,  is to engage in the
following activities:

      (a) to sell the Certificates to the Depositor in exchange for the Mortgage
Loans;

      (b) to enter into and perform its obligations under this Agreement;

      (c) to  engage  in  those  activities  that  are  necessary,  suitable  or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith; and

      (d) subject to  compliance  with this  Agreement,  to engage in such other
activities as may be required in connection with  conservation of the Trust Fund
and the making of distributions to the Certificateholders.

      The trust is hereby  authorized  to  engage in the  foregoing  activities.
Notwithstanding  the provisions of Section 11.01,  the trust shall not engage in
any  activity  other  than in  connection  with the  foregoing  or other than as
required or authorized by the terms of this Agreement  while any  Certificate is
outstanding,  and this Section  2.06 may not be amended,  without the consent of
the  Certificateholders  evidencing a majority of the aggregate Voting Rights of
the Certificates.

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<PAGE>

                                  ARTICLE III

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

      Section 3.01.   Master Servicer to Act as Servicer.

      (a) The Master Servicer shall service and administer the Mortgage Loans in
accordance  with the terms of this Agreement and the respective  Mortgage Loans,
following such procedures as it would employ in its good faith business judgment
and which are normal and usual in its general mortgage servicing activities, and
shall have full power and  authority,  acting alone or through  Subservicers  as
provided in Section 3.02,  to do any and all things which it may deem  necessary
or desirable in  connection  with such  servicing  and  administration.  Without
limiting the generality of the foregoing, the Master Servicer in its own name or
in the name of a Subservicer  is hereby  authorized and empowered by the Trustee
when the Master  Servicer or the  Subservicer,  as the case may be,  believes it
appropriate  in its best  judgment,  to execute  and  deliver,  on behalf of the
Certificateholders  and the Trustee or any of them,  any and all  instruments of
satisfaction or cancellation,  or of partial or full release or discharge, or of
consent to assumption or modification in connection with a proposed  conveyance,
or of  assignment  of any  Mortgage  and Mortgage  Note in  connection  with the
repurchase  of a Mortgage  Loan and all other  comparable  instruments,  or with
respect to the  modification  or  re-recording  of a Mortgage for the purpose of
correcting the Mortgage,  the subordination of the lien of the Mortgage in favor
of a public utility company or government  agency or unit with powers of eminent
domain,  the  taking  of a  deed  in  lieu  of  foreclosure,  the  commencement,
prosecution  or  completion  of  judicial  or  non-judicial   foreclosure,   the
conveyance of a Mortgaged  Property to the related  insurer,  the acquisition of
any property  acquired by  foreclosure  or deed in lieu of  foreclosure,  or the
management,  marketing and conveyance of any property acquired by foreclosure or
deed in lieu of foreclosure  with respect to the Mortgage Loans and with respect
to the Mortgaged  Properties.  The Master  Servicer  further is  authorized  and
empowered by the Trustee, on behalf of the  Certificateholders  and the Trustee,
in its own name or in the name of the  Subservicer,  when the Master Servicer or
the  Subservicer,  as the case may be,  believes it is  appropriate  in its best
judgment to register  any  Mortgage  Loan on the  MERS(R)  System,  or cause the
removal from the  registration  of any Mortgage Loan on the MERS(R)  System,  to
execute and deliver, on behalf of the Trustee and the  Certificateholders or any
of them, any and all instruments of assignment and other comparable  instruments
with respect to such  assignment  or  re-recording  of a Mortgage in the name of
MERS,  solely as nominee for the Trustee and its  successors  and  assigns.  Any
expenses  incurred in  connection  with the actions  described in the  preceding
sentence  shall be borne by the  Master  Servicer  in  accordance  with  Section
3.16(c), with no right of reimbursement;  provided, that if, as a result of MERS
discontinuing  or becoming unable to continue  operations in connection with the
MERS(R)  System,   it  becomes  necessary  to  remove  any  Mortgage  Loan  from
registration  on the  MERS(R)  System and to arrange for the  assignment  of the
related   Mortgages  to  the  Trustee,   then  any  related  expenses  shall  be
reimbursable  to the  Master  Servicer  as set  forth  in  Section  3.10(a)(ii).
Notwithstanding the foregoing,  subject to Section 3.07(a),  the Master Servicer
shall not permit any  modification  with respect to any Mortgage Loan that would
both  constitute a sale or exchange of such  Mortgage Loan within the meaning of
Section  1001 of the  Code and any  proposed,  temporary  or  final  regulations
promulgated  thereunder (other than in connection with a proposed  conveyance or
assumption of such  Mortgage  Loan that is treated as a Principal  Prepayment in
Full pursuant to Section 3.13(d)  hereof) and cause any REMIC created  hereunder
to fail to qualify as a REMIC  under the Code.  The  Trustee  shall  furnish the
Master  Servicer  with any powers of attorney and other  documents  necessary or
appropriate to enable the Master Servicer to service and administer the Mortgage
Loans.  The  Trustee  shall not be liable  for any  action  taken by the  Master
Servicer  or any  Subservicer  pursuant  to such  powers  of  attorney  or other
documents.  In servicing and administering any Nonsubserviced Mortgage Loan, the
Master  Servicer  shall,  to the extent not  inconsistent  with this  Agreement,
comply with the Program Guide as if it were the originator of such Mortgage Loan
and had retained the servicing rights and obligations in respect thereof.

                                       55
<PAGE>

      If the Mortgage  relating to a Mortgage Loan did not have a lien senior to
the Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then
the Master Servicer, in such capacity,  may not consent to the placing of a lien
senior  to  that of the  Mortgage  on the  related  Mortgaged  Property.  If the
Mortgage  relating to a Mortgage  Loan had a lien senior to the Mortgage Loan on
the related Mortgaged Property as of the Cut-off Date, then the Master Servicer,
in such  capacity,  may consent to the  refinancing  of the prior  senior  lien,
provided that the following requirements are met:

            (i) (A) the  Mortgagor's  debt-to-income  ratio  resulting from such
refinancing is less than the original  debt-to-income  ratio as set forth on the
Mortgage  Loan  Schedule;  provided,  however,  that in no  instance  shall  the
resulting Combined Loan-to-Value Ratio ("Combined  Loan-to-Value Ratio") of such
Mortgage Loan be higher than that permitted by the Program Guide; or

            (B) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan
is no higher than the Combined  Loan-to-Value  Ratio prior to such  refinancing;
provided,  however,  if such  refinanced  mortgage  loan is a  "rate  and  term"
mortgage  loan  (meaning,  the  Mortgagor  does not  receive  any cash  from the
refinancing),  the  Combined  Loan-to-Value  Ratio may increase to the extent of
either (x) the reasonable  closing costs of such refinancing or (y) any decrease
in the value of the related  Mortgaged  Property,  if the  Mortgagor  is in good
standing as defined by the Program Guide;

            (ii)  the  interest  rate,  or,  in the case of an  adjustable  rate
existing  senior lien, the maximum  interest  rate, for the loan  evidencing the
refinanced senior lien is no more than 2.0% higher than the interest rate or the
maximum  interest rate, as the case may be, on the loan  evidencing the existing
senior lien immediately prior to the date of such refinancing; provided, however
(A) if the  loan  evidencing  the  existing  senior  lien  prior  to the date of
refinancing has an adjustable rate and the loan evidencing the refinanced senior
lien has a fixed rate, then the current interest rate on the loan evidencing the
refinanced  senior lien may be up to 2.0% higher than the then-current loan rate
of the loan  evidencing the existing  senior lien and (B) if the loan evidencing
the existing  senior lien prior to the date of refinancing  has a fixed rate and
the loan evidencing the refinanced  senior lien has an adjustable rate, then the
maximum interest rate on the loan evidencing the refinanced senior lien shall be
less than or equal to (x) the interest rate on the loan  evidencing the existing
senior lien prior to the date of refinancing plus (y) 2.0%; and

            (iii) the loan evidencing the refinanced  senior lien is not subject
to negative amortization.

      (b) The Master Servicer shall, to the extent consistent with the servicing
standards set forth herein,  take whatever actions as may be necessary to file a
claim under or enforce or allow the Trustee to file a claim under or enforce any
title  insurance  policy with respect to any Mortgage  Loan  including,  without
limitation,  joining in or causing any Seller or Subservicer (or any other party
in  possession  of any title  insurance  policy) to join in any claims  process,
negotiations,  actions or proceedings necessary to make a claim under or enforce
any title insurance  policy.  Notwithstanding  anything in this Agreement to the
contrary, the Master Servicer shall not (unless the Mortgagor is in default with
respect to the  Mortgage  Loan or such default is, in the judgment of the Master
Servicer,  reasonably  foreseeable) make or permit any modification,  waiver, or
amendment  of any term of any  Mortgage  Loan  that  would  both (i)  effect  an
exchange or  reissuance of such Mortgage Loan under Section 1001 of the Code (or
final, temporary or proposed Treasury regulations promulgated thereunder) (other
than in  connection  with a proposed  conveyance  or assumption of such Mortgage
Loan that is treated  as a  Principal  Prepayment  in Full  pursuant  to Section
3.13(d) hereof) and (ii) cause any REMIC formed  hereunder to fail to qualify as
a REMIC under the Code or the imposition of any tax on "prohibited transactions"
or "contributions" after the startup date under the REMIC Provisions.

                                       56
<PAGE>

      (c) In connection with servicing and administering the Mortgage Loans, the
Master  Servicer  and any  Affiliate  of the  Master  Servicer  (i) may  perform
services such as appraisals and brokerage services that are customarily provided
by Persons  other than  servicers  of mortgage  loans,  and shall be entitled to
reasonable  compensation  therefor in accordance with Section 3.10 and (ii) may,
at its own discretion and on behalf of the Trustee, obtain credit information in
the form of a "credit score" from a Credit Repository.

      (d) All costs  incurred  by the  Master  Servicer  or by  Subservicers  in
effecting the timely payment of taxes and assessments on the properties  subject
to the  Mortgage  Loans  shall  not,  for the  purpose  of  calculating  monthly
distributions to the Certificateholders,  be added to the amount owing under the
related Mortgage Loans,  notwithstanding that the terms of such Mortgage Loan so
permit,  and such costs shall be recoverable to the extent  permitted by Section
3.10(a)(ii).

      (e)  The  Master  Servicer  may  enter  into  one or  more  agreements  in
connection with the offering of pass-through  certificates  evidencing interests
in one or more of the  Certificates  providing  for the  payment  by the  Master
Servicer of amounts  received by the Master  Servicer as servicing  compensation
hereunder and required to cover certain  Prepayment  Interest  Shortfalls on the
Mortgage Loans, which payment obligation will thereafter be an obligation of the
Master Servicer hereunder.

      (f) The  relationship  of the Master Servicer (and of any successor to the
Master  Servicer)  to the  Depositor  under this  Agreement  is  intended by the
parties  to be  that  of an  independent  contractor  and  not  that  of a joint
venturer, partner or agent.

      (g) The Master  Servicer  shall  comply with the terms of Section 9 of the
Assignment Agreement.

      Section  3.02.  Subservicing   Agreements  Between  Master  Servicer   and
                      Subservicers; Enforcement of Subservicers' Obligations.

      (a) The Master  Servicer  may continue in effect  Subservicing  Agreements
entered into by Residential  Funding and Subservicers prior to the execution and
delivery of this Agreement,  and may enter into new Subservicing Agreements with
Subservicers,  for  the  servicing  and  administration  of all or  some  of the
Mortgage Loans. Each Subservicer shall be either (i) an institution the accounts
of which are  insured by the FDIC or (ii)  another  entity  that  engages in the
business of originating or servicing mortgage loans, and in either case shall be
authorized  to  transact  business  in the state or states in which the  related
Mortgaged  Properties  it is to  service  are  situated,  if and  to the  extent
required by applicable law to enable the  Subservicer to perform its obligations
hereunder and under the  Subservicing  Agreement,  and in either case shall be a
Freddie Mac, Fannie Mae or HUD approved mortgage servicer. Each Subservicer of a
Mortgage  Loan shall be  entitled  to receive  and  retain,  as  provided in the
related Subservicing Agreement and in Section 3.07, the related Subservicing Fee
from  payments of interest  received on such  Mortgage Loan after payment of all
amounts  required  to be  remitted  to the  Master  Servicer  in respect of such
Mortgage Loan. For any Mortgage Loan that is a Nonsubserviced Mortgage Loan, the
Master  Servicer  shall be entitled to receive and retain an amount equal to the
Subservicing  Fee from  payments  of  interest.  Unless  the  context  otherwise
requires,  references  in this  Agreement to actions taken or to be taken by the
Master  Servicer in servicing the Mortgage Loans include  actions taken or to be
taken by a  Subservicer  on behalf of the  Master  Servicer.  Each  Subservicing
Agreement will be upon such terms and  conditions as are generally  required by,
permitted by or consistent with the Program Guide and are not inconsistent  with
this Agreement and as the Master Servicer and the Subservicer have agreed.  With
the approval of the Master  Servicer,  a Subservicer  may delegate its servicing
obligations to third-party servicers, but such Subservicer will remain obligated
under the related Subservicing Agreement.  The Master Servicer and a Subservicer
may enter into amendments thereto or a different

                                       57
<PAGE>

form of  Subservicing  Agreement,  and the form  referred  to or included in the
Program  Guide is merely  provided  for  information  and shall not be deemed to
limit in any respect the  discretion  of the Master  Servicer to modify or enter
into  different  Subservicing  Agreements;  provided,  however,  that  any  such
amendments  or  different  forms  shall be  consistent  with and not violate the
provisions of either this Agreement or the Program Guide in a manner which would
materially  and adversely  affect the interests of the  Certificateholders.  The
Program  Guide and any other  Subservicing  Agreement  entered  into between the
Master Servicer and any Subservicer  shall require the Subservicer to accurately
and fully report its borrower credit files to each of the Credit Repositories in
a timely manner.

      (b) As part of its servicing  activities  hereunder,  the Master Servicer,
for the benefit of the Trustee  and the  Certificateholders,  shall use its best
reasonable  efforts to enforce the  obligations  of each  Subservicer  under the
related  Subservicing  Agreement  and of each Seller under the related  Seller's
Agreement,  to the extent that the  non-performance of any such obligation would
have a material  and  adverse  effect on a  Mortgage  Loan,  including,  without
limitation,  the  obligation to purchase a Mortgage Loan on account of defective
documentation,  as  described  in Section  2.02,  or on account of a breach of a
representation  or warranty,  as described in Section  2.04.  Such  enforcement,
including,  without limitation,  the legal prosecution of claims, termination of
Subservicing Agreements or Seller's Agreements, as appropriate,  and the pursuit
of other appropriate remedies,  shall be in such form and carried out to such an
extent and at such time as the Master  Servicer  would  employ in its good faith
business  judgment  and  which are  normal  and  usual in its  general  mortgage
servicing  activities.   The  Master  Servicer  shall  pay  the  costs  of  such
enforcement at its own expense, and shall be reimbursed therefor only (i) from a
general  recovery  resulting from such  enforcement to the extent,  if any, that
such recovery exceeds all amounts due in respect of the related Mortgage Loan or
(ii) from a specific  recovery of costs,  expenses or attorneys fees against the
party against whom such  enforcement is directed.  For purposes of clarification
only,  the parties  agree that the  foregoing  is not intended to, and does not,
limit the ability of the Master  Servicer to be reimbursed for expenses that are
incurred in connection  with the  enforcement of a Seller's  obligations and are
reimbursable pursuant to Section 3.10(a)(vii).

      Section 3.03.   Successor Subservicers.

      The Master  Servicer  shall be  entitled  to  terminate  any  Subservicing
Agreement  that may exist in  accordance  with the terms and  conditions of such
Subservicing  Agreement and without any limitation by virtue of this  Agreement;
provided,  however,  that  in the  event  of  termination  of  any  Subservicing
Agreement by the Master Servicer or the  Subservicer,  the Master Servicer shall
either act as servicer of the related Mortgage Loan or enter into a Subservicing
Agreement with a successor  Subservicer  which will be bound by the terms of the
related  Subservicing  Agreement.  If the Master  Servicer or any  Affiliate  of
Residential  Funding  acts as  servicer,  it will not assume  liability  for the
representations  and  warranties of the  Subservicer  which it replaces.  If the
Master  Servicer   enters  into  a  Subservicing   Agreement  with  a  successor
Subservicer,  the  Master  Servicer  shall use  reasonable  efforts  to have the
successor  Subservicer assume liability for the  representations  and warranties
made by the terminated Subservicer in respect of the related Mortgage Loans and,
in the event of any such  assumption  by the successor  Subservicer,  the Master
Servicer may, in the exercise of its business  judgment,  release the terminated
Subservicer from liability for such representations and warranties.

      Section 3.04.   Liability of the Master Servicer.

      Notwithstanding any Subservicing Agreement,  any of the provisions of this
Agreement relating to agreements or arrangements  between the Master Servicer or
a Subservicer  or reference to actions taken through a Subservicer or otherwise,
the Master  Servicer  shall  remain  obligated  and liable to the  Trustee,  and
Certificateholders  for the servicing and administering of the Mortgage Loans in
accordance  with the  provisions  of Section  3.01  without  diminution  of such
obligation or liability by virtue of such

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Subservicing Agreements or arrangements or by virtue of indemnification from the
Subservicer or the Depositor and to the same extent and under the same terms and
conditions as if the Master Servicer alone were servicing and  administering the
Mortgage  Loans.  The  Master  Servicer  shall be  entitled  to  enter  into any
agreement  with a  Subservicer  or  Seller  for  indemnification  of the  Master
Servicer  and nothing  contained in this  Agreement  shall be deemed to limit or
modify such indemnification.

      Section 3.05.   No Contractual Relationship Between Subservicer and
                      Trustee or Certificateholders.

      Any  Subservicing  Agreement  that  may be  entered  into  and  any  other
transactions or services  relating to the Mortgage Loans involving a Subservicer
in its capacity as such and not as an  originator  shall be deemed to be between
the  Subservicer   and  the  Master   Servicer   alone,   and  the  Trustee  and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights,  obligations,  duties or liabilities  with respect to the Subservicer in
its  capacity  as such  except  as set  forth in  Section  3.06.  The  foregoing
provision  shall  not in any way  limit a  Subservicer's  obligation  to cure an
omission or defect or to  repurchase  a Mortgage  Loan as referred to in Section
2.02 hereof.

      Section 3.06.   Assumption or Termination of Subservicing Agreements by
                      Trustee.

      (a) In the event the Master Servicer shall for any reason no longer be the
master servicer  (including by reason of an Event of Default),  the Trustee,  as
successor Master Servicer,  its designee or its successor shall thereupon assume
all of the rights and obligations of the Master Servicer under each Subservicing
Agreement  that may have been entered  into.  The  Trustee,  its designee or the
successor  servicer  for the Trustee  shall be deemed to have assumed all of the
Master Servicer's interest therein and to have replaced the Master Servicer as a
party to the  Subservicing  Agreement to the same extent as if the  Subservicing
Agreement  had been  assigned  to the  assuming  party  except  that the  Master
Servicer shall not thereby be relieved of any liability or obligations under the
Subservicing Agreement.

      (b) The Master  Servicer  shall,  upon  request of the  Trustee but at the
expense of the Master Servicer,  deliver to the assuming party all documents and
records  relating to each  Subservicing  Agreement  and the Mortgage  Loans then
being  serviced  and an  accounting  of  amounts  collected  and  held by it and
otherwise use its best efforts to effect the orderly and  efficient  transfer of
each Subservicing Agreement to the assuming party.

      Section 3.07.   Collection of Certain  Mortgage Loan Payments;  Deposits
                      to Custodial Account.

      (a) The Master  Servicer  shall  make  reasonable  efforts to collect  all
payments  called for under the terms and provisions of the Mortgage  Loans,  and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any related Primary  Insurance  Policy,  follow such
collection procedures as it would employ in its good faith business judgment and
which  are  normal  and  usual in its  general  mortgage  servicing  activities.
Consistent  with  the  foregoing,  the  Master  Servicer  may in its  discretion
(subject to the terms and conditions of the Assignment  Agreement) (i) waive any
late payment charge or any prepayment  charge or penalty  interest in connection
with the prepayment of a Mortgage Loan and (ii) extend the Due Date for payments
due on a Mortgage Loan in accordance with the Program Guide, provided,  however,
that the Master Servicer shall first determine that any such waiver or extension
will not  impair  the  coverage  of any  related  Primary  Insurance  Policy  or
materially  adversely affect the lien of the related  Mortgage.  Notwithstanding
anything in this Section to the contrary, the Master Servicer or any Subservicer
shall not enforce  any  prepayment  charge to the extent  that such  enforcement
would  violate any  applicable  law. In the event of any such  arrangement,  the
Master Servicer shall make timely  advances on the related  Mortgage Loan during
the  scheduled  period in  accordance  with the  amortization  schedule  of such
Mortgage Loan without modification thereof by reason

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of such arrangements unless otherwise agreed to by the Holders of the Classes of
Certificates affected thereby;  provided,  however, that no such extension shall
be made if any advance would be a  Nonrecoverable  Advance.  Consistent with the
terms of this Agreement,  the Master Servicer may also waive, modify or vary any
term of any Mortgage Loan or consent to the  postponement  of strict  compliance
with any such term or in any manner grant  indulgence to any Mortgagor if in the
Master  Servicer's  determination  such waiver,  modification,  postponement  or
indulgence   is   not    materially    adverse   to   the   interests   of   the
Certificateholders(taking  into account any  estimated  Realized Loss that might
result absent such action), provided,  however, that the Master Servicer may not
modify  materially  or permit  any  Subservicer  to modify  any  Mortgage  Loan,
including  without  limitation any  modification  that would change the Mortgage
Rate,  forgive the payment of any  principal or interest  (unless in  connection
with the  liquidation of the related  Mortgage Loan or except in connection with
prepayments to the extent that such  reamortization is not inconsistent with the
terms of the Mortgage  Loan),  capitalize any amounts owing on the Mortgage Loan
by adding such amount to the outstanding principal balance of the Mortgage Loan,
or extend the final  maturity date of such Mortgage  Loan,  unless such Mortgage
Loan is in default or, in the judgment of the Master  Servicer,  such default is
reasonably foreseeable. No such modification shall reduce the Mortgage Rate on a
Mortgage  Loan below the  greater of (A)  one-half  of the  Mortgage  Rate as in
effect on the Cut-off Date and (B) one-half of the Mortgage Rate as in effect on
the date of such  modification,  but not less than the sum of the  Servicing Fee
Rate and the per annum rate at which the  Subservicing  Fee  accrues.  The final
maturity  date for any Mortgage  Loan shall not be extended  beyond the Maturity
Date. Also, the aggregate  principal balance of all Reportable Modified Mortgage
Loans subject to Servicing  Modifications (measured at the time of the Servicing
Modification  and after giving effect to any Servicing  Modification)  can be no
more than five percent of the aggregate  principal balance of the Mortgage Loans
as of the Cut-off Date, provided,  that such limit may be increased from time to
time if each Rating Agency  provides  written  confirmation  that an increase in
excess  of that  limit  will not  reduce  the  rating  assigned  to any Class of
Certificates by such Rating Agency below the lower of the then-current rating or
the rating  assigned to such  Certificates as of the Closing Date by such Rating
Agency.  In  addition,  any  amounts  owing  on a  Mortgage  Loan  added  to the
outstanding principal balance of such Mortgage Loan must be fully amortized over
the term of such Mortgage Loan, and such amounts may be added to the outstanding
principal  balance of a Mortgage Loan only once during the life of such Mortgage
Loan.  Also,  the addition of such amounts  described in the preceding  sentence
shall be implemented in accordance with the Program Guide and may be implemented
only by  Subservicers  that have been  approved by the Master  Servicer for such
purposes.  In connection  with any  Curtailment  of a Mortgage  Loan, the Master
Servicer, to the extent not inconsistent with the terms of the Mortgage Note and
local law and  practice,  may permit the Mortgage Loan to be  re-amortized  such
that the Monthly  Payment is  recalculated as an amount that will fully amortize
the remaining  principal  balance thereof by the original maturity date based on
the original  Mortgage Rate;  provided,  that such  reamortization  shall not be
permitted if it would  constitute a reissuance  of the Mortgage Loan for federal
income tax purposes.

      (b) The Master Servicer shall  establish and maintain a Custodial  Account
in which the Master  Servicer  shall deposit or cause to be deposited on a daily
basis, except as otherwise  specifically provided herein, the following payments
and  collections  remitted by  Subservicers  or received by it in respect of the
Mortgage Loans  subsequent to the Cut-off Date (other than in respect of Monthly
Payments due before or in the month of the Cut-off Date):

            (i) All  payments  on  account  of  principal,  including  Principal
Prepayments made by Mortgagors on the Mortgage Loans and the principal component
of any Subservicer Advance or of any REO Proceeds received in connection with an
REO Property for which an REO Disposition has occurred;

            (ii) All  payments on account of interest at the  Adjusted  Mortgage
Rate on the Mortgage Loans,  including the interest component of any Subservicer
Advance or of any REO Proceeds  received in connection  with an REO Property for
which an REO Disposition has occurred;

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            (iii)  Insurance  Proceeds,  Subsequent  Recoveries and  Liquidation
Proceeds (net of any related expenses of the Subservicer);

            (iv) All  proceeds  of any  Mortgage  Loans  purchased  pursuant  to
Section 2.02,  2.03, 2.04 or 4.07 (including  amounts  received from Residential
Funding pursuant to the last paragraph of Section 4 of the Assignment  Agreement
in respect of any  liability,  penalty or expense that resulted from a breach of
the  representation and warranty set forth in clause (xlvii) of Section 4 of the
Assignment  Agreement)  and all amounts  required to be deposited in  connection
with the  substitution  of a  Qualified  Substitute  Mortgage  Loan  pursuant to
Section 2.03 or 2.04; and

            (v) Any amounts required to be deposited pursuant to Section 3.07(c)
and any payments or collections received in the nature of prepayment charges.

The  foregoing  requirements  for  deposit  in the  Custodial  Account  shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the foregoing, payments on the Mortgage Loans which are not part of the Trust
Fund  (consisting of Monthly  Payments due before or in the month of the Cut-off
Date)  and  payments  or  collections  consisting  of late  payment  charges  or
assumption  fees may but need not be  deposited  by the Master  Servicer  in the
Custodial  Account.  In the event any amount not required to be deposited in the
Custodial Account is so deposited,  the Master Servicer may at any time withdraw
such amount from the Custodial  Account,  any  provision  herein to the contrary
notwithstanding.  The Custodial  Account may contain funds that belong to one or
more trust funds created for mortgage pass-through  certificates of other series
and may contain other funds  respecting  payments on mortgage loans belonging to
the Master  Servicer or  serviced or master  serviced by it on behalf of others.
Notwithstanding  such  commingling  of funds,  the  Master  Servicer  shall keep
records that  accurately  reflect the funds on deposit in the Custodial  Account
that have been  identified by it as being  attributable  to the Mortgage  Loans.
With  respect  to  Insurance  Proceeds,   Liquidation  Proceeds,  REO  Proceeds,
Subsequent  Recoveries  and the proceeds of the  purchase of any  Mortgage  Loan
pursuant to Sections 2.02,  2.03,  2.04 and 4.07 received in any calendar month,
the Master Servicer may elect to treat such amounts as included in the Available
Distribution  Amount for the Distribution  Date in the month of receipt,  but is
not obligated to do so. If the Master  Servicer so elects,  such amounts will be
deemed to have been received  (and any related  Realized Loss shall be deemed to
have occurred) on the last day of the month prior to the receipt thereof.

      (c)  The  Master  Servicer  shall  use  its  best  efforts  to  cause  the
institution  maintaining  the  Custodial  Account  to  invest  the  funds in the
Custodial  Account  attributable to the Mortgage Loans in Permitted  Investments
which shall  mature not later than the  Certificate  Account  Deposit  Date next
following the date of such investment (with the exception of the Amount Held for
Future  Distribution)  and which shall not be sold or disposed of prior to their
maturities.  All income and gain realized from any such investment  shall be for
the benefit of the Master  Servicer as  additional  servicing  compensation  and
shall be subject to its withdrawal or order from time to time. The amount of any
losses  incurred  in  respect  of  any  such  investments  attributable  to  the
investment of amounts in respect of the Mortgage Loans shall be deposited in the
Custodial  Account by the Master  Servicer out of its own funds  immediately  as
realized.

      (d) The Master Servicer shall give notice to the Trustee and the Depositor
of any change in the location of the  Custodial  Account and the location of the
Certificate Account prior to the use thereof.

      Section 3.08.   Subservicing Accounts; Servicing Accounts.

      (a) In those  cases  where a  Subservicer  is  servicing  a Mortgage  Loan
pursuant  to a  Subservicing  Agreement,  the Master  Servicer  shall  cause the
Subservicer, pursuant to the Subservicing

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Agreement,  to establish and maintain one or more  Subservicing  Accounts  which
shall be an  Eligible  Account or, if such  account is not an Eligible  Account,
shall generally  satisfy the  requirements of the Program Guide and be otherwise
acceptable to the Master Servicer and each Rating Agency.  The Subservicer  will
be required  thereby to deposit into the  Subservicing  Account on a daily basis
all  proceeds  of  Mortgage  Loans  received  by  the   Subservicer,   less  its
Subservicing  Fees  and  unreimbursed  advances  and  expenses,  to  the  extent
permitted by the Subservicing  Agreement.  If the Subservicing Account is not an
Eligible  Account,  the Master  Servicer  shall be deemed to have  received such
monies upon receipt thereof by the  Subservicer.  The  Subservicer  shall not be
required to deposit in the  Subservicing  Account payments or collections in the
nature of late charges or assumption  fees, or payments or collections  received
in the  nature of  prepayment  charges  to the extent  that the  Subservicer  is
entitled to retain such amounts  pursuant to the Subservicing  Agreement.  On or
before the date specified in the Program  Guide,  but in no event later than the
Determination Date, the Master Servicer shall cause the Subservicer, pursuant to
the Subservicing  Agreement,  to remit to the Master Servicer for deposit in the
Custodial  Account all funds held in the  Subservicing  Account  with respect to
each Mortgage Loan serviced by such Subservicer that are required to be remitted
to the Master Servicer.  The Subservicer will also be required,  pursuant to the
Subservicing  Agreement, to advance on such scheduled date of remittance amounts
equal to any scheduled  monthly  installments of principal and interest less its
Subservicing  Fees on any Mortgage  Loans for which  payment was not received by
the  Subservicer.  This obligation to advance with respect to each Mortgage Loan
will continue up to and  including the first of the month  following the date on
which  the  related  Mortgaged  Property  is  sold at a  foreclosure  sale or is
acquired by the Trust Fund by deed in lieu of foreclosure or otherwise. All such
advances  received by the Master  Servicer shall be deposited  promptly by it in
the Custodial Account.

      (b) The  Subservicer  may also be required,  pursuant to the  Subservicing
Agreement,  to remit to the Master Servicer for deposit in the Custodial Account
interest at the Adjusted  Mortgage  Rate (or Modified Net Mortgage Rate plus the
rate per annum at which the  Servicing  Fee  accrues  in the case of a  Modified
Mortgage Loan) on any Curtailment  received by such  Subservicer in respect of a
Mortgage Loan from the related  Mortgagor during any month that is to be applied
by the  Subservicer  to reduce  the  unpaid  principal  balance  of the  related
Mortgage Loan as of the first day of such month, from the date of application of
such  Curtailment to the first day of the following month. Any amounts paid by a
Subservicer  pursuant to the preceding  sentence shall be for the benefit of the
Master Servicer as additional servicing compensation and shall be subject to its
withdrawal or order from time to time pursuant to Sections 3.10(a)(iv) and (v).

      (c) In addition to the Custodial Account and the Certificate  Account, the
Master Servicer shall for any Nonsubserviced  Mortgage Loan, and shall cause the
Subservicers  for Subserviced  Mortgage Loans to,  establish and maintain one or
more Servicing  Accounts and deposit and retain therein all collections from the
Mortgagors   (or  advances  from   Subservicers)   for  the  payment  of  taxes,
assessments,  hazard insurance premiums,  Primary Insurance Policy premiums,  if
applicable,  or  comparable  items  for  the  account  of the  Mortgagors.  Each
Servicing Account shall satisfy the requirements for a Subservicing Account and,
to the extent  permitted by the Program  Guide or as is otherwise  acceptable to
the Master Servicer, may also function as a Subservicing Account. Withdrawals of
amounts  related to the Mortgage  Loans from the Servicing  Accounts may be made
only to effect timely payment of taxes, assessments,  hazard insurance premiums,
Primary  Insurance  Policy  premiums,  if applicable,  or comparable  items,  to
reimburse the Master Servicer or Subservicer out of related  collections for any
payments made  pursuant to Sections 3.11 (with respect to the Primary  Insurance
Policy)  and  3.12(a)  (with  respect  to  hazard  insurance),  to refund to any
Mortgagors  any sums as may be  determined to be overages,  to pay interest,  if
required,  to Mortgagors  on balances in the  Servicing  Account or to clear and
terminate  the  Servicing  Account  at the  termination  of  this  Agreement  in
accordance with Section 9.01 or in accordance with the Program Guide. As part of
its servicing  duties,  the Master Servicer shall,  and the  Subservicers  will,

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pursuant to the  Subservicing  Agreements,  be required to pay to the Mortgagors
interest on funds in this account to the extent required by law.

      (d) The Master  Servicer  shall  advance the  payments  referred to in the
preceding  subsection  that are not timely paid by the Mortgagors or advanced by
the  Subservicers on the date when the tax, premium or other cost for which such
payment is  intended  is due,  but the Master  Servicer  shall be required so to
advance only to the extent that such advances, in the good faith judgment of the
Master  Servicer,  will be recoverable  by the Master  Servicer out of Insurance
Proceeds, Liquidation Proceeds or otherwise.

      Section 3.09.   Access to Certain  Documentation and Information
                      Regarding the Mortgage Loans.

      In the event that  compliance  with this Section 3.09 shall make any Class
of  Certificates  legal for  investment  by federally  insured  savings and loan
associations,  the Master Servicer shall provide,  or cause the  Subservicers to
provide,  to the Trustee,  the Office of Thrift  Supervision or the FDIC and the
supervisory  agents and examiners thereof access to the documentation  regarding
the Mortgage  Loans  required by applicable  regulations of the Office of Thrift
Supervision,  such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices designated by the Master
Servicer. The Master Servicer shall permit such representatives to photocopy any
such  documentation  and shall  provide  equipment  for that purpose at a charge
reasonably  approximating  the cost of such photocopying to the Master Servicer.
Section 3.10. Permitted Withdrawals from the Custodial Account.

      (a) The Master  Servicer may, from time to time as provided  herein,  make
withdrawals from the Custodial Account of amounts on deposit therein pursuant to
Section  3.07 that are  attributable  to the  Mortgage  Loans for the  following
purposes:

            (i) to make deposits into the Certificate Account in the amounts and
in the manner provided for in Section 4.01;

            (ii) to reimburse  itself or the related  Subservicer for previously
unreimbursed  Advances,  Servicing  Advances or other  expenses made pursuant to
Sections  3.01,  3.07(a),  3.08,  3.11,  3.12(a),  3.14  and  4.04 or  otherwise
reimbursable  pursuant to the terms of this  Agreement,  such  withdrawal  right
being limited to amounts received on the related Mortgage Loans (including,  for
this  purpose,  REO  Proceeds,  Insurance  Proceeds,  Liquidation  Proceeds  and
proceeds from the purchase of a Mortgage  Loan  pursuant to Section 2.02,  2.03,
2.04 or 4.07) which represent (A) Late Collections of Monthly Payments for which
any such  advance  was  made in the case of  Subservicer  Advances  or  Advances
pursuant to Section 4.04 and (B)  recoveries of amounts in respect of which such
advances were made in the case of Servicing Advances;

            (iii) to pay to itself or the related Subservicer (if not previously
retained  by  such  Subservicer)  out of each  payment  received  by the  Master
Servicer on account of interest on a Mortgage Loan as  contemplated  by Sections
3.14 and 3.16, an amount equal to that remaining  portion of any such payment as
to interest (but not in excess of the Servicing Fee and the Subservicing Fee, if
not previously  retained)  which,  when  deducted,  will result in the remaining
amount of such  interest  being  interest  at a rate per annum  equal to the Net
Mortgage Rate (or Modified Net Mortgage Rate in the case of a Modified  Mortgage
Loan) on the  amount  specified  in the  amortization  schedule  of the  related
Mortgage  Loan as the principal  balance  thereof at the beginning of the period
respecting  which such  interest  was paid after  giving  effect to any previous
Curtailments;

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<PAGE>

            (iv) to pay to  itself  as  additional  servicing  compensation  any
interest or investment income earned on funds and other property deposited in or
credited to the  Custodial  Account that it is entitled to withdraw  pursuant to
Section 3.07(c);

            (v)  to pay to  itself  as  additional  servicing  compensation  any
Foreclosure  Profits,  and any amounts  remitted by  Subservicers as interest in
respect of Curtailments pursuant to Section 3.08(b);

            (vi) to pay to itself, a Subservicer, a Seller, Residential Funding,
the Depositor or any other appropriate  Person, as the case may be, with respect
to each  Mortgage  Loan or property  acquired in respect  thereof  that has been
purchased or otherwise transferred pursuant to Section 2.02, 2.03, 2.04, 4.07 or
9.01,  all amounts  received  thereon  and not  required  to be  distributed  to
Certificateholders  as of the date on which the related Stated Principal Balance
or Purchase Price is determined;

            (vii)  to  reimburse  itself  or the  related  Subservicer  for  any
Nonrecoverable  Advance or Advances in the manner and to the extent  provided in
subsection  (c) below,  and any Advance or Servicing  Advance made in connection
with a modified  Mortgage  Loan that is in default  or, in the  judgment  of the
Master Servicer,  default is reasonably foreseeable pursuant to Section 3.07(a),
to the extent the amount of the  Advance or  Servicing  Advance was added to the
Stated Principal Balance of the Mortgage Loan in a prior calendar month;

            (viii) to reimburse itself or the Depositor for expenses incurred by
and reimbursable to it or the Depositor pursuant to Section 3.01(a), 3.11, 3.13,
3.14(c),  6.03,  10.01  or  otherwise,  or  in  connection  with  enforcing  any
repurchase, substitution or indemnification obligation of any Seller (other than
the Depositor or an Affiliate of the Depositor) pursuant to the related Seller's
Agreement;

            (ix) to reimburse  itself for amounts expended by it (a) pursuant to
Section  3.14 in good  faith in  connection  with the  restoration  of  property
damaged by an Uninsured  Cause,  and (b) in connection with the liquidation of a
Mortgage  Loan or  disposition  of an REO  Property to the extent not  otherwise
reimbursed pursuant to clause (ii) or (viii) above; and

            (x) to withdraw any amount  deposited in the Custodial  Account that
was not required to be deposited therein pursuant to Section 3.07, including any
payoff fees or penalties or any other  additional  amounts payable to the Master
Servicer or Subservicer pursuant to the terms of the Mortgage Note.

      (b) Since, in connection with withdrawals pursuant to clauses (ii), (iii),
(v)  and  (vi),  the  Master  Servicer's   entitlement  thereto  is  limited  to
collections  or other  recoveries  on the  related  Mortgage  Loan,  the  Master
Servicer  shall keep and maintain  separate  accounting,  on a Mortgage  Loan by
Mortgage  Loan basis,  for the purpose of  justifying  any  withdrawal  from the
Custodial Account pursuant to such clauses.

      (c) The Master  Servicer  shall be  entitled  to  reimburse  itself or the
related  Subservicer for any advance made in respect of a Mortgage Loan that the
Master Servicer determines to be a Nonrecoverable Advance by withdrawal from the
Custodial  Account of amounts on deposit  therein  attributable  to the Mortgage
Loans  on any  Certificate  Account  Deposit  Date  succeeding  the date of such
determination.  Such  right of  reimbursement  in  respect  of a  Nonrecoverable
Advance  relating  to an  Advance  made  pursuant  to  Section  4.04 on any such
Certificate Account Deposit Date shall be limited to an amount not exceeding the
portion  of  such  advance  previously  paid  to  Certificateholders   (and  not
theretofore reimbursed to the Master Servicer or the related Subservicer).

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      Section 3.11.   Maintenance of Primary Insurance Coverage.

      (a) The Master Servicer shall not take, or permit any Subservicer to take,
any action  which  would  result in  noncoverage  under any  applicable  Primary
Insurance  Policy of any loss which,  but for the actions of the Master Servicer
or Subservicer,  would have been covered  thereunder.  To the extent coverage is
available,  the Master Servicer shall keep or cause to be kept in full force and
effect each such Primary  Insurance  Policy until the  principal  balance of the
related Mortgage Loan secured by a Mortgaged  Property is reduced to 80% or less
of the Appraised Value at origination in the case of such a Mortgage Loan having
a  Loan-to-Value  Ratio at  origination  in  excess of 80%,  provided  that such
Primary  Insurance  Policy  was in place as of the  Cut-off  Date and the Master
Servicer had knowledge of such Primary  Insurance  Policy.  The Master  Servicer
shall not cancel or refuse to renew any such Primary Insurance Policy applicable
to a  Nonsubserviced  Mortgage Loan, or consent to any Subservicer  canceling or
refusing to renew any such Primary  Insurance  Policy  applicable  to a Mortgage
Loan subserviced by it, that is in effect at the date of the initial issuance of
the  Certificates  and is  required  to be kept in force  hereunder  unless  the
replacement  Primary Insurance Policy for such canceled or non-renewed policy is
maintained  with an insurer  whose  claims-paying  ability is acceptable to each
Rating Agency for mortgage pass-through certificates having a rating equal to or
better than the lower of the  then-current  rating or the rating assigned to the
Certificates as of the Closing Date by such Rating Agency.

      (b) In connection with its activities as administrator and servicer of the
Mortgage  Loans,  the Master  Servicer agrees to present or to cause the related
Subservicer to present,  on behalf of the Master Servicer,  the Subservicer,  if
any, the Trustee and Certificateholders, claims to the insurer under any Primary
Insurance Policies, in a timely manner in accordance with such policies, and, in
this  regard,  to take or cause to be taken such  reasonable  action as shall be
necessary to permit  recovery under any Primary  Insurance  Policies  respecting
defaulted  Mortgage  Loans.  Pursuant to Section 3.07,  any  Insurance  Proceeds
collected  by or remitted  to the Master  Servicer  under any Primary  Insurance
Policies  shall be deposited in the  Custodial  Account,  subject to  withdrawal
pursuant to Section 3.10.

      Section  3.12.  Maintenance of Fire Insurance and Omissions and Fidelity
                      Coverage.

      (a) The Master  Servicer  shall cause to be  maintained  for each Mortgage
Loan fire  insurance  with extended  coverage in an amount which is equal to the
lesser of the principal  balance owing on such Mortgage Loan  (together with the
principal  balance of any mortgage  loan secured by a lien that is senior to the
Mortgage  Loan) or 100% of the insurable  value of the  improvements;  provided,
however,  that such coverage may not be less than the minimum amount required to
fully  compensate  for any loss or damage on a  replacement  cost basis.  To the
extent it may do so without breaching the related  Subservicing  Agreement,  the
Master  Servicer  shall  replace  any  Subservicer  that  does  not  cause  such
insurance, to the extent it is available, to be maintained.  The Master Servicer
shall also cause to be maintained on property acquired upon foreclosure, or deed
in lieu of  foreclosure,  of any Mortgage  Loan,  fire  insurance  with extended
coverage in an amount  which is at least equal to the amount  necessary to avoid
the  application  of any  co-insurance  clause  contained in the related  hazard
insurance policy.  Pursuant to Section 3.07, any amounts collected by the Master
Servicer  under any such  policies  (other  than  amounts  to be  applied to the
restoration  or  repair of the  related  Mortgaged  Property  or  property  thus
acquired or amounts  released to the  Mortgagor  in  accordance  with the Master
Servicer's  normal  servicing  procedures)  shall be deposited in the  Custodial
Account,  subject to withdrawal  pursuant to Section 3.10.  Any cost incurred by
the Master Servicer in maintaining any such insurance shall not, for the purpose
of calculating  monthly  distributions  to  Certificateholders,  be added to the
amount  owing under the  Mortgage  Loan,  notwithstanding  that the terms of the
Mortgage Loan so permit.  Such costs shall be recoverable by the Master Servicer
out of related late payments by the  Mortgagor or out of Insurance  Proceeds and
Liquidation  Proceeds to the extent  permitted by Section 3.10. It is understood
and agreed that no earthquake or other additional insurance is to be required of
any Mortgagor or maintained on property

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<PAGE>

acquired in respect of a Mortgage  Loan other than  pursuant to such  applicable
laws and  regulations as shall at any time be in force and as shall require such
additional  insurance.  Whenever the  improvements  securing a Mortgage Loan are
located  at the  time of  origination  of  such  Mortgage  Loan  in a  federally
designated  special  flood hazard area,  the Master  Servicer  shall cause flood
insurance (to the extent  available) to be maintained in respect  thereof.  Such
flood  insurance  shall be in an amount  equal to the  lesser of (i) the  amount
required to  compensate  for any loss or damage to the  Mortgaged  Property on a
replacement  cost basis and (ii) the maximum amount of such insurance  available
for the related  Mortgaged  Property under the national flood insurance  program
(assuming  that  the  area in  which  such  Mortgaged  Property  is  located  is
participating in such program).

      In the event that the Master  Servicer shall obtain and maintain a blanket
fire insurance policy with extended  coverage  insuring against hazard losses on
all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its
obligations as set forth in the first sentence of this Section 3.12(a), it being
understood and agreed that such policy may contain a deductible clause, in which
case the Master  Servicer  shall,  in the event  that there  shall not have been
maintained on the related  Mortgaged  Property a policy complying with the first
sentence  of this  Section  3.12(a) and there shall have been a loss which would
have been covered by such policy,  deposit in the Certificate Account the amount
not  otherwise  payable  under the  blanket  policy  because of such  deductible
clause. Any such deposit by the Master Servicer shall be made on the Certificate
Account  Deposit Date next preceding the  Distribution  Date which occurs in the
month  following  the month in which  payments  under any such policy would have
been deposited in the Custodial  Account.  In connection  with its activities as
administrator  and servicer of the Mortgage Loans, the Master Servicer agrees to
present, on behalf of itself, the Trustee and  Certificateholders,  claims under
any such blanket policy.

      (b) The Master  Servicer  shall obtain and maintain at its own expense and
keep in full force and effect  throughout  the term of this  Agreement a blanket
fidelity bond and an errors and omissions  insurance  policy covering the Master
Servicer's  officers and  employees  and other  persons  acting on behalf of the
Master  Servicer in connection  with its activities  under this  Agreement.  The
amount  of  coverage  shall be at  least  equal to the  coverage  that  would be
required by Fannie Mae or Freddie Mac, whichever is greater, with respect to the
Master  Servicer if the Master  Servicer were  servicing and  administering  the
Mortgage Loans for Fannie Mae or Freddie Mac. In the event that any such bond or
policy  ceases to be in effect,  the Master  Servicer  shall obtain a comparable
replacement  bond or  policy  from an  issuer  or  insurer,  as the case may be,
meeting the  requirements,  if any, of the Program  Guide and  acceptable to the
Depositor. Coverage of the Master Servicer under a policy or bond obtained by an
Affiliate of the Master  Servicer and  providing  the coverage  required by this
Section 3.12(b) shall satisfy the requirements of this Section 3.12(b).

      Section  3.13.  Enforcement of Due-on-Sale Clauses; Assumption  and
                      Modification Agreements; Certain Assignments.

      (a) When any Mortgaged  Property is conveyed by the Mortgagor,  the Master
Servicer or  Subservicer,  to the extent it has  knowledge  of such  conveyance,
shall enforce any due-on-sale clause contained in any Mortgage Note or Mortgage,
to the extent permitted under applicable law and governmental  regulations,  but
only to the extent that such enforcement will not adversely affect or jeopardize
coverage under any Required Insurance Policy. Notwithstanding the foregoing: (i)
the  Master  Servicer  shall not be deemed to be in default  under this  Section
3.13(a) by reason of any  transfer or  assumption  which the Master  Servicer is
restricted by law from  preventing;  and (ii) if the Master Servicer  determines
that it is reasonably  likely that any Mortgagor will bring, or if any Mortgagor
does bring,  legal action to declare invalid or otherwise avoid enforcement of a
due-on-sale  clause  contained  in any  Mortgage  Note or  Mortgage,  the Master
Servicer shall not be required to enforce the  due-on-sale  clause or to contest
such action.

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<PAGE>

      (b)  Subject to the Master  Servicer's  duty to  enforce  any  due-on-sale
clause  to the  extent  set  forth in  Section  3.13(a),  in any case in which a
Mortgaged Property is to be conveyed to a Person by a Mortgagor, and such Person
is to enter into an  assumption or  modification  agreement or supplement to the
Mortgage Note or Mortgage which requires the signature of the Trustee,  or if an
instrument of release signed by the Trustee is required  releasing the Mortgagor
from liability on the Mortgage Loan, the Master Servicer is authorized,  subject
to the requirements of the sentence next following,  to execute and deliver,  on
behalf of the  Trustee,  the  assumption  agreement  with the Person to whom the
Mortgaged  Property  is  to be  conveyed  and  such  modification  agreement  or
supplement  to the  Mortgage  Note  or  Mortgage  or  other  instruments  as are
reasonable  or necessary to carry out the terms of the Mortgage Note or Mortgage
or otherwise to comply with any  applicable  laws  regarding  assumptions or the
transfer of the Mortgaged Property to such Person;  provided,  however,  none of
such terms and requirements  shall both constitute a "significant  modification"
effecting an exchange or  reissuance  of such  Mortgage  Loan under the Code (or
final,  temporary or proposed Treasury regulations  promulgated  thereunder) and
cause any REMIC  created  hereunder to fail to qualify as a REMIC under the Code
or the imposition of any tax on  "prohibited  transactions"  or  "contributions"
after the Startup Date under the REMIC  Provisions.  The Master  Servicer  shall
execute and deliver such documents only if it reasonably determines that (i) its
execution  and delivery  thereof will not conflict  with or violate any terms of
this  Agreement or cause the unpaid balance and interest on the Mortgage Loan to
be  uncollectible  in whole or in part,  (ii) any required  consents of insurers
under any Required Insurance Policies have been obtained and (iii) subsequent to
the closing of the  transaction  involving  the  assumption  or transfer (A) the
Mortgage Loan will  continue to be secured by a first  mortgage lien pursuant to
the terms of the Mortgage (or, with respect to any junior lien, a junior lien of
the same  priority in relation to any senior lien on such  Mortgage  Loan),  (B)
such  transaction  will not  adversely  affect the  coverage  under any Required
Insurance Policies, (C) the Mortgage Loan will fully amortize over the remaining
term thereof,  (D) no material term of the Mortgage Loan (including the interest
rate on the  Mortgage  Loan) will be altered  nor will the term of the  Mortgage
Loan be changed and (E) if the seller/transferor of the Mortgaged Property is to
be released from  liability on the Mortgage Loan,  the  buyer/transferee  of the
Mortgaged  Property  would be  qualified  to assume the  Mortgage  Loan based on
generally  comparable  credit  quality and such  release  will not (based on the
Master Servicer's or Subservicer's  good faith  determination)  adversely affect
the   collectability   of  the  Mortgage  Loan.   Upon  receipt  of  appropriate
instructions  from the Master  Servicer in accordance  with the  foregoing,  the
Trustee  shall  execute  any  necessary   instruments  for  such  assumption  or
substitution of liability as directed by the Master  Servicer.  Upon the closing
of the  transactions  contemplated by such documents,  the Master Servicer shall
cause the originals or true and correct copies of the assumption agreement,  the
release (if any),  or the  modification  or  supplement  to the Mortgage Note or
Mortgage to be delivered to the Trustee or the Custodian and deposited  with the
Mortgage File for such Mortgage Loan.  Any fee collected by the Master  Servicer
or such related  Subservicer  for entering into an assumption or substitution of
liability  agreement will be retained by the Master Servicer or such Subservicer
as additional servicing compensation.

      (c) The Master  Servicer or the related  Subservicer,  as the case may be,
shall be entitled to approve a request from a Mortgagor for a partial release of
the related Mortgaged Property,  the granting of an easement thereon in favor of
another Person,  any alteration or demolition of the related Mortgaged  Property
or other  similar  matters  if it has  determined,  exercising  its  good  faith
business  judgment  in the same  manner  as it would if it were the owner of the
related  Mortgage  Loan,  that  the  security  for,  and  the  timely  and  full
collectability  of, such Mortgage Loan would not be adversely  affected  thereby
and that any REMIC created  hereunder would not fail to continue to qualify as a
REMIC under the Code as a result thereof and (subject to Section  10.01(f)) that
no tax on "prohibited  transactions" or  "contributions"  after the Startup Date
would be imposed on any REMIC  created  hereunder as a result  thereof.  Any fee
collected by the Master Servicer or the related  Subservicer for processing such
a request  will be  retained  by the  Master  Servicer  or such  Subservicer  as
additional servicing compensation.

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<PAGE>

      (d)  Subject  to  any  other  applicable  terms  and  conditions  of  this
Agreement,  the  Trustee  and Master  Servicer  shall be  entitled to approve an
assignment in lieu of satisfaction  with respect to any Mortgage Loan,  provided
the  obligee  with  respect  to  such  Mortgage  Loan  following  such  proposed
assignment provides the Trustee and Master Servicer with a "Lender Certification
for  Assignment of Mortgage  Loan" in the form attached  hereto as Exhibit M, in
form and substance  satisfactory to the Trustee and Master  Servicer,  providing
the  following:  (i) that the  Mortgage  Loan is secured by  Mortgaged  Property
located in a  jurisdiction  in which an  assignment in lieu of  satisfaction  is
required to preserve lien priority,  minimize or avoid mortgage  recording taxes
or otherwise  comply with, or facilitate a refinancing  under,  the laws of such
jurisdiction;  (ii) that the substance of the  assignment is, and is intended to
be, a refinancing of such Mortgage Loan and that the form of the  transaction is
solely to comply with, or facilitate  the  transaction  under,  such local laws;
(iii) that the Mortgage Loan following the proposed  assignment will have a rate
of interest  more than the  greater of (A) 3% and (B) 5% of the annual  yield of
the  unmodified  Mortgage  Loan,  below or above  the rate of  interest  on such
Mortgage Loan prior to such proposed  assignment;  and (iv) that such assignment
is at the request of the borrower under the related Mortgage Loan. Upon approval
of an assignment in lieu of satisfaction  with respect to any Mortgage Loan, the
Master  Servicer  shall receive cash in an amount equal to the unpaid  principal
balance of and accrued  interest on such Mortgage Loan, and the Master  Servicer
shall treat such amount as a Principal  Prepayment  in Full with respect to such
Mortgage Loan for all purposes hereof.

      Section 3.14.   Realization Upon Defaulted Mortgage Loans.

      (a) The Master  Servicer  shall  foreclose  upon or  otherwise  comparably
convert  (which may include an REO  Acquisition)  the  ownership  of  properties
securing such of the Mortgage  Loans as come into and continue in default and as
to which no satisfactory  arrangements  can be made for collection of delinquent
payments pursuant to Section 3.07.  Alternatively,  the Master Servicer may take
other  actions in respect of a defaulted  Mortgage  Loan,  which may include (i)
accepting  a short sale (a payoff of the  Mortgage  Loan for an amount less than
the  total  amount  contractually  owed in  order  to  facilitate  a sale of the
Mortgaged Property by the Mortgagor) or permitting a short refinancing (a payoff
of the Mortgage Loan for an amount less than the total amount contractually owed
in order to facilitate refinancing transactions by the Mortgagor not involving a
sale of the Mortgaged  Property),  (ii)  arranging for a repayment plan or (iii)
agreeing to a modification  in accordance  with Section 3.07. In connection with
such  foreclosure  or other  conversion or action,  the Master  Servicer  shall,
consistent  with Section 3.11,  follow such practices and procedures as it shall
deem  necessary  or  advisable,  as shall be  normal  and  usual in its  general
mortgage  servicing  activities  and as shall be  required or  permitted  by the
Program  Guide;  provided  that the Master  Servicer  shall not be liable in any
respect  hereunder if the Master  Servicer is acting in connection with any such
foreclosure  or other  conversion or action in a manner that is consistent  with
the provisions of this Agreement.  The Master  Servicer,  however,  shall not be
required  to  expend  its own  funds  or incur  other  reimbursable  charges  in
connection  with  any  foreclosure,   or  attempted  foreclosure  which  is  not
completed, or towards the correction of any default on a related senior mortgage
loan, or towards the  restoration of any property  unless it shall determine (i)
that  such  restoration   and/or  foreclosure  will  increase  the  proceeds  of
liquidation  of the  Mortgage  Loan to  Holders of  Certificates  of one or more
Classes after reimbursement to itself for such expenses or charges and (ii) that
such  expenses  and  charges  will  be  recoverable  to it  through  Liquidation
Proceeds,  Insurance Proceeds,  or REO Proceeds  (respecting which it shall have
priority for purposes of  withdrawals  from the  Custodial  Account  pursuant to
Section 3.10, whether or not such expenses and charges are actually  recoverable
from related Liquidation Proceeds,  Insurance Proceeds or REO Proceeds).  In the
event of such a determination  by the Master  Servicer  pursuant to this Section
3.14(a),  the Master Servicer shall be entitled to reimbursement of its funds so
expended  pursuant to Section 3.10. In addition,  the Master Servicer may pursue
any  remedies  that  may  be  available  in  connection   with  a  breach  of  a
representation and warranty with respect to any such Mortgage Loan in accordance
with Sections  2.03 and 2.04.  However,  the Master  Servicer is not required to
continue to pursue both  foreclosure  (or similar  remedies) with respect to the
Mortgage Loans

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<PAGE>

and remedies in connection with a breach of a representation and warranty if the
Master Servicer determines in its reasonable  discretion that one such remedy is
more likely to result in a greater  recovery as to the Mortgage  Loan.  Upon the
occurrence of a Cash  Liquidation or REO  Disposition,  following the deposit in
the Custodial Account of all Insurance Proceeds,  Liquidation Proceeds and other
payments and recoveries  referred to in the definition of "Cash  Liquidation" or
"REO  Disposition,"  as  applicable,  upon  receipt  by the  Trustee  of written
notification of such deposit signed by a Servicing  Officer,  the Trustee or the
Custodian,  as the case may be, shall release to the Master Servicer the related
Custodial  File and the Trustee  shall execute and deliver such  instruments  of
transfer or  assignment  prepared by the Master  Servicer,  in each case without
recourse,  as shall be necessary to vest in the Master Servicer or its designee,
as the case may be, the related Mortgage Loan, and thereafter such Mortgage Loan
shall not be part of the Trust Fund.  Notwithstanding the foregoing or any other
provision of this  Agreement,  in the Master  Servicer's  sole  discretion  with
respect  to any  defaulted  Mortgage  Loan or REO  Property  as to either of the
following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to
have occurred if substantially all amounts expected by the Master Servicer to be
received in connection with the related defaulted  Mortgage Loan or REO Property
have been  received,  and (ii) for  purposes  of  determining  the amount of any
Liquidation  Proceeds,  Insurance  Proceeds,  REO Proceeds or other  unscheduled
collections  or the amount of any Realized  Loss,  the Master  Servicer may take
into account minimal amounts of additional  receipts  expected to be received or
any  estimated  additional  liquidation  expenses  expected  to be  incurred  in
connection with the related defaulted Mortgage Loan or REO Property.

      (b) In the event that title to any  Mortgaged  Property is acquired by the
Trust Fund as an REO Property by foreclosure or by deed in lieu of  foreclosure,
the deed or certificate of sale shall be issued to the Trustee or to its nominee
on behalf of  Certificateholders.  Notwithstanding any such acquisition of title
and  cancellation of the related  Mortgage Loan, such REO Property shall (except
as otherwise  expressly  provided  herein) be  considered  to be an  Outstanding
Mortgage  Loan held in the Trust Fund until such time as the REO Property  shall
be  sold.  Consistent  with  the  foregoing  for  purposes  of all  calculations
hereunder so long as such REO Property  shall be considered to be an Outstanding
Mortgage Loan it shall be assumed that,  notwithstanding  that the  indebtedness
evidenced by the related Mortgage Note shall have been discharged, such Mortgage
Note and the  related  amortization  schedule  in effect at the time of any such
acquisition  of title  (after  giving  effect to any previous  Curtailments  and
before any adjustment  thereto by reason of any bankruptcy or similar proceeding
or any moratorium or similar waiver or grace period) remain in effect.

      (c) In the  event  that  the  Trust  Fund  acquires  any REO  Property  as
aforesaid  or otherwise in  connection  with a default or imminent  default on a
Mortgage Loan, the Master  Servicer on behalf of the Trust Fund shall dispose of
such REO  Property  as soon as  practicable,  giving  due  consideration  to the
interests of the  Certificateholders,  but in all cases, within three full years
after the  taxable  year of its  acquisition  by the Trust Fund for  purposes of
Section 860G(a)(8) of the Code (or such shorter period as may be necessary under
applicable  state (including any state in which such property is located) law to
maintain the status of each REMIC created  hereunder as a REMIC under applicable
state law and avoid taxes resulting from such property failing to be foreclosure
property  under  applicable  state law) or, at the  expense  of the Trust  Fund,
request,  more than 60 days  before  the day on which such  grace  period  would
otherwise  expire,  an extension of such grace period unless the Master Servicer
(subject  to Section  10.01(f))  obtains  for the Trustee an Opinion of Counsel,
addressed to the Trustee and the Master Servicer, to the effect that the holding
by the Trust Fund of such REO Property subsequent to such period will not result
in the  imposition of taxes on "prohibited  transactions"  as defined in Section
860F of the Code or cause any REMIC  created  hereunder  to fail to qualify as a
REMIC (for federal (or any  applicable  State or local)  income tax purposes) at
any time that any Certificates are outstanding, in which case the Trust Fund may
continue to hold such REO Property (subject to any conditions  contained in such
Opinion of Counsel). The Master Servicer shall be entitled to be reimbursed from
the Custodial Account for any

                                       69
<PAGE>

costs  incurred in  obtaining  such  Opinion of Counsel,  as provided in Section
3.10.  Notwithstanding  any other provision of this  Agreement,  no REO Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used by or on behalf of the Trust Fund in such a manner or pursuant
to any terms  that  would (i) cause  such REO  Property  to fail to  qualify  as
"foreclosure  property" within the meaning of Section  860G(a)(8) of the Code or
(ii) subject any REMIC created hereunder to the imposition of any federal income
taxes on the income earned from such REO  Property,  including any taxes imposed
by reason of Section 860G(c) of the Code,  unless the Master Servicer has agreed
to indemnify and hold harmless the Trust Fund with respect to the  imposition of
any such taxes.

      (d) The proceeds of any Cash  Liquidation,  REO Disposition or purchase or
repurchase of any Mortgage Loan pursuant to the terms of this Agreement, as well
as any recovery (other than Subsequent  Recoveries)  resulting from a collection
of Liquidation Proceeds,  Insurance Proceeds or REO Proceeds, will be applied in
the following order of priority:  first, to reimburse the Master Servicer or the
related  Subservicer  in accordance  with Section  3.10(a)(ii);  second,  to the
Certificateholders  to the extent of accrued and unpaid interest on the Mortgage
Loan,  and any related REO Imputed  Interest,  at the Net Mortgage  Rate (or the
Modified Net Mortgage Rate in the case of a Modified  Mortgage Loan), to the Due
Date in the  related  Due Period  prior to the  Distribution  Date on which such
amounts are to be distributed; third, to the Certificateholders as a recovery of
principal on the Mortgage Loan (or REO Property);  fourth, to all Servicing Fees
and  Subservicing  Fees  payable  therefrom  (and the  Master  Servicer  and the
Subservicer  shall have no claims for any deficiencies with respect to such fees
which result from the foregoing allocation); and fifth, to Foreclosure Profits.

      (e) In the  event of a  default  on a  Mortgage  Loan one or more of whose
obligors is not a United States Person,  in connection  with any  foreclosure or
acquisition  of a deed in  lieu  of  foreclosure  (together,  "foreclosure")  in
respect of such Mortgage Loan, the Master  Servicer shall cause  compliance with
the provisions of Treasury  Regulation Section  1.1445-2(d)(3) (or any successor
thereto)  necessary to assure that no  withholding  tax  obligation  arises with
respect to the proceeds of such foreclosure  except to the extent,  if any, that
proceeds of such foreclosure are required to be remitted to the obligors on such
Mortgage Loan.

      Section 3.15.   Trustee to Cooperate; Release of Custodial Files.

      (a) Upon  becoming  aware of the payment in full of any Mortgage  Loan, or
upon the receipt by the Master  Servicer of a notification  that payment in full
will be escrowed in a manner  customary for such purposes,  the Master  Servicer
shall immediately notify the Trustee (if it holds the related Custodial File) or
the Custodian by a  certification  of a Servicing  Officer (which  certification
shall  include a  statement  to the effect  that all  amounts  received or to be
received in  connection  with such payment which are required to be deposited in
the  Custodial  Account  pursuant  to  Section  3.07  have  been  or  will be so
deposited),  substantially  in the form attached hereto as Exhibit G, or, in the
case  of a  Custodian,  an  electronic  request  in a  form  acceptable  to  the
Custodian, requesting delivery to it of the Custodial File. Upon receipt of such
certification  and request,  the Trustee shall  promptly  release,  or cause the
Custodian to release,  the related  Custodial File to the Master  Servicer.  The
Master  Servicer  is  authorized  to execute and  deliver to the  Mortgagor  the
request for  reconveyance,  deed of  reconveyance  or release or satisfaction of
mortgage or such  instrument  releasing the lien of the Mortgage,  together with
the Mortgage Note with, as appropriate, written evidence of cancellation thereon
and to cause the removal  from the  registration  on the MERS(R)  System of such
Mortgage  and to  execute  and  deliver,  on  behalf  of  the  Trustee  and  the
Certificateholders  or any of them, any and all  instruments of  satisfaction or
cancellation  or of  partial  or full  release,  including  any  applicable  UCC
termination  statements.  No expenses incurred in connection with any instrument
of  satisfaction  or deed of  reconveyance  shall be chargeable to the Custodial
Account or the Certificate Account.

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<PAGE>

      (b) From time to time as is  appropriate  for the servicing or foreclosure
of any Mortgage Loan, the Master Servicer shall deliver to the Custodian, with a
copy to the Trustee,  a certificate of a Servicing Officer  substantially in the
form attached as Exhibit G hereto, or, in the case of a Custodian, an electronic
request in a form  acceptable to the Custodian,  requesting  that  possession of
all, or any document constituting part of, the Custodial File be released to the
Master  Servicer and  certifying as to the reason for such release and that such
release will not  invalidate any insurance  coverage  provided in respect of the
Mortgage  Loan  under  any  Required  Insurance  Policy.  Upon  receipt  of  the
foregoing,  the Trustee shall  deliver,  or cause the Custodian to deliver,  the
Custodial  File or any  document  therein  to the  Master  Servicer.  The Master
Servicer shall cause each Custodial File or any document  therein so released to
be returned to the Trustee,  or the  Custodian as agent for the Trustee when the
need therefor by the Master  Servicer no longer exists,  unless (i) the Mortgage
Loan has been liquidated and the Liquidation  Proceeds  relating to the Mortgage
Loan have been deposited in the Custodial  Account or (ii) the Custodial File or
such  document  has been  delivered  directly  or  through a  Subservicer  to an
attorney,  or to a public  trustee or other public  official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged  Property either judicially or non judicially,  and
the Master  Servicer  has  delivered  directly or through a  Subservicer  to the
Trustee a  certificate  of a  Servicing  Officer  certifying  as to the name and
address  of the  Person  to  which  such  Custodial  File or such  document  was
delivered  and the  purpose or purposes  of such  delivery.  In the event of the
liquidation  of a Mortgage  Loan,  the  Trustee  shall  deliver  the Request for
Release with respect thereto to the Master  Servicer upon the Trustee's  receipt
of  notification  from  the  Master  Servicer  of the  deposit  of  the  related
Liquidation Proceeds in the Custodial Account.

      (c) The  Trustee or the Master  Servicer  on the  Trustee's  behalf  shall
execute and deliver to the Master Servicer,  if necessary,  any court pleadings,
requests for trustee's sale or other  documents  necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment  against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a  deficiency  judgment,  or to  enforce  any  other  remedies  or rights
provided by the Mortgage  Note or Mortgage or  otherwise  available at law or in
equity.  Together  with such  documents or pleadings (if signed by the Trustee),
the Master  Servicer  shall deliver to the Trustee a certificate  of a Servicing
Officer  requesting  that such pleadings or documents be executed by the Trustee
and  certifying  as to the reason such  documents or pleadings  are required and
that the execution and delivery  thereof by the Trustee shall not invalidate any
insurance  coverage  under  any  Required  Insurance  Policy  or  invalidate  or
otherwise affect the lien of the Mortgage,  except for the termination of such a
lien upon completion of the foreclosure or trustee's sale.

      Section 3.16.   Servicing and Other Compensation; Compensating Interest.

      (a) The Master  Servicer,  as compensation  for its activities  hereunder,
shall be entitled to receive on each  Distribution Date the amounts provided for
by clauses (iii),  (iv), (v) and (vi) of Section 3.10(a),  subject to clause (e)
below. The amount of servicing  compensation  provided for in such clauses shall
be accounted for on a Mortgage  Loan-by-Mortgage  Loan basis.  In the event that
Liquidation  Proceeds,  Insurance  Proceeds  and REO  Proceeds  (net of  amounts
reimbursable  therefrom  pursuant to Section  3.10(a)(ii))  in respect of a Cash
Liquidation  or REO  Disposition  exceed  the unpaid  principal  balance of such
Mortgage  Loan plus  unpaid  interest  accrued  thereon  (including  REO Imputed
Interest)  at a per annum rate equal to the  related Net  Mortgage  Rate (or the
Modified Net Mortgage Rate in the case of a Modified  Mortgage Loan), the Master
Servicer  shall be entitled to retain  therefrom and to pay to itself and/or the
related   Subservicer,   any  Foreclosure  Profits  and  any  Servicing  Fee  or
Subservicing Fee considered to be accrued but unpaid.

      (b) Additional servicing compensation in the form of assumption fees, late
payment charges,  investment  income on amounts in the Custodial  Account or the
Certificate Account or otherwise shall be

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retained  by the Master  Servicer  or the  Subservicer  to the  extent  provided
herein, subject to clause (e) below.  Prepayment charges shall be deposited into
the  Certificate  Account  and  shall be paid on each  Distribution  Date to the
holders of the Class SB Certificates.

      (c) The Master Servicer shall be required to pay, or cause to be paid, all
expenses  incurred by it in connection with its servicing  activities  hereunder
(including  payment of premiums for the Primary Insurance  Policies,  if any, to
the extent such premiums are not required to be paid by the related  Mortgagors,
and the fees and  expenses of the Trustee  and the  Custodian)  and shall not be
entitled to reimbursement  therefor except as specifically  provided in Sections
3.10 and 3.14.

      (d) The Master Servicer's right to receive servicing  compensation may not
be transferred in whole or in part except in connection with the transfer of all
of its  responsibilities  and  obligations  of the  Master  Servicer  under this
Agreement.

      (e)  Notwithstanding  clauses (a) and (b) above,  the amount of  servicing
compensation  that the Master  Servicer  shall be  entitled  to receive  for its
activities  hereunder for the period ending on each  Distribution  Date shall be
reduced (but not below zero) by the amount of Compensating Interest (if any) for
such Distribution Date used to cover Prepayment  Interest Shortfalls as provided
in Section 3.16(f) below.  Such reduction shall be applied during such period as
follows:  first,  to any Servicing Fee or  Subservicing  Fee to which the Master
Servicer is entitled pursuant to Section 3.10(a)(iii); and second, to any income
or gain realized from any  investment of funds held in the Custodial  Account or
the  Certificate  Account to which the Master  Servicer is entitled  pursuant to
Sections 3.07(c) or 4.01(c),  respectively. In making such reduction, the Master
Servicer  shall  not  withdraw  from  the  Custodial  Account  any  such  amount
representing  all or a  portion  of the  Servicing  Fee to which it is  entitled
pursuant  to Section  3.10(a)(iii)  and shall not  withdraw  from the  Custodial
Account or Certificate  Account any such amount to which it is entitled pursuant
to Section 3.07(c) or 4.01(c).

      (f) With respect to any Distribution Date,  Prepayment Interest Shortfalls
on the Mortgage Loans will be covered first, by the Master Servicer, but only to
the extent such  Prepayment  Interest  Shortfalls do not exceed  Eligible Master
Servicing Compensation.

      Section 3.17.   Reports to the Trustee and the Depositor.

      Not later  than  fifteen  days after each  Distribution  Date,  the Master
Servicer  shall forward to the Trustee and the Depositor a statement,  certified
by a Servicing Officer,  setting forth the status of the Custodial Account as of
the close of business on such  Distribution  Date as it relates to the  Mortgage
Loans and showing,  for the period covered by such  statement,  the aggregate of
deposits in or withdrawals from the Custodial Account in respect of the Mortgage
Loans for each  category of deposit  specified in Section 3.07 and each category
of withdrawal specified in Section 3.10.

      Section 3.18.   Annual Statement as to Compliance.

      The Master  Servicer  will deliver to the  Depositor and the Trustee on or
before  the  earlier  of (a)  March 31 of each year or (b) with  respect  to any
calendar  year  during  which  the  Depositor's  annual  report  on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the Commission,  the date on which the annual report on Form 10-K
is required to be filed in  accordance  with the  Exchange Act and the rules and
regulations of the Commission,  a servicer compliance certificate,  signed by an
authorized  officer  of the  Master  Servicer,  as  described  in  Item  1123 of
Regulation AB, to the effect that:

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            (i)  A  review  of  the  Master  Servicer's  activities  during  the
reporting period and of its performance under this Agreement has been made under
such officer's supervision.

            (ii) To the best of such officer's knowledge,  based on such review,
the Master Servicer has fulfilled all of its obligations under this Agreement in
all material  respects  throughout the reporting  period or, if there has been a
failure to fulfill any such obligation in any material respect,  specifying each
such failure known to such officer and the nature and status thereof.

      The Master Servicer shall use  commercially  reasonable  efforts to obtain
from all other parties  participating  in the servicing  function any additional
certifications  required under Item 1123 of Regulation AB to the extent required
to be included in a Report on Form 10-K;  provided,  however,  that a failure to
obtain such certifications shall not be a breach of the Master Servicer's duties
hereunder if any such party fails to deliver such a certification.

      Section 3.19.   Annual Independent Public Accountants' Servicing Report.

      On or before the earlier of (a) March 31 of each year or (b) with  respect
to any calendar year during which the Depositor's  annual report on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the  Commission,  the date on which the annual report is required
to be filed in accordance with the Exchange Act and the rules and regulations of
the  Commission,  the  Master  Servicer  at its  expense  shall  cause a firm of
independent public accountants, which shall be members of the American Institute
of Certified  Public  Accountants,  to furnish a report to the Depositor and the
Trustee  the  attestation  required  under  Item  1122(b) of  Regulation  AB. In
rendering  such  statement,  such firm may rely,  as to matters  relating to the
direct servicing of mortgage loans by Subservicers,  upon comparable  statements
for examinations  conducted by independent public  accountants  substantially in
accordance  with standards  established  by the American  Institute of Certified
Public Accountants  (rendered within one year of such statement) with respect to
such Subservicers.

      Section 3.20.   Right of the Depositor in Respect of the Master Servicer.

      The Master  Servicer  shall afford the  Depositor  and the  Trustee,  upon
reasonable notice, during normal business hours access to all records maintained
by the Master  Servicer in respect of its rights and  obligations  hereunder and
access to officers of the Master Servicer responsible for such obligations. Upon
request,  the Master  Servicer  shall furnish the Depositor with its most recent
financial statements and such other information as the Master Servicer possesses
regarding its business, affairs, property and condition, financial or otherwise.
The Master  Servicer  shall also  cooperate  with all  reasonable  requests  for
information  including,  but not limited to, notices, tapes and copies of files,
regarding  itself,  the Mortgage  Loans or the  Certificates  from any Person or
Persons  identified by the Depositor or Residential  Funding.  The Depositor may
enforce the obligation of the Master  Servicer  hereunder and may, but it is not
obligated to, perform or cause a designee to perform,  any defaulted  obligation
of the Master  Servicer  hereunder or exercise the rights of the Master Servicer
hereunder; provided that the Master Servicer shall not be relieved of any of its
obligations  hereunder  by virtue of such  performance  by the  Depositor or its
designee. Neither the Depositor nor the Trustee shall have the responsibility or
liability  for any  action or  failure  to act by the  Master  Servicer  and the
Depositor is not obligated to supervise the  performance of the Master  Servicer
under this Agreement or otherwise.

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      Section 3.21.   [Reserved].

      Section 3.22.   Advance Facility.

      (a) The Master Servicer is hereby  authorized to enter into a financing or
other facility (any such arrangement, an "Advance Facility") under which (1) the
Master  Servicer  sells,  assigns or pledges  to another  Person (an  "Advancing
Person") the Master  Servicer's rights under this Agreement to be reimbursed for
any Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund
some or all Advances and/or Servicing Advances required to be made by the Master
Servicer pursuant to this Agreement.  No consent of the Depositor,  the Trustee,
the  Certificateholders  or any other party shall be required  before the Master
Servicer may enter into an Advance  Facility.  Notwithstanding  the existence of
any Advance  Facility  under which an Advancing  Person  agrees to fund Advances
and/or Servicing  Advances on the Master Servicer's  behalf, the Master Servicer
shall remain obligated pursuant to this Agreement to make Advances and Servicing
Advances  pursuant to and as required by this Agreement.  If the Master Servicer
enters into an Advance Facility,  and for so long as an Advancing Person remains
entitled to receive  reimbursement  for any  Advances  including  Nonrecoverable
Advances ("Advance  Reimbursement  Amounts") and/or Servicing Advances including
Nonrecoverable  Advances ("Servicing Advance Reimbursement Amounts" and together
with Advance Reimbursement  Amounts,  "Reimbursement  Amounts") (in each case to
the  extent  such  type of  Reimbursement  Amount  is  included  in the  Advance
Facility), as applicable,  pursuant to this Agreement,  then the Master Servicer
shall identify such  Reimbursement  Amounts  consistent  with the  reimbursement
rights set forth in Section  3.10(a)(ii) and (vii) and remit such  Reimbursement
Amounts in accordance with this Section 3.22 or otherwise in accordance with the
documentation establishing the Advance Facility to such Advancing Person or to a
trustee,  agent or custodian (an "Advance Facility Trustee")  designated by such
Advancing  Person in an  Advance  Facility  Notice  described  below in  Section
3.22(b).  Notwithstanding the foregoing, if so required pursuant to the terms of
the Advance  Facility,  the Master  Servicer  may direct,  and if so directed in
writing,  the  Trustee  is hereby  authorized  to and  shall pay to the  Advance
Facility Trustee the Reimbursement  Amounts identified pursuant to the preceding
sentence.  An Advancing  Person whose  obligations  hereunder are limited to the
funding of Advances and/or Servicing  Advances shall not be required to meet the
qualifications of a Master Servicer or a Subservicer pursuant to Section 3.02(a)
or  6.02(c)  hereof  and  shall not be deemed  to be a  Subservicer  under  this
Agreement.  Notwithstanding  anything to the contrary herein,  in no event shall
Advance  Reimbursement  Amounts or Servicing  Advance  Reimbursement  Amounts be
included   in   the   Available    Distribution   Amount   or   distributed   to
Certificateholders.

      (b) If the Master Servicer  enters into an Advance  Facility and makes the
election  set forth in Section  3.22(a),  the Master  Servicer  and the  related
Advancing  Person  shall  deliver to the  Trustee a written  notice and  payment
instruction (an "Advance Facility  Notice"),  providing the Trustee with written
payment instructions as to where to remit Advance  Reimbursement  Amounts and/or
Servicing  Advance  Reimbursement  Amounts  (each  to the  extent  such  type of
Reimbursement  Amount is included  within the Advance  Facility)  on  subsequent
Distribution  Dates.  The  payment  instruction  shall  require  the  applicable
Reimbursement Amounts to be distributed to the Advancing Person or to an Advance
Facility Trustee  designated in the Advance Facility Notice. An Advance Facility
Notice  may only be  terminated  by the joint  written  direction  of the Master
Servicer  and the related  Advancing  Person (and any related  Advance  Facility
Trustee).

      (c)  Reimbursement  Amounts shall consist  solely of amounts in respect of
Advances and/or  Servicing  Advances made with respect to the Mortgage Loans for
which the Master  Servicer would be permitted to reimburse  itself in accordance
with Section  3.10(a)(ii) and (vii) hereof,  assuming the Master Servicer or the
Advancing Person had made the related  Advance(s)  and/or Servicing  Advance(s).
Notwithstanding   the  foregoing,   except  with  respect  to  reimbursement  of
Nonrecoverable Advances as set

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forth in Section  3.10(c) of this  Agreement,  no Person  shall be  entitled  to
reimbursement from funds held in the Collection Account for future  distribution
to Certificateholders pursuant to this Agreement.  Neither the Depositor nor the
Trustee shall have any duty or liability with respect to the  calculation of any
Reimbursement   Amount,  nor  shall  the  Depositor  or  the  Trustee  have  any
responsibility  to track or monitor the  administration  of the Advance Facility
and the Depositor shall not have any responsibility to track,  monitor or verify
the payment of Reimbursement  Amounts to the related Advancing Person or Advance
Facility  Trustee.  The  Master  Servicer  shall  maintain  and  provide  to any
successor  master servicer a detailed  accounting on a loan-by-loan  basis as to
amounts  advanced  by,  sold,  pledged or  assigned  to, and  reimbursed  to any
Advancing Person. The successor master servicer shall be entitled to rely on any
such  information  provided by the Master  Servicer,  and the  successor  master
servicer shall not be liable for any errors in such information.

      (d) Upon the direction of and at the expense of the Master  Servicer,  the
Trustee  agrees  to  execute  such  acknowledgments,   certificates,  and  other
documents reasonably satisfactory to the Trustee provided by the Master Servicer
and  reasonable  satisfactory  to the Trustee  recognizing  the interests of any
Advancing Person or Advance Facility  Trustee in such  Reimbursement  Amounts as
the Master Servicer may cause to be made subject to Advance Facilities  pursuant
to this Section 3.22, and such other  documents in connection  with such Advance
Facility  as may be  reasonably  requested  from  time to time by any  Advancing
Person or Advance Facility Trustee and reasonably satisfactory to the Trustee.

      (e)  Reimbursement  Amounts  collected  with respect to each Mortgage Loan
shall be allocated to outstanding  unreimbursed  Advances or Servicing  Advances
(as the case may be) made with  respect to that  Mortgage  Loan on a  "first-in,
first out" ("FIFO") basis, subject to the qualifications set forth below:

      (i) Any successor  Master  Servicer to  Residential  Funding (a "Successor
Master  Servicer") and the Advancing Person or Advance Facility Trustee shall be
required to apply all amounts  available in accordance with this Section 3.22(e)
to the  reimbursement of Advances and Servicing  Advances in the manner provided
for herein;  provided,  however, that after the succession of a Successor Master
Servicer, (A) to the extent that any Advances or Servicing Advances with respect
to any particular  Mortgage Loan are reimbursed from payments or recoveries,  if
any, from the related Mortgagor, and Liquidation Proceeds or Insurance Proceeds,
if any, with respect to that Mortgage Loan,  reimbursement shall be made, first,
to the  Advancing  Person or Advance  Facility  Trustee  in respect of  Advances
and/or  Servicing  Advances  related to that  Mortgage Loan to the extent of the
interest of the Advancing  Person or Advance  Facility  Trustee in such Advances
and/or Servicing Advances,  second to the Master Servicer in respect of Advances
and/or  Servicing  Advances  related to that Mortgage Loan in excess of those in
which the Advancing  Person or Advance  Facility Trustee Person has an interest,
and third,  to the Successor  Master  Servicer in respect of any other  Advances
and/or  Servicing  Advances  related to that Mortgage Loan, from such sources as
and when collected,  and (B)  reimbursements of Advances and Servicing  Advances
that are Nonrecoverable  Advances shall be made pro rata to the Advancing Person
or Advance  Facility  Trustee,  on the one hand, and any such  Successor  Master
Servicer,  on  the  other  hand,  on  the  basis  of  the  respective  aggregate
outstanding unreimbursed Advances and Servicing Advances that are Nonrecoverable
Advances  owed to the  Advancing  Person,  Advance  Facility  Trustee  or Master
Servicer  pursuant to this  Agreement,  on the one hand,  and any such Successor
Master Servicer,  on the other hand, and without regard to the date on which any
such Advances or Servicing  Advances shall have been made. In the event that, as
a result of the FIFO allocation made pursuant to this Section  3.22(e),  some or
all of a Reimbursement  Amount paid to the Advancing  Person or Advance Facility
Trustee  relates to Advances or  Servicing  Advances  that were made by a Person
other than  Residential  Funding  or the  Advancing  Person or Advance  Facility
Trustee, then the Advancing Person or Advance Facility Trustee shall be required
to remit any portion of such Reimbursement Amount to the Person entitled to such
portion of such  Reimbursement  Amount.  Without  limiting the generality of the
foregoing,  Residential  Funding  shall remain  entitled to be reimbursed by the
Advancing Person or Advance Facility Trustee for all Advances

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and Servicing  Advances funded by Residential  Funding to the extent the related
Reimbursement Amount(s) have not been assigned or pledged to an Advancing Person
or Advance Facility Trustee. The documentation establishing any Advance Facility
shall require  Residential Funding to provide to the related Advancing Person or
Advance  Facility  Trustee  loan  by  loan  information  with  respect  to  each
Reimbursement  Amount  distributed to such Advancing  Person or Advance Facility
Trustee on each date of remittance  thereof to such Advancing  Person or Advance
Facility Trustee,  to enable the Advancing Person or Advance Facility Trustee to
make the FIFO  allocation  of each  Reimbursement  Amount  with  respect to each
Mortgage Loan.

            (ii)  By way of  illustration,  and  not  by  way  of  limiting  the
generality of the foregoing,  if the Master Servicer resigns or is terminated at
a time  when the  Master  Servicer  is a party to an  Advance  Facility,  and is
replaced by a Successor  Master  Servicer,  and the  Successor  Master  Servicer
directly  funds  Advances or Servicing  Advances with respect to a Mortgage Loan
and does not assign or pledge the related  Reimbursement  Amounts to the related
Advancing Person or Advance Facility  Trustee,  then all payments and recoveries
received  from the related  Mortgagor  or  received  in the form of  Liquidation
Proceeds  with  respect to such  Mortgage  Loan  (including  Insurance  Proceeds
collected  in  connection  with a  liquidation  of such  Mortgage  Loan) will be
allocated first to the Advancing  Person or Advance  Facility  Trustee until the
related  Reimbursement  Amounts attributable to such Mortgage Loan that are owed
to the Master  Servicer and the Advancing  Person,  which were made prior to any
Advances or Servicing Advances made by the Successor Master Servicer,  have been
reimbursed  in full,  at which  point the  Successor  Master  Servicer  shall be
entitled to retain all related Reimbursement Amounts subsequently collected with
respect to that Mortgage Loan pursuant to Section 3.10 of this Agreement. To the
extent that the Advances or Servicing Advances are Nonrecoverable Advances to be
reimbursed on an aggregate basis pursuant to Section 3.10 of this Agreement, the
reimbursement  paid in this manner will be made pro rata to the Advancing Person
or Advance Facility Trustee, on the one hand, and the Successor Master Servicer,
on the other hand, as described in clause (i)(B) above.

      (f) The Master  Servicer  shall remain  entitled to be reimbursed  for all
Advances and Servicing  Advances funded by the Master Servicer to the extent the
related rights to be reimbursed therefor have not been sold, assigned or pledged
to an Advancing Person.

      (g) Any  amendment to this Section 3.22 or to any other  provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described  generally in this Section 3.22,  including  amendments to
add provisions  relating to a successor master servicer,  may be entered into by
the Trustee,  the Depositor and the Master  Servicer  without the consent of any
Certificateholder,  with written  confirmation  from each Rating Agency that the
amendment  will not result in the  reduction  of the ratings on any class of the
Certificates  below the lesser of the then  current or original  ratings on such
Certificates  and  delivery of an Opinion of Counsel as required  under  Section
11.01(c),  notwithstanding  anything  to the  contrary  in  Section  11.01 of or
elsewhere in this Agreement.

      (h) Any rights of set-off that the Trust Fund, the Trustee, the Depositor,
any Successor  Master  Servicer or any other Person might otherwise have against
the Master  Servicer under this  Agreement  shall not attach to any rights to be
reimbursed for Advances or Servicing Advances that have been sold,  transferred,
pledged, conveyed or assigned to any Advancing Person.

            (i) At any time when an Advancing  Person shall have ceased  funding
Advances and/or Servicing Advances (as the case may be) and the Advancing Person
or related Advance  Facility Trustee shall have received  Reimbursement  Amounts
sufficient in the aggregate to reimburse all Advances and/or Servicing  Advances
(as the case may be) the right to  reimbursement  for which were assigned to the
Advancing  Person,  then upon the  delivery  of a written  notice  signed by the
Advancing

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Person and the  Master  Servicer  or its  successor  or  assign) to the  Trustee
terminating the Advance Facility Notice (the "Notice of Facility  Termination"),
the Master Servicer or its Successor  Master Servicer shall again be entitled to
withdraw and retain the related Reimbursement Amounts from the Custodial Account
pursuant to Section 3.10.

      (j) After  delivery of any  Advance  Facility  Notice,  and until any such
Advance Facility Notice has been terminated by a Notice of Facility Termination,
this  Section 3.22 may not be amended or  otherwise  modified  without the prior
written consent of the related Advancing Person.

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                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

      Section 4.01.   Certificate Account.

      (a) The Master Servicer acting as agent of the Trustee shall establish and
maintain a Certificate  Account in which the Master  Servicer  shall cause to be
deposited  on behalf of the Trustee on or before 2:00 P.M. New York time on each
Certificate Account Deposit Date by wire transfer of immediately available funds
an amount  equal to the sum of (i) any  Advance for the  immediately  succeeding
Distribution  Date,  (ii) any amount required to be deposited in the Certificate
Account pursuant to Section  3.12(a),  (iii) any amount required to be deposited
in the Certificate  Account pursuant to Section 3.16(e) or 4.07, (iv) any amount
required to be paid pursuant to Section 9.01, and (v) other amounts constituting
the Available  Distribution Amount for the immediately  succeeding  Distribution
Date.

      (b) [Reserved].

      (c) The Trustee  shall,  upon written  request  from the Master  Servicer,
invest or cause the institution  maintaining  the Certificate  Account to invest
the funds in the Certificate Account in Permitted Investments  designated in the
name of the  Trustee  for the  benefit of the  Certificateholders,  which  shall
mature not later than the Business Day next preceding the Distribution Date next
following  the  date of  such  investment  (except  that  (i) if such  Permitted
Investment is an obligation of the  institution  that  maintains such account or
fund for which  such  institution  serves  as  custodian,  then  such  Permitted
Investment may mature on such  Distribution  Date and (ii) any other  investment
may mature on such  Distribution Date if the Trustee shall advance funds on such
Distribution  Date to the  Certificate  Account  in the  amount  payable on such
investment on such  Distribution  Date,  pending  receipt  thereof to the extent
necessary to make  distributions on the  Certificates)  and shall not be sold or
disposed  of prior to  maturity.  All  income  and gain  realized  from any such
investment  shall be for the benefit of the Master Servicer and shall be subject
to its withdrawal or order from time to time. The amount of any losses  incurred
in respect of any such investments shall be deposited in the Certificate Account
by the Master Servicer out of its own funds immediately as realized.

      Section 4.02.   Distributions.

      (a) [On each Distribution Date, the Trustee (or the Paying Agent on behalf
of the Trustee) shall allocate and distribute the Available Distribution Amount,
if any, for such date to the interests issued in respect of REMIC I and REMIC II
as specified in this Section.]

            (b) (1) [On each Distribution Date, the REMIC I Distribution  Amount
      shall be  distributed  by REMIC I to REMIC II on  account  of the  REMIC I
      Regular  Interests  and to  Holders of the Class R-I  Certificates  in the
      amounts and with the priorities set forth in the definition thereof.

            (2)  Notwithstanding  the  distributions  described  in this Section
      4.02(b),  distribution of funds from the Certificate Account shall be made
      only in accordance with Section 4.02(c).]

      (c) [On each  Distribution  Date (x) the Master  Servicer on behalf of the
Trustee or (y) the Paying Agent  appointed by the Trustee,  shall  distribute to
each  Certificateholder  of record on the next preceding Record Date (other than
as  provided  in  Section  9.01  respecting  the final  distribution)  either in
immediately  available  funds (by wire  transfer or otherwise) to the account of
such  Certificateholder at a bank or other entity having appropriate  facilities
therefor, if such Certificateholder has so notified the

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Master  Servicer  or  the  Paying  Agent,  as the  case  may  be,  or,  if  such
Certificateholder has not so notified the Master Servicer or the Paying Agent by
the Record  Date,  by check mailed to such  Certificateholder  at the address of
such Holder appearing in the Certificate Register such Certificateholder's share
(which share with respect to each Class of  Certificates,  shall be based on the
aggregate  of  the  Percentage  Interests  represented  by  Certificates  of the
applicable Class held by such Holder of the following amounts), in the following
order of  priority,  in each case to the  extent of the  Available  Distribution
Amount on deposit in the Certificate  Account [(except,  with respect to clauses
(iii),  (viii)  and  (xi)  below,  to  the  extent  of the  remaining  Available
Distribution  Amount plus the remaining Hedge Payment or, with respect to clause
(xi)(B) below, to the extent of prepayment charges on deposit in the Certificate
Account):]

            (i) to the Class A  Certificateholders,  the REMIC  Interest  Amount
payable on the Class A Certificates with respect to such Distribution Date, plus
any related  amounts  accrued  pursuant to this clause (i) but remaining  unpaid
from any  prior  Distribution  Date  being  paid  from and in  reduction  of the
Available Distribution Amount for such Distribution Date;

            (ii)   to   the   Class   M    Certificateholders    and   Class   B
Certificateholders,  from the  amount,  if any,  of the  Available  Distribution
Amount  remaining after the foregoing  distributions,  the REMIC Interest Amount
payable on the Class M  Certificates  and Class B  Certificates  with respect to
such Distribution Date, plus any related amounts accrued pursuant to this clause
(ii) but remaining unpaid from any prior Distribution Date, sequentially, to the
[Class  M-1  Certificateholders,   Class  M-2   Certificateholders,   Class  M-3
Certificateholders,  Class M-4 Certificateholders, Class M-5 Certificateholders,
Class  M-6   Certificateholders,   Class  M-7   Certificateholders,   Class  M-8
Certificateholders,  Class M-9 Certificateholders,  Class B-1 Certificateholders
and  Class  B-2  Certificateholders,]  in that  order,  being  paid  from and in
reduction of the Available Distribution Amount for such Distribution Date;

            (iii) to the Class A Certificateholders,  Class M Certificateholders
and Class B  Certificateholders,  the related Accrued  Certificate  Interest for
such  Distribution  Date in excess of the REMIC Interest  Amount,  if any, which
amount  shall  be  allocated  to  the  Class  A   Certificateholders,   Class  M
Certificateholders  and Class B  Certificateholders,  pro rata,  based  upon the
amount  of the  related  Accrued  Certificate  Interest  in  excess of the REMIC
Interest  Amount  due  thereon,  being paid from and in  reduction  of the Hedge
Payment for such Distribution Date;

            (iv) the  Principal  Distribution  Amount  shall be  distributed  as
follows,  to be  applied  to reduce  the  Certificate  Principal  Balance of the
applicable  Certificates  in each case to the extent of the remaining  Principal
Distribution Amount:

            (v) (A) [first, the Class A Principal  Distribution  Amount shall be
distributed  sequentially to the Class A-1 Certificates,  Class A-2 Certificates
and Class A-3  Certificates,  in that order,  in each case until the Certificate
Principal Balance thereof is reduced to zero;

                  (B) second, to the Class M-1 Certificateholders, the Class M-1
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-1 Certificates has been reduced to zero;

                  (C) third, to the Class M-2 Certificateholders,  the Class M-2
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-2 Certificates has been reduced to zero;

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                  (D) fourth, to the Class M-3 Certificateholders, the Class M-3
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-3 Certificates has been reduced to zero;

                  (E) fifth, to the Class M-4 Certificateholders,  the Class M-4
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-4 Certificates has been reduced to zero;

                  (F) sixth, to the Class M-5 Certificateholders,  the Class M-5
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-5 Certificates has been reduced to zero;

                  (G) seventh,  to the Class M-6  Certificateholders,  the Class
            M-6 Principal  Distribution Amount, until the Certificate  Principal
            Balance of the Class M-6 Certificates has been reduced to zero;

                  (H) eighth, to the Class M-7 Certificateholders, the Class M-7
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-7 Certificates has been reduced to zero;

                  (I) ninth, to the Class M-8 Certificateholders,  the Class M-8
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-8 Certificates has been reduced to zero;

                  (J) tenth, to the Class M-9 Certificateholders,  the Class M-9
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-9 Certificates has been reduced to zero;

                  (K) eleventh, to the Class B-1  Certificateholders,  the Class
            B-1 Principal  Distribution Amount, until the Certificate  Principal
            Balance of the Class B-1 Certificates has been reduced to zero; and

                  (L) twelfth,  to the Class B-2  Certificateholders,  the Class
            B-2 Principal  Distribution Amount, until the Certificate  Principal
            Balance of the Class B-2 Certificates has been reduced to zero;]

            (vi) to the Class A  Certificateholders,  Class M Certificateholders
and Class B Certificateholders, the amount of any Prepayment Interest Shortfalls
allocated  thereto  for such  Distribution  Date,  on a pro rata basis  based on
Prepayment  Interest  Shortfalls  allocated  thereto to the extent not offset by
Eligible Master Servicing Compensation on such Distribution Date;

            (vii) to the Class A Certificateholders,  Class M Certificateholders
and Class B Certificateholders, the amount of any Prepayment Interest Shortfalls
previously  allocated  thereto  remaining unpaid from prior  Distribution  Dates
together with interest thereon at the related  Pass-Through  Rate, on a pro rata
basis  based on  unpaid  Prepayment  Interest  Shortfalls  previously  allocated
thereto;

            (viii) [(A) from the Hedge Payment remaining after the distributions
in clause  (iii)  above,  to the Class A  Certificateholders,  the amount of any
unpaid Basis Risk Shortfalls allocated thereto, on a pro rata basis based on the
amount of unpaid Basis Risk Shortfalls allocated thereto, and then sequentially,
to the Class M-1,  Class M-2,  Class M-3, Class M-4, Class M-5, Class M-6, Class
M-7, Class M-8, Class M-9, Class B-1 and Class B-2  Certificateholders,  in that
order, the amount of any unpaid

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Basis Risk Shortfalls allocated thereto and (B) from the Available  Distribution
Amount remaining after making the distributions in clause (vii) above, first, to
the Class A  Certificateholders,  the amount of any unpaid Basis Risk Shortfalls
allocated  thereto and  remaining  unpaid after the  distributions  described in
clause  (viii)(A) above, on a pro rata basis based on the amount of unpaid Basis
Risk Shortfalls  allocated thereto,  and then,  sequentially,  to the Class M-1,
Class M-2,  Class M-3,  Class M-4,  Class M-5,  Class M-6, Class M-7, Class M-8,
Class M-9, Class B-1 and Class B-2 Certificateholders, in that order, the amount
of any unpaid Basis Risk Shortfalls allocated thereto and remaining unpaid after
the distributions described in clause (viii)(A) above;]

            (ix) to the Class A  Certificateholders,  Class M Certificateholders
and Class B Certificateholders, Relief Act Shortfalls allocated thereto for such
Distribution Date, on a pro rata basis based on Relief Act Shortfalls  allocated
thereto for such Distribution Date,

            (x) to the Class A Certificateholders,  the principal portion of any
Realized Losses previously  allocated thereto and remaining  unreimbursed,  on a
pro rata basis  based on their  respective  principal  portion  of any  Realized
Losses previously  allocated to those  Certificates and remaining  unreimbursed,
and then,  sequentially,  to the [Class M-1,  Class M-2,  Class M-3,  Class M-4,
Class M-5,  Class M-6,  Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2
Certificateholders,] in that order, the principal portion of any Realized Losses
previously allocated thereto and remaining unreimbursed;

            (xi) to the Class SB Certificates,  (A) from the amount,  if any, of
the Excess Cash Flow remaining after the foregoing distributions, the sum of (I)
Accrued    Certificate    Interest    thereon,    (II)   the   amount   of   any
Overcollateralization  Reduction  Amount for such  Distribution  Date, (III) the
amount of any Hedge Shortfall Amount for such Distribution Date, (IV) the amount
of any Hedge Shortfall  Carry-Forward  Amount for such Distribution Date and (V)
for any Distribution Date after the Certificate  Principal Balance of each Class
of Class A Certificates,  Class M Certificates and Class B Certificates has been
reduced to zero, the  Overcollateralization  Amount, (B) from prepayment charges
on deposit in the Certificate  Account,  any prepayment  charges received on the
Mortgage  Loans  during  the  related  Prepayment  Period and (C) from the Hedge
Payments, if any, the amount of such Hedge Payment remaining after the foregoing
distributions; and

            (xii) to the Class R-II Certificateholders,  the balance, if any, of
the Excess Cash Flow.]

      (d)  Notwithstanding  the foregoing  clause (c), upon the reduction of the
Certificate  Principal  Balance  of a Class of  [Class A  Certificates,  Class M
Certificates or Class B Certificates]  to zero, such Class of Certificates  will
not be entitled to further distributions pursuant to Section 4.02.

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

      (f) Except as otherwise  provided in Section 9.01, if the Master  Servicer
anticipates that a final  distribution with respect to any Class of Certificates
will be made on the next Distribution  Date, the Master Servicer shall, no later
than the Determination Date in the month of such final distribution, notify

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the Trustee and the Trustee  shall,  no later than two (2)  Business  Days after
such  Determination  Date,  mail on such date to each  Holder  of such  Class of
Certificates a notice to the effect that: (i) the Trustee  anticipates  that the
final  distribution  with respect to such Class of Certificates  will be made on
such  Distribution  Date  but  only  upon  presentation  and  surrender  of such
Certificates at the office of the Trustee or as otherwise specified therein, and
(ii) no interest shall accrue on such Certificates from and after the end of the
prior calendar month. In the event that Certificateholders required to surrender
their   Certificates   pursuant  to  Section  9.01(c)  do  not  surrender  their
Certificates for final cancellation, the Trustee shall cause funds distributable
with respect to such Certificates to be held in the Certificate  Account for the
benefit of such Certificateholders as provided in Section 9.01(d).

      Section  4.03.  Statements to Certificateholders; Statements to Rating
                      Agencies; Exchange Act Reporting.

      (a) Concurrently with each distribution charged to the Certificate Account
and with respect to each  Distribution Date the Master Servicer shall forward to
the Trustee and the Trustee  shall forward by mail or otherwise  make  available
electronically on its website (which may be obtained by any Certificateholder by
telephoning  the Trustee at (800)  934-6802) to each Holder and the  Depositor a
statement  setting  forth  the  following   information  as  to  each  Class  of
Certificates, in each case to the extent applicable:

            (i) the applicable Record Date,  Determination Date and Distribution
Date;

            (ii) the aggregate  amount of payments  received with respect to the
Mortgage Loans, including prepayment amounts;

            (iii) the Servicing Fee and  Subservicing  Fee payable to the Master
Servicer and the Subservicer;

            (iv) the amount of any other fees or expenses paid, and the identity
of the party receiving such fees or expenses;

            (v) (A) the amount of such distribution to the Certificateholders of
such Class applied to reduce the Certificate  Principal Balance thereof, and (B)
the aggregate amount included therein representing Principal Prepayments;

            (vi) the  amount of such  distribution  to  Holders of such Class of
Certificates allocable to interest;

            (vii)  if  the   distribution  to  the  Holders  of  such  Class  of
Certificates  is less than the full amount that would be  distributable  to such
Holders if there were  sufficient  funds available  therefor,  the amount of the
shortfall;

            (viii) the aggregate  Certificate Principal Balance of each Class of
Certificates  before and after giving effect to the amounts  distributed on such
Distribution Date, separately  identifying any reduction thereof due to Realized
Losses other than pursuant to an actual distribution of principal;

            (ix) the  percentage of the  outstanding  principal  balances of the
[Class A  Certificates  and Class M  Certificates]  after  giving  effect to the
distributions on that Distribution Date;

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<PAGE>

            (x) the number and Stated  Principal  Balance of the Mortgage  Loans
after giving effect to the distribution of principal on such  Distribution  Date
and the number of  Mortgage  Loans at the  beginning  and end of the related Due
Period;

            (xi) on the  basis of the most  recent  reports  furnished  to it by
Sub-Servicers,  the number and aggregate  principal  balances of Mortgage  Loans
that are  Delinquent  (A) 30-59 days, (B) 60-89 days and (C) 90 or more days and
the  number  and  aggregate  principal  balance  of  Mortgage  Loans that are in
foreclosure;

            (xii) the amount,  terms and  general  purpose of any Advance by the
Master  Servicer  pursuant to Section 4.04 and the amount of all  Advances  that
have been reimbursed during the related Due Period;

            (xiii)  any  material  modifications,  extensions  or waivers to the
terms of the  Mortgage  Loans  during the Due  Period or that have  cumulatively
become material over time;

            (xiv) any  material  breaches of Mortgage  Loan  representations  or
warranties or covenants in the Agreement;

            (xv) [the amount, if any, of the Hedge Payment for such Distribution
Date and any shortfall in amounts previously required to be paid under the Hedge
Agreement for prior Distribution Dates;]

            (xvi) the number,  aggregate principal balance and book value of any
REO Properties;

            (xvii) the aggregate Accrued Certificate  Interest remaining unpaid,
if any, for each Class of Certificates,  after giving effect to the distribution
made on such Distribution Date;

            (xviii) the aggregate  amount of Realized Losses with respect to the
Mortgage Loans for such  Distribution  Date and the aggregate amount of Realized
Losses with respect to the Mortgage Loans incurred since the Cut-off Date;

            (xix) [reserved];

            (xx) the Pass-Through  Rate on each Class of  Certificates,  the Net
WAC Cap Rate and the Weighted Average Maximum Net Mortgage Rate;

            (xxi) the Basis Risk Shortfalls and Prepayment Interest Shortfalls;

            (xxii)   the   Overcollateralization   Amount   and   the   Required
Overcollateralization Amount following such Distribution Date;

            (xxiii) the number and aggregate  principal  balance of the Mortgage
Loans repurchased under Section 4.07;

            (xxiv) the aggregate  amount of any  recoveries  with respect to the
Mortgage Loans on previously  foreclosed loans from Residential Funding due to a
breach of representation or warranty;

            (xxv)  the  weighted  average  remaining  term  to  maturity  of the
Mortgage  Loans  after  giving  effect  to  the  amounts   distributed  on  such
Distribution Date;

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<PAGE>

            (xxvi) the weighted  average  Mortgage  Rates of the Mortgage  Loans
after giving effect to the amounts distributed on such Distribution Date;

            (xxvii)  the  amount,   if  any,  of  the  Hedge  Payment  for  such
Distribution  Date and any shortfall in amounts  previously  required to be paid
under the Hedge Agreement for prior Distribution Dates; and

            (xxviii) the occurrence of the Stepdown Date; and

            (xxix) the  aggregate  amount of Realized  Losses  since the Cut-off
Date for the Mortgage Loans.

      In the case of  information  furnished  pursuant  to clauses  (v) and (vi)
above,  the amounts shall be expressed as a dollar amount per Certificate with a
$1,000 denomination. In addition to the statement provided to the Trustee as set
forth in this Section 4.03(a),  the Master Servicer shall provide to any manager
of a trust fund consisting of some or all of the  Certificates,  upon reasonable
request,  such additional  information as is reasonably obtainable by the Master
Servicer at no additional  expense to the Master Servicer.  Also, at the request
of a Rating Agency,  the Master Servicer shall provide the information  relating
to the Reportable  Modified  Mortgage Loans  substantially  in the form attached
hereto as Exhibit U to such Rating  Agency  within a reasonable  period of time;
provided,  however,  that the Master  Servicer  shall not be required to provide
such information more than four times in a calendar year to any Rating Agency.

      (b)  Within a  reasonable  period of time  after the end of each  calendar
year,  the Master  Servicer shall  prepare,  or cause to be prepared,  and shall
forward,  or cause to be  forwarded,  to each  Person who at any time during the
calendar year was the Holder of a Certificate, other than a Class R Certificate,
a  statement  containing  the  information  set forth in clauses  [(v) and (vi)]
referred  to in  subsection  (a)  above  aggregated  for such  calendar  year or
applicable  portion  thereof  during which such Person was a  Certificateholder.
Such obligation of the Master Servicer shall be deemed to have been satisfied to
the extent that  substantially  comparable  information shall be provided by the
Master Servicer pursuant to any requirements of the Code.

      (c)  Within a  reasonable  period of time  after the end of each  calendar
year,  the Master  Servicer shall  prepare,  or cause to be prepared,  and shall
forward,  or cause to be  forwarded,  to each  Person who at any time during the
calendar year was the Holder of a Class R  Certificate,  a statement  containing
the applicable  distribution  information provided pursuant to this Section 4.03
aggregated  for such calendar year or applicable  portion  thereof  during which
such  Person was the Holder of a Class R  Certificate.  Such  obligation  of the
Master  Servicer  shall be deemed  to have been  satisfied  to the  extent  that
substantially  comparable  information  shall be provided by the Master Servicer
pursuant to any requirements of the Code.

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

      (e) The Master  Servicer  shall, on behalf of the Depositor and in respect
of the Trust Fund,  sign and cause to be filed with the  Commission any periodic
reports  required to be filed under the  provisions of the Exchange Act, and the
rules  and  regulations  of  the  Commission   thereunder   including,   without
limitation, reports on Form 10-K, Form 10-D and Form 8-K. In connection with the
preparation  and filing of such  periodic  reports,  the  Trustee  shall  timely
provide to the Master Servicer (I) a list of

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Certificateholders  as shown on the  Certificate  Register as of the end of each
calendar year,  (II) copies of all pleadings,  other legal process and any other
documents relating to any claims,  charges or complaints  involving the Trustee,
as trustee hereunder,  or the Trust Fund that are received by the Trustee, (III)
notice of all matters that, to the actual knowledge of a Responsible  Officer of
the Trustee, have been submitted to a vote of the Certificateholders, other than
those matters that have been  submitted to a vote of the  Certificateholders  at
the  request of the  Depositor  or the Master  Servicer,  and (IV) notice of any
failure of the Trustee to make any  distribution  to the  Certificateholders  as
required pursuant to the Series Supplement.  Neither the Master Servicer nor the
Trustee shall have any liability with respect to the Master  Servicer's  failure
to properly prepare or file such periodic reports  resulting from or relating to
the  Master  Servicer's  inability  or failure  to obtain  any  information  not
resulting from the Master Servicer's own negligence or willful misconduct.

      (f) Any Form  10-K  filed  with the  Commission  in  connection  with this
Section 4.03 shall include,  with respect to the  Certificates  relating to such
10-K:

            (i) A  certification,  signed by the senior officer in charge of the
servicing functions of the Master Servicer,  in the form attached as Exhibit T-1
hereto or such other form as may be required or permitted by the Commission (the
"Form 10-K Certification"), in compliance with Rules 13a-14 and 15d-14 under the
Exchange Act and any additional directives of the Commission.

            (ii) A report  regarding its  assessment  of  compliance  during the
preceding  calendar  year with all  applicable  servicing  criteria set forth in
relevant  Commission  regulations  with  respect to  mortgage-backed  securities
transactions  taken as a whole  involving the Master Servicer that are backed by
the same types of assets as those backing the  certificates,  as well as similar
reports on assessment of compliance received from other parties participating in
the  servicing  function  as required by  relevant  Commission  regulations,  as
described in Item 1122(a) of  Regulation  AB. The Master  Servicer  shall obtain
from all other  parties  participating  in the  servicing  function any required
certifications.

            (iii) With respect to each assessment  report described  immediately
above,  a report by a  registered  public  accounting  firm that attests to, and
reports on, the assessment made by the asserting party, as set forth in relevant
Commission regulations,  as described in Regulation 1122(b) of Regulation AB and
Section 3.19.

            (iv) The servicer  compliance  certificate  required to be delivered
pursuant Section 3.18.

      (g) In  connection  with the Form 10-K  Certification,  the Trustee  shall
provide the Master Servicer with a back-up  certification  substantially  in the
form attached hereto as Exhibit T-2.

      (h) This Section  4.03 may be amended in  accordance  with this  Agreement
without the consent of the Certificateholders.

      Section 4.04.   Distribution of Reports to the Trustee and the  Depositor;
                      Advances by the Master Servicer.

      (a) Prior to the close of business  on the  Business  Day next  succeeding
each  Determination  Date, the Master Servicer shall furnish a written statement
(which may be in a mutually  agreeable  electronic  format) to the Trustee,  any
Paying Agent and the Depositor  (the  information  in such  statement to be made
available to  Certificateholders  by the Master  Servicer on request)  (provided
that the Master  Servicer  shall use its best  efforts to deliver  such  written
statement  not later than 12:00 p.m.  New York time on the second  Business  Day
prior to the  Distribution  Date) setting  forth (i) the Available  Distribution

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Amount, (ii) the amounts required to be withdrawn from the Custodial Account and
deposited into the Certificate Account on the immediately succeeding Certificate
Account  Deposit  Date  pursuant to clause (iii) of Section  4.01(a),  (iii) the
amount of Prepayment  Interest Shortfalls and Basis Risk Shortfalls and (iv) the
Hedge Payment,  if any, for such  Distribution  Date. The  determination  by the
Master  Servicer of such  amounts  shall,  in the absence of obvious  error,  be
presumptively  deemed to be correct for all purposes  hereunder  and the Trustee
shall be protected in relying  upon the same  without any  independent  check or
verification.

      (b) On or before  2:00  P.M.  New York  time on each  Certificate  Account
Deposit  Date,  the Master  Servicer  shall  either (i) remit to the Trustee for
deposit  in the  Certificate  Account  from its own  funds,  or  funds  received
therefor  from the  Subservicers,  an amount equal to the Advances to be made by
the Master Servicer in respect of the related  Distribution Date, which shall be
in an aggregate  amount equal to the sum of (A) the aggregate  amount of Monthly
Payments  other than  Balloon  Payments  (with  each  interest  portion  thereof
adjusted to a per annum rate equal to the Net Mortgage Rate), less the amount of
any related  Servicing  Modifications,  Debt  Service  Reductions  or Relief Act
Shortfalls,  on the Outstanding Mortgage Loans as of the related Due Date in the
related  Due  Period,  which  Monthly  Payments  were due during the related Due
Period  and  not  received  as of  the  close  of  business  as of  the  related
Determination  Date;  provided  that no  Advance  shall be made if it would be a
Nonrecoverable  Advance and (B) with respect to each Balloon Loan  delinquent in
respect  of its  Balloon  Payment  as of the close of  business  on the  related
Determination  Date, an amount equal to the assumed  Monthly  Payment (with each
interest  portion thereof adjusted to a per annum rate equal to the Net Mortgage
Rate)  that would have been due on the  related  Due Date based on the  original
amortization  schedule  for such Balloon Loan until such Balloon Loan is finally
liquidated,  over any  payments  of interest or  principal  (with each  interest
portion  thereof  adjusted to a per annum rate equal to the Net  Mortgage  Rate)
received  from the related  Mortgagor as of the close of business on the related
Determination  Date and  allocable to the Due Date during the related Due Period
for each month until such Balloon Loan is finally liquidated, (ii) withdraw from
amounts on deposit in the Custodial Account and remit to the Trustee for deposit
in the  Certificate  Account  all or a portion  of the  Amount  Held for  Future
Distribution  in discharge of any such  Advance,  or (iii) make  advances in the
form of any  combination of clauses (i) and (ii)  aggregating the amount of such
Advance. Any portion of the Amount Held for Future Distribution so used shall be
replaced  by the Master  Servicer  by deposit in the  Certificate  Account on or
before 11:00 A.M. New York time on any future  Certificate  Account Deposit Date
to the extent that funds  attributable  to the Mortgage Loans that are available
in the  Custodial  Account  for  deposit  in the  Certificate  Account  on  such
Certificate   Account   Deposit   Date   shall   be  less   than   payments   to
Certificateholders  required to be made on the following  Distribution Date. The
Master  Servicer  shall be entitled to use any Advance made by a Subservicer  as
described in Section 3.07(b) that has been deposited in the Custodial Account on
or before  such  Distribution  Date as part of the  Advance  made by the  Master
Servicer pursuant to this Section 4.04. The determination by the Master Servicer
that it has made a Nonrecoverable Advance or that any proposed Advance, if made,
would constitute a Nonrecoverable  Advance,  shall be evidenced by a certificate
of a Servicing Officer delivered to the Depositor and the Trustee.  In the event
that the  Master  Servicer  determines  as of the  Business  Day  preceding  any
Certificate  Account  Deposit  Date  that it will be unable  to  deposit  in the
Certificate  Account an amount equal to the Advance  required to be made for the
immediately succeeding Distribution Date, it shall give notice to the Trustee of
its inability to advance (such notice may be given by telecopy),  not later than
3:00 P.M.,  New York time, on such Business Day,  specifying the portion of such
amount  that it will be unable to  deposit.  Not later than 3:00 P.M.,  New York
time, on the Certificate Account Deposit Date the Trustee shall, unless by 12:00
Noon, New York time, on such day the Trustee shall have been notified in writing
(by  telecopy)  that the Master  Servicer  shall  have  directly  or  indirectly
deposited in the  Certificate  Account such portion of the amount of the Advance
as to which  the  Master  Servicer  shall  have  given  notice  pursuant  to the
preceding  sentence,  pursuant to Section 7.01,  (a) terminate all of the rights
and  obligations of the Master  Servicer under this Agreement in accordance with
Section 7.01 and (b) assume the rights and obligations of the Master

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Servicer  hereunder,  including  the  obligation  to deposit in the  Certificate
Account  an  amount  equal  to  the  Advance  for  the  immediately   succeeding
Distribution  Date. The Trustee shall deposit all funds it receives  pursuant to
this Section 4.04(b) into the Certificate Account.

      Section 4.05.   Allocation of Realized Losses.

      (a) Prior to each  Distribution  Date, the Master Servicer shall determine
the  total  amount of  Realized  Losses,  if any,  that  resulted  from any Cash
Liquidation,   Servicing  Modifications,   Debt  Service  Reduction,   Deficient
Valuation or REO Disposition that occurred during the related  Prepayment Period
or, in the case of a Servicing  Modification that constitutes a reduction of the
interest  rate on a Mortgage  Loan,  the amount of the reduction in the interest
portion of the Monthly Payment due in the month in which such  Distribution Date
occurs.  The amount of each  Realized  Loss shall be  evidenced  by an Officers'
Certificate.

      (b) [All  Realized  Losses on the  Mortgage  Loans shall be  allocated  as
follows:

            (i)  first,  to Excess  Cash Flow in the  amounts  and  priority  as
provided in Section 4.02;

            (ii) second, in reduction of the Overcollateralization Amount, until
such amount has been reduced to zero;

            (iii)  third,  to the Class B-2  Certificates,  until the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (iv)  fourth,  to the Class B-1  Certificates,  until the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (v)  fifth,  to the Class  M-9  Certificates,  until  the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (vi)  sixth,  to the Class  M-8  Certificates,  until the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (vii) seventh,  to the Class M-7  Certificates,  until the aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (viii) eighth,  to the Class M-6  Certificates,  until the aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (ix)  ninth,  to the Class  M-5  Certificates,  until the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (x)  tenth,  to the Class  M-4  Certificates,  until  the  aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (xi) eleventh,  to the Class M-3  Certificates,  until the aggregate
Certificate Principal Balance thereof has been reduced to zero;

            (xii) twelfth,  to the Class M-2  Certificates,  until the aggregate
Certificate Principal Balance thereof has been reduced to zero;

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<PAGE>

            (xiii)  thirteenth,  to  the  Class  M-1  Certificates,   until  the
aggregate Certificate Principal Balance thereof has been reduced to zero; and

            (xiv)  fourteenth,  to the  Class  A-1,  Class  A-2  and  Class  A-3
Certificates  on a pro rata basis,  until the  aggregate  Certificate  Principal
Balance of each such Class has been reduced to zero.]

      (c) An  allocation  of a Realized  Loss on a "pro rata basis" among two or
more specified Classes of Certificates  means an allocation on a pro rata basis,
among the various  Classes so specified,  to each such Class of  Certificates on
the basis of their then  outstanding  Certificate  Principal  Balances  prior to
giving effect to distributions to be made on such  Distribution Date in the case
of the principal portion of a Realized Loss or based on the Accrued  Certificate
Interest  thereon payable on such  Distribution  Date in the case of an interest
portion of a Realized Loss. Any allocation of the principal  portion of Realized
Losses (other than Debt Service Reductions) to the [Class A Certificates,  Class
M  Certificates  or  Class  B  Certificates]  shall  be  made  by  reducing  the
Certificate  Principal  Balance  thereof  by  the  amount  so  allocated,  which
allocation shall be deemed to have occurred on such Distribution Date; provided,
that no such reduction shall reduce the aggregate  Certificate Principal Balance
of the Certificates below the aggregate Stated Principal Balance of the Mortgage
Loans.  Allocations of the interest  portions of Realized Losses (other than any
interest rate reduction  resulting from a Servicing  Modification) shall be made
by operation of the definition of "Accrued Certificate  Interest" for each Class
for such  Distribution  Date.  Allocations of the interest portion of a Realized
Loss resulting  from an interest rate  reduction in connection  with a Servicing
Modification shall be made by operation of the priority of payment provisions of
Section 4.02(c). Allocations of the principal portion of Debt Service Reductions
shall be made by  operation  of the  priority of payment  provisions  of Section
4.02(c).  All  Realized  Losses  and all other  losses  allocated  to a Class of
Certificates hereunder will be allocated among the Certificates of such Class in
proportion to the Percentage Interests evidenced thereby.

      (d) [All Realized  Losses on the Mortgage Loans shall be allocated on each
Distribution Date to the REMIC I Regular Interests as provided in the definition
of REMIC I Realized Losses.]

      (e)   [Realized   Losses   allocated  to  the  Excess  Cash  Flow  or  the
Overcollateralization  Amount  pursuant to  paragraphs  (a),  (b) or (c) of this
Section,  the  definition of Accrued  Certificate  Interest and the operation of
Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized
Losses allocated to the Class SB Certificates shall, to the extent such Realized
Losses  represent  Realized Losses on an interest  portion,  be allocated to the
REMIC II Regular  Interest SB-IO.  Realized Losses  allocated to the Excess Cash
Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued
Certificate  Interest on the REMIC I Regular  Interest  SB-IO.  Realized  Losses
allocated to the Overcollateralization  Amount pursuant to paragraph (b) of this
Section  shall be deemed first to reduce the  principal  balance of the REMIC II
Regular  Interest SB-PO until such principal  balance shall have been reduced to
zero and  thereafter  to reduce  accrued  and  unpaid  interest  on the REMIC II
Regular Interest SB-IO.]

      Section  4.06.  Reports  of  Foreclosures  and  Abandonment  of  Mortgaged
                      Property.

      The Master Servicer or the  Subservicers  shall file  information  returns
with  respect  to the  receipt  of  mortgage  interest  received  in a trade  or
business, the reports of foreclosures and abandonments of any Mortgaged Property
and the  informational  returns relating to cancellation of indebtedness  income
with respect to any Mortgaged  Property  required by Sections  6050H,  6050J and
6050P of the  Code,  respectively,  and  deliver  to the  Trustee  an  Officers'
Certificate  on or before March 31 of each year,  beginning with the first March
31 that occurs at least six months  after the Cut-off  Date,  stating  that such
reports have been filed. Such reports shall be in form and substance  sufficient
to meet the reporting  requirements  imposed by such Sections  6050H,  6050J and
6050P of the Code.

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      Section 4.07.   Optional Purchase of Defaulted Mortgage Loans.

      (a) With respect to any Mortgage Loan which is delinquent in payment by 90
days or more,  the Master  Servicer  may, at its option,  purchase such Mortgage
Loan from the  Trustee  at the  Purchase  Price  therefor;  provided,  that such
Mortgage Loan that becomes 90 days or more delinquent  during any given Calendar
Quarter shall only be eligible for purchase  pursuant to this Section during the
period  beginning on the first Business Day of the following  Calendar  Quarter,
and ending at the close of business on the  second-to-last  Business Day of such
following Calendar Quarter; and provided, further, that such Mortgage Loan is 90
days or more delinquent at the time of repurchase.  Such option if not exercised
shall  not  thereafter  be  reinstated  as to  any  Mortgage  Loan,  unless  the
delinquency is cured and the Mortgage Loan thereafter  again becomes  delinquent
in payment by 90 days or more in a subsequent Calendar Quarter.

      (b) If at any time the Master  Servicer makes a payment to the Certificate
Account  covering the amount of the Purchase  Price for such a Mortgage  Loan as
provided in clause (a) above, and the Master Servicer  provides to the Trustee a
certification  signed by a  Servicing  Officer  stating  that the amount of such
payment has been deposited in the  Certificate  Account,  then the Trustee shall
execute  the  assignment  of such  Mortgage  Loan at the  request  of the Master
Servicer  without recourse to the Master Servicer which shall succeed to all the
Trustee's  right,  title and  interest  in and to such  Mortgage  Loan,  and all
security and documents relative thereto.  Such assignment shall be an assignment
outright and not for  security.  The Master  Servicer  will  thereupon  own such
Mortgage, and all such security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto.

      Section 4.08.   [Reserved].

      Section 4.09.   [Reserved].

      Section 4.10.   [Hedge Agreement.]

      (a) [In the event that the Trustee  does not receive by the  Business  Day
preceding a  Distribution  Date the amount as specified  by the Master  Servicer
pursuant to Section  4.04(a)(iv) hereof as the amount to be paid with respect to
such  Distribution  Date  by  the  Hedge  Agreement  Provider  under  the  Hedge
Agreement,  the Trustee  shall  enforce the  obligation  of the Hedge  Agreement
Provider  thereunder.  The parties hereto  acknowledge  that the Hedge Agreement
Provider shall be making all calculations, and determine the amounts to be paid,
under the Hedge  Agreement.  Absent manifest error, the Trustee may conclusively
rely on such  calculations and  determination and any notice received by it from
the Master Servicer pursuant to Section 4.04(a)(iv) hereof.]

      (b)  [The  Trustee  shall  deposit  or cause to be  deposited  any  amount
received under the Hedge Agreement into the Certificate Account on the date such
amount is received from the Hedge  Agreement  Provider under the Hedge Agreement
(including  termination payments, if any). All payments received under the Hedge
Agreement  shall be distributed  in accordance  with the priorities set forth in
Section 4.02(c) hereof.]

      (c) [In the event that the Hedge  Agreement,  or any replacement  thereof,
terminates prior to the Distribution Date in February 2008, the Master Servicer,
but at no expense  to the  Master  Servicer,  on behalf of the  Trustee,  to the
extent that the  termination  value  under such Hedge  Agreement  is  sufficient
therefor and only to the extent of the  termination  payment  received  from the
Hedge Agreement Provider, shall (i) cause a new hedge counterparty to assume the
obligations  of such  terminated  hedge  counterparty  or (ii) cause a new hedge
counterparty  to enter into a new interest rate hedge  agreement  with the Trust
Fund having  substantially  similar  terms as those set forth in the  terminated
Hedge Agreement.]

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                                   ARTICLE V

                                THE CERTIFICATES

      Section 5.01.   The Certificates.

      (a) [The Class A Certificates shall be substantially in the form set forth
in Exhibit A, the Class M Certificates  shall be  substantially  in the form set
forth in Exhibit B, the Class B Certificates shall be substantially in the forms
set forth in Exhibits C-1, C-2 or C-3, as set forth in Section  5.02(e)  hereof,
the  Class SB  Certificates  shall be  substantially  in the  forms set forth in
Exhibits  D-1,  D-2 or D-3,  as set  forth in  Section  5.02(e)  and the Class R
Certificates  shall be  substantially  in the form set forth in Exhibit D-4. The
Certificates  shall, on original issue, be executed and delivered by the Trustee
to the  Certificate  Registrar  for  authentication  and delivery to or upon the
order of the Depositor upon receipt by the Trustee or one or more  Custodians of
the documents  specified in Section 2.01. Each Class of Class A Certificates and
the Class M-1 Certificates shall be issuable in minimum dollar  denominations of
$[25,000]  and  integral  multiples  of $1 in  excess  thereof.  The  Class  M-2
Certificates,   Class  M-3  Certificates,  Class  M-4  Certificates,  Class  M-5
Certificates,   Class  M-6  Certificates,  Class  M-7  Certificates,  Class  M-8
Certificates,  Class  M-9  Certificates,  Class B-1  Certificates  and Class B-2
Certificates shall be issuable in minimum dollar denominations of $[250,000] and
integral multiples of $[1] in excess thereof. The Class SB Certificates shall be
issuable in minimum  percentage  interests of [5.00]% and integral  multiples of
[0.01]% in excess thereof.  On the Closing Date, one Class B-1 Certificate shall
be  registered  as a Temporary  Regulation S Global Class B  Certificate  with a
Certificate  Principal Balance of $[0.00] and one Class B-1 Certificate shall be
registered  as a  Rule  144A  Global  Offered  Certificate  with  a  Certificate
Principal  Balance  of  $[__________].  On  the  Closing  Date,  one  Class  B-2
Certificate  shall be  registered  as a Temporary  Regulation  S Global  Offered
Certificate  with a Certificate  Principal  Balance of $[0.00] and one Class B-2
Certificate shall be registered as a Rule 144A Global Offered Certificate with a
Certificate Principal Balance of $[________].  On the Closing Date, one Class SB
Certificate  shall be  registered  as a Temporary  Regulation  S Global  Offered
Certificate  with a  Certificate  Principal  Balance of $[0.00] and one Class SB
Certificate shall be registered as a Rule 144A Global Offered Certificate with a
Certificate   Principal   Balance  of  $[_________].   Each  Class  of  Class  R
Certificates  shall  be  issued  in  registered,  certificated  form in  minimum
percentage  interests of [20.00]%  and  integral  multiples of [0.01]% in excess
thereof;  provided,  however, that one Class R Certificate of each Class will be
issuable to the REMIC  Administrator as "tax matters person" pursuant to Section
10.01(c) in a minimum  denomination  representing  a Percentage  Interest of not
less than 0.01%.  The  Certificates  shall be  executed  by manual or  facsimile
signature  on behalf  of an  authorized  officer  of the  Trustee.  Certificates
bearing the manual or facsimile  signatures of individuals  who were at any time
the proper officers of the Trustee shall bind the Trustee,  notwithstanding that
such  individuals  or any of them have ceased to hold such offices  prior to the
authentication  and delivery of such Certificate or did not hold such offices at
the date of such  Certificates.  No Certificate shall be entitled to any benefit
under this Agreement,  or be valid for any purpose, unless there appears on such
Certificate a certificate of  authentication  substantially in the form provided
for herein executed by the Certificate  Registrar by manual signature,  and such
certificate  upon any  Certificate  shall be conclusive  evidence,  and the only
evidence,  that such  Certificate  has been  duly  authenticated  and  delivered
hereunder. All Certificates shall be dated the date of their authentication.]

      (b)  The  [Class  A  Certificates,  Class  B  Certificates  and  Class  M]
Certificates shall initially be issued as one or more Certificates registered in
the name of the  Depository  or its  nominee  and,  except  as  provided  below,
registration of such  Certificates  may not be transferred by the Trustee except
to another  Depository that agrees to hold such  Certificates for the respective
Certificate  Owners with Ownership  Interests  therein.  The Certificate  Owners
shall  hold  their  respective  Ownership  Interests  in and to  each  [Class  A
Certificate, Class B Certificate and Class M] Certificate through the book-entry
facilities of the

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Depository and,  except as provided  below,  shall not be entitled to Definitive
Certificates  in  respect  of  such  Ownership   Interests.   All  transfers  by
Certificate  Owners of their  respective  Ownership  Interests in the Book-Entry
Certificates shall be made in accordance with the procedures  established by the
Depository  Participant or brokerage firm representing  such Certificate  Owner.
Each Depository  Participant shall transfer the Ownership  Interests only in the
Book-Entry  Certificates  of  Certificate  Owners it  represents or of brokerage
firms  for which it acts as agent in  accordance  with the  Depository's  normal
procedures.

      The Trustee,  the Master  Servicer and the  Depositor may for all purposes
(including  the making of payments due on the  respective  Classes of Book-Entry
Certificates)  deal with the Depository as the authorized  representative of the
Certificate  Owners  with  respect  to  the  respective  Classes  of  Book-Entry
Certificates  for  purposes  of  exercising  the  rights  of  Certificateholders
hereunder.  The rights of  Certificate  Owners  with  respect to the  respective
Classes of Book-Entry  Certificates shall be limited to those established by law
and agreements between such Certificate  Owners and the Depository  Participants
and brokerage firms representing such Certificate Owners.  Multiple requests and
directions  from,  and  votes  of,  the  Depository  as  Holder  of any Class of
Book-Entry  Certificates  with  respect to any  particular  matter  shall not be
deemed  inconsistent  if they are made with  respect  to  different  Certificate
Owners.  The Trustee may establish a reasonable  record date in connection  with
solicitations  of consents from or voting by  Certificateholders  and shall give
notice to the  Depository of such record date.  If (i)(A) the Depositor  advises
the  Trustee  in writing  that the  Depository  is no longer  willing or able to
properly discharge its  responsibilities  as Depository and (B) the Depositor is
unable to locate a  qualified  successor  or (ii) the  Depositor  at its  option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository, the Trustee shall notify all Certificate Owners, through
the Depository,  of the occurrence of any such event and of the  availability of
Definitive   Certificates  to  Certificate  Owners  requesting  the  same.  Upon
surrender  to the  Trustee of the  Book-Entry  Certificates  by the  Depository,
accompanied by registration instructions from the Depository for registration of
transfer, the Trustee shall issue the Definitive Certificates.

      In addition,  if an Event of Default has occurred and is continuing,  each
Certificate  Owner  materially  adversely  affected  thereby  may at its  option
request a Definitive  Certificate evidencing such Certificate Owner's Percentage
Interest in the related  Class of  Certificates.  In order to make such request,
such  Certificate  Owner  shall,  subject  to the  rules and  procedures  of the
Depository,  provide the Depository or the related  Depository  Participant with
directions  for the  Certificate  Registrar to exchange or cause the exchange of
the Certificate Owner's interest in such Class of Certificates for an equivalent
Percentage  Interest in fully  registered  definitive  form. Upon receipt by the
Certificate   Registrar  of  instructions  from  the  Depository  directing  the
Certificate  Registrar to effect such  exchange  (such  instructions  to contain
information  regarding the Class of Certificates  and the Certificate  Principal
Balance being exchanged,  the Depository  Participant account to be debited with
the  decrease,  the  registered  holder  of and  delivery  instructions  for the
Definitive  Certificate,  and any other information  reasonably  required by the
Certificate  Registrar),  (i)  the  Certificate  Registrar  shall  instruct  the
Depository  to  reduce  the  related  Depository  Participant's  account  by the
aggregate Certificate Principal Balance of the Definitive Certificate,  (ii) the
Trustee shall  execute and the  Certificate  Registrar  shall  authenticate  and
deliver, in accordance with the registration and delivery  instructions provided
by the Depository,  a Definitive Certificate evidencing such Certificate Owner's
Percentage  Interest in such Class of  Certificates  and (iii) the Trustee shall
execute  and the  Certificate  Registrar  shall  authenticate  a new  Book-Entry
Certificate  reflecting  the  reduction in the aggregate  Certificate  Principal
Balance  of  such  Class  of  Certificates  by  the  amount  of  the  Definitive
Certificates.

      Neither the Depositor, the Master Servicer nor the Trustee shall be liable
for any actions  taken by the  Depository  or its  nominee,  including,  without
limitation,  any delay in  delivery  of any  instructions  required  under  this
Section 5.01 and may conclusively rely on, and shall be protected in relying on,
such

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<PAGE>

instructions.  Upon the issuance of Definitive Certificates, the Trustee and the
Master  Servicer shall  recognize the Holders of the Definitive  Certificates as
Certificateholders hereunder.

      No  Ownership  Interest  in  a  Temporary   Regulation  S  Global  Offered
Certificate or Permanent Regulation S Global Offered Certificate may at any time
be transferred  to a transferee  that takes delivery in the form of a Definitive
Certificate.

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

      Section 5.02.   Registration of Transfer and Exchange of Certificates.

      (a) The  Trustee  shall cause to be kept at one of the offices or agencies
to be appointed by the Trustee in accordance with the provisions of Section 8.12
a Certificate  Register in which,  subject to such reasonable  regulations as it
may prescribe,  the Trustee shall provide for the  registration  of Certificates
and of transfers and exchanges of Certificates as herein  provided.  The Trustee
is initially  appointed  Certificate  Registrar  for the purpose of  registering
Certificates and transfers and exchanges of Certificates as herein provided. The
Certificate Registrar,  or the Trustee, shall provide the Master Servicer with a
certified list of Certificateholders as of each Record Date prior to the related
Determination Date.

      (b) Upon surrender for  registration of transfer of any Certificate at any
office or agency of the Trustee  maintained for such purpose pursuant to Section
8.12 and, in the case of any Class SB Certificate  or Class R Certificate,  upon
satisfaction  of the conditions  set forth below,  the Trustee shall execute and
the Certificate  Registrar shall  authenticate  and deliver,  in the name of the
designated  transferee or  transferees,  one or more new  Certificates of a like
Class and aggregate Percentage Interest.

      (c) At the option of the Certificateholders, Certificates may be exchanged
for other Certificates of authorized denominations of a like Class and aggregate
Percentage  Interest,  upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for exchange
the Trustee shall execute and the Certificate  Registrar shall  authenticate and
deliver the  Certificates of such Class which the  Certificateholder  making the
exchange is entitled to receive.  Every Certificate presented or surrendered for
transfer  or exchange  shall (if so  required by the Trustee or the  Certificate
Registrar) be duly  endorsed by, or be  accompanied  by a written  instrument of
transfer in form satisfactory to the Trustee and the Certificate  Registrar duly
executed by, the Holder thereof or his attorney duly authorized in writing.

      (d)  No  transfer,  sale,  pledge  or  other  disposition  of a  [Class  B
Certificate,  Class SB Certificate or Class R Certificate]  shall be made unless
such transfer, sale, pledge or other disposition is exempt from the registration
requirements of the Securities Act of 1933, as amended (the "1933 Act"), and any
applicable  state  securities  laws or is made in  accordance  with said Act and
laws. Except as otherwise provided in this Section 5.02(d) or in Section 5.02(e)
hereof,  in the  event  that a  transfer  of a  [Class B  Certificate,  Class SB
Certificate  or Class R  Certificate]  is to be made,  (i) unless the  Depositor
directs the Trustee  otherwise,  the Trustee shall require a written  Opinion of
Counsel acceptable to and in form and substance  satisfactory to the Trustee and
the  Depositor  that  such  transfer  may  be  made  pursuant  to an  exemption,
describing the applicable  exemption and the basis  therefor,  from said Act and
laws or is being made  pursuant to said Act and laws,  which  Opinion of Counsel
shall not be an expense of the  Trustee,  the Trust Fund,  the  Depositor or the
Master Servicer,  and (ii) the Trustee shall require the transferee to execute a
representation  letter,  substantially in the form of Exhibit I hereto,  and the
Trustee  shall  require  the  transferor  to  execute a  representation  letter,
substantially  in the form of Exhibit J hereto,  each  acceptable to and in form
and substance satisfactory to the Depositor and the Trustee certifying to

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<PAGE>

the  Depositor  and the  Trustee  the facts  surrounding  such  transfer,  which
representation  letters shall not be an expense of the Trustee,  the Trust Fund,
the Depositor or the Master  Servicer.  In lieu of the requirements set forth in
the  preceding   sentence,   transfers  of  [Class  B  Certificates,   Class  SB
Certificates  or  Class R  Certificates]  may be made in  accordance  with  this
Section 5.02(d) if the prospective transferee of such a Certificate provides the
Trustee and the Master Servicer with an investment  letter  substantially in the
form of Exhibit N  attached  hereto,  which  investment  letter  shall not be an
expense  of the  Trustee,  the  Depositor,  or the  Master  Servicer,  and which
investment  letter states that,  among other things,  such  transferee  (i) is a
"qualified  institutional  buyer" as defined under Rule 144A, acting for its own
account or the  accounts of other  "qualified  institutional  buyers" as defined
under Rule 144A, and (ii) is aware that the proposed  transferor intends to rely
on the exemption from registration  requirements  under the 1933 Act provided by
Rule 144A. The Holder of a [Class B Certificate, Class SB Certificate or Class R
Certificate] desiring to effect any transfer,  sale, pledge or other disposition
shall,  and does hereby agree to,  indemnify  the Trustee,  the  Depositor,  the
Master  Servicer and the  Certificate  Registrar  against any liability that may
result if the transfer, sale, pledge or other disposition is not so exempt or is
not made in accordance with such federal and state laws and this  Agreement.  If
any  transfer  of a [Class B  Certificate  or  Class SB  Certificate]  held by a
transferor and to be held by a transferee in book-entry  form is to made without
registration  under the 1933 Act,  the  transferor  shall be deemed to have made
each of the certifications set forth in Exhibit J hereto as of the transfer date
and the transferee shall be deemed to have made each of the  certifications  set
forth in Exhibit N hereto as of the transfer date, in each case as if such Class
B Certificate or Class SB Certificate] were in physical form.

      (e) Provisions Regarding Rule 144A and Regulation S Transfers.

            (i) Private Offered  Certificates  sold to "qualified  institutional
buyers" as defined in and in  reliance  on Rule 144A under the 1933 Act shall be
represented  by one or more  Rule  144A  Global  Offered  Certificates.  Private
Offered  Certificates sold in offshore  transactions in reliance on Regulation S
under the Securities Act shall be represented  initially by Temporary Regulation
S Global Offered Certificates.

            (ii) The Temporary Regulation S Global Offered Certificates shall be
exchanged  on the later of (a) 40 days after the later of the  Closing  Date (b)
the date on which the  requisite  certifications  are due to and provided to the
Trustee (the later of clauses (a) and (b), the  "Exchange  Date") for  Permanent
Regulation  S  Global   Offered   Certificates.   Regulation  S  Global  Offered
Certificates shall be issued in registered form, without coupons,  and deposited
upon  the  order  of the  Transferor  with  the  Trustee  as  custodian  for and
registered in the name of a nominee of the  Depository for credit to the account
of the depositaries for Euroclear and Clearstream.

            (iii)  A  Certificate  Owner  holding  an  interest  in a  Temporary
Regulation S Global Offered  Certificate may receive  payments in respect of the
Certificates on the Temporary Regulation S Global Offered Certificate only after
the  delivery,  to  Euroclear or  Clearstream,  as the case may be, of a written
certification  substantially  in the  form  set  forth  in  Exhibit  V, and upon
delivery by  Euroclear  or  Clearstream,  as the case may be, to the Trustee and
Certificate Registrar of a certification or certifications  substantially in the
form set forth in Exhibit W (the "Clearing System Certificate"). The delivery by
a Certificate Owner of the certification  referred to above shall constitute its
irrevocable  instruction  to  Euroclear or  Clearstream,  as the case may be, to
arrange for the exchange of the  Certificate  Owner's  interest in the Temporary
Regulation  S  Global  Offered  Certificate  for a  beneficial  interest  in the
Permanent  Regulation S Global  Offered  Certificate  after the Exchange Date in
accordance with paragraph (iv) below.

            (iv) After (i) the Exchange Date and (ii) receipt by the Certificate
Registrar of written instructions from Euroclear or Clearstream, as the case may
be, directing the Certificate Registrar to

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credit or cause to be credited to either  Euroclear's or  Clearstream's,  as the
case  may be,  Depository's  account  a  beneficial  interest  in the  Permanent
Regulation S Global Offered  Certificate in a principal  amount not greater than
that of the  beneficial  interest in the Temporary  Regulation S Global  Offered
Certificate,  the Certificate  Registrar shall instruct the Depository to reduce
the principal  amount of the Temporary  Regulation S Global Offered  Certificate
and increase the principal  amount of the Permanent  Regulation S Global Offered
Certificate, by the principal amount of the beneficial interest in the Temporary
Regulation S Global Offered  Certificate to be so transferred,  and to credit or
cause to be credited to the account of  Euroclear,  Clearstream  or a Person who
has an account with the Depository as the case may be, a beneficial  interest in
the  Permanent  Regulation S Global  Offered  Certificate  having a  Certificate
Principal  Balance  of the  Temporary  Regulation  S Global  [Class  B] that was
reduced upon the  transfer.  Upon return of the entire  principal  amount of the
Temporary Regulation S Global Offered Certificate to the Trustee in exchange for
beneficial  interests in the Permanent  Regulation S Global Offered Certificate,
Trustee shall cancel the Temporary  Regulation S Global  Offered  Certificate by
perforation and shall forthwith destroy it.

            (v) For  transfer of an interest in a Permanent  Regulation S Global
Offered Certificate for an interest in the Rule 144A Global Offered Certificate,
if the  Certificateholder  of a beneficial interest in a Permanent  Regulation S
Global Offered  Certificate  deposited with the Depository wishes at any time to
exchange its interest in the Permanent  Regulation S Global Offered Certificate,
or to  transfer  its  interest  in the  Permanent  Regulation  S Global  Offered
Certificate  to a Person who wishes to take  delivery  thereof in the form of an
interest in the Rule 144A Global Offered Certificate, the Certificateholder may,
subject  to the  rules  and  procedures  of  Euroclear  or  Clearstream  and the
Depository, as the case may be, give directions for the Certificate Registrar to
exchange or cause the exchange or transfer or cause the transfer of the interest
for  an  equivalent   beneficial  interest  in  the  Rule  144A  Global  Offered
Certificate.  Upon receipt by the  Certificate  Registrar of  instructions  from
Euroclear or Clearstream, from the Depository or from the Certificateholder,  as
the case may be,  directing the  Certificate  Registrar to credit or cause to be
credited a beneficial interest in the Rule 144A Global Offered Certificate equal
to the  Percentage  Interest  in  the  Permanent  Regulation  S  Global  Offered
Certificate  to be  exchanged  or  transferred  (such  instructions  to  contain
information regarding the Depository Participant account to be credited with the
increase,  and,  with  respect to an  exchange or transfer of an interest in the
Permanent  Regulation S Global Offered  Certificate,  information  regarding the
Depository Participant account to be debited with the decrease), the Certificate
Registrar  shall  instruct the  Depository to reduce the Permanent  Regulation S
Global Offered  Certificate by the aggregate  principal amount of the beneficial
interest in the  Permanent  Regulation  S Global  Offered  Certificate  to be so
exchanged or  transferred,  and the  Certificate  Registrar  shall  instruct the
Depository, concurrently with the reduction, to increase the principal amount of
the Rule 144A Global Offered Certificate by the aggregate  Certificate Principal
Balance of the beneficial interest in the Permanent  Regulation S Global Offered
Certificate  to be so  exchanged  or  transferred,  and to credit or cause to be
credited to the account of the Person specified in the instructions a beneficial
interest in the Rule 144A Global Offered  Certificate  equal to the reduction in
the Certificate  Principal Balance of the Permanent  Regulation S Global Offered
Certificate.

            (vi) For  transfers  of an interest in the Rule 144A Global  Offered
Certificate for an interest in a Regulation S Global Offered  Certificate,  if a
Certificate Owner holding a beneficial  interest in the Rule 144A Global Offered
Certificate  wishes at any time to exchange its interest in the Rule 144A Global
Offered   Certificate   for  an  interest  in  a  Regulation  S  Global  Offered
Certificate, or to transfer its interest in the 144A Book-Entry Certificate to a
Person who wishes to take  delivery  thereof in the form of an  interest  in the
Regulation S Global Offered Certificate,  the Certificateholder  may, subject to
the rules and procedures of the Depository,  give directions for the Certificate
Registrar to exchange or cause the exchange or transfer or cause the transfer of
the interest for an equivalent  beneficial  interest in the  Regulation S Global
Offered  Certificate.   Upon  receipt  by  the  Certificate   Registrar  of  (A)
instructions  given  in  accordance  with  the  Depository's  procedures  from a
Depository Participant or from the

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<PAGE>

Certificateholder,  as the case may be,  directing the Certificate  Registrar to
credit or cause to be credited a beneficial  interest in the Regulation S Global
Offered  Certificate in an amount equal to the  beneficial  interest in the Rule
144A Global Offered  Certificate to be exchanged or  transferred,  (B) a written
order  given  in  accordance  with  the   Depository's   procedures   containing
information   regarding  the  account  of  the  depositaries  for  Euroclear  or
Clearstream  or  another  Depository  Participant,  as the  case  may be,  to be
credited with the increase and the name of the account and (C)  certificates  in
the forms of Exhibits X and Y,  respectively,  given by the proposed  transferee
and the  Certificate  Owner of the interest,  the  Certificate  Registrar  shall
instruct the  Depository to reduce the Rule 144A Global  Offered  Certificate by
the  aggregate  principal  amount of the  beneficial  interest  in the Rule 144A
Global Offered Certificate to be so exchanged or transferred and the Certificate
Registrar shall instruct the  Depository,  concurrently  with the reduction,  to
increase the principal amount of the Regulation S Global Offered  Certificate by
the aggregate  Certificate  Principal Balance of the beneficial  interest in the
Rule 144A Global Offered  Certificate to be so exchanged or transferred,  and to
credit or cause to be  credited to the  account of the Person  specified  in the
instructions   a  beneficial   interest  in  the  Regulation  S  Global  Offered
Certificate  equal to the reduction in the Certificate  Principal Balance of the
Rule 144A Global Offered Certificate.

            (vii)  Notwithstanding any other provisions of this Section 5.02(e),
the  Initial  Purchaser  may  exchange  beneficial  interests  in the  Temporary
Regulation S Global  Offered  Certificates  held by it for interests in the Rule
144A Global Offered Certificates only after delivery by the Initial Purchaser of
instructions  for the  exchange  substantially  in the form of  Exhibit  Z. Upon
receipt of the instructions provided in the preceding sentence,  the Certificate
Registrar  shall instruct the  Depository to reduce the principal  amount of the
Temporary Regulation S Global Offered Certificate to be so transferred and shall
instruct the Depository to increase the principal amount of the Rule 144A Global
Offered  Certificate  and credit or cause to be  credited  to the account of the
placement  agent  a  beneficial   interest  in  the  Rule  144A  Global  Offered
Certificate having a principal amount equal to the amount by which the principal
amount of the Temporary Regulation S Global Offered Certificate was reduced upon
the transfer pursuant to the instructions provided in the first sentence of this
clause (vii).

            (viii)  [If a  transfer  of a Class  B  Certificate  or a  Class  SB
Certificate  which is a Definitive  Certificate is to be made, the Trustee shall
require a written  Opinion of Counsel  acceptable  to and in form and  substance
satisfactory  to the  Trustee  and the Company  that such  transfer  may be made
pursuant to an  exemption,  describing  the  applicable  exemption and the basis
therefor,  from  said Act and laws or is being  made  pursuant  to the 1933 Act,
which Opinion of Counsel shall not be an expense of the Trustee, the Trust Fund,
the Company or the Master Servicer.]

            (ix) [The Holder of a Class B Certificate  or a Class SB Certificate
desiring to effect any transfer,  sale, pledge or other  disposition  shall, and
does hereby agree to,  indemnify the Trustee,  the Company,  the Master Servicer
and the  Certificate  Registrar  against  any  liability  that may result if the
transfer,  sale,  pledge or other disposition is not so exempt or is not made in
accordance with the provisions of this Agreement.]

      (f) (i) [In the case of any Class SB  Certificate  or Class R  Certificate
presented  for  registration  in the name of any Person,  either (A) the Trustee
shall  require an Opinion of  Counsel  acceptable  to and in form and  substance
satisfactory to the Trustee, the Depositor and the Master Servicer to the effect
that the purchase or holding of such Class SB Certificate or Class R Certificate
is  permissible  under  applicable  law,  will not  constitute  or result in any
non-exempt prohibited  transaction under Section 406 of ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent  enactments),  and will not
subject the Trustee,  the Depositor or the Master  Servicer to any obligation or
liability  (including  obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those  undertaken in this  Agreement,  which Opinion of
Counsel  shall not be an expense of the  Trustee,  the  Depositor  or the Master
Servicer,  or (B) the  prospective  transferee  shall be required to provide the

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Trustee,  the Depositor  and the Master  Servicer  with a  certification  to the
effect set forth in Exhibit P (with  respect  to a Class SB  Certificate)  or in
paragraph fifteen of Exhibit H-1 (with respect to a Class R Certificate),  which
the Trustee may rely upon  without  further  inquiry or  investigation,  or such
other  certifications as the Trustee may deem desirable or necessary in order to
establish that such transferee or the Person in whose name such  registration is
requested  is  either  (a)  not an  employee  benefit  plan  or  other  plan  or
arrangement subject to the prohibited transaction provisions of ERISA or Section
4975 of the Code,  or any  Person  (including  an  investment  manager,  a named
fiduciary or a trustee of any such plan) who is using "plan  assets" of any such
plan to effect such acquisition (each of the foregoing,  a "Plan Investor"),  or
(b) an  insurance  company,  the source of funds used to  purchase  or hold such
Certificates is an "insurance  company general  account," as the term is defined
in DOL Prohibited Transaction Class Exemption ("PTCE") 95-60, and the conditions
in Sections I and III of PTCE 95-60 have been satisfied.

            (ii) Any  Transferee of a Class B Certificate or Class M Certificate
will be deemed to have  represented by virtue of its purchase or holding of such
Certificate (or interest  therein) that either (a) such Transferee is not a Plan
Investor,  (b) it has acquired and is holding  such  Certificate  in reliance on
U.S. Department of Labor Prohibited Transaction Exemption ("PTE") 94-29, as most
recently amended, 67 Fed. Reg. 54487 (Aug. 22, 2002) (the "RFC Exemption"),  and
that it understands that there are certain conditions to the availability of the
RFC Exemption,  including that such  Certificate  must be rated,  at the time of
purchase,  not lower than "BBB-" (or its equivalent) by Fitch, Standard & Poor's
or Moody's (which,  with respect to any Class B Certificate is not applicable as
of the Closing Date) or (c) (x) such Transferee is an insurance company, (y) the
source of funds used to purchase or hold such Certificate (or interest  therein)
is an "insurance company general account" (as defined in Prohibited  Transaction
Class Exemption  ("PTCE") 95-60), and (z) the conditions set forth in Sections I
and III of PTCE 95-60 have been  satisfied  (each  entity  that  satisfies  this
clause (c), a  "Complying  Insurance  Company").  Any  Transferee  of a Class SB
Certificate  will be deemed to have  represented  by virtue of its  purchase  or
holding of such Class SB Certificate (or interest  therein) that such Transferee
is not a Plan Investor.

            (iii) If any  Class B  Certificate  or Class M  Certificate  (or any
interest  therein)  is  acquired or held by any Person that does not satisfy the
conditions described in paragraph (ii) above, then the last preceding Transferee
that  either  (x) is not a Plan  Investor,  (y)  acquired  such  Certificate  in
compliance with the RFC Exemption or (z) is a Complying  Insurance Company shall
be restored,  to the extent  permitted by law, to all rights and  obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such Class
B Certificate or Class M Certificate. The Trustee shall be under no liability to
any Person for making any payments  due on such  Certificate  to such  preceding
Transferee.

            (iv) Any purported Certificate Owner whose acquisition or holding of
any  Class  SB  Certificate,  Class B  Certificate  or Class M  Certificate  (or
interest  therein) was effected in violation of the restrictions in this Section
5.02(f) shall indemnify and hold harmless the Depositor, the Trustee, the Master
Service,  any  Subservicer,  any underwriter and the Trust Fund from and against
any and all liabilities, claims, costs or expenses incurred by such parties as a
result of such acquisition or holding.]

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

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<PAGE>

                  (A) Each Person holding or acquiring any Ownership Interest in
a Class R Certificate shall be a Permitted  Transferee and shall promptly notify
the  Trustee of any  change or  impending  change in its  status as a  Permitted
Transferee.

                  (B) In connection with any proposed  Transfer of any Ownership
Interest in a Class R Certificate, the Trustee shall require delivery to it, and
shall not register the Transfer of any Class R Certificate until its receipt of:

                  (I) an affidavit  and  agreement (a  "Transfer  Affidavit  and
Agreement,"  in the form  attached  hereto as  Exhibit  H-1)  from the  proposed
Transferee,   in  form  and  substance  satisfactory  to  the  Master  Servicer,
representing  and  warranting,  among  other  things,  that  it  is a  Permitted
Transferee,  that it is not  acquiring  its  Ownership  Interest  in the Class R
Certificate that is the subject of the proposed  Transfer as a nominee,  trustee
or agent for any Person who is not a Permitted  Transferee,  that for so long as
it retains its Ownership Interest in a Class R Certificate,  it will endeavor to
remain a Permitted  Transferee,  and that it has reviewed the provisions of this
Section 5.02(g) and agrees to be bound by them, and

                  (II) a  certificate,  in the form  attached  hereto as Exhibit
H-2, from the Holder  wishing to transfer the Class R  Certificate,  in form and
substance  satisfactory  to the Master  Servicer,  representing  and warranting,
among other  things,  that no purpose of the proposed  Transfer is to impede the
assessment or collection of tax.

                  (C)  Notwithstanding  the delivery of a Transfer Affidavit and
Agreement  by a proposed  Transferee  under clause (B) above,  if a  Responsible
Officer of the Trustee who is assigned to this  Agreement  has actual  knowledge
that the proposed  Transferee is not a Permitted  Transferee,  no Transfer of an
Ownership Interest in a Class R Certificate to such proposed Transferee shall be
effected.

                  (D) Each Person holding or acquiring any Ownership Interest in
a Class R  Certificate  shall  agree (x) to  require a  Transfer  Affidavit  and
Agreement  from any other  Person to whom such Person  attempts to transfer  its
Ownership  Interest  in a  Class R  Certificate  and  (y)  not to  transfer  its
Ownership  Interest  unless it provides a certificate to the Trustee in the form
attached hereto as Exhibit H-2.

                  (E) Each Person holding or acquiring an Ownership  Interest in
a Class R Certificate,  by purchasing an Ownership Interest in such Certificate,
agrees to give the Trustee  written notice that it is a  "pass-through  interest
holder"   within  the  meaning  of  Temporary   Treasury   Regulations   Section
1.67-3T(a)(2)(i)(A)  immediately upon acquiring an Ownership Interest in a Class
R  Certificate,  if it is, or is  holding  an  Ownership  Interest  in a Class R
Certificate on behalf of, a "pass-through interest holder."

            (ii)  The  Trustee  shall  register  the  Transfer  of any  Class  R
Certificate only if it shall have received the Transfer Affidavit and Agreement,
a certificate of the Holder requesting such transfer in the form attached hereto
as Exhibit  H-2 and all of such other  documents  as shall have been  reasonably
required by the Trustee as a condition  to such  registration.  Transfers of the
Class R Certificates to Non-United States Persons and Disqualified Organizations
(as defined in Section 860E(e)(5) of the Code) are prohibited.

                  (A) If any Disqualified  Organization shall become a holder of
a Class R Certificate,  then the last preceding  Permitted  Transferee  shall be
restored,  to the extent  permitted  by law,  to all rights and  obligations  as
Holder thereof  retroactive to the date of registration of such Transfer of such
Class R  Certificate.  If a Non-United  States Person shall become a holder of a
Class R Certificate,

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<PAGE>

then the last  preceding  United States Person shall be restored,  to the extent
permitted by law, to all rights and obligations as Holder thereof retroactive to
the date of  registration  of such  Transfer of such Class R  Certificate.  If a
transfer of a Class R Certificate is  disregarded  pursuant to the provisions of
Treasury  Regulations  Section  1.860E-1  or  Section  1.860G-3,  then  the last
preceding  Permitted  Transferee  shall be restored,  to the extent permitted by
law, to all rights and obligations as Holder thereof  retroactive to the date of
registration of such Transfer of such Class R Certificate.  The Trustee shall be
under no liability to any Person for any  registration  of Transfer of a Class R
Certificate  that is in fact not permitted by this Section 5.02(g) or for making
any payments  due on such  Certificate  to the holder  thereof or for taking any
other action with respect to such holder under the provisions of this Agreement.

                  (B) If any  purported  Transferee  shall  become a Holder of a
Class R Certificate in violation of the restrictions in this Section 5.02(g) and
to the extent that the  retroactive  restoration  of the rights of the Holder of
such Class R Certificate as described in clause (iii)(A) above shall be invalid,
illegal or unenforceable, then the Master Servicer shall have the right, without
notice to the holder or any prior  holder of such Class R  Certificate,  to sell
such Class R Certificate to a purchaser  selected by the Master Servicer on such
terms as the  Master  Servicer  may  choose.  Such  purported  Transferee  shall
promptly  endorse and deliver each Class R Certificate  in  accordance  with the
instructions of the Master  Servicer.  Such purchaser may be the Master Servicer
itself or any Affiliate of the Master  Servicer.  The proceeds of such sale, net
of the commissions (which may include commissions payable to the Master Servicer
or its  Affiliates),  expenses  and taxes due,  if any,  will be remitted by the
Master  Servicer to such purported  Transferee.  The terms and conditions of any
sale under this clause  (iii)(B)  shall be determined in the sole  discretion of
the Master  Servicer,  and the Master Servicer shall not be liable to any Person
having  an  Ownership  Interest  in a Class R  Certificate  as a  result  of its
exercise of such discretion.

            (iii) The  Master  Servicer,  on behalf of the  Trustee,  shall make
available,  upon written request from the Trustee, all information  necessary to
compute any tax imposed

                  (A) as a result of the Transfer of an Ownership  Interest in a
Class R Certificate to any Person who is a Disqualified Organization,  including
the  information  regarding  "excess  inclusions"  of such Class R  Certificates
required to be provided to the Internal  Revenue  Service and certain Persons as
described in Treasury  Regulations  Sections  1.860D-1(b)(5) and 1.860E-2(a)(5),
and

                  (B) as a result  of any  regulated  investment  company,  real
estate  investment  trust,  common  trust fund,  partnership,  trust,  estate or
organization  described  in  Section  1381 of the Code that  holds an  Ownership
Interest in a Class R Certificate having as among its record holders at any time
any Person  who is a  Disqualified  Organization.  Reasonable  compensation  for
providing  such  information  may be required by the Master  Servicer  from such
Person.

            (iv) The provisions of this Section  5.02(g) set forth prior to this
clause (v) may be modified,  added to or  eliminated,  provided that there shall
have been delivered to the Trustee the following:

                  (A) written notification from each Rating Agency to the effect
that the  modification,  addition to or elimination of such  provisions will not
cause such Rating Agency to downgrade its then-current  ratings,  if any, of the
[Class  A  Certificates  or  Class  M  Certificates]  below  the  lower  of  the
then-current  rating  or the  rating  assigned  to such  Certificates  as of the
Closing Date by such Rating Agency; and

                  (B) a  certificate  of the Master  Servicer  stating  that the
Master  Servicer  has  received  an Opinion of  Counsel,  in form and  substance
satisfactory to the Master Servicer, to the

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effect that such  modification,  addition to or absence of such  provisions will
not cause any REMIC  created  hereunder  to cease to qualify as a REMIC and will
not cause (x) any REMIC created  hereunder to be subject to an entity-level  tax
caused  by the  Transfer  of any  Class  R  Certificate  to a  Person  that is a
Disqualified  Organization  or (y) a  Certificateholder  or another Person to be
subject to a  REMIC-related  tax caused by the Transfer of a Class R Certificate
to a Person that is not a Permitted Transferee.

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

      (i) All  Certificates  surrendered  for  transfer  and  exchange  shall be
destroyed by the Certificate Registrar.

      Section 5.03.   Mutilated, Destroyed, Lost or Stolen Certificates.

      If (i)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  and the  Certificate  Registrar  such
security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice to the Trustee or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute  and the  Certificate  Registrar  shall  authenticate  and  deliver,  in
exchange  for or in lieu  of any  such  mutilated,  destroyed,  lost  or  stolen
Certificate,  a new Certificate of like tenor, Class and Percentage Interest but
bearing a number not contemporaneously outstanding. Upon the issuance of any new
Certificate  under this  Section,  the  Trustee may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and any other expenses  (including the fees and expenses of the
Trustee  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate  issued  pursuant to this  Section  shall  constitute  complete  and
indefeasible  evidence of ownership in the Trust Fund, as if originally  issued,
whether or not the lost,  stolen or destroyed  Certificate shall be found at any
time.

      Section 5.04.   Persons Deemed Owners.

      Prior to due  presentation of a Certificate for  registration of transfer,
the Depositor,  the Master Servicer,  the Trustee, the Certificate Registrar and
any agent of the Depositor,  the Master Servicer, the Trustee or the Certificate
Registrar  may treat the Person in whose name any  Certificate  is registered as
the  owner  of such  Certificate  for the  purpose  of  receiving  distributions
pursuant to Section 4.02 and for all other purposes whatsoever, except as and to
the extent  provided in the definition of  "Certificateholder,"  and neither the
Depositor,  the Master Servicer,  the Trustee, the Certificate Registrar nor any
agent of the  Depositor,  the Master  Servicer,  the Trustee or the  Certificate
Registrar  shall be  affected  by notice to the  contrary  except as provided in
Section 5.02(g).

      Section 5.05.   Appointment of Paying Agent.

      The  Trustee  may  appoint  a  Paying  Agent  for the  purpose  of  making
distributions  to  Certificateholders  pursuant to Section 4.02. In the event of
any such appointment,  on or prior to each Distribution Date the Master Servicer
on behalf of the Trustee shall deposit or cause to be deposited  with the Paying
Agent a sum sufficient to make the payments to Certificateholders in the amounts
and in the manner provided for in Section 4.02, such sum to be held in trust for
the benefit of Certificateholders.  The Trustee shall cause each Paying Agent to
execute  and  deliver to the Trustee an  instrument  in which such Paying  Agent
shall agree with the Trustee  that such Paying  Agent will hold all sums held by
it for the  payment  to  Certificateholders  in  trust  for the  benefit  of the
Certificateholders entitled thereto until

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such  sums  shall be paid to such  Certificateholders.  Any sums so held by such
Paying Agent shall be held only in Eligible Accounts to the extent such sums are
not distributed to the  Certificateholders on the date of receipt by such Paying
Agent.

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                                   ARTICLE VI

                      THE DEPOSITOR AND THE MASTER SERVICER

      Section  6.01.  Respective  Liabilities  of the  Depositor  and the Master
                      Servicer.

      The Depositor and the Master  Servicer  shall each be liable in accordance
herewith only to the extent of the  obligations  specifically  and  respectively
imposed upon and undertaken by the Depositor and the Master Servicer herein.  By
way of  illustration  and not  limitation,  the  Depositor is not liable for the
servicing  and  administration  of the  Mortgage  Loans,  nor is it obligated by
Section 7.01 or Section 10.01 to assume any  obligations of the Master  Servicer
or to appoint a designee  to assume such  obligations,  nor is it liable for any
other  obligation  hereunder that it may, but is not obligated to, assume unless
it elects to assume such obligation in accordance herewith.

      Section  6.02.  Merger or  Consolidation  of the  Depositor  or the Master
                      Servicer; Assignment of Rights and Delegation of Duties by
                      Master Servicer.

      (a) The Depositor and the Master  Servicer  shall each keep in full effect
its  existence,  rights and  franchises as a  corporation  under the laws of the
state of its  incorporation and as a limited liability company under the laws of
the state of its organization,  respectively,  and will each obtain and preserve
its  qualification  to do business as a foreign  corporation  or other Person in
each  jurisdiction  in which  such  qualification  is or shall be  necessary  to
protect the validity and  enforceability of this Agreement,  the Certificates or
any of the  Mortgage  Loans and to  perform  its  respective  duties  under this
Agreement.

      (b) Any Person  into which the  Depositor  or the Master  Servicer  may be
merged  or  converted  or  with  which  it may be  consolidated,  or any  Person
resulting from any merger, conversion or consolidation to which the Depositor or
the Master Servicer shall be a party,  or any Person  succeeding to the business
of the Depositor or the Master Servicer, shall be the successor of the Depositor
or the Master Servicer, as the case may be, hereunder,  without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything in this  Section  6.02(b) to the  contrary  notwithstanding;  provided,
however,  that the successor or surviving Person to the Master Servicer shall be
qualified to service  mortgage loans on behalf of Fannie Mae or Freddie Mac; and
provided  further  that each Rating  Agency's  ratings,  if any, of any [Class A
Certificates,   Class  M  Certificates  or  Class  B  Certificates]   in  effect
immediately prior to such merger or consolidation will not be qualified, reduced
or withdrawn as a result  thereof (as  evidenced by a letter to such effect from
each Rating Agency).

      (c) Notwithstanding anything else in this Section 6.02 and Section 6.04 to
the contrary,  the Master Servicer may assign its rights and delegate its duties
and obligations  under this Agreement;  provided that the Person  accepting such
assignment  or  delegation  shall be a  Person  which is  qualified  to  service
mortgage   loans  on  behalf  of  Fannie  Mae  or  Freddie  Mac,  is  reasonably
satisfactory  to the  Trustee  and the  Depositor,  is willing  to  service  the
Mortgage  Loans and executes and  delivers to the  Depositor  and the Trustee an
agreement,  in form and substance  reasonably  satisfactory to the Depositor and
the Trustee, which contains an assumption by such Person of the due and punctual
performance  and  observance  of each  covenant and condition to be performed or
observed by the Master Servicer under this Agreement; provided further that each
Rating Agency's  rating of the Classes of  Certificates  that have been rated in
effect  immediately  prior  to  such  assignment  and  delegation  will  not  be
qualified,  reduced or withdrawn as a result of such  assignment  and delegation
(as evidenced by a letter to such effect from each Rating  Agency).  In the case
of any such  assignment and  delegation,  the Master  Servicer shall be released
from its obligations under this Agreement, except that the Master Servicer shall
remain  liable for all  liabilities  and  obligations  incurred  by it as Master
Servicer  hereunder  prior  to  the  satisfaction  of  the  conditions  to  such
assignment  and   delegation   set  forth  in  the  next   preceding   sentence.
Notwithstanding

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the  foregoing,  in the event of a pledge or assignment  by the Master  Servicer
solely of its rights to  purchase  all  assets of the Trust  Fund under  Section
9.01(a)  (or, if so  specified  in Section  9.01(a),  its rights to purchase the
Mortgage  Loans and  property  acquired  related to such  Mortgage  Loans or its
rights to purchase the Certificates related thereto),  the provisos of the first
sentence of this paragraph will not apply.

      Section  6.03.  Limitation  on  Liability  of the  Depositor,  the  Master
                      Servicer and Others.

      None  of the  Depositor,  the  Master  Servicer  or any of the  directors,
officers,  employees or agents of the Depositor or the Master  Servicer shall be
under any liability to the Trust Fund or the  Certificateholders  for any action
taken or for refraining  from the taking of any action in good faith pursuant to
this  Agreement,  or for  errors  in  judgment;  provided,  however,  that  this
provision  shall not  protect  the  Depositor,  the Master  Servicer or any such
Person  against any breach of  warranties,  representations  or  covenants  made
herein or any  liability  which would  otherwise be imposed by reason of willful
misfeasance,  bad faith or gross  negligence in the  performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The Depositor,
the  Master  Servicer  and any  director,  officer,  employee  or  agent  of the
Depositor  or the Master  Servicer may rely in good faith on any document of any
kind prima facie  properly  executed and submitted by any Person  respecting any
matters arising hereunder.  The Depositor, the Master Servicer and any director,
officer,  employee or agent of the  Depositor  or the Master  Servicer  shall be
indemnified by the Trust Fund and held harmless  against any loss,  liability or
expense  incurred in connection with any legal action relating to this Agreement
or the  Certificates,  other than any loss,  liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except as any such loss,  liability or
expense  shall be otherwise  reimbursable  pursuant to this  Agreement)  and any
loss, liability or expense incurred by reason of willful misfeasance,  bad faith
or gross  negligence  in the  performance  of duties  hereunder  or by reason of
reckless  disregard of obligations and duties  hereunder.  Neither the Depositor
nor the Master Servicer shall be under any obligation to appear in, prosecute or
defend any legal or administrative  action,  proceeding,  hearing or examination
that is not incidental to its  respective  duties under this Agreement and which
in its opinion may involve it in any expense or  liability;  provided,  however,
that the Depositor or the Master  Servicer may in its  discretion  undertake any
such action,  proceeding,  hearing or examination  that it may deem necessary or
desirable in respect to this  Agreement and the rights and duties of the parties
hereto and the interests of the Certificateholders hereunder. In such event, the
legal expenses and costs of such action, proceeding,  hearing or examination and
any liability  resulting  therefrom shall be expenses,  costs and liabilities of
the Trust Fund,  and the Depositor and the Master  Servicer shall be entitled to
be  reimbursed  therefor out of amounts  attributable  to the Mortgage  Loans on
deposit  in the  Custodial  Account as  provided  by  Section  3.10 and,  on the
Distribution  Date(s)  following  such  reimbursement,  the  aggregate  of  such
expenses and costs shall be  allocated  in reduction of the Accrued  Certificate
Interest on each Class  entitled  thereto in the same manner as if such expenses
and costs constituted a Prepayment Interest Shortfall.

      Section 6.04.   Depositor and Master Servicer Not to Resign.

      Subject to the  provisions of Section 6.02,  neither the Depositor nor the
Master  Servicer shall resign from its respective  obligations and duties hereby
imposed on it except upon  determination that its duties hereunder are no longer
permissible  under  applicable  law.  Any  such  determination   permitting  the
resignation  of the  Depositor or the Master  Servicer  shall be evidenced by an
Opinion  of  Counsel  (at the  expense of the  resigning  party) to such  effect
delivered to the  Trustee.  No such  resignation  by the Master  Servicer  shall
become  effective  until the Trustee or a successor  servicer shall have assumed
the Master  Servicer's  responsibilities  and  obligations  in  accordance  with
Section 7.02.

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                                  ARTICLE VII

                                     DEFAULT

      Section 7.01.   Events of Default.

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

            (i) the  Master  Servicer  shall fail to  distribute  or cause to be
distributed to Holders of Certificates of any Class any distribution required to
be made under the terms of the  Certificates  of such  Class and this  Agreement
and, in either case,  such failure shall  continue  unremedied for a period of 5
days after the date upon which written  notice of such failure,  requiring  such
failure to be  remedied,  shall have been  given to the Master  Servicer  by the
Trustee  or the  Depositor  or to the Master  Servicer,  the  Depositor  and the
Trustee by the  Holders of  Certificates  of such  Class  evidencing  Percentage
Interests aggregating not less than 25%; or

            (ii) the  Master  Servicer  shall  fail to observe or perform in any
material  respect any other of the  covenants or  agreements  on the part of the
Master Servicer  contained in the Certificates of any Class or in this Agreement
and such failure shall continue  unremedied for a period of 30 days (except that
such  number of days shall be 15 in the case of a failure to pay the premium for
any Required  Insurance  Policy) after the date on which written  notice of such
failure,  requiring the same to be remedied, shall have been given to the Master
Servicer  by the  Trustee  or the  Depositor,  or to the  Master  Servicer,  the
Depositor  and  the  Trustee  by  the  Holders  of  Certificates  of  any  Class
evidencing,  as to such Class,  Percentage  Interests  aggregating not less than
25%; or

            (iii)  a  decree  or  order  of a court  or  agency  or  supervisory
authority  having  jurisdiction in the premises in an involuntary case under any
present or future  federal or state  bankruptcy,  insolvency  or similar  law or
appointing  a  conservator   or  receiver  or  liquidator  in  any   insolvency,
readjustment  of  debt,   marshalling  of  assets  and  liabilities  or  similar
proceedings,  or for the winding-up or  liquidation  of its affairs,  shall have
been  entered  against the Master  Servicer  and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 days; or

            (iv) the  Master  Servicer  shall  consent to the  appointment  of a
conservator or receiver or liquidator in any  insolvency,  readjustment of debt,
marshalling of assets and  liabilities,  or similar  proceedings of, or relating
to, the Master Servicer or of, or relating to, all or  substantially  all of the
property of the Master Servicer; or

            (v) the Master  Servicer shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take advantage of, or
commence a voluntary  case under,  any applicable  insolvency or  reorganization
statute,  make an assignment  for the benefit of its  creditors,  or voluntarily
suspend payment of its obligations; or

            (vi) the Master  Servicer  shall  notify  the  Trustee  pursuant  to
Section  4.04(b)  that it is unable to  deposit  in the  Certificate  Account an
amount equal to the Advance.

      If an Event of Default  described in clauses (i)-(v) of this Section shall
occur,  then,  and in each and every such case, so long as such Event of Default
shall not have been  remedied,  either the Depositor or the Trustee shall at the
direction  of Holders  of  Certificates  entitled  to at least 51% of the Voting
Rights

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by notice in writing to the Master  Servicer (and to the  Depositor),  terminate
all of the rights and  obligations  of the Master  Servicer under this Agreement
and in and to the Mortgage Loans and the proceeds thereof, other than its rights
as a Certificateholder  hereunder;  provided,  however,  that a successor to the
Master Servicer is appointed  pursuant to Section 7.02 and such successor Master
Servicer  shall have accepted the duties of Master  Servicer  effective upon the
resignation of the Master Servicer.  If an Event of Default  described in clause
(vi) hereof shall occur, the Trustee shall, by notice to the Master Servicer and
the Depositor,  immediately  terminate all of the rights and  obligations of the
Master  Servicer  under this  Agreement and in and to the Mortgage Loans and the
proceeds  thereof,  other than its rights as a  Certificateholder  hereunder  as
provided in Section  4.04(b).  On or after the receipt by the Master Servicer of
such written  notice,  all authority and power of the Master Servicer under this
Agreement,  whether  with  respect to the  Certificates  (other than as a Holder
thereof) or the Mortgage Loans or otherwise,  shall subject to Section 7.02 pass
to and be vested in the Trustee or the Trustee's  designee appointed pursuant to
Section 7.02;  and,  without  limitation,  the Trustee is hereby  authorized and
empowered  to  execute  and  deliver,  on  behalf  of the  Master  Servicer,  as
attorney-in-fact or otherwise, any and all documents and other instruments,  and
to do or accomplish all other acts or things  necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement  or  assignment  of the  Mortgage  Loans and related  documents,  or
otherwise. The Master Servicer agrees to cooperate with the Trustee in effecting
the termination of the Master Servicer's  responsibilities and rights hereunder,
including,  without limitation,  the transfer to the Trustee or its designee for
administration  by it of all cash amounts which shall at the time be credited to
the Custodial Account or the Certificate  Account or thereafter be received with
respect to the Mortgage  Loans.  No such  termination  shall  release the Master
Servicer for any liability that it would otherwise have hereunder for any act or
omission prior to the effective time of such  termination.  Notwithstanding  any
termination of the  activities of Residential  Funding in its capacity as Master
Servicer hereunder, Residential Funding shall be entitled to receive, out of any
late  collection of a Monthly  Payment on a Mortgage Loan which was due prior to
the notice  terminating  Residential  Funding's rights and obligations as Master
Servicer  hereunder  and  received  after  such  notice,  that  portion to which
Residential  Funding would have been entitled pursuant to Sections  3.10(a)(ii),
(vi) and (vii) as well as its  Servicing Fee in respect  thereof,  and any other
amounts payable to Residential  Funding hereunder the entitlement to which arose
prior to the  termination of its activities  hereunder.  Upon the termination of
Residential  Funding as Master Servicer hereunder the Depositor shall deliver to
the Trustee, as successor Master Servicer, a copy of the Program Guide.

      Section 7.02.   Trustee or Depositor to Act; Appointment of Successor.

      (a) On and  after  the time  the  Master  Servicer  receives  a notice  of
termination pursuant to Section 7.01 or resigns in accordance with Section 6.04,
the Trustee or, upon notice to the  Depositor and with the  Depositor's  consent
(which shall not be unreasonably withheld) a designee (which meets the standards
set forth below) of the Trustee,  shall be the  successor in all respects to the
Master  Servicer  in its  capacity  as  servicer  under this  Agreement  and the
transactions  set forth or  provided  for herein and shall be subject to all the
responsibilities,  duties and liabilities  relating thereto placed on the Master
Servicer (except for the  responsibilities,  duties and liabilities contained in
Sections 2.02 and 2.03(a),  excluding the duty to notify related Subservicers as
set forth in such Sections, and its obligations to deposit amounts in respect of
losses  incurred  prior to such notice or termination on the investment of funds
in the Custodial Account or the Certificate Account pursuant to Sections 3.07(c)
and 4.01(c) by the terms and provisions  hereof);  provided,  however,  that any
failure to  perform  such  duties or  responsibilities  caused by the  preceding
Master Servicer's failure to provide information  required by Section 4.04 shall
not be  considered  a default  by the  Trustee  hereunder  as  successor  Master
Servicer.  As compensation  therefor,  the Trustee as successor  Master Servicer
shall be entitled to all funds  relating to the Mortgage  Loans which the Master
Servicer  would have been  entitled  to charge to the  Custodial  Account or the
Certificate  Account if the Master  Servicer had continued to act hereunder and,
in addition, shall be entitled to the income from any Permitted Investments made
with amounts attributable to the Mortgage Loans held in

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the Custodial Account or the Certificate  Account. If the Trustee has become the
successor  to the Master  Servicer in  accordance  with  Section 6.04 or Section
7.01, then  notwithstanding the above, the Trustee may, if it shall be unwilling
to so act, or shall, if it is unable to so act, appoint,  or petition a court of
competent  jurisdiction  to appoint,  any  established  housing and home finance
institution,  which  is  also a  Fannie  Mae or  Freddie  Mac-approved  mortgage
servicing  institution,  having a net worth of not less than  $10,000,000 as the
successor to the Master Servicer  hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the Master Servicer hereunder.
Pending appointment of a successor to the Master Servicer hereunder, the Trustee
shall become  successor to the Master Servicer and shall act in such capacity as
hereinabove  provided.  In connection with such appointment and assumption,  the
Trustee may make such arrangements for the compensation of such successor out of
payments on  Mortgage  Loans as it and such  successor  shall  agree;  provided,
however,  that no such  compensation  shall be in excess of that  permitted  the
initial Master Servicer hereunder. The Depositor, the Trustee, the Custodian and
such successor shall take such action,  consistent with this Agreement, as shall
be  necessary to  effectuate  any such  succession.  The  Servicing  Fee for any
successor  Master  Servicer  appointed  pursuant  to this  Section  7.02 will be
lowered with respect to those Mortgage Loans, if any, where the Subservicing Fee
accrues at a rate of less than  0.50% per annum in the event that the  successor
Master  Servicer  is  not  servicing  such  Mortgage  Loans  directly  and it is
necessary to raise the related  Subservicing Fee to a rate of 0.50% per annum in
order to hire a  Subservicer  with respect to such  Mortgage  Loans.  The Master
Servicer shall pay the reasonable expenses of the Trustee in connection with any
servicing transfer hereunder.

      (b) In  connection  with the  termination  or  resignation  of the  Master
Servicer  hereunder,  either (i) the successor  Master  Servicer,  including the
Trustee if the Trustee is acting as successor Master  Servicer,  shall represent
and  warrant  that it is a member of MERS in good  standing  and shall  agree to
comply  in all  material  respects  with the  rules  and  procedures  of MERS in
connection  with the servicing of the Mortgage  Loans that are  registered  with
MERS, in which case the  predecessor  Master  Servicer shall  cooperate with the
successor  Master  Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor  Master Servicer as necessary under MERS'
rules and regulations,  or (ii) the predecessor  Master Servicer shall cooperate
with the  successor  Master  Servicer in causing  MERS to execute and deliver an
assignment of Mortgage in recordable  form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other  notices,  documents and other
instruments  as may be  necessary  or  desirable  to effect a  transfer  of such
Mortgage Loan or servicing of such  Mortgage  Loan on the MERS(R)  System to the
successor Master Servicer.  The predecessor  Master Servicer shall file or cause
to be  filed  any such  assignment  in the  appropriate  recording  office.  The
predecessor  Master  Servicer  shall  bear any and all  fees of  MERS,  costs of
preparing  any  assignments  of  Mortgage,  and fees and  costs  of  filing  any
assignments  of Mortgage  that may be required  under this  subsection  (b). The
successor  Master  Servicer  shall cause such  assignment to be delivered to the
Trustee or the Custodian  promptly upon receipt of the original with evidence of
recording  thereon or a copy certified by the public  recording  office in which
such assignment was recorded.

      Section 7.03.   Notification to Certificateholders.

      (a) Upon any such  termination or appointment of a successor to the Master
Servicer,   the  Trustee   shall  give   prompt   written   notice   thereof  to
Certificateholders  at their respective  addresses  appearing in the Certificate
Register.

      (b)  Within 60 days  after the  occurrence  of any Event of  Default,  the
Trustee  shall  transmit by mail to all Holders of  Certificates  notice of each
such Event of  Default  hereunder  known to the  Trustee,  unless  such Event of
Default shall have been cured or waived as provided in Section 7.04 hereof.

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      Section 7.04.   Waiver of Events of Default.

      The Holders representing at least 66% of the Voting Rights of Certificates
affected  by a default or Event of Default  hereunder  may waive any  default or
Event of  Default;  provided,  however,  that (a) a default  or Event of Default
under  clause (i) of Section  7.01 may be waived  only by all of the  Holders of
Certificates  affected  by such  default or Event of  Default  and (b) no waiver
pursuant to this Section 7.04 shall  affect the Holders of  Certificates  in the
manner set forth in Section 11.01(b)(i),  (ii) or (iii). Upon any such waiver of
a  default  or  Event of  Default  by the  Holders  representing  the  requisite
percentage of Voting Rights of Certificates affected by such default or Event of
Default,  such  default  or Event of Default  shall  cease to exist and shall be
deemed to have been remedied for every purpose  hereunder.  No such waiver shall
extend to any  subsequent  or other  default  or Event of  Default or impair any
right consequent thereon except to the extent expressly so waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

      Section 8.01.   Duties of Trustee.

      (a) The Trustee,  prior to the occurrence of an Event of Default and after
the curing of all  Events of  Default  which may have  occurred,  undertakes  to
perform such duties and only such duties as are  specifically  set forth in this
Agreement. In case an Event of Default has occurred (which has not been cured or
waived),  the Trustee shall  exercise such of the rights and powers vested in it
by this  Agreement,  and use the same degree of care and skill in their exercise
as a prudent  investor  would  exercise  or use under the  circumstances  in the
conduct of such investor's own affairs.

      (b)  The  Trustee,   upon  receipt  of  all   resolutions,   certificates,
statements,  opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically  required to be furnished  pursuant to any
provision  of this  Agreement,  shall  examine  them to  determine  whether they
conform to the  requirements  of this  Agreement.  The Trustee  shall notify the
Certificateholders  of any such documents which do not materially conform to the
requirements  of  this  Agreement  in the  event  that  the  Trustee,  after  so
requesting,  does not receive  satisfactorily  corrected documents.  The Trustee
shall forward or cause to be forwarded in a timely fashion the notices,  reports
and  statements  required to be  forwarded  by the Trustee  pursuant to Sections
4.03,  7.03,  and 10.01.  The Trustee shall  furnish in a timely  fashion to the
Master Servicer such  information as the Master Servicer may reasonably  request
from time to time for the Master  Servicer to fulfill its duties as set forth in
this  Agreement.  The Trustee  covenants  and agrees  that it shall  perform its
obligations  hereunder  in a manner so as to  maintain  the status of each REMIC
created  hereunder as a REMIC under the REMIC Provisions and (subject to Section
10.01(f))  to prevent the  imposition  of any  federal,  state or local  income,
prohibited  transaction,  contribution  or other  tax on the  Trust  Fund to the
extent that  maintaining  such  status and  avoiding  such taxes are  reasonably
within the  control of the Trustee  and are  reasonably  within the scope of its
duties under this Agreement.

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

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

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

            (iii) The Trustee shall not be personally liable with respect to any
action taken,  suffered or omitted to be taken by it in good faith in accordance
with  the  direction  of  the  Certificateholders   holding  Certificates  which
evidence,  Percentage  Interests  aggregating  not less than 25% of the affected
Classes as to the time,  method and place of conducting  any  proceeding for any

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remedy available to the Trustee, or exercising any trust or power conferred upon
the Trustee, under this Agreement;

            (iv) The Trustee shall not be charged with  knowledge of any default
(other than a default in payment to the  Trustee)  specified  in clauses (i) and
(ii) of Section 7.01 or an Event of Default under clauses (iii), (iv) and (v) of
Section 7.01 unless a Responsible Officer of the Trustee assigned to and working
in the Corporate Trust Office obtains actual  knowledge of such failure or event
or the Trustee receives written notice of such failure or event at its Corporate
Trust Office from the Master Servicer,  the Depositor or any  Certificateholder;
and

            (v) Except to the extent  provided in Section  7.02, no provision in
this  Agreement  shall  require  the  Trustee  to  expend  or risk its own funds
(including,  without  limitation,  the making of any Advance) or otherwise incur
any  personal  financial  liability in the  performance  of any of its duties as
Trustee  hereunder,  or in the  exercise of any of its rights or powers,  if the
Trustee shall have  reasonable  grounds for believing that repayment of funds or
adequate  indemnity against such risk or liability is not reasonably  assured to
it.

      (d) The Trustee  shall timely pay,  from its own funds,  the amount of any
and all federal,  state and local taxes  imposed on the Trust Fund or its assets
or transactions  including,  without  limitation,  (A) "prohibited  transaction"
penalty  taxes as defined in Section 860F of the Code,  if, when and as the same
shall be due and  payable,  (B) any tax on  contributions  to a REMIC  after the
Closing  Date  imposed  by  Section  860G(d) of the Code and (C) any tax on "net
income from foreclosure property" as defined in Section 860G(c) of the Code, but
only if such  taxes  arise out of a breach  by the  Trustee  of its  obligations
hereunder,  which breach  constitutes  negligence  or willful  misconduct of the
Trustee.

      Section 8.02.   Certain Matters Affecting the Trustee.

      (a) Except as otherwise provided in Section 8.01:

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

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

            (iii) The Trustee  shall be under no  obligation  to exercise any of
the trusts or powers vested in it by this Agreement or to institute,  conduct or
defend any litigation  hereunder or in relation hereto at the request,  order or
direction of any of the  Certificateholders  pursuant to the  provisions of this
Agreement,  unless  such  Certificateholders  shall have  offered to the Trustee
reasonable  security or indemnity  against the costs,  expenses and  liabilities
which may be  incurred  therein or  thereby;  nothing  contained  herein  shall,
however, relieve the Trustee of the obligation,  upon the occurrence of an Event
of Default (which has not been cured), to exercise such of the rights and powers
vested in it by this Agreement,  and to use the same degree of care and skill in
their  exercise  as  a  prudent   investor  would  exercise  or  use  under  the
circumstances in the conduct of such investor's own affairs;

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

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            (v) Prior to the  occurrence  of an Event of Default  hereunder  and
after the curing of all Events of Default which may have  occurred,  the Trustee
shall not be bound to make any investigation into the facts or matters stated in
any resolution,  certificate,  statement,  instrument,  opinion, report, notice,
request,  consent,  order,  approval,  bond or other paper or  document,  unless
requested  in  writing  so to do by the  Holders  of  Certificates  of any Class
evidencing,  as to such Class,  Percentage Interests,  aggregating not less than
50%;  provided,  however,  that if the payment  within a reasonable  time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such  investigation is, in the opinion of the Trustee,  not reasonably
assured  to the  Trustee  by the  security  afforded  to it by the terms of this
Agreement,  the Trustee may require reasonable indemnity against such expense or
liability as a condition to so proceeding.  The reasonable expense of every such
examination  shall be paid by the Master Servicer,  if an Event of Default shall
have  occurred  and  is  continuing,  and  otherwise  by  the  Certificateholder
requesting the investigation;

            (vi) The Trustee  may execute any of the trusts or powers  hereunder
or perform  any duties  hereunder  either  directly  or by or through  agents or
attorneys  provided  that the Trustee  shall remain  liable for any acts of such
agents or attorneys; and

            (vii) To the extent  authorized  under the Code and the  regulations
promulgated thereunder,  each Holder of a Class R Certificate hereby irrevocably
appoints and authorizes the Trustee to be its  attorney-in-fact  for purposes of
signing  any Tax Returns  required to be filed on behalf of the Trust Fund.  The
Trustee  shall  sign on behalf  of the  Trust  Fund and  deliver  to the  Master
Servicer  in a timely  manner any Tax  Returns  prepared  by or on behalf of the
Master Servicer that the Trustee is required to sign as determined by the Master
Servicer pursuant to applicable federal,  state or local tax laws, provided that
the Master Servicer shall indemnify the Trustee for signing any such Tax Returns
that contain errors or omissions.

      (b) Following the issuance of the Certificates (and except as provided for
in Section 2.04), the Trustee shall not accept any contribution of assets to the
Trust Fund unless  (subject to Section  10.01(f)) it shall have obtained or been
furnished with an Opinion of Counsel to the effect that such  contribution  will
not (i) cause any REMIC  created  hereunder to fail to qualify as a REMIC at any
time that any  Certificates  are  outstanding or (ii) cause the Trust Fund to be
subject  to any  federal  tax as a result of such  contribution  (including  the
imposition of any federal tax on "prohibited transactions" imposed under Section
860F(a) of the Code).

      Section 8.03.   Trustee Not Liable for Certificates or Mortgage Loans.

      The  recitals  contained  herein and in the  Certificates  (other than the
execution of the  Certificates and relating to the acceptance and receipt of the
Mortgage  Loans) shall be taken as the statements of the Depositor or the Master
Servicer as the case may be, and the Trustee assumes no responsibility for their
correctness.  The  Trustee  makes  no  representations  as to  the  validity  or
sufficiency  of  this  Agreement  or  of  the  Certificates   (except  that  the
Certificates  shall be duly and  validly  executed  and  authenticated  by it as
Certificate  Registrar) or of any Mortgage Loan or related document,  or of MERS
or the MERS(R) System.  Except as otherwise  provided herein,  the Trustee shall
not be  accountable  for the use or  application  by the Depositor or the Master
Servicer of any of the Certificates or of the proceeds of such Certificates,  or
for the use or  application  of any funds  paid to the  Depositor  or the Master
Servicer in respect of the Mortgage  Loans or deposited in or withdrawn from the
Custodial  Account or the  Certificate  Account by the  Depositor  or the Master
Servicer.

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      Section 8.04.   Trustee May Own Certificates.

      The Trustee in its  individual or any other  capacity may become the owner
or pledgee  of  Certificates  with the same  rights it would have if it were not
Trustee.

      Section  8.05.  Master  Servicer  to  Pay  Trustee's  Fees  and  Expenses;
                      Indemnification.

      (a) The Master Servicer covenants and agrees to pay to the Trustee and any
co-trustee  from  time to time,  and the  Trustee  and any  co-trustee  shall be
entitled  to,  reasonable  compensation  (which  shall  not  be  limited  by any
provision of law in regard to the compensation of a trustee of an express trust)
for all services  rendered by each of them in the execution of the trusts hereby
created  and in the  exercise  and  performance  of any of the powers and duties
hereunder of the Trustee and any  co-trustee,  and the Master Servicer shall pay
or reimburse  the Trustee and any  co-trustee  upon  request for all  reasonable
expenses,  disbursements  and  advances  incurred  or made by the Trustee or any
co-trustee in accordance with any of the provisions of this Agreement (including
the reasonable  compensation  and the expenses and  disbursements of its counsel
and of all persons not regularly in its employ, and the expenses incurred by the
Trustee or any  co-trustee in connection  with the  appointment  of an office or
agency  pursuant  to Section  8.12)  except any such  expense,  disbursement  or
advance as may arise from its negligence or bad faith.

      (b) The Master  Servicer  agrees to indemnify the Trustee for, and to hold
the Trustee harmless  against,  any loss,  liability or expense incurred without
negligence or willful  misconduct on its part,  arising out of, or in connection
with,  the  acceptance  and  administration  of the Trust  Fund,  including  its
obligation to execute the DTC Letter in its individual  capacity,  and including
the costs  and  expenses  (including  reasonable  legal  fees and  expenses)  of
defending   itself  against  any  claim  in  connection  with  the  exercise  or
performance of any of its powers or duties under this Agreement,  and the Master
Servicer  further  agrees to indemnify  the Trustee for, and to hold the Trustee
harmless  against,  any  loss,  liability  or  expense  arising  out  of,  or in
connection  with,  the  provisions  set forth in the third  paragraph of Section
2.01(b)  hereof,  including  without  limitation,  all  costs,  liabilities  and
expenses  (including  reasonable legal fees and expenses) of  investigating  and
defending itself against any claim, action or proceeding, pending or threatened,
relating to the provisions of such paragraph, provided that:

            (i) with respect to any such claim, the Trustee shall have given the
Master  Servicer  written notice  thereof  promptly after the Trustee shall have
actual knowledge thereof;

            (ii) while  maintaining  control over its own  defense,  the Trustee
shall  cooperate  and consult fully with the Master  Servicer in preparing  such
defense; and

            (iii)  notwithstanding  anything in this  Agreement to the contrary,
the  Master  Servicer  shall not be liable  for  settlement  of any claim by the
Trustee  entered into  without the prior  consent of the Master  Servicer  which
consent shall not be  unreasonably  withheld.  No  termination of this Agreement
shall  affect  the  obligations  created by this  Section  8.05(b) of the Master
Servicer to indemnify  the Trustee  under the  conditions  and to the extent set
forth herein. Notwithstanding the foregoing, the indemnification provided by the
Master Servicer in this Section 8.05(b) shall not pertain to any loss, liability
or expense of the Trustee,  including the costs and expenses of defending itself
against any claim,  incurred in connection with any actions taken by the Trustee
at the direction of Certificateholders pursuant to the terms of this Agreement.

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      Section 8.06.   Eligibility Requirements for Trustee.

      The Trustee hereunder shall at all times be a national banking association
or a New York banking  corporation  having its  principal  office in a state and
city acceptable to the Depositor and organized and doing business under the laws
of such state or the United  States of  America,  authorized  under such laws to
exercise  corporate  trust powers,  having a combined  capital and surplus of at
least  $50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or national banking association publishes reports
of condition at least  annually,  pursuant to law or to the  requirements of the
aforesaid supervising or examining authority,  then for purposes of this Section
the combined capital and surplus of such  corporation  shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so  published.  In case at any time the  Trustee  shall  cease to be eligible in
accordance  with the  provisions  of this  Section,  the  Trustee  shall  resign
immediately in the manner and with the effect specified in Section 8.07. Section
8.07. Resignation and Removal of the Trustee.

      (a) The Trustee may at any time resign and be  discharged  from the trusts
hereby  created by giving written notice thereof to the Depositor and the Master
Servicer.  Upon  receiving  such  notice of  resignation,  the  Depositor  shall
promptly appoint a successor trustee by written  instrument,  in duplicate,  one
copy of which  instrument  shall be delivered to the  resigning  Trustee and one
copy to the  successor  trustee.  If no  successor  trustee  shall  have been so
appointed and have accepted  appointment within 30 days after the giving of such
notice of  resignation,  then the  resigning  Trustee may  petition any court of
competent jurisdiction for the appointment of a successor trustee.

      (b) If at any time the Trustee  shall  cease to be eligible in  accordance
with the  provisions  of  Section  8.06 and shall fail to resign  after  written
request  therefor by the  Depositor,  or if at any time the Trustee shall become
incapable of acting, or shall be adjudged  bankrupt or insolvent,  or a receiver
of the Trustee or of its  property  shall be  appointed,  or any public  officer
shall take  charge or control of the  Trustee or of its  property or affairs for
the purpose of rehabilitation,  conservation or liquidation,  then the Depositor
may remove the Trustee and appoint a successor trustee by written instrument, in
duplicate,  one copy of which  instrument  shall be  delivered to the Trustee so
removed and one copy to the successor  trustee.  In addition,  in the event that
the Depositor  determines that the Trustee has failed (i) to distribute or cause
to be distributed to  Certificateholders  any amount  required to be distributed
hereunder, if such amount is held by the Trustee or its Paying Agent (other than
the Master  Servicer or the  Depositor)  for  distribution  or (ii) to otherwise
observe or perform in any material  respect any of its covenants,  agreements or
obligations  hereunder,  and such failure shall continue unremedied for a period
of 5 days (in respect of clause (i) above) or 30 days (in respect of clause (ii)
above) after the date on which written  notice of such failure,  requiring  that
the same be  remedied,  shall have been given to the  Trustee by the  Depositor,
then the  Depositor  may remove the Trustee  and appoint a successor  trustee by
written  instrument  delivered  as  provided  in  the  preceding  sentence.   In
connection with the appointment of a successor trustee pursuant to the preceding
sentence,  the  Depositor  shall,  on or  before  the  date on  which  any  such
appointment   becomes   effective,   obtain  from  each  Rating  Agency  written
confirmation  that the appointment of any such successor trustee will not result
in the  reduction  of the  ratings  on any Class of the  Certificates  below the
lesser of the then current or original ratings on such Certificates.

      (c) The  Holders of  Certificates  entitled  to at least 51% of the Voting
Rights may at any time remove the  Trustee  and  appoint a successor  trustee by
written  instrument or  instruments,  in  triplicate,  signed by such Holders or
their  attorneys-in-fact duly authorized,  one complete set of which instruments
shall be delivered to the Depositor,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

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<PAGE>

      (d) Any  resignation  or  removal  of the  Trustee  and  appointment  of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.08.

      Section 8.08.   Successor Trustee.

      (a) Any  successor  trustee  appointed  as provided in Section  8.07 shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
an  instrument   accepting  such  appointment   hereunder,   and  thereupon  the
resignation  or removal of the  predecessor  trustee shall become  effective and
such  successor  trustee  shall become  effective  and such  successor  trustee,
without any further act, deed or conveyance,  shall become fully vested with all
the rights,  powers, duties and obligations of its predecessor  hereunder,  with
the like  effect as if  originally  named as  trustee  herein.  The  predecessor
trustee shall deliver to the successor  trustee all Custodial  Files and related
documents and statements held by it hereunder (other than any Custodial Files at
the time held by a  Custodian,  which  shall  become the agent of any  successor
trustee hereunder),  and the Depositor,  the Master Servicer and the predecessor
trustee shall execute and deliver such  instruments  and do such other things as
may  reasonably be required for more fully and certainly  vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

      (b) No  successor  trustee  shall accept  appointment  as provided in this
Section unless at the time of such  acceptance  such successor  trustee shall be
eligible under the provisions of Section 8.06.

      (c) Upon  acceptance of appointment by a successor  trustee as provided in
this Section,  the Depositor shall mail notice of the succession of such trustee
hereunder  to all Holders of  Certificates  at their  addresses  as shown in the
Certificate  Register. If the Depositor fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee,  the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.

      Section 8.09.   Merger or Consolidation of Trustee.

      Any corporation or national banking association into which the Trustee may
be merged or converted or with which it may be  consolidated  or any corporation
or  national  banking  association  resulting  from any  merger,  conversion  or
consolidation  to which the  Trustee  shall be a party,  or any  corporation  or
national banking association succeeding to the business of the Trustee, shall be
the successor of the Trustee  hereunder,  provided such  corporation or national
banking  association  shall be eligible  under the  provisions  of Section 8.06,
without the  execution  or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.  The
Trustee  shall  mail  notice  of  any  such  merger  or   consolidation  to  the
Certificateholders at their address as shown in the Certificate Register.

      Section 8.10.   Appointment of Co-Trustee or Separate Trustee.

      (a)  Notwithstanding  any other  provisions  hereof,  at any time, for the
purpose of meeting any legal  requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located,  the
Master  Servicer and the Trustee  acting  jointly shall have the power and shall
execute and deliver all  instruments to appoint one or more Persons  approved by
the Trustee to act as co-trustee or  co-trustees,  jointly with the Trustee,  or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or  Persons,  in such  capacity,  such title to the Trust
Fund, or any part thereof,  and, subject to the other provisions of this Section
8.10, such powers, duties, obligations, rights and trusts as the Master Servicer
and the Trustee may consider  necessary  or  desirable.  If the Master  Servicer
shall not have joined in such appointment within 15 days after the receipt by it
of a

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<PAGE>

request so to do, or in case an Event of  Default  shall  have  occurred  and be
continuing, the Trustee alone shall have the power to make such appointment.  No
co-trustee or separate trustee  hereunder shall be required to meet the terms of
eligibility as a successor  trustee under Section 8.06 hereunder,  and no notice
to Holders of  Certificates  of the  appointment  of  co-trustee(s)  or separate
trustee(s) shall be required under Section 8.08 hereof.

      (b) In the case of any  appointment  of a co-trustee  or separate  trustee
pursuant to this  Section  8.10,  all  rights,  powers,  duties and  obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Master Servicer hereunder), the Trustee shall be incompetent
or unqualified to perform such act or acts, in which event such rights,  powers,
duties and obligations  (including the holding of title to the Trust Fund or any
portion  thereof in any such  jurisdiction)  shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

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

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

      Section 8.11.   Appointment of Custodians.

      The  Trustee  may,  with  the  consent  of the  Master  Servicer  and  the
Depositor,  or shall, at the direction of the Master Servicer and the Depositor,
appoint  custodians  who are  not  Affiliates  of the  Depositor  or the  Master
Servicer  to hold all or a  portion  of the  Custodial  Files  as agent  for the
Trustee, by entering into a Custodial Agreement.  The Trustee is hereby directed
to enter into a Custodial Agreement with [________________].  Subject to Article
VIII, the Trustee  agrees to comply with the terms of each  Custodial  Agreement
with  respect to the  Custodial  Files and to enforce  the terms and  provisions
thereof against the related custodian for the benefit of the Certificateholders.
Each  custodian  shall be a depository  institution  subject to  supervision  by
federal or state  authority,  shall have a combined  capital  and  surplus of at
least  $15,000,000 and shall be qualified to do business in the  jurisdiction in
which it holds any Custodial File. Each Custodial Agreement, with respect to the
Custodial  Files,  may be amended only as provided in Section 11.01. The Trustee
shall notify the  Certificateholders  of the appointment of any custodian (other
than the custodian  appointed as of the Closing  Date)  pursuant to this Section
8.11.

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      Section 8.12.   Appointment of Office or Agency.

      The Trustee shall maintain an office or agency in [_______________]  where
Certificates  may be surrendered for  registration of transfer or exchange.  The
Trustee  initially  designates its offices located at the Corporate Trust Office
for the purpose of keeping the Certificate Register.  The Trustee shall maintain
an office at the address  stated in Section  11.05(c)  hereof where  notices and
demands to or upon the Trustee in respect of this Agreement may be served.

      Section 8.13.   DTC Letter of Representations.

      The  Trustee is hereby  authorized  and  directed  to, and agrees  that it
shall,  enter  into  the DTC  Letter  on  behalf  of the  Trust  Fund and in its
individual capacity as agent thereunder.

      Section 8.14.   [Hedge Agreement.]

      [The  Trustee is hereby  authorized  and  directed  to, and agrees that it
shall, enter into the Hedge Agreement on behalf of the Trust Fund.]

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                                   ARTICLE IX

                                   TERMINATION

      Section 9.01.   Termination  Upon Purchase or Liquidation  of All Mortgage
                      Loans.

      (a)   Subject  to   Section   9.02,   the   respective   obligations   and
responsibilities  of the Depositor,  the Master Servicer and the Trustee created
hereby in respect of the Certificates  (other than the obligation of the Trustee
to make certain payments after the Final Distribution Date to Certificateholders
and the obligation of the Depositor to send certain  notices as hereinafter  set
forth) shall  terminate upon the last action required to be taken by the Trustee
on the Final Distribution Date pursuant to this Article IX following the earlier
of:

      (i) the later of the final  payment or other  liquidation  (or any Advance
with respect  thereto) of the last Mortgage Loan  remaining in the Trust Fund or
the  disposition  of all property  acquired upon  foreclosure or deed in lieu of
foreclosure of any Mortgage Loan, or

      (ii) at the  option of the Master  Servicer  or the Holder of the Class SB
Certificates as provided in Section 9.01(f),  the purchase of all Mortgage Loans
and all property acquired in respect of any Mortgage Loan remaining in the Trust
Fund, at a price equal to 100% of the unpaid principal  balance of each Mortgage
Loan (or, if less than such unpaid principal  balance,  the fair market value of
the related  underlying  property of such Mortgage Loan with respect to Mortgage
Loans as to which title has been acquired if such fair market value is less than
such  unpaid  principal  balance)  (and if such  purchase  is made by the Master
Servicer only, net of any  unreimbursed  Advances  attributable to principal) on
the day of repurchase,  plus accrued  interest  thereon at the Net Mortgage Rate
(or Modified Net Mortgage Rate in the case of any Modified  Mortgage Loan),  to,
but not including,  the first day of the month in which such repurchase price is
distributed;

provided,  however,  that in no event shall the trust  created  hereby  continue
beyond the  expiration  of 21 years from the death of the last  survivor  of the
descendants  of Joseph P. Kennedy,  the late  ambassador of the United States to
the Court of St. James,  living on the date hereof;  and provided further,  that
the  purchase  price set forth  above shall be  increased  as is  necessary,  as
determined  by the  Master  Servicer,  to avoid  disqualification  of any  REMIC
created hereunder as a REMIC.

      The purchase price paid by the Master  Servicer or the Holder of the Class
SB  Certificates,  as  applicable,  pursuant to Section  9.01(a)(ii)  shall also
include any amounts owed by Residential  Funding  pursuant to the last paragraph
of Section 4 of the Assignment Agreement in respect of any liability, penalty or
expense that resulted from a breach of the representation and warranty set forth
in clause (xlvii) of Section 4 of the Assignment Agreement that remain unpaid on
the date of such purchase.

      The  right  of  the  Master  Servicer  or  the  Holder  of  the  Class  SB
Certificates,  as applicable,  to purchase all of the Mortgage Loans pursuant to
clause (ii) above is conditioned upon the date of such purchase  occurring on or
after the Optional  Termination  Date.  If such right is exercised by the Master
Servicer,  the Master  Servicer shall be deemed to have been  reimbursed for the
full amount of any unreimbursed  Advances theretofore made by it with respect to
the Mortgage  Loans being  purchased.  In addition,  the Master  Servicer  shall
provide to the  Trustee the  certification  required  by Section  3.15,  and the
Trustee and the  Custodian  shall,  promptly  following  payment of the purchase
price,   release  to  the  Master  Servicer  or  the  Holder  of  the  Class  SB
Certificates,  as  applicable,  the Custodial  Files  pertaining to the Mortgage
Loans being purchased.

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<PAGE>

      In addition to the  foregoing,  on any  Distribution  Date on or after the
Optional  Termination  Date,  the Master  Servicer or the Holder of the Class SB
Certificates  as  provided  in Section  9.01(f),  shall  have the right,  at its
option,  to purchase the [Class A Certificates,  Class M  Certificates,  Class B
Certificates]  and Class SB Certificates  in whole,  but not in part, at a price
equal  to the  sum of the  outstanding  Certificate  Principal  Balance  of such
Certificates plus the sum of one month's Accrued  Certificate  Interest thereon,
any previously unpaid Accrued  Certificate  Interest,  and any unpaid Prepayment
Interest Shortfalls  previously allocated thereto and, in the case of Prepayment
Interest  Shortfalls,  accrued interest  thereon at the applicable  Pass-Through
Rate, plus, with respect to any optional  termination by the Holder of the Class
SB  Certificates,  an amount equal to all accrued and unpaid  Servicing Fees and
reimbursement for all unreimbursed Advances and Servicing Advances, in each case
through the date of such  optional  termination.  If the Master  Servicer or the
Holder of the Class SB  Certificates,  as  applicable,  exercises  this right to
purchase the outstanding  [Class A Certificates,  Class M Certificates,  Class B
Certificates]  and Class SB  Certificates,  the Master Servicer or the Holder of
the Class SB Certificates, as applicable, will promptly terminate the respective
obligations and responsibilities created hereby in respect of these Certificates
pursuant to this Article IX.

      (b) The Master  Servicer  or the Holder of the Class SB  Certificates,  as
applicable, shall give the Trustee (and the Master Servicer if the Holder of the
Class SB  Certificates  is  exercising  its option) not less than 60 days' prior
notice of the  Distribution  Date on which (1) the Master Servicer or the Holder
of the  Class  SB  Certificates,  as  applicable,  anticipates  that  the  final
distribution will be made to  Certificateholders  as a result of the exercise by
the Master Servicer or the Holder of the Class SB  Certificates,  as applicable,
of its right to purchase the Mortgage Loans or on which (2) the Master  Servicer
or the Holder of the Class SB Certificates, as applicable,  anticipates that the
Certificates  will be  purchased  as a  result  of the  exercise  by the  Master
Servicer or the Holder of the Class SB Certificates,  as applicable, to purchase
the  outstanding  Certificates.  Notice  of  any  termination,   specifying  the
anticipated Final  Distribution Date (which shall be a date that would otherwise
be a Distribution  Date) upon which the  Certificateholders  may surrender their
Certificates  to the Trustee (if so required by the terms hereof) for payment of
the  final  distribution  and  cancellation  or notice  of any  purchase  of the
outstanding  Certificates,  specifying  the  Distribution  Date  upon  which the
Holders may surrender their  Certificates  to the Trustee for payment,  shall be
given promptly by the Master Servicer (if it is exercising the right to purchase
the  Mortgage  Loans or to purchase  the  outstanding  Certificates),  or by the
Trustee (in any other case) by letter to the Certificateholders  (with a copy to
the  Certificate  Registrar)  mailed not earlier than the 15th day and not later
than  the  25th  day of the  month  next  preceding  the  month  of  such  final
distribution specifying:

            (i) the anticipated Final Distribution Date upon which final payment
of the Certificates is anticipated to be made upon presentation and surrender of
Certificates  at the office or agency of the Trustee  therein  designated  where
required  pursuant  to this  Agreement  or, in the case of the  purchase  by the
Master Servicer or the Holder of the Class SB  Certificates,  as applicable,  of
the outstanding  Certificates,  the Distribution  Date on which such purchase is
made,

            (ii) the  amount of any such  final  payment  or, in the case of the
purchase of the outstanding Certificates, the purchase price, in either case, if
known, and

            (iii) that the Record Date otherwise applicable to such Distribution
Date is not applicable, and that payment will be made only upon presentation and
surrender  of the  Certificates  at the office or agency of the Trustee  therein
specified.

      If the Master  Servicer  or the  Trustee is  obligated  to give  notice to
Certificateholders  as  required  above,  it  shall  give  such  notice  to  the
Certificate Registrar at the time such notice is given to Certificateholders. In
the event of a purchase  of the  Mortgage  Loans by the Master  Servicer  or the
Holder

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of the Class SB Certificates,  as applicable,  the Master Servicer or the Holder
of the Class SB  Certificates,  as applicable,  shall deposit in the Certificate
Account before the Final  Distribution  Date in immediately  available  funds an
amount equal to the purchase  price computed as provided  above.  As a result of
the exercise by the Master Servicer or the Holder of the Class SB  Certificates,
as applicable, of its right to purchase the outstanding Certificates, the Master
Servicer  or the  Holder  of the Class SB  Certificates,  as  applicable,  shall
deposit in the Certificate  Account before the  Distribution  Date on which such
purchase is to occur,  in immediately  available  funds,  an amount equal to the
purchase  price for the  Certificates  computed as provided  above,  and provide
notice of such  deposit to the Trustee.  The Trustee  shall  withdraw  from such
account the amount  specified in subsection (c) below and distribute such amount
to the  Certificateholders  as specified  in  subsection  (c) below.  The Master
Servicer  or the  Holder  of the Class SB  Certificates,  as  applicable,  shall
provide to the Trustee  written  notification  of any change to the  anticipated
Final  Distribution  Date as  soon  as  practicable.  If the  Trust  Fund is not
terminated on the  anticipated  Final  Distribution  Date,  for any reason,  the
Trustee shall promptly mail notice thereof to each affected Certificateholder.

      (c) Upon presentation and surrender of the [Class A Certificates,  Class M
Certificates,   Class  B   Certificates]   and  Class  SB  Certificates  by  the
Certificateholders    thereof,    the   Trustee   shall   distribute   to   such
Certificateholders  (i) the amount otherwise  distributable on such Distribution
Date,  if not in  connection  with the Master  Servicer's or the Holder's of the
Class SB Certificates, as applicable,  election to repurchase the Mortgage Loans
or the  outstanding  [Class  A  Certificates,  Class  M  Certificates,  Class  B
Certificates]  and Class SB Certificates,  or (ii) if the Master Servicer or the
Holder of the Class SB Certificates, as applicable, elected to so repurchase the
Mortgage Loans or the outstanding  [Class A Certificates,  Class M Certificates,
Class B Certificates]  and Class SB  Certificates,  an amount equal to the price
paid pursuant to Section 9.01(a) as follows: first, with respect to any optional
termination by the Holder of the Class SB  Certificates,  payment of any accrued
and unpaid Servicing Fees and  reimbursement  for all unreimbursed  Advances and
Servicing Advances,  in each case through the date of such optional termination,
to the Master Servicer, second, with respect to the [Class A Certificates,  pari
passu,  the outstanding  Certificate  Principal  Balance  thereof,  plus Accrued
Certificate  Interest  thereon for the related  Interest  Accrual Period and any
previously unpaid Accrued Certificate Interest, third, with respect to the Class
M-1 Certificates,  the outstanding  Certificate  Principal Balance thereof, plus
Accrued Certificate Interest thereon for the related Interest Accrual Period and
any previously unpaid Accrued Certificate Interest,  fourth, with respect to the
Class M-2 Certificates,  the outstanding  Certificate Principal Balance thereof,
plus  Accrued  Certificate  Interest  thereon for the related  Interest  Accrual
Period and any  previously  unpaid Accrued  Certificate  Interest,  fifth,  with
respect to the Class M-3  Certificates,  the outstanding  Certificate  Principal
Balance  thereof,  plus  Accrued  Certificate  Interest  thereon for the related
Interest Accrual Period and any previously unpaid Accrued Certificate  Interest,
sixth, with respect to the Class M-4 Certificates,  the outstanding  Certificate
Principal  Balance thereof,  plus Accrued  Certificate  Interest thereon for the
related  Interest Accrual Period and any previously  unpaid Accrued  Certificate
Interest,  seventh, with respect to the Class M-5 Certificates,  the outstanding
Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the  related  Interest  Accrual  Period and any  previously  unpaid  Accrued
Certificate  Interest,  eighth, with respect to the Class M-6 Certificates,  the
outstanding  Certificate  Principal  Balance thereof,  plus Accrued  Certificate
Interest  thereon for the related  Interest  Accrual  Period and any  previously
unpaid  Accrued  Certificate  Interest,  ninth,  with  respect  to the Class M-7
Certificates,  the  outstanding  Certificate  Principal  Balance  thereof,  plus
Accrued Certificate Interest thereon for the related Interest Accrual Period and
any previously unpaid Accrued Certificate  Interest,  tenth, with respect to the
Class M-8 Certificates,  the outstanding  Certificate Principal Balance thereof,
plus  Accrued  Certificate  Interest  thereon for the related  Interest  Accrual
Period and any previously unpaid Accrued Certificate  Interest,  eleventh,  with
respect to the Class M-9  Certificates,  the outstanding  Certificate  Principal
Balance  thereof,  plus  Accrued  Certificate  Interest  thereon for the related
Interest Accrual Period and any previously unpaid Accrued Certificate  Interest,
twelfth, with respect to the Class B Certificates,  the outstanding  Certificate
Principal Balance thereof, plus Accrued Certificate

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<PAGE>

Interest  thereon for the related  Interest  Accrual  Period and any  previously
unpaid Accrued Certificate Interest, tenth, to the Class A Certificates, Class M
Certificates  and Class B  Certificates,  the amount of any Prepayment  Interest
Shortfalls allocated thereto for such Distribution Date or remaining unpaid from
prior  Distribution  Dates  and  accrued  interest  thereon  at  the  applicable
Pass-Through Rate, on a pro rata basis based on Prepayment  Interest  Shortfalls
allocated  thereto for such  Distribution  Date or  remaining  unpaid from prior
Distribution  Dates, and eleventh,  to the Class SB Certificates,  all remaining
amounts.]

      (d) In the event that any  Certificateholders  shall not  surrender  their
Certificates  for  final  payment  and  cancellation  on  or  before  the  Final
Distribution  Date,  the Master  Servicer (if it exercised its right to purchase
the  Mortgage  Loans) or the  Trustee (in any other  case),  shall give a second
written  notice  to  the  remaining   Certificateholders   to  surrender   their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  If within six months after the second notice any Certificate shall not
have been surrendered for cancellation, the Trustee shall take appropriate steps
as directed by the Master  Servicer to contact the remaining  Certificateholders
concerning   surrender  of  their  Certificates.   The  costs  and  expenses  of
maintaining the Certificate Account and of contacting  Certificateholders  shall
be paid out of the assets which  remain in the  Certificate  Account.  If within
nine  months  after  the  second  notice  any  Certificates  shall not have been
surrendered for  cancellation,  the Trustee shall pay to the Master Servicer all
amounts  distributable  to the  holders  thereof and the Master  Servicer  shall
thereafter  hold such amounts until  distributed  to such  Holders.  No interest
shall  accrue or be payable to any  Certificateholder  on any amount held in the
Certificate   Account   or  by  the  Master   Servicer   as  a  result  of  such
Certificateholder's  failure to surrender its  Certificate(s)  for final payment
thereof in accordance  with this Section 9.01 and the  Certificateholders  shall
look only to the Master Servicer for such payment.

      (e) If any  Certificateholders  do not surrender their  Certificates on or
before the Distribution Date on which a purchase of the outstanding Certificates
is to be made,  the Master  Servicer  shall give a second written notice to such
Certificateholders  to surrender their  Certificates for payment of the purchase
price  therefor.  If within six months after the second  notice any  Certificate
shall not have  been  surrendered  for  cancellation,  the  Trustee  shall  take
appropriate  steps as directed by the Master  Servicer to contact the Holders of
such  Certificates  concerning  surrender of their  Certificates.  The costs and
expenses   of   maintaining   the   Certificate   Account   and  of   contacting
Certificateholders  shall  be  paid  out  of  the  assets  which  remain  in the
Certificate  Account.  If  within  nine  months  after  the  second  notice  any
Certificates shall not have been surrendered for cancellation in accordance with
this  Section  9.01,  the Trustee  shall pay to the Master  Servicer all amounts
distributable  to the Holders  thereof and shall have no further  obligation  or
liability  therefor and the Master  Servicer shall  thereafter hold such amounts
until distributed to such Holders. No interest shall accrue or be payable to any
Certificateholder on any amount held in the Certificate Account or by the Master
Servicer  as a result  of such  Certificateholder's  failure  to  surrender  its
Certificate(s) for payment in accordance with this Section 9.01. Any Certificate
that is not surrendered on the Distribution Date on which a purchase pursuant to
this Section 9.01 occurs as provided above will be deemed to have been purchased
and the Holder as of such date will have no rights with respect  thereto  except
to receive the purchase price  therefor minus any costs and expenses  associated
with such Certificate Account and notices allocated thereto. Any Certificates so
purchased  or deemed to have been  purchased  on such  Distribution  Date  shall
remain outstanding hereunder.  The Master Servicer shall be for all purposes the
Holder thereof as of such date.

      (f) With respect to the first  possible  Optional  Termination  Date,  the
Master  Servicer  shall have the sole option to exercise  the  purchase  options
described in Section 9.01(a) and the Holder of the Class SB  Certificates  shall
have no claim thereto.  If, however,  the Master Servicer elects not to exercise
one of its options to purchase  pursuant to Section  9.01(a) with respect to the
first  possible   Optional   Termination  Date,  the  Holder  of  the  Class  SB
Certificates  shall  have the sole  option  to  exercise  the  purchase  options
described in Section 9.01(a) on the second possible  Optional  Termination  Date
and the Master Servicer shall have no claim thereto.  If the Holder of the Class
SB Certificates elects not to

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exercise one of its options to purchase pursuant to Section 9.01(a) with respect
to the second possible  Optional  Termination Date, it shall lose such right and
have no claim to exercise  any  purchase  options  pursuant to this Section 9.01
thereafter.  Beginning with the third  possible  Optional  Termination  Date and
thereafter, the Master Servicer shall again have the sole option to exercise the
purchase options described in Section 9.01(a).

      Section 9.02.   Additional Termination Requirements.

      (a)  [Each  of  REMIC  I and  REMIC  II , as the  case  may be,  shall  be
terminated in accordance with the following additional requirements,  unless the
Trustee  and the Master  Servicer  have  received  an Opinion of Counsel  (which
Opinion of Counsel  shall not be an expense of the  Trustee)  to the effect that
the failure of any REMIC created  hereunder to comply with the  requirements  of
this  Section  9.02 will not (i) result in the  imposition  on the Trust Fund of
taxes on "prohibited transactions," as described in Section 860F of the Code, or
(ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time
that any Certificate is outstanding:

            (i) The Master Servicer shall establish a 90-day  liquidation period
for each of REMIC I and REMIC II, and  specify the first day of such period in a
statement  attached to the Trust  Fund's  final Tax Return  pursuant to Treasury
regulations  ss.1.860F-1.  The Master  Servicer  also shall  satisfy  all of the
requirements of a qualified  liquidation for each of REMIC I and REMIC II, under
Section 860F of the Code and the regulations thereunder;

            (ii)  The  Master   Servicer   shall   notify  the  Trustee  at  the
commencement of such 90-day  liquidation  period and, at or prior to the time of
making of the final  payment  on the  Certificates,  the  Trustee  shall sell or
otherwise dispose of all of the remaining assets of the Trust Fund in accordance
with the terms hereof; and

            (iii) If the Master Servicer is exercising its right to purchase the
assets  of the  Trust  Fund,  the  Master  Servicer  shall,  during  the  90-day
liquidation period and at or prior to the Final Distribution Date,  purchase all
of the assets of the Trust Fund for cash;]

      (b) [Each  Holder of a  Certificate  and the  Trustee  hereby  irrevocably
approves  and appoints the Master  Servicer as its  attorney-in-fact  to adopt a
plan of complete  liquidation for each of REMIC I and REMIC II at the expense of
the Trust Fund in accordance with the terms and conditions of this Agreement.]

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                                   ARTICLE X

                                REMIC PROVISIONS

      Section 10.01.  REMIC Administration.

      (a) [The REMIC Administrator shall make an election to treat each of REMIC
I and REMIC II as a REMIC under the Code and,  if  necessary,  under  applicable
state law. Such election will be made on Form 1066 or other appropriate  federal
tax or information  return (including Form 8811) or any appropriate state return
for the taxable  year ending on the last day of the  calendar  year in which the
Certificates  are issued.  The REMIC I Regular  Interests shall be designated as
the "regular  interests" and the Class R-I  Certificates  shall be designated as
the sole  Class of  "residual  interests"  in  REMIC  I.  The  REMIC II  Regular
Interests  shall be  designated  as the "regular  interests"  and the Class R-II
Certificates  shall be designated  as the sole Class of "residual  interests" in
REMIC II. The REMIC  Administrator and the Trustee shall not permit the creation
of any  "interests"  (within the meaning of Section 860G of the Code) in REMIC I
or REMIC II other  than the REMIC I  Regular  Interests,  the  REMIC II  Regular
Interests and the Certificates.]

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

      (c) [The  REMIC  Administrator  shall hold a Class R  Certificate  in each
REMIC  representing a 0.01%  Percentage  Interest of the Class R Certificates in
each REMIC and shall be designated  as the "tax matters  person" with respect to
each of REMIC I and REMIC II in the manner  provided under Treasury  regulations
Section 1.860F-4(d) and Treasury regulations Section 301.6231(a)(7)-1. The REMIC
Administrator, as tax matters person, shall (i) act on behalf of each of REMIC I
and REMIC II in relation to any tax matter or  controversy  involving  the Trust
Fund and  (ii)  represent  the  Trust  Fund in any  administrative  or  judicial
proceeding  relating  to an  examination  or  audit by any  governmental  taxing
authority with respect thereto. The legal expenses, including without limitation
attorneys'  or  accountants'  fees,  and  costs of any such  proceeding  and any
liability  resulting therefrom shall be expenses of the Trust Fund and the REMIC
Administrator  shall  be  entitled  to  reimbursement  therefor  out of  amounts
attributable  to the  Mortgage  Loans on  deposit  in the  Custodial  Account as
provided by Section  3.10 unless such legal  expenses  and costs are incurred by
reason  of the REMIC  Administrator's  willful  misfeasance,  bad faith or gross
negligence.  If  the  REMIC  Administrator  is no  longer  the  Master  Servicer
hereunder,  at its option the REMIC  Administrator  may  continue  its duties as
REMIC  Administrator  and shall be paid  reasonable  compensation  not to exceed
$3,000 per year by any successor Master Servicer  hereunder for so acting as the
REMIC Administrator.]

      (d) The REMIC  Administrator  shall prepare or cause to be prepared all of
the Tax Returns  that it  determines  are  required  with  respect to the REMICs
created hereunder and deliver such Tax Returns in a timely manner to the Trustee
and the  Trustee  shall sign and file such Tax Returns in a timely  manner.  The
expenses of  preparing  such returns  shall be borne by the REMIC  Administrator
without any right of reimbursement  therefor.  The REMIC Administrator agrees to
indemnify  and hold  harmless  the Trustee  with respect to any tax or liability
arising  from the  Trustee's  signing  of Tax  Returns  that  contain  errors or
omissions.  The Trustee and Master  Servicer  shall  promptly  provide the REMIC
Administrator with such information as the REMIC  Administrator may from time to
time request for the purpose of enabling the REMIC  Administrator to prepare Tax
Returns.

      (e) The REMIC Administrator shall provide (i) to any Transferor of a Class
R Certificate  such  information as is necessary for the  application of any tax
relating  to the  transfer of a Class R  Certificate  to any Person who is not a
Permitted Transferee, (ii) to the Trustee and the Trustee shall

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<PAGE>

forward to the Certificateholders such information or reports as are required by
the  Code or the  REMIC  Provisions  including  reports  relating  to  interest,
original  issue  discount,  if any,  and market  discount or premium  (using the
Prepayment  Assumption)  and (iii) to the  Internal  Revenue  Service  the name,
title,  address  and  telephone  number  of the  person  who  will  serve as the
representative of each REMIC created hereunder.

      (f) The  Master  Servicer  and the  REMIC  Administrator  shall  take such
actions and shall cause each REMIC created hereunder to take such actions as are
reasonably within the Master Servicer's or the REMIC Administrator's control and
the scope of its duties more specifically set forth herein as shall be necessary
or  desirable  to  maintain  the  status  thereof  as a REMIC  under  the  REMIC
Provisions  (and the  Trustee  shall  assist the Master  Servicer  and the REMIC
Administrator, to the extent reasonably requested by the Master Servicer and the
REMIC  Administrator to do so). In performing their duties as more  specifically
set forth  herein,  the Master  Servicer and the REMIC  Administrator  shall not
knowingly  or  intentionally  take any action,  cause the Trust Fund to take any
action  or fail to take (or fail to cause to be  taken)  any  action  reasonably
within their  respective  control and the scope of duties more  specifically set
forth herein,  that, under the REMIC  Provisions,  if taken or not taken, as the
case may be, could (i) endanger the status of any REMIC  created  hereunder as a
REMIC or (ii) result in the imposition of a tax upon any REMIC created hereunder
(including but not limited to the tax on prohibited  transactions  as defined in
Section  860F(a)(2) of the Code (except as provided in Section 2.04) and the tax
on  contributions  to a REMIC set forth in Section  860G(d) of the Code) (either
such  event,  in the  absence of an  Opinion  of Counsel or the  indemnification
referred  to in this  sentence,  an  "Adverse  REMIC  Event")  unless the Master
Servicer or the REMIC Administrator,  as applicable,  has received an Opinion of
Counsel  (at the  expense of the party  seeking to take such  action or, if such
party  fails  to pay  such  expense,  and  the  Master  Servicer  or  the  REMIC
Administrator, as applicable,  determines that taking such action is in the best
interest  of the Trust Fund and the  Certificateholders,  at the  expense of the
Trust  Fund,  but in no event at the expense of the Master  Servicer,  the REMIC
Administrator  or the Trustee) to the effect that the  contemplated  action will
not, with respect to the Trust Fund created hereunder,  endanger such status or,
unless the Master  Servicer or the REMIC  Administrator  or both, as applicable,
determine in its or their sole  discretion  to indemnify  the Trust Fund against
the imposition of such a tax,  result in the imposition of such a tax.  Wherever
in this Agreement a  contemplated  action may not be taken because the timing of
such action might result in the  imposition  of a tax on the Trust Fund,  or may
only be taken  pursuant  to an  Opinion of Counsel  that such  action  would not
impose a tax on the Trust Fund,  such action may  nonetheless  be taken provided
that the  indemnity  given in the  preceding  sentence with respect to any taxes
that  might be  imposed  on the  Trust  Fund has been  given  and that all other
preconditions  to the taking of such  action  have been  satisfied.  The Trustee
shall not take or fail to take any action (whether or not authorized  hereunder)
as to which the Master Servicer or the REMIC Administrator,  as applicable,  has
advised it in writing  that it has  received an Opinion of Counsel to the effect
that an Adverse REMIC Event could occur with respect to such action or inaction,
as the case may be. In addition,  prior to taking any action with respect to the
Trust Fund or its assets, or causing the Trust Fund to take any action, which is
not expressly  permitted  under the terms of this  Agreement,  the Trustee shall
consult with the Master Servicer or the REMIC Administrator,  as applicable,  or
its  designee,  in writing,  with  respect to whether such action could cause an
Adverse  REMIC  Event to occur with  respect  to the Trust Fund and the  Trustee
shall not take any such  action or cause the Trust Fund to take any such  action
as to which the Master Servicer or the REMIC Administrator,  as applicable,  has
advised it in writing  that an  Adverse  REMIC  Event  could  occur.  The Master
Servicer or the REMIC Administrator,  as applicable, may consult with counsel to
make  such  written  advice,  and the cost of same  shall be borne by the  party
seeking to take the action not expressly permitted by this Agreement,  but in no
event at the expense of the Master Servicer or the REMIC  Administrator.  At all
times  as  may be  required  by the  Code,  the  Master  Servicer  or the  REMIC
Administrator,  as  applicable,  will to the extent  within its  control and the
scope of its duties more specifically set forth herein,  maintain  substantially
all of the assets of the REMIC as "qualified

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<PAGE>

mortgages"  as  defined  in  Section  860G(a)(3)  of  the  Code  and  "permitted
investments" as defined in Section 860G(a)(5) of the Code.

      (g) In the event that any tax is imposed on "prohibited  transactions"  of
any REMIC  created  hereunder as defined in Section  860F(a)(2)  of the Code, on
"net  income  from  foreclosure  property"  of any REMIC as  defined  in Section
860G(c) of the Code,  on any  contributions  to any REMIC after the Startup Date
therefor  pursuant to Section  860G(d) of the Code,  or any other tax imposed by
the Code or any applicable provisions of state or local tax laws, such tax shall
be charged (i) to the Master Servicer, if such tax arises out of or results from
a  breach  by the  Master  Servicer  in its  role as  Master  Servicer  or REMIC
Administrator  of any of its  obligations  under  this  Agreement  or the Master
Servicer  has in its sole  discretion  determined  to  indemnify  the Trust Fund
against such tax, (ii) to the Trustee, if such tax arises out of or results from
a breach by the Trustee of any of its obligations under this Article X, or (iii)
otherwise  against  amounts on deposit in the  Custodial  Account as provided by
Section 3.10 and on the Distribution  Date(s)  following such  reimbursement the
aggregate  of  such  taxes  shall  be  allocated  in  reduction  of the  Accrued
Certificate  Interest  on each Class  entitled  thereto in the same manner as if
such taxes constituted a Prepayment Interest Shortfall.

      (h) The  Trustee and the Master  Servicer  shall,  for federal  income tax
purposes,  maintain  books and records  with respect to each REMIC on a calendar
year and on an  accrual  basis or as  otherwise  may be  required  by the  REMIC
Provisions.

      (i)  Following  the  Startup  Date,  neither the Master  Servicer  nor the
Trustee shall accept any contributions of assets to any REMIC unless (subject to
Section  10.01(f))  the Master  Servicer and the Trustee  shall have received an
Opinion  of  Counsel  (at  the  expense  of  the  party  seeking  to  make  such
contribution)  to the effect that the inclusion of such assets in any REMIC will
not cause any REMIC created  hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding or subject any such REMIC to any tax under
the REMIC Provisions or other applicable provisions of federal,  state and local
law or ordinances.

      (j) Neither the Master  Servicer nor the Trustee shall (subject to Section
10.01(f)) enter into any  arrangement by which any REMIC created  hereunder will
receive a fee or other  compensation  for services nor permit any REMIC  created
hereunder to receive any income from assets other than "qualified  mortgages" as
defined in Section 860G(a)(3) of the Code or "permitted  investments" as defined
in Section 860G(a)(5) of the Code.

      (k) Solely for  purposes of Section  1.860G-1(a)(4)(iii)  of the  Treasury
Regulations,  the "latest possible maturity date" by which the principal balance
of each regular  interest in each REMIC would be reduced to zero is  [________],
20[__], which is the Distribution Date in the month following the last scheduled
payment on any Mortgage Loan.

      (l) Within 30 days after the Closing Date, the REMIC  Administrator  shall
prepare  and file with the  Internal  Revenue  Service  Form 8811,  "Information
Return for Real  Estate  Mortgage  Investment  Conduits  (REMIC)  and Issuers of
Collateralized Debt Obligations" for the Trust Fund.

      (m) Neither the Trustee nor the Master Servicer shall sell,  dispose of or
substitute  for any of the Mortgage  Loans  (except in  connection  with (i) the
default,  imminent default or foreclosure of a Mortgage Loan,  including but not
limited to, the acquisition or sale of a Mortgaged  Property acquired by deed in
lieu  of  foreclosure,  (ii)  the  bankruptcy  of  the  Trust  Fund,  (iii)  the
termination  of any REMIC  pursuant  to Article IX of this  Agreement  or (iv) a
purchase of Mortgage Loans  pursuant to Article II or III of this  Agreement) or
acquire  any assets for any REMIC or sell or dispose of any  investments  in the
Custodial   Account  or  the  Certificate   Account  for  gain,  or  accept  any
contributions to any REMIC after

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the Closing  Date unless it has  received an Opinion of Counsel  that such sale,
disposition,  substitution  or  acquisition  will not (a) affect  adversely  the
status  of any REMIC  created  hereunder  as a REMIC or (b)  unless  the  Master
Servicer has  determined  in its sole  discretion  to  indemnify  the Trust Fund
against  such  tax,  cause  any  REMIC  to be  subject  to a tax on  "prohibited
transactions" or "contributions" pursuant to the REMIC Provisions.

      Section 10.02.  Master Servicer, REMIC Administrator and Trustee
                      Indemnification.

      (a) The Trustee  agrees to indemnify the Trust Fund,  the  Depositor,  the
REMIC  Administrator  and the Master Servicer for any taxes and costs including,
without limitation,  any reasonable attorneys fees imposed on or incurred by the
Trust Fund, the Depositor or the Master Servicer, as a result of a breach of the
Trustee's  covenants  set forth in Article  VIII or this Article X. In the event
that  Residential  Funding is no longer the Master  Servicer,  the Trustee shall
indemnify  Residential  Funding  for any  taxes  and  costs  including,  without
limitation,  any reasonable attorneys fees imposed on or incurred by Residential
Funding as a result of a breach of the Trustee's  covenants set forth in Article
VIII or this Article X.

      (b) The REMIC  Administrator  agrees to  indemnify  the  Trust  Fund,  the
Depositor,  the  Master  Servicer  and the  Trustee  for  any  taxes  and  costs
(including,  without limitation,  any reasonable  attorneys' fees) imposed on or
incurred by the Trust Fund, the Depositor,  the Master  Servicer or the Trustee,
as a result of a breach of the REMIC Administrator's covenants set forth in this
Article  X with  respect  to  compliance  with the REMIC  Provisions,  including
without  limitation,  any penalties arising from the Trustee's  execution of Tax
Returns  prepared by the REMIC  Administrator  that contain errors or omissions;
provided,  however,  that such  liability will not be imposed to the extent such
breach is a result of an error or omission in information  provided to the REMIC
Administrator by the Master Servicer in which case Section 10.02(c) will apply.

      (c) The Master Servicer agrees to indemnify the Trust Fund, the Depositor,
the REMIC  Administrator  and the  Trustee  for any taxes and costs  (including,
without  limitation,  any reasonable  attorneys' fees) imposed on or incurred by
the Trust Fund,  the Depositor,  the REMIC  Administrator  or the Trustee,  as a
result of a breach of the Master Servicer's  covenants set forth in this Article
X or in  Article  III with  respect  to  compliance  with the REMIC  Provisions,
including without limitation, any penalties arising from the Trustee's execution
of Tax Returns prepared by the Master Servicer that contain errors or omissions.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

      Section 11.01.  Amendment.

      (a) This Agreement or any Custodial  Agreement may be amended from time to
time by the Depositor,  the Master Servicer and the Trustee, without the consent
of any of the Certificateholders:

            (i) to cure any ambiguity,

            (ii) to correct or  supplement  any  provisions  herein or  therein,
which may be  inconsistent  with any other  provisions  herein or  therein or to
correct any error,

            (iii) to modify,  eliminate or add to any of its  provisions to such
extent as shall be necessary or desirable to maintain the  qualification  of any
REMIC  created  hereunder  as a REMIC  at all  times  that  any  Certificate  is
outstanding or to avoid or minimize the risk of the imposition of any tax on the
Trust Fund  pursuant  to the Code that would be a claim  against the Trust Fund,
provided  that the Trustee has received an Opinion of Counsel to the effect that
(A) such action is necessary or desirable to maintain such  qualification  or to
avoid or minimize the risk of the imposition of any such tax and (B) such action
will  not  adversely  affect  in  any  material  respect  the  interests  of any
Certificateholder,

            (iv) to  change  the  timing  and/or  nature  of  deposits  into the
Custodial Account or the Certificate  Account or to change the name in which the
Custodial  Account is  maintained,  provided  that (A) the  Certificate  Account
Deposit Date shall in no event be later than the related  Distribution Date, (B)
such change shall not, as evidenced by an Opinion of Counsel,  adversely  affect
in any  material  respect the  interests of any  Certificateholder  and (C) such
change  shall not result in a reduction  of the rating  assigned to any Class of
Certificates  below the lower of the then-current  rating or the rating assigned
to such  Certificates as of the Closing Date, as evidenced by a letter from each
Rating Agency to such effect,

            (v) to modify, eliminate or add to the provisions of Section 5.02(g)
or any other provision hereof  restricting  transfer of the Class R Certificates
by virtue of their being the  "residual  interests"  in the Trust Fund  provided
that (A) such change shall not result in reduction of the rating assigned to any
such Class of  Certificates  below the lower of the  then-current  rating or the
rating  assigned to such  Certificates as of the Closing Date, as evidenced by a
letter from each Rating  Agency to such  effect,  and (B) such change  shall not
(subject to Section  10.01(f)),  as  evidenced  by an Opinion of Counsel (at the
expense of the party  seeking so to modify,  eliminate or add such  provisions),
cause  the  Trust  Fund  or  any  of  the  Certificateholders  (other  than  the
transferor) to be subject to a federal tax caused by a transfer to a Person that
is not a Permitted Transferee, or

            (vi) to make  any  other  provisions  with  respect  to  matters  or
questions  arising under this Agreement or such Custodial  Agreement which shall
not be materially  inconsistent with the provisions of this Agreement,  provided
that such action  shall not, as  evidenced  by an Opinion of Counsel,  adversely
affect in any material  respect the  interests of any  Certificateholder  and is
authorized or permitted under Section 11.01.

      (b) This  Agreement or any  Custodial  Agreement  may also be amended from
time to time by the Depositor,  the Master Servicer, the Trustee and the Holders
of Certificates  evidencing in the aggregate not less than 66% of the Percentage
Interests of each Class of  Certificates  with a Certificate  Principal  Balance
greater than zero affected  thereby for the purpose of adding any  provisions to
or changing in any manner or eliminating any of the provisions of this Agreement
or such Custodial Agreement or of

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modifying in any manner the rights of the Holders of Certificates of such Class;
provided, however, that no such amendment shall:

            (i)  reduce in any  manner  the  amount  of, or delay the timing of,
payments  which are required to be distributed  on any  Certificate  without the
consent of the Holder of such Certificate,

            (ii)  adversely  affect in any material  respect the interest of the
Holders of  Certificates  of any Class in a manner  other than as  described  in
clause (i) hereof without the consent of Holders of  Certificates  of such Class
evidencing,  as to such Class,  Percentage  Interests  aggregating not less than
66%, or

            (iii) reduce the aforesaid  percentage of  Certificates of any Class
the Holders of which are required to consent to any such amendment,  in any such
case without the consent of the Holders of all  Certificates  of such Class then
outstanding.

      (c) Notwithstanding any contrary provision of this Agreement,  the Trustee
shall not consent to any amendment to this Agreement  unless it shall have first
received  an Opinion  of  Counsel  (at the  expense  of the party  seeking  such
amendment)  to the  effect  that such  amendment  or the  exercise  of any power
granted to the Master Servicer,  the Depositor or the Trustee in accordance with
such  amendment  will not result in the imposition of a federal tax on the Trust
Fund or cause any REMIC  created  hereunder to fail to qualify as a REMIC at any
time  that any  Certificate  is  outstanding;  provided,  that if the  indemnity
described in Section 10.01(f) with respect to any taxes that might be imposed on
the Trust Fund has been given,  the Trustee shall not require the delivery to it
of the Opinion of Counsel  described in this Section  11.01(c).  The Trustee may
but shall not be obligated to enter into any amendment  pursuant to this Section
that affects its rights,  duties and immunities and this Agreement or otherwise;
provided, however, such consent shall not be unreasonably withheld.

      (d) Promptly  after the execution of any such  amendment the Trustee shall
furnish  written  notification  of the  substance  of  such  amendment  to  each
Certificateholder.   It   shall   not  be   necessary   for   the   consent   of
Certificateholders  under this Section 11.01 to approve the  particular  form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance  thereof.  The manner of obtaining such consents and of evidencing
the  authorization  of the  execution  thereof  by  Certificateholders  shall be
subject to such reasonable regulations as the Trustee may prescribe.

      (e) The Depositor shall have the option, in its sole discretion, to obtain
and  deliver  to  the  Trustee  any  corporate  guaranty,   payment  obligation,
irrevocable  letter  of  credit,   surety  bond,  insurance  policy  or  similar
instrument or a reserve  fund,  or any  combination  of the  foregoing,  for the
purpose of protecting the Holders of the Class R Certificates against any or all
Realized Losses or other  shortfalls.  Any such instrument or fund shall be held
by the Trustee for the benefit of the Class R Certificateholders,  but shall not
be and shall not be deemed to be under any circumstances  included in any REMIC.
To the extent that any such  instrument  or fund  constitutes a reserve fund for
federal  income tax purposes,  (i) any reserve fund so  established  shall be an
outside reserve fund and not an asset of such REMIC,  (ii) any such reserve fund
shall be owned by the Depositor,  and (iii) amounts transferred by such REMIC to
any such reserve fund shall be treated as amounts  distributed  by such REMIC to
the Depositor or any successor,  all within the meaning of Treasury  regulations
Section  1.860G-2(h)  in effect as of the Cut-off Date.  In connection  with the
provision of any such  instrument  or fund,  this  Agreement  and any  provision
hereof may be modified,  added to,  deleted or  otherwise  amended in any manner
that is related or incidental to such instrument or fund or the establishment or
administration thereof, such amendment to be made by written instrument executed
or  consented  to by the  Depositor  and such  related  insurer  but without the
consent of any  Certificateholder and without the consent of the Master Servicer
or the  Trustee  being  required  unless  any such  amendment  would  impose any
additional obligation on, or otherwise adversely

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<PAGE>

affect the  interests  of the  Certificateholders,  the Master  Servicer  or the
Trustee,  as  applicable;  provided  that the  Depositor  obtains  an Opinion of
Counsel (which need not be an opinion of Independent counsel) to the effect that
any such amendment will not cause (a) any federal tax to be imposed on the Trust
Fund,  including  without  limitation,  any federal  tax imposed on  "prohibited
transactions"  under Section  860F(a)(1) of the Code or on "contributions  after
the startup date" under Section 860G(d)(1) of the Code and (b) any REMIC created
hereunder  to fail to  qualify  as a REMIC at any time that any  Certificate  is
outstanding.  In the event that the Depositor elects to provide such coverage in
the form of a limited  guaranty  provided by GMAC LLC, the  Depositor  may elect
that the text of such amendment to this Agreement shall be  substantially in the
form  attached  hereto  as  Exhibit  K  (in  which  case  Residential  Funding's
Subordinate  Certificate  Loss  Obligation as described in such exhibit shall be
established by  Residential  Funding's  consent to such  amendment) and that the
limited  guaranty  shall be executed in the form  attached  hereto as Exhibit L,
with such  changes  as the  Depositor  shall  deem to be  appropriate;  it being
understood  that the Trustee has reviewed and approved the content of such forms
and that the Trustee's consent or approval to the use thereof is not required.

      Section 11.02.  Recordation of Agreement; Counterparts.

      (a) To the extent  permitted by applicable  law, this Agreement is subject
to recordation in all  appropriate  public offices for real property  records in
all the counties or other  comparable  jurisdictions  in which any or all of the
properties  subject to the Mortgages are situated,  and in any other appropriate
public  recording  office or elsewhere,  such  recordation to be effected by the
Master Servicer and at its expense on direction by the Trustee  (pursuant to the
request of the  Holders of  Certificates  entitled to at least 25% of the Voting
Rights),  but only upon  direction  accompanied  by an Opinion of Counsel to the
effect that such recordation  materially and beneficially  affects the interests
of the Certificateholders.

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

      Section 11.03.  Limitation on Rights of Certificateholders.

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

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

      (c) No  Certificateholder  shall have any right by virtue of any provision
of this  Agreement to institute  any suit,  action or proceeding in equity or at
law  upon or  under  or with  respect  to this  Agreement,  unless  such  Holder
previously  shall have given to the  Trustee a written  notice of default and of
the continuance thereof, as hereinbefore  provided,  and unless also the Holders
of  Certificates  of any Class  evidencing in the aggregate not less than 25% of
the related Percentage  Interests of such Class, shall have made written request
upon the Trustee to institute such action, suit or proceeding in its own name as
Trustee  hereunder  and  shall  have  offered  to the  Trustee  such  reasonable
indemnity as it may require

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<PAGE>

against the costs,  expenses and liabilities to be incurred  therein or thereby,
and the Trustee, for 60 days after its receipt of such notice, request and offer
of indemnity, shall have neglected or refused to institute any such action, suit
or proceeding it being understood and intended,  and being expressly  covenanted
by each  Certificateholder  with every other  Certificateholder and the Trustee,
that no one or more Holders of Certificates of any Class shall have any right in
any manner  whatever by virtue of any  provision  of this  Agreement  to affect,
disturb or prejudice the rights of the Holders of any other of such Certificates
of such Class or any other Class,  or to obtain or seek to obtain  priority over
or  preference  to any other such  Holder,  or to enforce  any right  under this
Agreement,  except in the manner herein  provided and for the common  benefit of
Certificateholders  of such  Class or all  Classes,  as the case may be. For the
protection and  enforcement  of the  provisions of this Section 11.03,  each and
every  Certificateholder and the Trustee shall be entitled to such relief as can
be given either at law or in equity.

      Section 11.04.  Governing Law.

      This agreement and the Certificates  shall be governed by and construed in
accordance  with the laws of the State of New York and the  obligations,  rights
and remedies of the parties  hereunder  shall be determined  in accordance  with
such laws.

      Section 11.05.  Notices.

      All demands and notices  hereunder shall be in writing and shall be deemed
to have been duly given if personally delivered at or mailed by registered mail,
postage prepaid (except for notices to the Trustee which shall be deemed to have
been duly given only when received),  to (a) in the case of the Depositor,  8400
Normandale Lake Boulevard,  Suite 250, Minneapolis,  Minnesota 55437, Attention:
President  (RASC),  or such other  address as may  hereafter be furnished to the
Master Servicer and the Trustee in writing by the Depositor;  (b) in the case of
the Master Servicer, 2255 North Ontario Street, Burbank,  California 91504-3120,
Attention:  Bond  Administration  or  such  other  address  as may be  hereafter
furnished to the  Depositor  and the Trustee by the Master  Servicer in writing;
(c) in the case of the Trustee, the Corporate Trust Office or such other address
as may  hereafter  be  furnished  to the  Depositor  and the Master  Servicer in
writing by the Trustee;  (d) in the case of [Standard & Poor's, 55 Water Street,
New York, New York 10041; Attention: Mortgage Surveillance or such other address
as may be hereafter  furnished to the Depositor,  Trustee and Master Servicer by
Standard & Poor's]; (e) in the case of [Moody's, 99 Church Street, New York, New
York 10007, Attention:  ABS Monitoring Department,  or such other address as may
be hereafter furnished to the Depositor,  the Trustee and the Master Servicer in
writing  by  Moody's,]  and (f) [in the case of the  Hedge  Agreement  Provider,
[__________________________________________],  or such  other  address as may be
hereafter  furnished to the  Depositor,  the Trustee and the Master  Servicer in
writing by the Hedge Agreement Provider]. Any notice required or permitted to be
mailed  to a  Certificateholder  shall be given by  first  class  mail,  postage
prepaid, at the address of such holder as shown in the Certificate Register. Any
notice  so  mailed  within  the  time  prescribed  in this  Agreement  shall  be
conclusively   presumed   to  have  been  duly   given,   whether   or  not  the
Certificateholder receives such notice.

      Section 11.06.  Notices to Rating Agencies.

      The Depositor,  the Master Servicer or the Trustee,  as applicable,  shall
notify each Rating Agency and each  Subservicer  at such time as it is otherwise
required  pursuant to this Agreement to give notice of the occurrence of, any of
the events described in clause (a), (b), (c), (d), (g), (h), (i) or (j) below or
provide  a copy to each  Rating  Agency  and each  Subservicer  at such  time as
otherwise  required to be  delivered  pursuant to this  Agreement  of any of the
statements described in clauses (e) and (f) below:

      (a) a material change or amendment to this Agreement,

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      (b) the occurrence of an Event of Default,

      (c) the  termination  or  appointment  of a successor  Master  Servicer or
Trustee or a change in the majority ownership of the Trustee,

      (d) the filing of any claim under the Master  Servicer's  blanket fidelity
bond and the errors and omissions  insurance  policy required by Section 3.12 or
the cancellation or modification of coverage under any such instrument,

      (e) the statement required to be delivered to the Holders of each Class of
Certificates pursuant to Section 4.03,

      (f) the statements  required to be delivered pursuant to Sections 3.18 and
3.19,

      (g) a change in the location of the Custodial  Account or the  Certificate
Account,

      (h) the  occurrence  of any monthly cash flow  shortfall to the Holders of
any Class of  Certificates  resulting from the failure by the Master Servicer to
make an Advance pursuant to Section 4.04,

      (i) the occurrence of the Final Distribution Date, and

      (j) the repurchase of or  substitution  for any Mortgage  Loan,  provided,
however,  that with respect to notice of the occurrence of the events  described
in clauses (d),  (g) or (h) above,  the Master  Servicer  shall  provide  prompt
written  notice to each  Rating  Agency and each  Subservicer  of any such event
known to the Master Servicer.

      Section 11.07.  Severability of Provisions.

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

      Section 11.08.  Supplemental Provisions for Resecuritization.

      (a) This  Agreement  may be  supplemented  by means of the  addition  of a
separate  Article  hereto  (a   "Supplemental   Article")  for  the  purpose  of
resecuritizing  any of the Certificates  issued  hereunder,  under the following
circumstances.  With  respect  to any Class or Classes  of  Certificates  issued
hereunder, or any portion of any such Class, as to which the Depositor or any of
its  Affiliates  (or  any  designee  thereof)  is  the  registered  Holder  (the
"Resecuritized  Certificates"),  the  Depositor  may deposit such  Resecuritized
Certificates  into a new  REMIC,  grantor  trust  or  custodial  arrangement  (a
"Restructuring  Vehicle") to be held by the Trustee  pursuant to a  Supplemental
Article.  The instrument adopting such Supplemental Article shall be executed by
the Depositor,  the Master Servicer and the Trustee;  provided, that neither the
Master  Servicer nor the Trustee shall withhold  their consent  thereto if their
respective  interests would not be materially adversely affected thereby. To the
extent that the terms of the  Supplemental  Article do not in any way affect any
provisions  of this  Agreement as to any of the  Certificates  initially  issued
hereunder,  the adoption of the  Supplemental  Article  shall not  constitute an
"amendment" of this  Agreement.  Each  Supplemental  Article shall set forth all
necessary  provisions relating to the holding of the Resecuritized  Certificates
by the Trustee, the establishment of the

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Restructuring Vehicle, the issuing of various classes of new certificates by the
Restructuring  Vehicle and the  distributions to be made thereon,  and any other
provisions   necessary  to  the  purposes  thereof.   In  connection  with  each
Supplemental  Article,  the Depositor shall deliver to the Trustee an Opinion of
Counsel to the  effect  that (i) the  Restructuring  Vehicle  will  qualify as a
REMIC,  grantor trust or other entity not subject to taxation for federal income
tax purposes and (ii) the adoption of the Supplemental Article will not endanger
the status of any REMIC created hereunder as a REMIC or result in the imposition
of a tax upon the Trust Fund (including but not limited to the tax on prohibited
transaction  as  defined  in  Section  860F(a)(2)  of the  Code  and  the tax on
contributions to a REMIC as set forth in Section 860G(d) of the Code.

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                                  ARTICLE XII

                          COMPLIANCE WITH REGULATION AB

      Section 12.01.  Intent of the Parties; Reasonableness.

      The Depositor,  the Trustee and the Master Servicer  acknowledge and agree
that  the  purpose  of  this  Article  XII is to  facilitate  compliance  by the
Depositor with the provisions of Regulation AB and related rules and regulations
of the  Commission.  The  Depositor  shall not  exercise  its  right to  request
delivery of information or other  performance  under these provisions other than
in good faith,  or for purposes other than  compliance  with the Securities Act,
the  Exchange  Act and the rules and  regulations  of the  Commission  under the
Securities Act and the Exchange Act. Each of the Master Servicer and the Trustee
acknowledges  that  interpretations  of the  requirements  of  Regulation AB may
change  over  time,  whether  due  to  interpretive  guidance  provided  by  the
Commission or its staff,  consensus among  participants  in the  mortgage-backed
securities markets,  advice of counsel, or otherwise,  and agrees to comply with
requests made by the Depositor in good faith for delivery of  information  under
these provisions on the basis of evolving interpretations of Regulation AB. Each
of the Master  Servicer and the Trustee shall cooperate fully with the Depositor
to deliver to the Depositor  (including any of its assignees or designees),  any
and all statements, reports,  certifications,  records and any other information
necessary  in the good  faith  determination  of the  Depositor  to  permit  the
Depositor or such  Depositor to comply with the  provisions  of  Regulation  AB,
together with such disclosures relating to the Master Servicer,  the Trustee and
the Mortgage Loans, or the servicing of the Mortgage Loans,  reasonably believed
by the Depositor to be necessary in order to effect such compliance.

      Section 12.02.  Additional Representations and Warranties of the Trustee.

      (a) The Trustee  shall be deemed to represent  to the  Depositor as of the
date on which information is first provided to the Depositor under Section 12.03
that, except as disclosed in writing to the Depositor prior to such date: (i) it
is not aware and has not received notice that any default, early amortization or
other performance  triggering event has occurred as to any other  Securitization
Transaction  due to any act or  failure to act of the  Trustee;  (ii) it has not
been terminated as trustee in a  securitization  of mortgage loans;  (iii) there
are no aspects of its  financial  condition  that could have a material  adverse
effect on the performance by it of its trustee  obligations under this Agreement
or any other  Securitization  Transaction;  (iv) there are no material  legal or
governmental  proceedings pending (or known to be contemplated)  against it; and
(v) there are no  affiliations,  relationships  or transactions  relating to the
Trustee with respect to the Depositor or any sponsor,  issuing entity, servicer,
trustee,  originator,  significant  obligor,  enhancement or support provider or
other  material  transaction  party (as such  terms are used in  Regulation  AB)
relating to the Securitization  Transaction contemplated by the Agreement (each,
a "Transaction Party").

      (b) If so requested by the  Depositor  on any date  following  the date on
which  information is first provided to the Depositor  under Section 12.03,  the
Trustee  shall,  within five Business Days  following  such request,  confirm in
writing  the  accuracy  of the  representations  and  warranties  set  forth  in
paragraph (a) of this Section or, if any such representation and warranty is not
accurate as of the date of such request or such confirmation, provide reasonably
adequate disclosure of the pertinent facts, in writing, to the requesting party.

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      Section 12.03.  Information to Be Provided by the Trustee.

      (a) If so requested by the  Depositor  for the purpose of  satisfying  its
reporting  obligation  under  the  Exchange  Act with  respect  to any  class of
Certificates,  the Trustee  shall (i) notify the Depositor in writing of (A) any
material litigation or governmental  proceedings pending against the Trustee and
(B) any  affiliations or relationships  that develop  following the Closing Date
between the Trustee and any Transaction Party, and (ii) provide to the Depositor
a written description of such proceedings, affiliations or relationships.

      (b) In addition to such information as the Trustee is obligated to provide
pursuant to other provisions of this Agreement, if so requested by the Depositor
, the Trustee shall provide such information reasonably available to the Trustee
regarding the  performance  or servicing of the Mortgage  Loans as is reasonably
required to facilitate  preparation of  distribution  reports in accordance with
Item 1121 of Regulation AB.

      Section 12.04.  Report on Assessment of Compliance and Attestation.

      On or before March 15 of each calendar year, the Trustee shall:

      (a) deliver to the  Depositor a report (in form and  substance  reasonably
satisfactory to the Depositor)  regarding the Trustee's assessment of compliance
with the Servicing  Criteria during the immediately  preceding calendar year, as
required  under  Rules  13a-18 and 15d-18 of the  Exchange  Act and Item 1122 of
Regulation  AB. Such report shall be addressed to the Depositor and signed by an
authorized  officer of the  Trustee,  and shall  address  each of the  Servicing
Criteria  specified on a  certification  substantially  in the form of Exhibit S
hereto; and

      (b) deliver to the  Depositor a report of a registered  public  accounting
firm reasonably acceptable to the Depositor that attests to, and reports on, the
assessment  of  compliance  made by the  Trustee and  delivered  pursuant to the
preceding  paragraph.  Such  attestation  shall  be  in  accordance  with  Rules
1-02(a)(3)  and  2-02(g)  of  Regulation  S-X under the  Securities  Act and the
Exchange Act.

      Section 12.05.  Indemnification; Remedies.

      (a) The Trustee  shall  indemnify  the  Depositor,  each  affiliate of the
Depositor,  the Master  Servicer and each broker dealer  acting as  underwriter,
placement  agent or initial  purchaser  of the  Certificates  or each Person who
controls any of such parties (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act);  and the respective  present and former
directors,  officers,  employees and agents of each of the foregoing,  and shall
hold each of them  harmless  from and against any  losses,  damages,  penalties,
fines,  forfeitures,  legal fees and expenses and related costs, judgments,  and
any other costs,  fees and expenses that any of them may sustain  arising out of
or based upon:

            (i) (A) any untrue statement of a material fact contained or alleged
to be contained in any information,  report, certification,  accountants' letter
or other material provided under this Article XII by or on behalf of the Trustee
(collectively,  the  "Trustee  Information"),  or (B) the  omission  or  alleged
omission  to state in the Trustee  Information  a material  fact  required to be
stated in the Trustee  Information  or necessary in order to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading; provided, by way of clarification, that clause (B) of this paragraph
shall be construed solely by reference to the Trustee Information and not to any
other  information  communicated  in  connection  with a  sale  or  purchase  of
securities, without regard to whether

                                      131
<PAGE>

the Trustee  Information  or any portion  thereof is presented  together with or
separately from such other information;

            (ii) any failure by the Trustee to deliver any information,  report,
certification,  accountants' letter or other material when and as required under
this Article XII; or

            (iii) any breach by the Trustee of a representation  or warranty set
forth  in  Section  12.02(a)  or in a  writing  furnished  pursuant  to  Section
12.02(b).

      (b) In the case of any failure of performance  described in clause (ii) of
this Section,  the Trustee shall promptly  reimburse the Depositor for all costs
reasonably  incurred  by each  such  party in order to obtain  the  information,
report,  certification,  accountants'  letter or other material not delivered as
required by the Trustee.

                                      132
<PAGE>

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

                                      RESIDENTIAL ASSET SECURITIES CORPORATION

                                      By:
                                         -------------------------------
                                         Name:
                                         Title:
                                      RESIDENTIAL FUNDING COMPANY, LLC

                                      By:
                                         -------------------------------
                                         Name:
                                         Title:
                                      [_______________________________]
                                      as Trustee

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

<PAGE>

STATE OF MINNESOTA     )
                       ) ss.:
COUNTY OF HENNEPIN     )

      On the ____ day of [_____]  20[__]  before me, a notary  public in and for
said  State,  personally  appeared  ____________,  known  to me  to  be a  [Vice
President] of Residential Asset Securities Corporation,  one of the corporations
that executed the within  instrument,  and also known to me to be the person who
executed  it on behalf of said  corporation,  and  acknowledged  to me that such
corporation executed the within instrument.

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

                                      Notary Public

                                      ________________________________________

[Notarial Seal]

<PAGE>

STATE OF MINNESOTA    )
                      ) ss.:
COUNTY OF HENNEPIN    )

      On the ____ day of [_____]  20[__]  before me, a notary  public in and for
said State, personally appeared ___________, known to me to be an [Associate] of
Residential  Funding Company,  LLC, the Delaware limited  liability company that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed it on behalf of said limited liability company,  and acknowledged to me
that such limited liability company executed the within instrument.

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

                                      Notary Public

                                      ________________________________________

[Notarial Seal]

<PAGE>

STATE OF MINNESOTA    )
                      ) ss.:
COUNTY OF RAMSEY      )

      On the ____ day of [____]  20[__]  before  me, a notary  public in and for
said State, personally appeared  _____________,  known to me to be a [_________]
of [______________],  a national banking association organized under the laws of
the United States that executed the within  instrument,  and also known to me to
be the  person  who  executed  it on  behalf  of said  banking  corporation  and
acknowledged to me that such banking corporation executed the within instrument.

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

                                      Notary Public

                                      ________________________________________

[Notarial Seal]

<PAGE>

                                                                       EXHIBIT A

                         FORM OF CLASS A-[_] CERTIFICATE

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 [COUPLED WITH THE RIGHT TO RECEIVE PAYMENTS UNDER THE YIELD
MAINTENANCE AGREEMENT].

      THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
FOLLOWING THE INITIAL ISSUANCE OF THE  CERTIFICATES,  THE CERTIFICATE  PRINCIPAL
BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW.
ANYONE  ACQUIRING  THIS  CERTIFICATE  MAY  ASCERTAIN ITS  CERTIFICATE  PRINCIPAL
BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

      UNLESS THIS  CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF
THE  DEPOSITORY  TRUST  COMPANY TO THE ISSUER OR ITS AGENT FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME  OF  CEDE  &  CO.  OR  SUCH  OTHER  NAME  AS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO.,  ANY  TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL  SINCE THE  REGISTERED  OWNER HEREOF,  CEDE & CO., HAS AN
INTEREST HEREIN.

CUSIP: _____________________                Certificate No. A-[__]-__

Date of Pooling and Servicing Agreement     [Adjustable Pass-Through Rate]
and Cut-off Date:  [____] 1, 20[__]         [Fixed Pass-Through Rate]

First Distribution Date:  [_____], 20[__]   Aggregate Initial Certificate
                                            Principal Balance of the Class A-[_]
                                            Certificates: $_____________________

Master Servicer:                            Initial Certificate Principal
                                            Balance of this Residential Funding
                                            Company, LLC Class A-[_]
                                            Certificate: $______________________

Final Scheduled Distribution Date:
__________ __, 20__

                                      A-1
<PAGE>

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

           evidencing  a percentage  interest in the  distributions
           allocable to the Class A-[_]  Certificates  with respect
           to a  Trust  Fund  consisting  primarily  of a  pool  of
           [fixed]  [adjustable]  interest rate, first [and junior]
           lien mortgage loans on one- to  four-family  residential
           properties   sold  by   RESIDENTIAL   ASSET   SECURITIES
           CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation, the Master Servicer, the Trustee referred to below or [________] or
any of their  affiliates.  Neither this Certificate nor the underlying  Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality or
by Residential Asset Securities Corporation, the Master Servicer, the Trustee or
[________]  or any of  their  affiliates.  None  of the  Depositor,  the  Master
Servicer,  [__________] or any of their affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

      This certifies that [Cede & Co.] is the registered owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the  Trust  Fund  consisting  primarily  of an  interest  in a pool  of  [fixed]
[adjustable]  interest  rate,  first lien mortgage loans on one- to four- family
residential  properties,   sold  by  Residential  Asset  Securities  Corporation
(hereinafter  called the  "Depositor,"  which term includes any successor entity
under the Agreement referred to below). The Trust Fund was created pursuant to a
Pooling and Servicing Agreement dated as specified above (the "Agreement") among
the Depositor, the Master Servicer and [__________], as trustee (the "Trustee"),
a  summary  of  certain  of the  pertinent  provisions  of  which  is set  forth
hereafter.  To the extent not defined herein,  the capitalized terms used herein
have the meanings  assigned in the Agreement.  This  Certificate is issued under
and is subject to the terms,  provisions  and  conditions of the  Agreement,  to
which  Agreement  the  Holder of this  Certificate  by virtue of the  acceptance
hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the Business Day  immediately  preceding that  Distribution
Date (the "Record Date"),  from the related Available  Distribution Amount in an
amount  equal  to the  product  of the  Percentage  Interest  evidenced  by this
Certificate  and the amount of interest and  principal,  if any,  required to be
distributed to Holders of Class A-[_] Certificates on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

                                      A-2
<PAGE>

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed  by the  Trustee  for that  purpose in  [______________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal  Balance  hereof  will  be  reduced  [to  the  extent  of
distributions  allocable to principal and any Realized Losses allocable  hereto]
[from time to time pursuant to the Agreement].

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing, and there upon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

                                      A-3
<PAGE>

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-4
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [_______________________],
                                            as Trustee

                                            By:_______________________________
                                               Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  A-[_]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                            [________________________],
                                            as Certificate Registrar

                                            By:_______________________________
                                               Authorized Signatory

                                      A-5
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________                ____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable statements should be mailed to:________________________________
________________________________________________________________________________
________________________________________________________________________________

      This  information  is  provided by  ___________________________________,
the  assignee  named  above,  or ______________________________, as its agent.

                                      A-6
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CLASS M-[_] CERTIFICATE

      THIS  CERTIFICATE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS A AND
CLASS M-[_] CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
EITHER (A) SUCH  TRANSFEREE  IS NOT AN  EMPLOYEE  BENEFIT  PLAN OR OTHER PLAN OR
ARRANGEMENT  SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE OR A PERSON  (INCLUDING  AN  INSURANCE  COMPANY  INVESTING  ITS GENERAL
ACCOUNT, AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN)
WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION  (EACH OF
THE  FOREGOING,  A "PLAN  INVESTOR"),  (B) IT HAS  ACQUIRED  AND IS HOLDING THIS
CERTIFICATE  IN  RELIANCE ON U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION
EXEMPTION  ("PTE") 94-29, AS MOST RECENTLY  AMENDED,  67 FED. REG. 54487 (AUGUST
22, 2002), (THE "RFC EXEMPTION"), AND THAT IT UNDERSTANDS THAT THERE ARE CERTAIN
CONDITIONS  TO THE  AVAILABILITY  OF  THE  RFC  EXEMPTION  INCLUDING  THAT  THIS
CERTIFICATE  MUST BE RATED,  AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-" (OR
ITS EQUIVALENT) BY STANDARD & POOR'S,  FITCH OR MOODY'S OR (C)(I) THE TRANSFEREE
IS AN INSURANCE COMPANY,  (II) THE SOURCE OF FUNDS USED TO PURCHASE OR HOLD THIS
CERTIFICATE

                                      B-1
<PAGE>

IS AN  "INSURANCE  COMPANY  GENERAL  ACCOUNT" (AS DEFINED IN U.S.  DEPARTMENT OF
LABOR PROHIBITED  TRANSACTION  CLASS EXEMPTION  ("PTCE")  95-60),  AND (III) THE
CONDITIONS  SET FORTH IN  SECTIONS I AND III OF PTCE  95-60 HAVE BEEN  SATISFIED
(EACH ENTITY THAT SATISFIES THIS CLAUSE (C), A "COMPLYING INSURANCE COMPANY").

      IF THIS  CERTIFICATE (OR ANY INTEREST  THEREIN) IS ACQUIRED OR HELD BY ANY
PERSON  THAT  DOES  NOT  SATISFY  THE  CONDITIONS  DESCRIBED  IN  THE  PRECEDING
PARAGRAPH,  THEN THE LAST  PRECEDING  TRANSFEREE  THAT  EITHER (I) IS NOT A PLAN
INVESTOR,  (II) ACQUIRED SUCH  CERTIFICATE IN COMPLIANCE WITH THE RFC EXEMPTION,
OR (III) IS A  COMPLYING  INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND  OBLIGATIONS  AS  CERTIFICATE  OWNER THEREOF
RETROACTIVE TO THE DATE OF SUCH TRANSFER OF THIS CERTIFICATE.  THE TRUSTEE SHALL
BE  UNDER NO  LIABILITY  TO ANY  PERSON  FOR  MAKING  ANY  PAYMENTS  DUE ON THIS
CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(f) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

CUSIP: _____________________                Certificate No. M-[__]-__

Date of Pooling and Servicing Agreement     [Adjustable Pass-Through Rate]
and Cut-off Date: [____] 1, 20[__]          [Fixed Pass-Through Rate]

First Distribution Date:  [_____], 20[__]   Aggregate Initial Certificate
                                            Principal Balance of the Class M-[_]
                                            Certificates: $_____________________

Master Servicer:                            Initial Certificate Principal
Residential Funding Company, LLC            Balance of this Class M-[_]
                                            Certificate: $______________________

Final Scheduled Distribution Date:
__________ __, 20__

                                      B-2
<PAGE>

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

           evidencing  a percentage  interest in the  distributions
           allocable to the Class M-[_]  Certificates  with respect
           to a  Trust  Fund  consisting  primarily  of a  pool  of
           [fixed]  [adjustable]  interest rate, first [and junior]
           lien mortgage loans on one- to  four-family  residential
           properties   sold  by   RESIDENTIAL   ASSET   SECURITIES
           CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation, the Master Servicer, the Trustee referred to below or [________] or
any of their  affiliates.  Neither this Certificate nor the underlying  Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality or
by Residential Asset Securities Corporation, the Master Servicer, the Trustee or
[________]  or any of  their  affiliates.  None  of the  Depositor,  the  Master
Servicer,  [_______________] or any of their affiliates will have any obligation
with respect to any certificate or other  obligation  secured by or payable from
payments on the Certificates.

      This certifies that [Cede & Co.] is the registered owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the  Trust  Fund  consisting  primarily  of an  interest  in a pool  of  [fixed]
[adjustable]  interest  rate,  first lien mortgage loans on one- to four- family
residential  properties  (the  "Mortgage  Loans"),  sold  by  Residential  Asset
Securities Corporation  (hereinafter called the "Depositor," which term includes
any successor entity under the Agreement  referred to below). The Trust Fund was
created  pursuant to a Pooling and Servicing  Agreement dated as specified above
(the "Agreement") among the Depositor,  the Master Servicer and [_____________],
as trustee (the "Trustee"),  a summary of certain of the pertinent provisions of
which is set forth hereafter.  To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement.  This Certificate
is issued under and is subject to the terms,  provisions  and  conditions of the
Agreement,  to which  Agreement the Holder of this  Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the Business Day  immediately  preceding that  Distribution
Date (the "Record Date"),  from the related Available  Distribution Amount in an
amount  equal  to the  product  of the  Percentage  Interest  evidenced  by this
Certificate  and the amount of interest and  principal,  if any,  required to be
distributed to Holders of Class M-[_] Certificates on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person

                                      B-3
<PAGE>

entitled  thereto if such Person shall have so notified  the Master  Servicer or
such Paying  Agent,  or by check  mailed to the  address of the Person  entitled
thereto, as such name and address shall appear on the Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed by the Trustee for that purpose in  [__________________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions allocable to principal and any Realized Losses allocable hereto.

      Any  Transferee  of this Class M  Certificate  will be deemed to have made
representations  relating to the permissibility of such transfer under ERISA and
Section 4975 of the Code, as described in Section  5.02(f) of the Agreement.  In
addition,  any purported  Certificate Owner whose acquisition or holding of this
Certificate (or interest  therein) was effected in violation of the restrictions
in Section  5.02(f) of the  Agreement  shall  indemnify  and hold  harmless  the
Depositor,  the Trustee, the Master Servicer,  any Subservicer,  any underwriter
and the Trust Fund from and against any and all  liabilities,  claims,  costs or
expenses incurred by such parties as a result of such acquisition or holding.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the

                                      B-4
<PAGE>

Certificates and, in certain  additional  circumstances,  without the consent of
the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing, and there upon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such Distribution

                                      B-5
<PAGE>

Date of the Mortgage Loans, as of the Distribution  Date upon which the proceeds
of any such  purchase  are  distributed  is less than ten percent of the Cut-off
Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      B-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [____________________],
                                            as Trustee

                                            By:_________________________________
                                               Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  M-[_]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                            [_______________________],
                                            as Certificate Registrar

                                            By:_________________________________
                                               Authorized Signatory

                                      B-7
<PAGE>

                                                    ASSIGNMENT

FOR  VALUE  RECEIVED, the  undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________

Dated:_____________________                _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

         Applicable statements should be mailed to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                      B-8
<PAGE>

                                                                     EXHIBIT C-1

                  FORM OF RULE 144A GLOBAL CLASS B CERTIFICATE

      THIS  CERTIFICATE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS A AND
CLASS M CERTIFICATES  [AND CLASS B-1  CERTIFICATE] AS DESCRIBED IN THE AGREEMENT
(AS DEFINED HEREIN).

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
EITHER (A) SUCH  TRANSFEREE  IS NOT AN  EMPLOYEE  BENEFIT  PLAN OR OTHER PLAN OR
ARRANGEMENT  SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE OR A PERSON  (INCLUDING  AN  INSURANCE  COMPANY  INVESTING  ITS GENERAL
ACCOUNT, AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN)
WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION  (EACH OF
THE FOREGOING,  A "PLAN  INVESTOR"),  OR (B) IT HAS ACQUIRED AND IS HOLDING THIS
CERTIFICATE  IN  RELIANCE ON U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION
EXEMPTION  ("PTE") 94-29, AS MOST RECENTLY  AMENDED,  67 FED. REG. 54487 (AUGUST
22, 2002) (THE "RFC EXEMPTION"),  AND THAT IT UNDERSTANDS THAT THERE ARE CERTAIN
CONDITIONS  TO THE  AVAILABILITY  OF THE  RFC  EXEMPTION,  INCLUDING  THAT  THIS
CERTIFICATE  MUST BE RATED,  AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-" (OR
ITS EQUIVALENT) BY STANDARD & POOR'S, FITCH

                                     C-1-1
<PAGE>

OR MOODY'S OR (C)(I) THE TRANSFEREE IS AN INSURANCE COMPANY,  (II) THE SOURCE OF
FUNDS USED TO PURCHASE OR HOLD THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL
ACCOUNT" (AS DEFINED IN U.S.  DEPARTMENT OF LABOR PROHIBITED  TRANSACTION  CLASS
EXEMPTION  ("PTCE") 95-60), AND (III) THE CONDITIONS SET FORTH IN SECTIONS I AND
III OF PTCE 95-60 HAVE BEEN  SATISFIED  (EACH ENTITY THAT  SATISFIES THIS CLAUSE
(C), A "COMPLYING INSURANCE COMPANY").

      IF THIS  CERTIFICATE (OR ANY INTEREST  THEREIN) IS ACQUIRED OR HELD BY ANY
PERSON  THAT  DOES  NOT  SATISFY  THE  CONDITIONS  DESCRIBED  IN  THE  PRECEDING
PARAGRAPH,  THEN THE LAST  PRECEDING  TRANSFEREE  THAT  EITHER (I) IS NOT A PLAN
INVESTOR,  (II) ACQUIRED SUCH  CERTIFICATE IN COMPLIANCE WITH THE RFC EXEMPTION,
OR (III) IS A  COMPLYING  INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND  OBLIGATIONS  AS  CERTIFICATE  OWNER THEREOF
RETROACTIVE TO THE DATE OF SUCH TRANSFER OF THIS CERTIFICATE.  THE TRUSTEE SHALL
BE  UNDER NO  LIABILITY  TO ANY  PERSON  FOR  MAKING  ANY  PAYMENTS  DUE ON THIS
CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(f) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION   UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR  IS  MADE  IN  A
TRANSACTION   THAT  DOES  NOT  REQUIRE  SUCH   REGISTRATION  OR   QUALIFICATION.
FURTHERMORE,  THE  AGREEMENT  PROVIDES THAT NO TRANSFER OF THIS  CERTIFICATE  OR
INTEREST HEREIN MAY BE MADE BY A HOLDER OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE
THE UNITED STATES TO ENTITIES  WHICH ARE NOT U.S.  PERSONS WITHIN THE MEANING OF
REGULATION  S UNDER THE 1933 ACT OR (II) IN RELIANCE ON RULE 144A UNDER THE 1933
ACT ("RULE 144A") TO A QUALIFIED  INSTITUTIONAL  BUYER (AS DEFINED IN RULE 144A)
THAT IS ACQUIRING THIS CERTIFICATE OR INTEREST HEREIN FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED

                                     C-2-2
<PAGE>

INSTITUTIONAL  BUYER AND IS ACQUIRING THIS CERTIFICATE FOR ITS OWN INSTITUTIONAL
ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL  BUYER,  OR
(B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS CERTIFICATE OUTSIDE THE UNITED
STATES (A "REGULATION S PURCHASER");  (II) IT UNDERSTANDS  THAT THIS CERTIFICATE
IS BEING  TRANSFERRED TO IT IN A TRANSACTION  NOT INVOLVING ANY PUBLIC  OFFERING
WITHIN  THE  MEANING OF THE 1933 ACT,  AND THAT,  IF IN THE FUTURE IT DECIDES TO
RESELL,  PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE,  THIS CERTIFICATE MAY BE
RESOLD,  PLEDGED  OR  TRANSFERRED  ONLY  IN  ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES LAWS AND (A) IN A TRANSACTION  MEETING THE REQUIREMENTS OF RULE 144A,
TO A PERSON THAT THE SELLER  REASONABLY  BELIEVES  IS A QUALIFIED  INSTITUTIONAL
BUYER THAT  PURCHASES  FOR ITS OWN  ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A
QUALIFIED  INSTITUTIONAL  BUYER) AND TO WHOM  NOTICE IS GIVEN  THAT THE  RESALE,
PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (B) IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S.

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER,  SALE, PLEDGE OR OTHER DISPOSITION IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. B-__

Date of Pooling and Servicing Agreement     [Adjustable Pass-Through Rate]
and Cut-off Date:  [____] 1, 20[__]         [Fixed Pass-Through Rate]

First Distribution Date:  [_____], 20[__]   Aggregate Initial Certificate
                                            Principal Balance of the Class B
                                            Certificates:
                                            $___________________________

Master Servicer:                            Initial Certificate Principal
Residential Funding Company, LLC            Balance of this Class B Certificate:
                                            $___________________________

Final Scheduled Distribution Date:
__________ __, 20__

CUSIP:                                      Certificate No. B-1

                                     C-2-3
<PAGE>

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

           evidencing  a percentage  interest in the  distributions
           allocable to the Class B Certificates  with respect to a
           Trust Fund  consisting  primarily of a pool of fixed and
           adjustable  interest rate,  first lien mortgage loans on
           one-  to  four-family  residential  properties  sold  by
           RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,   the  Master   Servicer,   the   Trustee   referred  to  below  or
[_____________]  or any of their  affiliates.  Neither this  Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential Asset Securities  Corporation,  the Master
Servicer, the Trustee or [_____________] or any of their affiliates. None of the
Depositor,  the Master Servicer,  [____________] or any of their affiliates will
have any obligation with respect to any certificate or other obligation  secured
by or payable from payments on the Certificates.

      This certifies  that Cede & Co. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily of an interest in a pool of fixed interest
rate, first lien mortgage loans on one- to four- family residential  properties,
sold  by  Residential  Asset  Securities  Corporation  (hereinafter  called  the
"Depositor,"  which term  includes  any  successor  entity  under the  Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor, the Master Servicer and [____________], as trustee (the "Trustee"), a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last Business Day of the month next preceding the month
in which the related  Distribution Date occurs,  except in the case of the first
Record  Date which  shall be the  Closing  Date (the  "Record  Date"),  from the
related Available  Distribution  Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any, required to be distributed to Holders of Class B Certificates
on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

                                     C-2-4
<PAGE>

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed by the Trustee for that purpose in  [__________________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions allocable to principal and any Realized Losses allocable hereto.

      Any  Transferee  of this Class B  Certificate  will be deemed to have made
representations  relating to the permissibility of such transfer under ERISA and
Section 4975 of the Code, as described in Section  5.02(f) of the Agreement.  In
addition,  any purported  Certificate Owner whose acquisition or holding of this
Certificate (or interest  therein) was effected in violation of the restrictions
in Section  5.02(f) of the  Agreement  shall  indemnify  and hold  harmless  the
Depositor,  the Trustee, the Master Servicer,  any Subservicer,  any underwriter
and the Trust Fund from and against any and all  liabilities,  claims,  costs or
expenses incurred by such parties as a result of such acquisition or holding.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

                                     C-2-5
<PAGE>

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing, and there upon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

                                     C-2-6
<PAGE>

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-2-7
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [_______________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

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

                                            [___________________________],
                                            as Certificate Registrar

                                            By:  _______________________________
                                                Authorized Signatory

                                     C-2-8
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________               _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

         Applicable statements should be mailed to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     C-1-9
<PAGE>

                                                                     EXHIBIT C-2

            FORM OF TEMPORARY REGULATION S GLOBAL CLASS B CERTIFICATE

      THIS  CERTIFICATE  IS A  TEMPORARY  REGULATION  S GLOBAL  CERTIFICATE  FOR
PURPOSES OF  REGULATION S UNDER THE UNITED  STATES  SECURITIES  ACT OF 1933,  AS
AMENDED (THE "1933 ACT").  NEITHER  THIS  TEMPORARY  REGULATION S GLOBAL CLASS B
CERTIFICATE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS
PERMITTED UNDER THE AGREEMENT (AS DEFINED HEREIN).

      THIS  CERTIFICATE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS A AND
CLASS M CERTIFICATES [AND CLASS B-1 CERTIFICATE] AS DESCRIBED IN THE AGREEMENT.

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
EITHER (A) SUCH  TRANSFEREE  IS NOT AN  EMPLOYEE  BENEFIT  PLAN OR OTHER PLAN OR
ARRANGEMENT  SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE OR A PERSON  (INCLUDING  AN  INSURANCE  COMPANY  INVESTING  ITS GENERAL
ACCOUNT, AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN)
WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION  (EACH OF
THE FOREGOING, A "PLAN INVESTOR"), OR (B) IT HAS ACQUIRED

                                     C-2-1
<PAGE>

AND IS  HOLDING  THIS  CERTIFICATE  IN  RELIANCE  ON U.S.  DEPARTMENT  OF  LABOR
PROHIBITED  TRANSACTION  EXEMPTION ("PTE") 94-29, AS MOST RECENTLY  AMENDED,  67
FED. REG. 54487 (AUGUST 22, 2002) (THE "RFC EXEMPTION"), AND THAT IT UNDERSTANDS
THAT THERE ARE CERTAIN  CONDITIONS  TO THE  AVAILABILITY  OF THE RFC  EXEMPTION,
INCLUDING  THAT THIS  CERTIFICATE  MUST BE RATED,  AT THE TIME OF PURCHASE,  NOT
LOWER THAN "BBB-" (OR ITS EQUIVALENT) BY STANDARD & POOR'S,  FITCH OR MOODY'S OR
(C)(I) THE TRANSFEREE IS AN INSURANCE COMPANY,  (II) THE SOURCE OF FUNDS USED TO
PURCHASE OR HOLD THIS CERTIFICATE IS AN "INSURANCE  COMPANY GENERAL ACCOUNT" (AS
DEFINED IN U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION  CLASS  EXEMPTION
("PTCE")  95-60),  AND (III) THE  CONDITIONS  SET FORTH IN SECTIONS I AND III OF
PTCE 95-60 HAVE BEEN  SATISFIED  (EACH ENTITY THAT  SATISFIES THIS CLAUSE (C), A
"COMPLYING INSURANCE COMPANY").

      IF THIS  CERTIFICATE (OR ANY INTEREST  THEREIN) IS ACQUIRED OR HELD BY ANY
PERSON  THAT  DOES  NOT  SATISFY  THE  CONDITIONS  DESCRIBED  IN  THE  PRECEDING
PARAGRAPH,  THEN THE LAST  PRECEDING  TRANSFEREE  THAT  EITHER (I) IS NOT A PLAN
INVESTOR,  (II) ACQUIRED SUCH  CERTIFICATE IN COMPLIANCE WITH THE RFC EXEMPTION,
OR (III) IS A  COMPLYING  INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND  OBLIGATIONS  AS  CERTIFICATE  OWNER THEREOF
RETROACTIVE TO THE DATE OF SUCH TRANSFER OF THIS CERTIFICATE.  THE TRUSTEE SHALL
BE  UNDER NO  LIABILITY  TO ANY  PERSON  FOR  MAKING  ANY  PAYMENTS  DUE ON THIS
CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(f) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION   UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR  IS  MADE  IN  A
TRANSACTION   THAT  DOES  NOT  REQUIRE  SUCH   REGISTRATION  OR   QUALIFICATION.
FURTHERMORE,  THE  AGREEMENT  PROVIDES THAT NO TRANSFER OF THIS  CERTIFICATE  OR
INTEREST HEREIN MAY BE MADE BY A HOLDER OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE
THE UNITED STATES TO ENTITIES  WHICH ARE NOT U.S.  PERSONS WITHIN THE MEANING OF
REGULATION  S UNDER THE 1933 ACT OR (II) IN RELIANCE ON RULE 144A UNDER THE 1933
ACT ("RULE

                                     C-2-2
<PAGE>

144A") TO A  QUALIFIED  INSTITUTIONAL  BUYER (AS  DEFINED  IN RULE 144A) THAT IS
ACQUIRING  THIS  CERTIFICATE  OR INTEREST  HEREIN FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED  INSTITUTIONAL BUYER AND IS ACQUIRING THIS
CERTIFICATE FOR ITS OWN INSTITUTIONAL  ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF
A QUALIFIED INSTITUTIONAL BUYER, OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS CERTIFICATE OUTSIDE THE UNITED STATES (A "REGULATION S PURCHASER"); (II) IT
UNDERSTANDS  THAT THIS  CERTIFICATE IS BEING  TRANSFERRED TO IT IN A TRANSACTION
NOT INVOLVING ANY PUBLIC  OFFERING WITHIN THE MEANING OF THE 1933 ACT, AND THAT,
IF IN THE  FUTURE IT  DECIDES  TO  RESELL,  PLEDGE OR  OTHERWISE  TRANSFER  THIS
CERTIFICATE,  THIS  CERTIFICATE  MAY BE RESOLD,  PLEDGED OR TRANSFERRED  ONLY IN
ACCORDANCE  WITH  APPLICABLE  STATE  SECURITIES  LAWS  AND (A) IN A  TRANSACTION
MEETING THE  REQUIREMENTS  OF RULE 144A, TO A PERSON THAT THE SELLER  REASONABLY
BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER THAT PURCHASES FOR ITS OWN ACCOUNT
(OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (B) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF  REGULATION  S; AND (III) IF THE HOLDER IS A REGULATION  S PURCHASER,  IT
UNDERSTANDS  THAT THIS  CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE
1933 ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THIS CERTIFICATE IN THE UNITED
STATES OR TO U.S.  PERSONS  PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE  CLOSING
DATE MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT  DISTRIBUTIONS OF
PRINCIPAL  AND  INTEREST  WILL BE  MADE IN  RESPECT  OF SUCH  CERTIFICATES  ONLY
FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION  OF NON-U.S.  BENEFICIAL
OWNERSHIP  OR THE  EXCHANGE OF  BENEFICIAL  INTEREST IN  TEMPORARY  REGULATION S
GLOBAL OFFERED  CERTIFICATES FOR BENEFICIAL  INTERESTS IN THE RELATED  PERMANENT
REGULATION S GLOBAL OFFERED CERTIFICATES (WHICH IN EACH CASE WILL ITSELF REQUIRE
A  CERTIFICATION  OF  NON-U.S.  BENEFICIAL  OWNERSHIP),  AT THE TIMES AND IN THE
MANNER SET FORTH IN THE AGREEMENT.

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER,  SALE, PLEDGE

                                     C-2-3
<PAGE>

OR OTHER  DISPOSITION  IS NOT SO EXEMPT OR IS NOT MADE IN  ACCORDANCE  WITH SUCH
FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. B-__

Date of Pooling and Servicing Agreement     [Adjustable Pass-Through Rate]
and Cut-off Date:  [____] 1, 20[__]         [Fixed Pass-Through Rate]

First Distribution Date:  [____], 20[__]    Aggregate Initial Certificate
                                            Principal Balance of the Class B
                                            Certificates:
                                            $___________________________

Master Servicer:                            Initial Certificate Principal
Residential Funding Company, LLC            Balance of this Class B Certificate:
                                            $___________________________

Final Scheduled Distribution Date:
__________ __, 20__

CUSIP:                                      Certificate No. B-1

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class B Certificates  with respect to a
            Trust Fund  consisting  primarily of a pool of fixed and
            adjustable  interest rate,  first lien mortgage loans on
            one-  to  four-family  residential  properties  sold  by
            RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation, the Master Servicer, the Trustee referred to below or [____________
or any of their affiliates. Neither this Certificate nor the underlying Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality or
by Residential Asset Securities Corporation, the Master Servicer, the Trustee or
[______________] or any of their affiliates.  None of the Depositor,  the Master
Servicer,  [_____________]  or any of their  affiliates will have any obligation
with respect to any certificate or other  obligation  secured by or payable from
payments on the Certificates.

      This certifies  that Cede & Co. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily of an interest in a pool of fixed interest
rate, first lien mortgage loans on one- to four- family residential  properties,
sold  by  Residential  Asset  Securities  Corporation  (hereinafter  called  the
"Depositor,"  which term  includes  any  successor  entity  under the  Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor,   the  Master  Servicer  and  [________________],   as  trustee  (the
"Trustee"), a summary of certain of the pertinent provisions

                                     C-2-4
<PAGE>

of  which  is set  forth  hereafter.  To the  extent  not  defined  herein,  the
capitalized terms used herein have the meanings assigned in the Agreement.  This
Certificate  is  issued  under  and is  subject  to the  terms,  provisions  and
conditions of the Agreement,  to which Agreement the Holder of this  Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last Business Day of the month next preceding the month
in which the related  Distribution Date occurs,  except in the case of the first
Record  Date which  shall be the  Closing  Date (the  "Record  Date"),  from the
related Available  Distribution  Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any, required to be distributed to Holders of Class B Certificates
on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed by the Trustee for that purpose in  [__________________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions allocable to principal and any Realized Losses allocable hereto.

      Any  Transferee  of this Class B  Certificate  will be deemed to have made
representations  relating to the permissibility of such transfer under ERISA and
Section 4975 of the Code, as described in Section  5.02(f) of the Agreement.  In
addition,  any purported  Certificate Owner whose acquisition or holding of this
Certificate (or interest  therein) was effected in violation of the restrictions
in Section  5.02(f) of the  Agreement  shall  indemnify  and hold  harmless  the
Depositor,  the Trustee, the Master Servicer,  any Subservicer,  any underwriter
and the Trust Fund from and against any and all  liabilities,  claims,  costs or
expenses incurred by such parties as a result of such acquisition or holding.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer, to the extent provided in the Agreement, from related

                                     C-2-5
<PAGE>

recoveries  on such  Mortgage  Loan or from  other  cash  that  would  have been
distributable to Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing, and there upon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

                                     C-2-6
<PAGE>

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-2-7
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [____________________],
                                            as Trustee

                                            By:_________________________________
                                               Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

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

                                            [______________________],
                                            as Certificate Registrar

                                            By:_________________________________
                                               Authorized Signatory

                                     C-2-8
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________               ______________________________________
                                          Signature by or on behalf of assignor

                                          ______________________________________
                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     C-2-9
<PAGE>

                                                                     EXHIBIT C-3

            FORM OF PERMANENT REGULATION S GLOBAL CLASS B CERTIFICATE

      THIS  CERTIFICATE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS A AND
CLASS M CERTIFICATES  [AND CLASS B-1  CERTIFICATE] AS DESCRIBED IN THE AGREEMENT
(AS DEFINED HEREIN).

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
EITHER (A) SUCH  TRANSFEREE  IS NOT AN  EMPLOYEE  BENEFIT  PLAN OR OTHER PLAN OR
ARRANGEMENT  SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE OR A PERSON  (INCLUDING  AN  INSURANCE  COMPANY  INVESTING  ITS GENERAL
ACCOUNT, AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN)
WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION  (EACH OF
THE FOREGOING,  A "PLAN  INVESTOR"),  OR (B) IT HAS ACQUIRED AND IS HOLDING THIS
CERTIFICATE  IN  RELIANCE ON U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION
EXEMPTION  ("PTE") 94-29, AS MOST RECENTLY  AMENDED,  67 FED. REG. 54487 (AUGUST
22, 2002) (THE "RFC EXEMPTION"),  AND THAT IT UNDERSTANDS THAT THERE ARE CERTAIN
CONDITIONS  TO THE  AVAILABILITY  OF THE  RFC  EXEMPTION,  INCLUDING  THAT  THIS
CERTIFICATE  MUST BE RATED,  AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-" (OR
ITS EQUIVALENT) BY STANDARD & POOR'S,  FITCH OR MOODY'S OR (C)(I) THE TRANSFEREE
IS AN INSURANCE COMPANY,  (II) THE SOURCE OF FUNDS USED TO PURCHASE OR HOLD THIS
CERTIFICATE

                                     C-3-1
<PAGE>

IS AN  "INSURANCE  COMPANY  GENERAL  ACCOUNT" (AS DEFINED IN U.S.  DEPARTMENT OF
LABOR PROHIBITED  TRANSACTION  CLASS EXEMPTION  ("PTCE")  95-60),  AND (III) THE
CONDITIONS  SET FORTH IN  SECTIONS I AND III OF PTCE  95-60 HAVE BEEN  SATISFIED
(EACH ENTITY THAT SATISFIES THIS CLAUSE (C), A "COMPLYING INSURANCE COMPANY").

      IF THIS  CERTIFICATE (OR ANY INTEREST  THEREIN) IS ACQUIRED OR HELD BY ANY
PERSON  THAT  DOES  NOT  SATISFY  THE  CONDITIONS  DESCRIBED  IN  THE  PRECEDING
PARAGRAPH,  THEN THE LAST  PRECEDING  TRANSFEREE  THAT  EITHER (I) IS NOT A PLAN
INVESTOR,  (II) ACQUIRED SUCH  CERTIFICATE IN COMPLIANCE WITH THE RFC EXEMPTION,
OR (III) IS A  COMPLYING  INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND  OBLIGATIONS  AS  CERTIFICATE  OWNER THEREOF
RETROACTIVE TO THE DATE OF SUCH TRANSFER OF THIS CERTIFICATE.  THE TRUSTEE SHALL
BE  UNDER NO  LIABILITY  TO ANY  PERSON  FOR  MAKING  ANY  PAYMENTS  DUE ON THIS
CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(f) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION   UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR  IS  MADE  IN  A
TRANSACTION   THAT  DOES  NOT  REQUIRE  SUCH   REGISTRATION  OR   QUALIFICATION.
FURTHERMORE,  THE  AGREEMENT  PROVIDES THAT NO TRANSFER OF THIS  CERTIFICATE  OR
INTEREST HEREIN MAY BE MADE BY A HOLDER OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE
THE UNITED STATES TO ENTITIES  WHICH ARE NOT U.S.  PERSONS WITHIN THE MEANING OF
REGULATION  S UNDER THE 1933 ACT OR (II) IN RELIANCE ON RULE 144A UNDER THE 1933
ACT ("RULE 144A") TO A QUALIFIED  INSTITUTIONAL  BUYER (AS DEFINED IN RULE 144A)
THAT IS ACQUIRING THIS CERTIFICATE OR INTEREST HEREIN FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED  INSTITUTIONAL BUYER AND IS ACQUIRING THIS
CERTIFICATE FOR ITS OWN INSTITUTIONAL  ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF
A

                                     C-3-2
<PAGE>

QUALIFIED  INSTITUTIONAL  BUYER, OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS CERTIFICATE OUTSIDE THE UNITED STATES (A "REGULATION S PURCHASER"); (II) IT
UNDERSTANDS  THAT THIS  CERTIFICATE IS BEING  TRANSFERRED TO IT IN A TRANSACTION
NOT INVOLVING ANY PUBLIC  OFFERING WITHIN THE MEANING OF THE 1933 ACT, AND THAT,
IF IN THE  FUTURE IT  DECIDES  TO  RESELL,  PLEDGE OR  OTHERWISE  TRANSFER  THIS
CERTIFICATE,  THIS  CERTIFICATE  MAY BE RESOLD,  PLEDGED OR TRANSFERRED  ONLY IN
ACCORDANCE  WITH  APPLICABLE  STATE  SECURITIES  LAWS  AND (A) IN A  TRANSACTION
MEETING THE  REQUIREMENTS  OF RULE 144A, TO A PERSON THAT THE SELLER  REASONABLY
BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER THAT PURCHASES FOR ITS OWN ACCOUNT
(OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (B) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF  REGULATION  S; AND (III) IF THE HOLDER IS A REGULATION  S PURCHASER,  IT
UNDERSTANDS  THAT THIS  CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE
1933 ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THIS CERTIFICATE IN THE UNITED
STATES OR TO U.S.  PERSONS  PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE  CLOSING
DATE MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT  DISTRIBUTIONS OF
PRINCIPAL  AND  INTEREST  WILL BE  MADE IN  RESPECT  OF SUCH  CERTIFICATES  ONLY
FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION  OF NON-U.S.  BENEFICIAL
OWNERSHIP  OR THE  EXCHANGE OF  BENEFICIAL  INTEREST IN  TEMPORARY  REGULATION S
GLOBAL OFFERED  CERTIFICATES FOR BENEFICIAL  INTERESTS IN THE RELATED  PERMANENT
REGULATION S GLOBAL OFFERED CERTIFICATES (WHICH IN EACH CASE WILL ITSELF REQUIRE
A  CERTIFICATION  OF  NON-U.S.  BENEFICIAL  OWNERSHIP),  AT THE TIMES AND IN THE
MANNER SET FORTH IN THE AGREEMENT.

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER,  SALE, PLEDGE OR OTHER DISPOSITION IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. B-__

Date of Pooling and Servicing Agreement     [Adjustable Pass-Through Rate]
and Cut-off Date:  [____] 1, 20[__]         [Fixed Pass-Through Rate]

First Distribution Date:  [_____], 20[__]   Aggregate Initial Certificate
                                            Principal Balance of the Class B
                                            Certificates:

                                     C-3-3
<PAGE>

                                            $___________________________

Master Servicer:                            Initial Certificate Principal
Residential Funding Company, LLC            Balance of this Class B Certificate:
                                            $___________________________

Final Scheduled Distribution Date:
__________ __, 20__

CUSIP:                                      Certificate No. B-1

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class B Certificates  with respect to a
            Trust Fund  consisting  primarily of a pool of fixed and
            adjustable  interest rate,  first lien mortgage loans on
            one-  to  four-family  residential  properties  sold  by
            RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,   the  Master   Servicer,   the   Trustee   referred  to  below  or
[______________]  or any of their  affiliates.  Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or  instrumentality or by Residential Asset Securities  Corporation,  the Master
Servicer,  the Trustee or [______________]  or any of their affiliates.  None of
the Depositor, the Master Servicer, [_______________] or any of their affiliates
will have any obligation  with respect to any  certificate  or other  obligation
secured by or payable from payments on the Certificates.

      This certifies  that Cede & Co. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily of an interest in a pool of fixed interest
rate, first lien mortgage loans on one- to four- family residential  properties,
sold  by  Residential  Asset  Securities  Corporation  (hereinafter  called  the
"Depositor,"  which term  includes  any  successor  entity  under the  Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor,  the  Master  Servicer  and  [_________________],   as  trustee  (the
"Trustee"),  a summary of certain of the  pertinent  provisions  of which is set
forth hereafter.  To the extent not defined herein,  the capitalized  terms used
herein have the meanings  assigned in the Agreement.  This Certificate is issued
under and is subject to the terms,  provisions  and conditions of the Agreement,
to which  Agreement the Holder of this  Certificate  by virtue of the acceptance
hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose

                                     C-3-4
<PAGE>

name  this  Certificate  is  registered  at the  close of  business  on the last
Business  Day of the  month  next  preceding  the  month  in which  the  related
Distribution  Date  occurs,  except in the case of the first  Record  Date which
shall be the  Closing  Date (the  "Record  Date"),  from the  related  Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to  be  distributed  to  Holders  of  Class  B  Certificates  on  such
Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed by the Trustee for that purpose in  [__________________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions allocable to principal and any Realized Losses allocable hereto.

      Any  Transferee  of this Class B  Certificate  will be deemed to have made
representations  relating to the permissibility of such transfer under ERISA and
Section 4975 of the Code, as described in Section  5.02(f) of the Agreement.  In
addition,  any purported  Certificate Owner whose acquisition or holding of this
Certificate (or interest  therein) was effected in violation of the restrictions
in Section  5.02(f) of the  Agreement  shall  indemnify  and hold  harmless  the
Depositor,  the Trustee, the Master Servicer,  any Subservicer,  any underwriter
and the Trust Fund from and against any and all  liabilities,  claims,  costs or
expenses incurred by such parties as a result of such acquisition or holding.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

                                     C-3-5
<PAGE>

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing, and there upon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure

                                     C-3-6
<PAGE>

of any  Mortgage  Loan,  and (ii) the  purchase  by the  Holder  of the Class SB
Certificates  or the Master  Servicer,  as described in the Agreement,  from the
Trust Fund of all remaining  Mortgage Loans and all property acquired in respect
of such Mortgage  Loans or the  Certificates,  in either case thereby  effecting
early  retirement  of the  Certificates.  The  Agreement  permits,  but does not
require,  the Holder of the Class SB  Certificates  or the Master  Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-3-7
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [____________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

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

                                            [_____________________________],
                                            as Certificate Registrar

                                            By: _______________________________
                                                Authorized Signatory

                                     C-3-8
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________               _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

                                             DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     C-3-9
<PAGE>

                                                                     EXHIBIT D-1

                FORM OF RULE 144A GLOBAL CLASS SB-[_] CERTIFICATE

      THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS
M AND CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
SUCH  TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT PLAN OR OTHER PLAN OR  ARRANGEMENT
SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS  OF THE EMPLOYEE  RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE
OR A PERSON (INCLUDING AN INSURANCE  COMPANY  INVESTING ITS GENERAL ACCOUNT,  AN
INVESTMENT  MANAGER,  A NAMED  FIDUCIARY  OR A TRUSTEE  OF ANY SUCH PLAN) WHO IS
USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION   UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR  IS  MADE  IN  A
TRANSACTION   THAT  DOES  NOT  REQUIRE  SUCH   REGISTRATION  OR   QUALIFICATION.
FURTHERMORE,  THE  AGREEMENT  PROVIDES THAT NO TRANSFER OF THIS  CERTIFICATE  OR
INTEREST HEREIN MAY BE MADE BY A HOLDER OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE
THE UNITED STATES TO ENTITIES  WHICH ARE NOT U.S.  PERSONS WITHIN THE MEANING OF
REGULATION S UNDER THE 1933 ACT OR (II) IN RELIANCE ON RULE 144A UNDER THE

                                     D-1-1
<PAGE>

1933 ACT ("RULE  144A") TO A QUALIFIED  INSTITUTIONAL  BUYER (AS DEFINED IN RULE
144A) THAT IS ACQUIRING THIS  CERTIFICATE OR INTEREST HEREIN FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED  INSTITUTIONAL BUYER AND IS ACQUIRING THIS
CERTIFICATE FOR ITS OWN INSTITUTIONAL  ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF
A QUALIFIED INSTITUTIONAL BUYER, OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS  CERTIFICATE  OUTSIDE THE UNITED STATES (A "REGULATION S  PURCHASER");  AND
(II) IT  UNDERSTANDS  THAT  THIS  CERTIFICATE  IS BEING  TRANSFERRED  TO IT IN A
TRANSACTION  NOT  INVOLVING ANY PUBLIC  OFFERING  WITHIN THE MEANING OF THE 1933
ACT,  AND THAT,  IF IN THE  FUTURE IT DECIDES  TO  RESELL,  PLEDGE OR  OTHERWISE
TRANSFER  THIS  CERTIFICATE,   THIS  CERTIFICATE  MAY  BE  RESOLD,   PLEDGED  OR
TRANSFERRED  ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND (A) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, TO A PERSON THAT THE SELLER
REASONABLY  BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER THAT PURCHASES FOR ITS
OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL BUYER)
AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, OR (B) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE
903 OR RULE 904 OF REGULATION S.

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER,  SALE, PLEDGE OR OTHER DISPOSITION IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. SB-[__]-1

Date of Pooling and Servicing Agreement     Percentage Interest: 100.00%
and Cut-off Date:  [____] 1, 20[__]

First Distribution Date:  [____], 20[__]    Aggregate Initial Notional Balance
                                            of the Class SB-[_] Certificates:
                                            $___________________________

Master Servicer:                            Initial Notional Balance

                                     D-1-2
<PAGE>

Residential Funding Company, LLC            of this Class SB-[_] Certificate:
                                            $___________________________
Maturity Date:
__________ __, 20__

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class SB-[_]  Certificates with respect
            to a Trust Fund consisting  primarily of a pool of fixed
            and adjustable  interest rate, first lien mortgage loans
            on one- to four-family  residential  properties  sold by
            RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Master Servicer, the Trustee referred to below or any of their
affiliates.  Neither this  Certificate  nor the  underlying  Mortgage  Loans are
guaranteed  or  insured  by any  governmental  agency or  instrumentality  or by
Residential Asset Securities  Corporation,  the Master Servicer,  the Trustee or
any of their  affiliates.  None of the Depositor,  the Master Servicer or any of
their  affiliates  will have any obligation  with respect to any  certificate or
other obligation secured by or payable from payments on the Certificates.

      This certifies  that CEDE & CO. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily  of an  interest  in a pool of  adjustable
interest  rate,  first lien mortgage  loans on one- to  four-family  residential
properties, sold by Residential Asset Securities Corporation (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor, the Master Servicer and [______________], as trustee (the "Trustee"),
a  summary  of  certain  of the  pertinent  provisions  of  which  is set  forth
hereafter.  To the extent not defined herein,  the capitalized terms used herein
have the meanings  assigned in the Agreement.  This  Certificate is issued under
and is subject to the terms,  provisions  and  conditions of the  Agreement,  to
which  Agreement  the  Holder of this  Certificate  by virtue of the  acceptance
hereof, assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last  Business Day of the month  immediately  preceding
the  month  of  such  distribution  (the  "Record  Date"),  from  the  Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to be  distributed  to Holders of Class  SB-[_]  Certificates  on such
Distribution Date.

                                     D-1-3
<PAGE>

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in [__________________].  The Notional Amount of
this Class SB-[_] Certificate as of any date of determination will be calculated
as  described  in the  Agreement.  This Class  SB-[_]  Certificate  will  accrue
interest at the  Pass-Through  Rate on the  Notional  Amount as indicated in the
definition of Accrued Certificate  Interest in the Agreement.  This Class SB-[_]
Certificate will not accrue interest on its Certificate Principal Balance.

      Any Transferee of this  Certificate  will be deemed to have represented by
virtue of its purchase or holding of this Certificate (or interest therein) that
either  such  transferee  is not an  employee  benefit  plan  or  other  plan or
arrangement  subject to the  prohibited  transaction  provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or Section 4975 of
the Code or a person  (including  an  insurance  company  investing  its general
account, an investment manager, a named fiduciary or a trustee of any such plan)
who is using "plan assets" of any such plan to effect such acquisition.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this Certificate shall be

                                     D-1-4
<PAGE>

conclusive  and  binding  on such  Holder  and upon all  future  holders of this
Certificate  and of any  Certificate  issued  upon  the  transfer  hereof  or in
exchange  herefor or in lieu hereof  whether or not  notation of such consent is
made upon the Certificate.  The Agreement also permits the amendment  thereof in
certain  circumstances  without  the  consent  of  the  Holders  of  any  of the
Certificates and, in certain  additional  circumstances,  without the consent of
the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the Agreement, all remaining

                                     D-1-5
<PAGE>

Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
to purchase in whole, but not in part, all of the Certificates  from the Holders
thereof,  provided,  that any such  option may only be  exercised  if the Stated
Principal  Balance before giving effect to the  distributions to be made on such
Distribution  Date of the Mortgage Loans, as of the Distribution Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar  by  manual  signature,  this  Certificate  shall  not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     D-1-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [_______________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  SB-[_]  Certificates  referred  to  in  the
within-mentioned Agreement.

                                            [________________________],
                                            as Certificate Registrar

                                            By: _______________________________
                                                Authorized Signatory

                                     D-1-7
<PAGE>

                                   ASSIGNMENT

FOR  VALUE RECEIVED,  the  undersigned hereby sell(s), assign(s) and transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________                _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

      DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     D-1-8
<PAGE>

                                                                     EXHIBIT D-2

         FORM OF TEMPORARY REGULATION S GLOBAL CLASS SB-[_] CERTIFICATE

      THIS  CERTIFICATE  IS A  TEMPORARY  REGULATION  S GLOBAL  CERTIFICATE  FOR
PURPOSES OF  REGULATION S UNDER THE UNITED  STATES  SECURITIES  ACT OF 1933,  AS
AMENDED (THE "1933 ACT").  NEITHER  THIS  TEMPORARY  REGULATION S GLOBAL CLASS B
CERTIFICATE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS
PERMITTED UNDER THE POOLING AND SERVICING AGREEMENT.

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

      THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS
M AND CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
SUCH  TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT PLAN OR OTHER PLAN OR  ARRANGEMENT
SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS  OF THE EMPLOYEE  RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE
OR A PERSON (INCLUDING AN INSURANCE  COMPANY  INVESTING ITS GENERAL ACCOUNT,  AN
INVESTMENT  MANAGER,  A NAMED  FIDUCIARY  OR A TRUSTEE  OF ANY SUCH PLAN) WHO IS
USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION UNDER

                                     D-2-1
<PAGE>

APPLICABLE  STATE  SECURITIES  LAWS, OR IS MADE IN A  TRANSACTION  THAT DOES NOT
REQUIRE SUCH REGISTRATION OR QUALIFICATION.  FURTHERMORE, THE AGREEMENT PROVIDES
THAT NO TRANSFER OF THIS  CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE THE UNITED STATES TO ENTITIES WHICH ARE
NOT U.S.  PERSONS  WITHIN THE MEANING OF REGULATION S UNDER THE 1933 ACT OR (II)
IN  RELIANCE  ON RULE 144A  UNDER  THE 1933 ACT  ("RULE  144A")  TO A  QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) THAT IS ACQUIRING THIS CERTIFICATE
OR INTEREST  HEREIN FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER  QUALIFIED
INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED  INSTITUTIONAL BUYER AND IS ACQUIRING THIS
CERTIFICATE FOR ITS OWN INSTITUTIONAL  ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF
A QUALIFIED INSTITUTIONAL BUYER, OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS CERTIFICATE OUTSIDE THE UNITED STATES (A "REGULATION S PURCHASER"); (II) IT
UNDERSTANDS  THAT THIS  CERTIFICATE IS BEING  TRANSFERRED TO IT IN A TRANSACTION
NOT INVOLVING ANY PUBLIC  OFFERING WITHIN THE MEANING OF THE 1933 ACT, AND THAT,
IF IN THE  FUTURE IT  DECIDES  TO  RESELL,  PLEDGE OR  OTHERWISE  TRANSFER  THIS
CERTIFICATE,  THIS  CERTIFICATE  MAY BE RESOLD,  PLEDGED OR TRANSFERRED  ONLY IN
ACCORDANCE  WITH  APPLICABLE  STATE  SECURITIES  LAWS  AND (A) IN A  TRANSACTION
MEETING THE  REQUIREMENTS  OF RULE 144A, TO A PERSON THAT THE SELLER  REASONABLY
BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER THAT PURCHASES FOR ITS OWN ACCOUNT
(OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (B) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF  REGULATION  S; AND (III) IF THE HOLDER IS A REGULATION  S PURCHASER,  IT
UNDERSTANDS  THAT THIS  CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE
1933 ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THIS CERTIFICATE IN THE UNITED
STATES OR TO U.S.  PERSONS  PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE  CLOSING
DATE MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT  DISTRIBUTIONS OF
PRINCIPAL  AND  INTEREST  WILL BE  MADE IN  RESPECT  OF SUCH  CERTIFICATES  ONLY
FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION  OF NON-U.S.  BENEFICIAL
OWNERSHIP  OR THE  EXCHANGE OF  BENEFICIAL  INTEREST IN  TEMPORARY  REGULATION S
GLOBAL OFFERED  CERTIFICATES FOR BENEFICIAL  INTERESTS IN THE RELATED  PERMANENT
REGULATION S GLOBAL OFFERED CERTIFICATES (WHICH IN EACH CASE WILL ITSELF REQUIRE
A  CERTIFICATION  OF  NON-U.S.  BENEFICIAL  OWNERSHIP),  AT THE TIMES AND IN THE
MANNER SET FORTH IN THE AGREEMENT.

                                     D-2-2
<PAGE>

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER,  SALE, PLEDGE OR OTHER DISPOSITION IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. SB-[__]-1

Date of Pooling and Servicing Agreement     Percentage Interest: 100.00%
and Cut-off Date:  [____] 1, 20[__]

First Distribution Date:  [____], 20[__]    Aggregate Initial Notional Balance
                                            of the Class SB-[_] Certificates:
                                            $___________________________

Master Servicer:                            Initial Notional Balance
Residential Funding Company, LLC            of this Class SB-[_] Certificate:
                                            $___________________________

Maturity Date:
__________ __, 20__

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class SB-[_]  Certificates with respect
            to a Trust Fund consisting  primarily of a pool of fixed
            and adjustable  interest rate, first lien mortgage loans
            mortgage  loans  on  one-  to  four-family   residential
            properties   sold  by   RESIDENTIAL   ASSET   SECURITIES
            CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Master Servicer, the Trustee referred to below or any of their
affiliates.  Neither this  Certificate  nor the  underlying  Mortgage  Loans are
guaranteed  or  insured  by any  governmental  agency or  instrumentality  or by
Residential Asset Securities  Corporation,  the Master Servicer,  the Trustee or
any of their  affiliates.  None of the Depositor,  the Master Servicer or any of
their  affiliates  will have any obligation  with respect to any  certificate or
other obligation secured by or payable from payments on the Certificates.

                                     D-2-3
<PAGE>

      This certifies  that CEDE & CO. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily  of an  interest  in a pool of  adjustable
interest  rate,  first lien mortgage  loans on one- to  four-family  residential
properties, sold by Residential Asset Securities Corporation (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor, the Master Servicer and [___________],  as trustee (the "Trustee"), a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement the Holder of this  Certificate  by virtue of the  acceptance  hereof,
assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last  Business Day of the month  immediately  preceding
the  month  of  such  distribution  (the  "Record  Date"),  from  the  Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to be  distributed  to Holders of Class  SB-[_]  Certificates  on such
Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in [__________________].  The Notional Amount of
this Class SB-[_] Certificate as of any date of determination will be calculated
as  described  in the  Agreement.  This Class  SB-[_]  Certificate  will  accrue
interest at the  Pass-Through  Rate on the  Notional  Amount as indicated in the
definition of Accrued Certificate  Interest in the Agreement.  This Class SB-[_]
Certificate will not accrue interest on its Certificate Principal Balance.

      Any Transferee of this  Certificate  will be deemed to have represented by
virtue of its purchase or holding of this Certificate (or interest therein) that
either  such  transferee  is not an  employee  benefit  plan  or  other  plan or
arrangement  subject to the  prohibited  transaction  provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or Section 4975 of
the Code or a person  (including  an  insurance  company  investing  its general
account, an investment manager, a named fiduciary or a trustee of any such plan)
who is using  "plan  assets" of any such plan to effect such  acquisition.  This
Certificate is one of a duly authorized issue of Certificates  issued in several
Classes designated as Mortgage Asset-Backed

                                     D-2-4
<PAGE>

Pass-Through  Certificates of the Series specified  hereon (herein  collectively
called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                                     D-2-5
<PAGE>

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar  by  manual  signature,  this  Certificate  shall  not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     D-2-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [___________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  SB-[_]  Certificates  referred  to  in  the
within-mentioned Agreement.

                                            [_____________________],
                                            as Certificate Registrar

                                            By: _______________________________
                                                Authorized Signatory

                                     D-2-7
<PAGE>

                                   ASSIGNMENT

FOR  VALUE  RECEIVED, the  undersigned hereby sell(s), assign(s) and transfer(s)
unto____________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________                _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     D-2-8
<PAGE>

                                                                     EXHIBIT D-3

         FORM OF PERMANENT REGULATION S GLOBAL CLASS SB-[_] CERTIFICATE

      THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS
M AND CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

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

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE")  [COUPLED  WITH THE RIGHT TO RECEIVE  PAYMENTS
UNDER THE YIELD MAINTENANCE AGREEMENT].

      ANY TRANSFEREE OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT
SUCH  TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT PLAN OR OTHER PLAN OR  ARRANGEMENT
SUBJECT TO THE  PROHIBITED  TRANSACTION  PROVISIONS  OF THE EMPLOYEE  RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE
OR A PERSON (INCLUDING AN INSURANCE  COMPANY  INVESTING ITS GENERAL ACCOUNT,  AN
INVESTMENT  MANAGER,  A NAMED  FIDUCIARY  OR A TRUSTEE  OF ANY SUCH PLAN) WHO IS
USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION.

      NO TRANSFER OF THIS CERTIFICATE OR INTEREST HEREIN MAY BE MADE BY A HOLDER
OF THIS  CERTIFICATE  UNLESS  THAT  TRANSFER IS MADE  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER  THE 1933  ACT,  AND  EFFECTIVE  REGISTRATION  OR
QUALIFICATION   UNDER  APPLICABLE  STATE  SECURITIES  LAWS,  OR  IS  MADE  IN  A
TRANSACTION   THAT  DOES  NOT  REQUIRE  SUCH   REGISTRATION  OR   QUALIFICATION.
FURTHERMORE,  THE  AGREEMENT  PROVIDES THAT NO TRANSFER OF THIS  CERTIFICATE  OR
INTEREST HEREIN MAY BE MADE BY A HOLDER OF THIS  CERTIFICATE  EXCEPT (I) OUTSIDE
THE UNITED STATES TO ENTITIES  WHICH ARE NOT U.S.  PERSONS WITHIN THE MEANING OF
REGULATION S UNDER THE 1933 ACT OR (II) IN RELIANCE ON RULE 144A UNDER THE

                                     D-3-1
<PAGE>

1933 ACT ("RULE  144A") TO A QUALIFIED  INSTITUTIONAL  BUYER (AS DEFINED IN RULE
144A) THAT IS ACQUIRING THIS  CERTIFICATE OR INTEREST HEREIN FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER.

      EACH HOLDER OF THIS  CERTIFICATE  WILL BE DEEMED TO HAVE  ACKNOWLEDGED AND
AGREED THAT (I) IT IS (A) A QUALIFIED  INSTITUTIONAL BUYER AND IS ACQUIRING THIS
CERTIFICATE FOR ITS OWN INSTITUTIONAL  ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF
A QUALIFIED INSTITUTIONAL BUYER, OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
THIS CERTIFICATE OUTSIDE THE UNITED STATES (A "REGULATION S PURCHASER"); (II) IT
UNDERSTANDS  THAT THIS  CERTIFICATE IS BEING  TRANSFERRED TO IT IN A TRANSACTION
NOT INVOLVING ANY PUBLIC  OFFERING WITHIN THE MEANING OF THE 1933 ACT, AND THAT,
IF IN THE  FUTURE IT  DECIDES  TO  RESELL,  PLEDGE OR  OTHERWISE  TRANSFER  THIS
CERTIFICATE,  THIS  CERTIFICATE  MAY BE RESOLD,  PLEDGED OR TRANSFERRED  ONLY IN
ACCORDANCE  WITH  APPLICABLE  STATE  SECURITIES  LAWS  AND (A) IN A  TRANSACTION
MEETING THE  REQUIREMENTS  OF RULE 144A, TO A PERSON THAT THE SELLER  REASONABLY
BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER THAT PURCHASES FOR ITS OWN ACCOUNT
(OR FOR THE ACCOUNT OR ACCOUNTS OF A QUALIFIED  INSTITUTIONAL BUYER) AND TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (B) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF  REGULATION  S; AND (III) IF THE HOLDER IS A REGULATION  S PURCHASER,  IT
UNDERSTANDS  THAT THIS  CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE
1933 ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THIS CERTIFICATE IN THE UNITED
STATES OR TO U.S.  PERSONS  PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE  CLOSING
DATE MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT  DISTRIBUTIONS OF
PRINCIPAL  AND  INTEREST  WILL BE  MADE IN  RESPECT  OF SUCH  CERTIFICATES  ONLY
FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION  OF NON-U.S.  BENEFICIAL
OWNERSHIP  OR THE  EXCHANGE OF  BENEFICIAL  INTEREST IN  TEMPORARY  REGULATION S
GLOBAL OFFERED  CERTIFICATES FOR BENEFICIAL  INTERESTS IN THE RELATED  PERMANENT
REGULATION S GLOBAL OFFERED CERTIFICATES (WHICH IN EACH CASE WILL ITSELF REQUIRE
A  CERTIFICATION  OF  NON-U.S.  BENEFICIAL  OWNERSHIP),  AT THE TIMES AND IN THE
MANNER SET FORTH IN THE AGREEMENT.

      THE HOLDER OF THIS  CERTIFICATE  DESIRING  TO EFFECT ANY  TRANSFER,  SALE,
PLEDGE OR OTHER DISPOSITION SHALL, AND BY ACCEPTANCE OF THIS CERTIFICATE WILL BE
DEEMED TO HAVE AGREED TO,  INDEMNIFY  THE  TRUSTEE,  THE  DEPOSITOR,  THE MASTER
SERVICER AND THE CERTIFICATE  REGISTRAR AGAINST ANY LIABILITY THAT MAY RESULT IF
THE TRANSFER, SALE, PLEDGE OR OTHER DISPOSITION IS NOT SO EXEMPT

                                     D-3-2
<PAGE>

OR IS NOT MADE IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS AND THE AGREEMENT.

CUSIP: _____________________                Certificate No. SB-[__]-1

Date of Pooling and Servicing Agreement     Percentage Interest: [__]%
and Cut-off Date:  [____] 1, 20[__]

First Distribution Date:  [____], 20[__]    Aggregate Initial Notional Balance
                                            of the Class SB-[_] Certificates:
                                            $___________________________

Master Servicer:                            Initial Notional Balance
Residential Funding Company, LLC            of this Class SB-[_] Certificate:
                                            $___________________________
Maturity Date:
__________ __, 20__

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class SB-[_]  Certificates with respect
            to a Trust Fund consisting  primarily of a pool of fixed
            and adjustable  interest rate, first lien mortgage loans
            on one- to four-family  residential  properties  sold by
            RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Master Servicer, the Trustee referred to below or any of their
affiliates.  Neither this  Certificate  nor the  underlying  Mortgage  Loans are
guaranteed  or  insured  by any  governmental  agency or  instrumentality  or by
Residential Asset Securities  Corporation,  the Master Servicer,  the Trustee or
any of their  affiliates.  None of the Depositor,  the Master Servicer or any of
their  affiliates  will have any obligation  with respect to any  certificate or
other obligation secured by or payable from payments on the Certificates.

      This certifies  that CEDE & CO. is the registered  owner of the Percentage
Interest evidenced by this Certificate in certain  distributions with respect to
the Trust Fund  consisting  primarily  of an  interest  in a pool of  adjustable
interest  rate,  first lien mortgage  loans on one- to  four-family  residential
properties, sold by Residential Asset Securities Corporation (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor,  the Master  Servicer and [_______],  as trustee (the  "Trustee"),  a
summary of certain of the pertinent provisions of which is set forth

                                     D-3-3
<PAGE>

hereafter.  To the extent not defined herein,  the capitalized terms used herein
have the meanings  assigned in the Agreement.  This  Certificate is issued under
and is subject to the terms,  provisions  and  conditions of the  Agreement,  to
which  Agreement  the  Holder of this  Certificate  by virtue of the  acceptance
hereof, assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last  Business Day of the month  immediately  preceding
the  month  of  such  distribution  (the  "Record  Date"),  from  the  Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to be  distributed  to Holders of Class  SB-[_]  Certificates  on such
Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in [__________________].  The Notional Amount of
this Class SB-[_] Certificate as of any date of determination will be calculated
as  described  in the  Agreement.  This Class  SB-[_]  Certificate  will  accrue
interest at the  Pass-Through  Rate on the  Notional  Amount as indicated in the
definition of Accrued Certificate  Interest in the Agreement.  This Class SB-[_]
Certificate will not accrue interest on its Certificate Principal Balance.

      Any Transferee of this  Certificate  will be deemed to have represented by
virtue of its purchase or holding of this Certificate (or interest therein) that
either  such  transferee  is not an  employee  benefit  plan  or  other  plan or
arrangement  subject to the  prohibited  transaction  provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or Section 4975 of
the Code or a person  (including  an  insurance  company  investing  its general
account, an investment manager, a named fiduciary or a trustee of any such plan)
who is using "plan assets" of any such plan to effect such acquisition.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer, to the extent provided in the Agreement, from related

                                     D-3-4
<PAGE>

recoveries  on such  Mortgage  Loan or from  other  cash  that  would  have been
distributable to Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

                                     D-3-5
<PAGE>

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any  Mortgage  Loan,  and (ii) the purchase by the Holder of the
Class SB  Certificates  or the Master  Servicer,  as described in the Agreement,
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans or the  Certificates,  in either  case  thereby
effecting early retirement of the Certificates.  The Agreement permits, but does
not require, the Holder of the Class SB Certificates or the Master Servicer,  as
described in the Agreement,  (i) to purchase,  at a price determined as provided
in the  Agreement,  all remaining  Mortgage  Loans and all property  acquired in
respect of any Mortgage Loan or (ii) to purchase in whole,  but not in part, all
of the Certificates from the Holders thereof, provided, that any such option may
only be exercised if the Stated  Principal  Balance  before giving effect to the
distributions to be made on such  Distribution Date of the Mortgage Loans, as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed is less than ten percent of the Cut-off Date Balance.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar  by  manual  signature,  this  Certificate  shall  not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     D-3-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [___________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  SB-[_]  Certificates  referred  to  in  the
within-mentioned Agreement.

                                            [_____________________],
                                            as Certificate Registrar

                                            By: ________________________________
                                                Authorized Signatory

                                     D-3-7
<PAGE>

                                   ASSIGNMENT

FOR  VALUE RECEIVED,  the  undersigned hereby sell(s), assign(s) and transfer(s)
unto____________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________                _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     D-3-8
<PAGE>

                                                                     EXHIBIT D-4

                         FORM OF CLASS R-[_] CERTIFICATE

      THE CLASS R-[_] CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS  CONSTITUTING
THE  AVAILABLE  DISTRIBUTION  AMOUNT UNTIL SUCH TIME AS DESCRIBED IN THE POOLING
AND SERVICING AGREEMENT REFERRED TO HEREIN (THE "AGREEMENT").

      THIS CLASS R-[_] CERTIFICATE IS SUBORDINATE TO THE CLASS A, CLASS M, CLASS
B AND  CLASS  SB  CERTIFICATES,  TO  THE  EXTENT  DESCRIBED  HEREIN  AND  IN THE
AGREEMENT.

      THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED  STATES
PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"RESIDUAL  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

      THIS  CERTIFICATE  HAS NOT  BEEN  AND WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE  WITH THE  PROVISIONS  OF SECTION  5.02 OF THE POOLING AND  SERVICING
AGREEMENT (THE "AGREEMENT").

      NO TRANSFER OF THIS  CERTIFICATE OR ANY INTEREST  THEREIN SHALL BE MADE TO
ANY EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED
TRANSACTION  PROVISIONS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN
INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT,  AN INVESTMENT MANAGER, A NAMED
FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING "PLAN  ASSETS" OF ANY SUCH
PLAN TO EFFECT  SUCH  ACQUISITION  (EACH OF THE  FOREGOING,  A "PLAN  INVESTOR")
UNLESS THE TRUSTEE,  THE  DEPOSITOR  AND THE MASTER  SERVICER ARE PROVIDED  WITH
EITHER (I) A CERTIFICATION  PURSUANT TO SECTION 5.02(f) OF THE AGREEMENT OR (II)
AN OPINION OF COUNSEL  ACCEPTABLE TO AND IN FORM AND SUBSTANCE  SATISFACTORY  TO
THE  TRUSTEE,  THE  DEPOSITOR  AND THE MASTER  SERVICER  TO THE EFFECT  THAT THE
PURCHASE OR HOLDING OF THIS  CERTIFICATE IS PERMISSIBLE  UNDER  APPLICABLE  LAW,
WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTION

                                     D-4-1
<PAGE>

UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS
OF ANY SUBSEQUENT  ENACTMENTS),  AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR
OR THE MASTER SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING  OBLIGATIONS OR
LIABILITIES  UNDER  ERISA OR  SECTION  4975 OF THE  CODE) IN  ADDITION  TO THOSE
UNDERTAKEN IN THE AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF
THE TRUSTEE, THE DEPOSITOR OR THE MASTER SERVICER.

      ANY RESALE,  TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE
ONLY IF THE  PROPOSED  TRANSFEREE  PROVIDES A TRANSFER  AFFIDAVIT  TO THE MASTER
SERVICER AND THE TRUSTEE THAT (1) SUCH  TRANSFEREE IS NOT (A) THE UNITED STATES,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES,
OR  ANY  AGENCY  OR  INSTRUMENTALITY  OF ANY OF THE  FOREGOING  (OTHER  THAN  AN
INSTRUMENTALITY  WHICH IS A CORPORATION  IF ALL OF ITS ACTIVITIES ARE SUBJECT TO
TAX AND EXCEPT FOR  FREDDIE  MAC, A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT
SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING,  (C)
ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION
521 OF THE CODE)  WHICH IS EXEMPT  FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS  SUCH  ORGANIZATION  IS SUBJECT TO THE TAX  IMPOSED BY SECTION 511 OF THE
CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS
TAXABLE  INCOME),  (D) RURAL  ELECTRIC AND TELEPHONE  COOPERATIVES  DESCRIBED IN
SECTION  1381(a)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER
SECTION 775(a) OF THE CODE (ANY SUCH PERSON  DESCRIBED IN THE FOREGOING  CLAUSES
(A),  (B),  (C),  (D)  OR  (E)  BEING  HEREIN  REFERRED  TO  AS A  "DISQUALIFIED
ORGANIZATION"),  OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE
OF SUCH  TRANSFER IS TO IMPEDE THE  ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH
TRANSFEREE  SATISFIES CERTAIN  ADDITIONAL  CONDITIONS  RELATING TO THE FINANCIAL
CONDITION OF THE PROPOSED  TRANSFEREE.  NOTWITHSTANDING  THE REGISTRATION IN THE
CERTIFICATE  REGISTER  OR ANY  TRANSFER,  SALE  OR  OTHER  DISPOSITION  OF  THIS
CERTIFICATE  TO A  DISQUALIFIED  ORGANIZATION  OR  AN  AGENT  OF A  DISQUALIFIED
ORGANIZATION,  SUCH  REGISTRATION  SHALL BE  DEEMED  TO BE OF NO LEGAL  FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A  CERTIFICATEHOLDER
FOR ANY  PURPOSE  HEREUNDER,  INCLUDING,  BUT NOT  LIMITED  TO,  THE  RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE  SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                     D-4-2
<PAGE>

Certificate No. R-[__]-1                    Percentage Interest: 100.00%

Date of Pooling and Servicing Agreement     Master Servicer:
and Cut-off Date:  [____] 1, 20[__]         Residential Funding Company, LLC

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES
                               SERIES 20[__]-KS[_]

            evidencing  a percentage  interest in the  distributions
            allocable to the Class R-[_]  Certificates  with respect
            to a Trust Fund  consisting  primarily of mortgage loans
            on one- to four-family  residential  properties  sold by
            RESIDENTIAL ASSET SECURITIES CORPORATION

      This  Certificate  is payable solely from the assets of the Trust Fund and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Master Servicer, the Trustee referred to below or any of their
affiliates.  Neither this  Certificate  nor the  underlying  Mortgage  Loans are
guaranteed  or  insured  by any  governmental  agency or  instrumentality  or by
Residential Asset Securities  Corporation,  the Master Servicer,  the Trustee or
any of their  affiliates.  None of the Depositor,  the Master Servicer or any of
their  affiliates  will have any obligation  with respect to any  certificate or
other obligation secured by or payable from payments on the Certificates.

      This certifies that [Residential  Funding Company,  LLC] is the registered
owner of the  Percentage  Interest  evidenced  by this  Certificate  in  certain
distributions  with respect to the Trust Fund consisting  primarily of a pool of
adjustable  rate,  first lien mortgage loans on one- to four-family  residential
properties  (the  "Mortgage  Loans"),   sold  by  Residential  Asset  Securities
Corporation  (hereinafter  called  the  "Depositor,"  which  term  includes  any
successor  entity  under the  Agreement  referred to below).  The Trust Fund was
created  pursuant to a Pooling and Servicing  Agreement dated as specified above
(the "Agreement) among the Depositor,  the Master Servicer and  [_____________],
as trustee (the "Trustee"),  a summary of certain of the pertinent provisions of
which is set forth hereafter.  To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement.  This Certificate
is issued under and is subject to the terms,  provisions  and  conditions of the
Agreement,  to which  Agreement the Holder of this  Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business on the last  Business Day of the month  immediately  preceding
the month of such distribution  (the "Record Date"),  from the related Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and, the amount of interest and principal, if any,
required to be  distributed to the Holders of Class R-[_]  Certificates  on such
Distribution Date.

                                     D-4-3
<PAGE>

      Each Holder of this  Certificate will be deemed to have agreed to be bound
by the  restrictions  set forth in the  Agreement  to the  effect  that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted  Transferee,  (ii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Master Servicer will have the right,
in its sole discretion and without notice to the Holder of this Certificate,  to
sell this  Certificate  to a purchaser  selected by the Master  Servicer,  which
purchaser may be the Master  Servicer,  or any affiliate of the Master Servicer,
on such terms and conditions as the Master Servicer may choose.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the  Trustee  for that  purpose in  [__________________].  The Holder of this
Certificate may have additional  obligations  with respect to this  Certificate,
including tax liabilities.

      No  transfer  of this Class  R-[_]  Certificate  will be made  unless such
transfer is exempt from the  registration  requirements of the Securities Act of
1933,  as  amended,  and  any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made,  (i) the  Trustee  or the  Depositor  may  require  an  opinion of counsel
acceptable  to and in form and  substance  satisfactory  to the  Trustee and the
Depositor that such transfer is exempt (describing the applicable  exemption and
the  basis  therefor)  from  or is  being  made  pursuant  to  the  registration
requirements  of the Securities  Act of 1933, as amended,  and of any applicable
statute of any state and (ii) the transferee shall execute an investment  letter
in the form  described by the  Agreement.  The Holder hereof  desiring to effect
such  transfer  shall,  and does hereby agree to,  indemnify  the  Trustee,  the
Depositor, the Master Servicer and the Certificate Registrar acting on behalf of
the Trustee  against  any  liability  that may result if the  transfer is not so
exempt or is not made in accordance with such Federal and state laws.

      No transfer of this  Certificate or any interest  therein shall be made to
any employee benefit plan or other plan or arrangement subject to the prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  person
(including an insurance  company  investing its general  account,  an investment
manager,  a named  fiduciary  or a trustee of any such plan) who is using  "plan
assets" of any such plan to effect such  acquisition  (each of the foregoing,  a
"Plan Investor")  unless the Trustee,  the Depositor and the Master Servicer are
provided  with either (i) a  certification  pursuant  to Section  5.02(f) of the
Agreement or (ii) an Opinion of Counsel  acceptable to and in form and substance
satisfactory to the Trustee, the Depositor and the Master Servicer to the effect
that the purchase or holding of this Certificate is permissible under applicable
law, will not  constitute  or result in any  non-exempt  prohibited  transaction
under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions
of any subsequent  enactments),  and will not subject the Trustee, the Depositor
or the Master Servicer to any obligation or liability (including  obligations or
liabilities under ERISA or Section 4975 of the

                                     D-4-4
<PAGE>

Code) in addition to those undertaken in the Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Depositor or the Master Servicer.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar  duly  executed by the Holder  hereof or such  Holder's  attorney duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations  evidencing the same Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are exchangeable for new Certificates of

                                     D-4-5
<PAGE>

authorized  denominations  evidencing  the same Class and  aggregate  Percentage
Interest, as requested by the Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the Agreement.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     D-4-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                            [________________________],
                                            as Trustee

                                            By: ________________________________
                                                Authorized Signatory

Dated:_____________________

                          Certificate of Authentication

      This  is  one  of  the  Class  R-[_]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                            [______________________],
                                            as Certificate Registrar

                                            By: _______________________________
                                                Authorized Signatory

                                     D-4-7
<PAGE>

                                   ASSIGNMENT

FOR  VALUE  RECEIVED, the  undersigned hereby sell(s), assign(s) and transfer(s)
unto____________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) the beneficial  interest evidenced by the within Trust Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_____________________                _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available fund to_______________________________________________________________
for the account of _____________________________________________________________
account number _________________________________________________________________
or, if mailed by check, to _____________________________________________________

      Applicable  statements  should be mailed  to:_____________________________
________________________________________________________________________________
________________________________________________________________________________

      This information is provided by  ___________________________________,  the
assignee named above, or ______________________________, as its agent.

                                     D-4-8
<PAGE>

                                                                       EXHIBIT E

                           FORM OF CUSTODIAL AGREEMENT

      THIS CUSTODIAL  AGREEMENT (as amended and supplemented  from time to time,
the   "Agreement"),    dated   as   of   [___]   1,   20[__],   by   and   among
[__________________],  as trustee  (including its  successors  under the Pooling
Agreement   defined  below,   the  "Trustee"),   RESIDENTIAL   ASSET  SECURITIES
CORPORATION,   as  company  (together  with  any  successor  in  interest,   the
"Company"),  RESIDENTIAL FUNDING COMPANY, LLC, as master servicer (together with
any successor in interest or successor under the Pooling  Agreement  referred to
below,  the  "Master  Servicer")  and  [_______________________],  as  custodian
(together with any successor in interest or any successor  appointed  hereunder,
the "Custodian").

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

      WHEREAS,  the Company,  the Master Servicer,  and the Trustee have entered
into a Pooling and Servicing Agreement, dated as of [___] 1, 20[__], relating to
the issuance of Residential Asset Securities Corporation,  Mortgage Asset-Backed
Pass-Through Certificates, Series 20[__]-KS[_] (as in effect on the date of this
Agreement,  the "Original  Pooling  Agreement," and as amended and  supplemented
from time to time, the "Pooling Agreement"); and

      WHEREAS,  the Custodian has agreed to act as agent for the Trustee for the
purposes  of  receiving  and holding  certain  documents  and other  instruments
delivered by the Company and the Master  Servicer  under the Pooling  Agreement,
all upon the terms and conditions and subject to the limitations hereinafter set
forth;

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
and  agreements  hereinafter  set forth,  the Trustee,  the Company,  the Master
Servicer and the Custodian hereby agree as follows:

                                    ARTICLE I

                                   Definitions

      Capitalized terms used in this Agreement and not defined herein shall have
the  meanings  assigned in the  Original  Pooling  Agreement,  unless  otherwise
required by the context herein.

                                   ARTICLE II

                          Custody of Mortgage Documents

      Section 2.1 Custodian to Act as Agent:  Acceptance of Custodial Files. The
Company  and  the  Master   Servicer   hereby  direct  the  Trustee  to  appoint
[__________________]  as the Custodian  hereunder.  The  Custodian,  as the duly
appointed agent of the Trustee for these purposes,  acknowledges  receipt of the
Custodial  Files  relating to the  Mortgage  Loans  identified  on the  schedule
attached hereto (the "Custodial Files") and declares that it holds and will hold

                                      E-1
<PAGE>

the Custodial Files as agent for the Trustee,  in trust, for the use and benefit
of all present and future Certificateholders.

      Section 2.2 Recordation of Assignments. If any Custodial File includes one
or more  assignments of the related  Mortgages to the Trustee that have not been
recorded,  each such  assignment  shall be  delivered  by the  Custodian  to the
Company for the purpose of recording  it in the  appropriate  public  office for
real property records,  and the Company,  at no expense to the Custodian,  shall
promptly cause to be recorded in the appropriate public office for real property
records each such  assignment and, upon receipt thereof from such public office,
shall return each such assignment to the Custodian.

      Section 2.3 Review of Custodial Files.

      (a) On or prior to the Closing Date,  the  Custodian  shall deliver to the
Trustee  an  Initial  Certification  in the  form  annexed  hereto  as  Annex  I
evidencing  receipt of a  Custodial  File for each  Mortgage  Loan listed on the
Schedule  attached  hereto (the  "Mortgage Loan  Schedule").  The parties hereto
acknowledge that certain documents  referred to in Subsection  2.01(b)(i) of the
Pooling  Agreement  may be  missing  on or  prior to the  Closing  Date and such
missing documents shall be listed as a Schedule to Annex I.

      (b) Within 45 days after the Closing Date, the Custodian  agrees,  for the
benefit of  Certificateholders,  to review each Custodial File and to deliver to
the Trustee an Interim  Certification  in the form annexed hereto as Annex II to
the effect that all documents  required to be delivered pursuant to Section 2.01
(b) of the Pooling  Agreement  have been  executed  and  received  and that such
documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
except  for any  exceptions  listed  on  Schedule  A  attached  to such  Interim
Certification.  For purposes of such review,  the  Custodian  shall  compare the
following information in each Custodial File to the corresponding information in
the Mortgage  Loan  Schedule:  (i) the loan number,  (ii) the borrower  name and
(iii) the original  principal  balance.  In the event that any Mortgage  Note or
Assignment  of Mortgage has been  delivered  to the  Custodian by the Company in
blank, the Custodian,  upon the direction of the Company,  shall cause each such
Mortgage Note to be endorsed to the Trustee and each such Assignment of Mortgage
to be  completed  in the name of the  Trustee  prior  to the date on which  such
Interim Certification is delivered to the Trustee.  Within 45 days of receipt of
the  documents  required  to be  delivered  pursuant  to Section  2.01(c) of the
Pooling   Agreement,   the   Custodian   agrees,   for   the   benefit   of  the
Certificateholders,  to review each such document,  and upon the written request
of the  Trustee to deliver to the  Trustee an updated  Schedule A to the Interim
Certification.  The  Custodian  shall be under no duty or obligation to inspect,
review or examine said documents,  instruments,  certificates or other papers to
determine  that  the same  are  genuine,  enforceable,  or  appropriate  for the
represented  purpose or that they have  actually  been recorded or that they are
other than what they  purport to be on their face,  or that the MIN is accurate.
If in performing the review required by this Section 2.3 the Custodian finds any
document or documents  constituting  a part of a Custodial File to be missing or
defective in respect of the items reviewed as described in this Section  2.3(b),
the Custodian shall promptly so notify the Company,  the Master Servicer and the
Trustee.

                                      E-2
<PAGE>

      (c) Upon receipt of all documents  required to be in the  Custodial  Files
the  Custodian  shall deliver to the Trustee a Final  Certification  in the form
annexed hereto as Annex III evidencing the completeness of the Custodial Files.

      Upon  receipt of written  request  from the  Trustee,  the  Company or the
Master Servicer,  the Custodian shall as soon as practicable  supply the Trustee
with a list of all of the documents  relating to the Mortgage  Loans required to
be  delivered  pursuant to Section  2.01 (b) of the Pooling  Agreement  not then
contained in the Custodial Files.

      Section 2.4 Notification of Breaches of Representations and Warranties. If
the Custodian discovers,  in the course of performing its custodial functions, a
breach of a  representation  or  warranty  made by the  Master  Servicer  or the
Company as set forth in the Pooling  Agreement  with respect to a Mortgage  Loan
relating to a Custodial  File, the Custodian shall give prompt written notice to
the Company, the Master Servicer and the Trustee.

      Section 2.5 Custodian to Cooperate:  Release of Custodial Files.  Upon the
repurchase  or  substitution  of any Mortgage Loan pursuant to Article II of the
Pooling Agreement or payment in full of any Mortgage Loan, or the receipt by the
Master  Servicer of a  notification  that  payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer shall immediately notify
the  Custodian by delivering to the Custodian a Request for Release (in the form
of Annex IV attached hereto or a mutually acceptable  electronic form) and shall
request delivery to it of the Custodial File. The Custodian agrees, upon receipt
of such  Request for  Release,  promptly to release to the Master  Servicer  the
related  Custodial  File.  Upon receipt of a Request for Release from the Master
Servicer, signed by a Servicing Officer, stating that (i) the Master Servicer or
a  Subservicer,  as the case may be,  has made a  deposit  into the  Certificate
Account in payment for the  purchase of the related  Mortgage  Loan in an amount
equal to the  Purchase  Price for such  Mortgage  Loan or (ii) the  Company  has
chosen to  substitute a Qualified  Substitute  Mortgage  Loan for such  Mortgage
Loan, the Custodian shall release to the Master  Servicer the related  Custodial
File. Upon written  notification  of a  substitution,  the Master Servicer shall
deliver to the Custodian  and the  Custodian  agrees to accept the Mortgage Note
and  other  documents  constituting  the  Custodial  File  with  respect  to any
Qualified Substitute Mortgage Loan, upon receiving written notification from the
Master Servicer of such substitution.

      From time to time as is appropriate  for the servicing or  foreclosures of
any Mortgage Loan,  including,  for this purpose,  collection  under any Primary
Insurance  Policy or any Mortgage Pool  Insurance  Policy,  the Master  Servicer
shall deliver to the Custodian a Request for Release certifying as to the reason
for such release. Upon receipt of the foregoing, the Custodian shall deliver the
Custodial File or such document to the Master  Servicer.  All Custodial Files so
released to the Master Servicer shall be held by it in trust for the Trustee for
the use and  benefit of all present  and future  Certificateholders.  The Master
Servicer shall cause each Custodial File or any document  therein so released to
be returned to the Custodian  when the need  therefor by the Master  Servicer no
longer  exists,  unless  (i) the  Mortgage  Loan  has  been  liquidated  and the
Liquidation  Proceeds  relating to the Mortgage Loan have been  deposited in the
Custodial Account or (ii) the Custodial File or such document has been delivered
to an attorney,  or to a public trustee or other public  official as required by
law, for purposes of  initiating or pursuing  legal action or other  proceedings
for the foreclosure of the Mortgaged Property either judicially

                                      E-3
<PAGE>

or  non-judicially,  and the Master  Servicer has  delivered to the Custodian an
updated Request for Release signed by a Servicing  Officer  certifying as to the
name and address of the Person to which such Custodial File or such document was
delivered and the purpose or purposes of such delivery. Immediately upon receipt
of any  Custodial  File returned to the  Custodian by the Master  Servicer,  the
Custodian  shall  deliver  a  signed  acknowledgement  to the  Master  Servicer,
confirming receipt of such Custodial File.

      Upon the written request of the Master  Servicer,  the Custodian will send
to the Master Servicer copies of any documents contained in the Custodial File.

      Section  2.6  Assumption  Agreements.  In the  event  that any  assumption
agreement or substitution of liability agreement is entered into with respect to
any Mortgage  Loan subject to this  Agreement in  accordance  with the terms and
provisions  of the  Pooling  Agreement,  the Master  Servicer  shall  notify the
Custodian that such assumption or  substitution  agreement has been completed by
forwarding  to the Custodian  the original of such  assumption  or  substitution
agreement,  which  shall be added to the  related  Custodial  File and,  for all
purposes,  shall be considered a part of such  Custodial File to the same extent
as all other documents and instruments constituting parts thereof.

                                  ARTICLE III

                            Concerning the Custodian

      Section 3.1  Custodian a Bailee and Agent of the Trustee.  With respect to
each Mortgage Note,  Mortgage and other  documents  constituting  each Custodial
File which are  delivered to the  Custodian,  the Custodian is  exclusively  the
bailee and agent of the Trustee  and has no  instructions  to hold any  Mortgage
Note or Mortgage  for the benefit of any person  other than the  Trustee,  holds
such documents for the benefit of  Certificateholders  and undertakes to perform
such  duties  and  only  such  duties  as are  specifically  set  forth  in this
Agreement.  Except upon  compliance  with the  provisions of Section 2.5 of this
Agreement, no Mortgage Note, Mortgage or other document constituting a part of a
Custodial  File shall be delivered by the Custodian to the Company or the Master
Servicer or otherwise released from the possession of the Custodian.

      The Master  Servicer shall promptly  notify the Custodian in writing if it
shall no  longer  be a member  of MERS,  or if it  otherwise  shall no longer be
capable of registering and recording Mortgage Loans using MERS. In addition, the
Master  Servicer shall (i) promptly  notify the Custodian in writing when a MERS
Mortgage  Loan is no longer  registered  with and  recorded  under MERS and (ii)
concurrently  with any such  deregistration  of a MERS Mortgage  Loan,  prepare,
execute and record an original  assignment  from MERS to the Trustee and deliver
such assignment to the Custodian.

      Section 3.2  Indemnification.  The Company  hereby agrees to indemnify and
hold the Custodian  harmless from and against all claims,  liabilities,  losses,
actions,  suits or proceedings at law or in equity, or any other expenses,  fees
or charges of any  character or nature,  which the  Custodian  may incur or with
which the Custodian may be threatened by reason of its acting as custodian under
this Agreement,  including  indemnification of the Custodian against any and all

                                      E-4
<PAGE>

expenses,  including  attorney's  fees if  counsel  for the  Custodian  has been
approved  by the  Company,  and  the  cost  of  defending  any  action,  suit or
proceedings  or  resisting  any  claim.  Notwithstanding  the  foregoing,  it is
specifically  understood and agreed that in the event any such claim, liability,
loss, action, suit or proceeding or other expense, fee or charge shall have been
caused by reason of any  negligent  act,  negligent  failure  to act or  willful
misconduct  on the part of the  Custodian,  or which shall  constitute a willful
breach of its duties hereunder, the indemnification provisions of this Agreement
shall not apply.

      Section  3.3  Custodian  May  Own  Certificates.   The  Custodian  in  its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

      Section 3.4 Master  Servicer to Pay  Custodian's  Fees and  Expenses.  The
Master Servicer  covenants and agrees to pay to the Custodian from time to time,
and the Custodian shall be entitled to, reasonable compensation for all services
rendered by it in the exercise and  performance  of any of the powers and duties
hereunder of the  Custodian,  and the Master  Servicer will pay or reimburse the
Custodian  upon its  request  for all  reasonable  expenses,  disbursements  and
advances  incurred  or made  by the  Custodian  in  accordance  with  any of the
provisions of this  Agreement  (including the  reasonable  compensation  and the
expenses and  disbursements  of its counsel and of all persons not  regularly in
its employ), except any such expense,  disbursement or advance as may arise from
its negligence or bad faith.

      Section 3.5  Custodian  May  Resign:  Trustee  May Remove  Custodian.  The
Custodian may resign from the  obligations  and duties hereby imposed upon it as
such  obligations  and duties  relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such notice of resignation,  the Trustee shall either take
custody of the  Custodial  Files  itself and give prompt  notice  thereof to the
Company, the Master Servicer and the Custodian,  or promptly appoint a successor
Custodian by written  instrument,  in  duplicate,  one copy of which  instrument
shall be  delivered to the  resigning  Custodian  and one copy to the  successor
Custodian.  If the Trustee shall not have taken  custody of the Custodial  Files
and no  successor  Custodian  shall  have been so  appointed  and have  accepted
appointment  within 30 days after the giving of such notice of resignation,  the
resigning  Custodian  may petition any court of competent  jurisdiction  for the
appointment of a successor Custodian.

      The Trustee, at the direction of the Master Servicer and the Company,  may
remove the Custodian at any time. In such event,  the Trustee shall appoint,  or
petition a court of competent  jurisdiction  to appoint,  a successor  Custodian
hereunder.  Any successor Custodian shall be a depository institution subject to
supervision or  examination  by federal or state  authority and shall be able to
satisfy  the  other   requirements   contained  in  Section  3.7  and  shall  be
unaffiliated with the Master Servicer or the Company.

      Any resignation or removal of the Custodian and appointment of a successor
Custodian  pursuant to any of the  provisions  of this  Section 3.5 shall become
effective upon acceptance of appointment by the successor Custodian. The Trustee
shall  give  prompt  notice  to the  Company  and  the  Master  Servicer  of the
appointment  of  any  successor  Custodian.  No  successor  Custodian  shall  be
appointed  by the  Trustee  without  the prior  approval  of the Company and the
Master Servicer.

                                      E-5
<PAGE>

      Section 3.6 Merger or  Consolidation  of Custodian.  Any Person into which
the Custodian  may be merged or converted or with which it may be  consolidated,
or any Person  resulting from any merger,  conversion or  consolidation to which
the Custodian shall be a party, or any Person  succeeding to the business of the
Custodian,  shall be the  successor  of the  Custodian  hereunder,  without  the
execution  or filing of any paper or any  further  act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.

      Section  3.7  Representations  of  the  Custodian.  The  Custodian  hereby
represents  that  it is a  depository  institution  subject  to  supervision  or
examination by a federal or state authority,  has a combined capital and surplus
of at least  $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Custodial File.

                                   ARTICLE IV

                            Miscellaneous Provisions

      Section 4.1 Notices. All notices, requests, consents and demands and other
communications required under this Agreement or pursuant to any other instrument
or  document  delivered  hereunder  shall be in writing  and,  unless  otherwise
specifically provided, may be delivered personally,  by telegram or telex, or by
registered or certified mail, postage prepaid,  return receipt requested, at the
addresses  specified  on  the  signature  page  hereof  (unless  changed  by the
particular  party whose address is stated herein by similar  notice in writing);
in each case the notice will be deemed delivered when received.

      Section 4.2  Amendments.  No modification or amendment of or supplement to
this  Agreement  shall be valid or  effective  unless the same is in writing and
signed by all parties  hereto,  and none of the Company,  the Master Servicer or
the Trustee  shall enter into any  amendment  hereof  except as permitted by the
Pooling Agreement.  The Trustee shall give prompt notice to the Custodian of any
amendment or supplement to the Pooling  Agreement and furnish the Custodian with
written copies thereof.

      Section 4.3 GOVERNING LAW. THIS AGREEMENT  SHALL BE DEEMED A CONTRACT MADE
UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE  CONSTRUED  AND ENFORCED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

      Section  4.4  Recordation  of  Agreement.   To  the  extent  permitted  by
applicable  law, this  Agreement is subject to  recordation  in all  appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated,  and in any other  appropriate  public  recording office or elsewhere,
such  recordation  to be effected by the Master  Servicer  and at its expense on
direction  by the Trustee  (pursuant  to the request of holders of  Certificates
evidencing  undivided  interests  in the  aggregate  of not less than 25% of the
Trust  Fund),  but only upon  direction  accompanied  by an  Opinion  of Counsel
reasonably satisfactory to the Master Servicer to the effect that the failure to
effect  such  recordation  is likely to  materially  and  adversely  affect  the
interests of the Certificateholders.

                                      E-6
<PAGE>

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

      Section  4.5  Severability  of  Provisions.  If  any  one or  more  of the
covenants,  agreements,  provisions or terms of this Agreement  shall be for any
reason whatsoever held invalid, then such covenants,  agreements,  provisions or
terms  shall be  deemed  severable  from the  remaining  covenants,  agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability  of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                      [Signatures begin on following page.]

                                      E-7
<PAGE>

      IN WITNESS WHEREOF,  this Agreement is executed as of the date first above
written.

Address:                                     [________________________]
                                             as Trustee

[__________________]

Attention:  Residential Asset Securities     By:________________________________
            Corporation, Series 20[__]-KS[_] Name:
                                             Title:

Address:                                     RESIDENTIAL ASSET SECURITIES
                                             CORPORATION

8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota

                                             By:________________________________
                                             Name:
                                             Title:

Address:                                     RESIDENTIAL FUNDING COMPANY, LLC,
                                             as Master Servicer

8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota

                                             By:________________________________
                                             Name:
                                             Title:

Address:                                     [CUSTODIAN]
[__________________]

                                             By:________________________________
                                             Name:
                                             Title:

                                      E-8
<PAGE>

STATE OF    )
            )ss.:
COUNTY OF   )

      On the ____ day of [_____]  20[__],  before me, a notary public in and for
said  State,  personally  appeared  ___________________,  known  to  me  to be a
______________  of  [________________],  a  national  banking  association  that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed  it on  behalf of said  corporation  and  acknowledged  to me that such
corporation executed the within instrument.

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

                                             ___________________________________
                                             Notary Public

[Notarial Seal]

                                      E-9
<PAGE>

STATE OF MINNESOTA   )
                     )ss.:
COUNTY OF HENNEPIN   )

      On the ____ day of [___]  20[__],  before  me, a notary  public in and for
said  State,  personally  appeared  ___________________,  known  to  me  to be a
______________  of  Residential  Asset  Securities  Corporation.,   one  of  the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said  corporation,  and  acknowledged  to me
that such corporation executed the within instrument.

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

                                             ___________________________________
                                             Notary Public

[Notarial Seal]

                                      E-10
<PAGE>

STATE OF MINNESOTA  )
                    )ss.:
COUNTY OF HENNEPIN  )

      On the ____ day of [____]  20[__],  before me, a notary  public in and for
said  State,  personally  appeared  ___________________,  known  to  me  to be a
______________ of Residential Funding Company,  LLC, a limited liability company
that executed the within  instrument,  and also known to me to be the person who
executed it on behalf of said limited liability company,  and acknowledged to me
that such limited liability company executed the within instrument.

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

                                             ___________________________________
                                             Notary Public

[Notarial Seal]

                                      E-11
<PAGE>

STATE OF    )
            )ss.:
COUNTY OF   )

      On the ____ day of [___]  20[__],  before  me, a notary  public in and for
said  State,  personally  appeared  ______________________,  known to me to be a
______________________________  [____________________], one of the entities that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed it on behalf of said national banking association,  and acknowledged to
me that such national banking association executed the within instrument.

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

                                             ___________________________________
                                             Notary Public

[Notarial Seal]

                                      E-12
<PAGE>

                                                            ANNEX I TO EXHIBIT E

                                FORM OF CUSTODIAN
                              INITIAL CERTIFICATION

                                                             [_________], 20[__]

[__________________]
[__________________]
Attn: [__________________]

Attention: Residential Asset Securities Corporation Series 20[__]-KS[_]

            Re:   Custodial Agreement,  dated as of [__] 1, 20[__], by and among
                  [_______________],  Residential Asset Securities  Corporation,
                  Residential Funding Company, LLC and [____________],  relating
                  to Mortgage Asset-Backed Pass-Through Certificates, Series
                  20[__]-KS[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
and  subject to Section  2.02 of the  Pooling  Agreement,  the  undersigned,  as
Custodian,  hereby  certifies  that it has  received  a  Custodial  File  (which
contains an original  Mortgage  Note or an original Lost Note  Affidavit  with a
copy of the related  Mortgage Note) to the extent required in Section 2.01(b) of
the Pooling  Agreement with respect to each Mortgage Loan listed in the Mortgage
Loan Schedule, with any exceptions listed on Schedule A attached hereto.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                             [__________________]

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                     E-I-1
<PAGE>

                                                           ANNEX II TO EXHIBIT E

                                FORM OF CUSTODIAN
                              INTERIM CERTIFICATION

                                                            ______________, 20__

[__________________]
[__________________]
[__________________]
Attention: Residential Asset Securities Corporation., Series 20[__]-KS[_]

            Re:   Custodial Agreement, dated as of [___] 1, 20[__], by and among
                  [_______________],  Residential Asset Securities  Corporation,
                  Residential Funding Company,  LLC and [___________],  relating
                  to Mortgage Asset-Backed Pass-Through Certificates, Series
                  20[__]-KS[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
the undersigned, as Custodian, hereby certifies that it has received a Custodial
File to the extent required pursuant to Section 2.01(b) of the Pooling Agreement
with respect to each Mortgage Loan listed in the Mortgage Loan Schedule,  and it
has  reviewed  the  Custodial  File  and  the  Mortgage  Loan  Schedule  and has
determined that: all required documents have been executed and received and that
such  documents  relate to the Mortgage  Loans  identified  on the Mortgage Loan
Schedule, with any exceptions listed on Schedule A attached hereto.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                             [_______________]

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                     E-II-1
<PAGE>

                                                          ANNEX III TO EXHIBIT E

                                FORM OF CUSTODIAN
                               FINAL CERTIFICATION

                                                            ______________, 20__

[__________________]
[__________________]
[__________________]
Attention: Residential Asset Securities Corporation, Series 20[__]-KS[_]

            Re:   Custodial Agreement, dated as of [___] 1, 20[__], by and among
                  [______________],  Residential  Asset Securities  Corporation,
                  Residential  Funding  Company,  LLC  and   [________________],
                  relating to Mortgage Asset-Backed  Pass-Through  Certificates,
                  Series 20[__]-KS[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
the undersigned, as Custodian, hereby certifies that it has received a Custodial
File with respect to each Mortgage Loan listed in the Mortgage Loan Schedule and
it has  reviewed  the  Custodial  File and the  Mortgage  Loan  Schedule and has
determined  that: all required  documents  referred to in Section 2.01(b) of the
Pooling Agreement have been executed and received and that such documents relate
to the Mortgage Loans identified on the Mortgage Loan Schedule.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                             [_______________]

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                    E-III-1
<PAGE>

                                                           ANNEX IV TO EXHIBIT E

                           FORM OF REQUEST FOR RELEASE

DATE:
TO:
RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Pooling and Servicing Agreement, Dated:
Series#:
Account#:
Pool#:
Loan#:
MIN#:

Borrower Name(s):
Reason for Document Request: (circle one)  Mortgage Loan Prepaid in Full
                                           Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

_________________________________
Residential Funding Company, LLC
Authorized Signature

****************************************************************

TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

            Enclosed Documents:   [ ] Promissory Note
                                  [ ] Primary Insurance Policy
                                  [ ] Mortgage or Deed of Trust
                                  [ ] Assignment(s) of Mortgage or Deed of Trust
                                  [ ] Title Insurance Policy
                                  [ ] Other: ________________________

___________________________
Name

___________________________
Title

___________________________
Date

                                     E-IV-1
<PAGE>

                                                                       EXHIBIT F

                                  LOAN SCHEDULE

                    (a copy may be obtained from the Trustee)

                                     F-1-1
<PAGE>

                                                                       EXHIBIT G

                           FORM OF REQUEST FOR RELEASE

DATE:
TO:
RE:      REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Pooling and Servicing Agreement, Dated:
Series#:
Account#:
Pool#:
Loan#:
MIN#:

Borrower Name(s):

Reason for Document Request: (circle one)    Mortgage Loan Prepaid in Full
                                             Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

________________________________
Residential Funding Company, LLC
Authorized Signature

****************************************************************

TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

         Enclosed Documents:      [ ] Promissory Note
                                  [ ] Primary Insurance Policy
                                  [ ] Mortgage or Deed of Trust
                                  [ ] Assignment(s) of Mortgage or Deed of Trust
                                  [ ] Title Insurance Policy
                                  [ ] Other: ________________________

___________________________
Name

___________________________
Title

___________________________
Date

                                       G-1
<PAGE>

                                                                     EXHIBIT H-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF    )
            )ss.:
COUNTY OF   )

          [NAME OF OFFICER], being first duly sworn, deposes and says:

      1. That he is [Title of Officer] of [Name of Owner]  (record or beneficial
owner  of  the   Mortgage   Asset-Backed   Pass-Through   Certificates,   Series
20[__]-KS[_],  Class R-__ (the "Owner")), a [savings institution]  [corporation]
duly  organized and existing  under the laws of [the State of  ________________]
[the United States], on behalf of which he makes this affidavit and agreement.

      2. That the Owner (i) is not and will not be a "disqualified organization"
or an electing large  partnership as of [date of transfer] within the meaning of
Section 860E(e)(5) and 775, respectively,  of the Internal Revenue Code of 1986,
as amended (the "Code") or an electing large partnership under Section 775(a) of
the Code,  (ii) will endeavor to remain other than a  disqualified  organization
for so long as it retains its ownership interest in the Class R-__ Certificates,
and (iii) is acquiring  the Class R-__  Certificates  for its own account or for
the  account  of  another  Owner from which it has  received  an  affidavit  and
agreement in substantially  the same form as this affidavit and agreement.  (For
this purpose, a "disqualified  organization" means an electing large partnership
under  Section  775 of the Code,  the  United  States,  any  state or  political
subdivision  thereof,  any  agency or  instrumentality  of any of the  foregoing
(other than an instrumentality all of the activities of which are subject to tax
and, except for the Federal Home Loan Mortgage Corporation,  a majority of whose
board of  directors  is not  selected  by any such  governmental  entity) or any
foreign government,  international organization or any agency or instrumentality
of such foreign  government  or  organization,  any rural  electric or telephone
cooperative, or any organization (other than certain farmers' cooperatives) that
is generally exempt from federal income tax unless such  organization is subject
to the tax on unrelated business taxable income).

      3.  That the  Owner  is aware  (i) of the tax  that  would be  imposed  on
transfers  of  Class  R-__  Certificates  to  disqualified  organizations  or an
electing  large  partnership  under the Code,  that applies to all  transfers of
Class R-__ Certificates after March 31, 1988; (ii) that such tax would be on the
transferor  (or, with respect to transfers to electing  large  partnerships,  on
each such  partnership),  or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a disqualified organization, on the
agent;  (iii) that the person  (other than with respect to transfers to electing
large partnerships)  otherwise liable for the tax shall be relieved of liability
for the tax if the  transferee  furnishes to such person an  affidavit  that the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R-__ Certificates may be "noneconomic  residual  interests" within the
meaning of Treasury  regulations  promulgated  pursuant to the Code and that the
transferor of a noneconomic residual interest will remain liable

                                     H-1-1
<PAGE>

for any taxes due with respect to the income on such residual  interest,  unless
no  significant  purpose  of  the  transfer  was to  impede  the  assessment  or
collection of tax.

      4. That the Owner is aware of the tax imposed on a  "pass-through  entity"
holding Class R-__ Certificates if either the pass-through entity is an electing
large  partnership  under  Section  775 of the Code or if at any time during the
taxable  year of the  pass-through  entity a  disqualified  organization  is the
record holder of an interest in such entity.  (For this purpose, a "pass through
entity" includes a regulated  investment company, a real estate investment trust
or common trust fund, a partnership, trust or estate, and certain cooperatives.)

      5. That the Owner is aware that the Trustee will not register the transfer
of any Class R-__ Certificates unless the transferee, or the transferee's agent,
delivers to it an affidavit and agreement,  among other things, in substantially
the same form as this affidavit and agreement.  The Owner expressly  agrees that
it will not consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

      6. That the Owner has reviewed the  restrictions  set forth on the face of
the Class R -__  Certificates  and the  provisions  of  Section  5.02(f)  of the
Pooling and Servicing  Agreement  under which the Class R-__  Certificates  were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  5.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 5.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

      7. That the Owner consents to any additional  restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement  to ensure  that the  Class  R-__  Certificates  will only be owned,
directly or indirectly, by an Owner that is not a disqualified organization.

      8. The Owner's Taxpayer Identification Number is ____________________.

      9.  This   affidavit  and  agreement   relates  only  to  the  Class  R-__
Certificates  held by the Owner and not to any  other  holder of the Class  R-__
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R-__ Certificates.

      10. That no purpose of the Owner  relating  to the  transfer of any of the
Class R-__  Certificates  by the Owner is or will be to impede the assessment or
collection of any tax; in making this  representation,  the Owner  warrants that
the Owner is  familiar  with (i)  Treasury  Regulation  1.860E-1(c)  and  recent
amendments  thereto,  effective  as of July 19,  2002,  and  (ii)  the  preamble
describing the adoption of the amendments to such regulation,  which is attached
hereto as Annex I.

      11. That the Owner has no present knowledge or expectation that it will be
unable  to  pay  any  United  States  taxes  owed  by it so  long  as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and  for the  benefit  of the  person  from  whom it  acquired  the  Class  R-__
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R-__ Certificate as they become due, fully understanding that it may incur
tax  liabilities  in  excess  of any cash  flows  generated  by the  Class  R-__
Certificate.

                                     H-1-2
<PAGE>

      12. That the Owner has no present  knowledge or  expectation  that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R-__ Certificates remain outstanding.

      13. The Owner is either (i) a citizen or  resident  of the United  States,
(ii) a  corporation,  partnership  or other entity treated as a corporation or a
partnership for U.S. federal income tax purposes and created or organized in, or
under the laws of, the United  States,  any state  thereof  or the  District  of
Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in
Section 7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section
7701(a)(30)(E) of the Code.

      14. The Owner  hereby  agrees that it will not cause income from the Class
R-__  Certificates to be attributable to a foreign  permanent  establishment  or
fixed base (within the meaning of an applicable  income tax treaty) of the Owner
or another United States taxpayer.

      15. The Owner hereby certifies,  represents and warrants to, and covenants
with the  Depositor,  the Trustee  and the Master  Servicer  that the  following
statements in (a) or (b) are accurate:

            (a) The  Certificates  are not being  acquired  by,  and will not be
      transferred  to, any employee  benefit  plan or other plan or  arrangement
      subject  to  the  prohibited   transaction   provisions  of  the  Employee
      Retirement Income Security Act of 1974, as amended  ("ERISA"),  or Section
      4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or any
      person (including an insurance  company investing its general account,  an
      investment  manager,  a named fiduciary or a trustee of any such plan) who
      is using "plan assets" of any such plan to effect such  acquisition  (each
      of the foregoing, a "Plan Investor").; or

            (b) The Owner has provided the Trustee, the Depositor and the Master
      Servicer  with  an  Opinion  of  Counsel  acceptable  to and in  form  and
      substance  satisfactory  to the  Trustee,  the  Depositor  and the  Master
      Servicer to the effect that the  purchase  or holding of  Certificates  is
      permissible  under  applicable  law, will not  constitute or result in any
      non-exempt  prohibited  transaction  under Section 406 of ERISA or Section
      4975 of the Code (or comparable provisions of any subsequent  enactments),
      and will not subject the Trustee, the Depositor, or the Master Servicer to
      any obligation or liability  (including  obligations or liabilities  under
      ERISA or Section 4975 of the Code) in addition to those  undertaken in the
      Pooling and Servicing Agreement,  which Opinion of Counsel shall not be at
      the expense of the Trustee, the Depositor or the Master Servicer.

      In addition,  the Owner hereby certifies,  represents and warrants to, and
covenants  with,  the  Depositor,  the Trustee and the Master  Servicer that the
Owner will not transfer such  Certificates to any Plan Investor or person unless
either such Plan Investor or person meets the  requirements  set forth in either
(a) or (b) above.

      Capitalized  terms used but not  defined  herein  shall have the  meanings
assigned in the Pooling and Servicing Agreement.

                                     H-1-3
<PAGE>

      IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf,  pursuant to the authority of its Board of Directors,  by its [Title
of Officer]  and its  corporate  seal to be hereunto  attached,  attested by its
[Assistant] Secretary, this ____ day of ______________ 200__.

                                             [NAME OF OWNER]

                                             By: _______________________________
                                             [Name of Officer]
                                             [Title of Officer]

[Corporate Seal]

ATTEST:

______________________________
[Assistant] Secretary

      Personally appeared before me the above-named [Name of Officer],  known or
proved to me to be the same person who executed the foregoing  instrument and to
be the [Title of Officer] of the Owner,  and acknowledged to me that he executed
the same as his free act and deed and the free act and deed of the Owner.

      Subscribed and sworn before me this ________ day of ______, 200_.

                                    __________________________________________
                            NOTARY PUBLIC

                            COUNTY OF ______________________________
                            STATE OF ________________________________
                            My Commission expires the ___ day of ________, 20__

                                     H-1-4
<PAGE>

                                                          ANNEX I TO EXHIBIT H-1

                           DEPARTMENT OF THE TREASURY

                            Internal Revenue Service

                             26 CFR Parts 1 and 602

                                    [TD 9004]

                                  RIN 1545-AW98

                    Real Estate Mortgage Investment Conduits

                AGENCY: Internal Revenue Service (IRS), Treasury.

                           ACTION: Final regulations.

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

SUMMARY:  This  document  contains  final  regulations  relating  to safe harbor
transfers of noneconomic  residual interests in real estate mortgage  investment
conduits (REMICs).  The final regulations provide additional  limitations on the
circumstances under which transferors may claim safe harbor treatment.

DATES: Effective Date: These regulations are effective July 19, 2002.

Applicability Date: For dates of applicability, see Sec. 1.860E-(1)(c)(10).

FOR FURTHER  INFORMATION  CONTACT:  Courtney Shepardson at (202) 622-3940 (not a
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

      The  collection of  information  in this final rule has been reviewed and,
pending  receipt and  evaluation of public  comments,  approved by the Office of
Management  and Budget (OMB) under 44 U.S.C.  3507 and assigned  control  number
1545-1675.

      The   collection   of   information   in  this   regulation   is  in  Sec.
1.860E-1(c)(5)(ii).  This  information  is  required to enable the IRS to verify
that a  taxpayer  is  complying  with the  conditions  of this  regulation.  The
collection of information is mandatory and is required.  Otherwise, the taxpayer
will not  receive  the  benefit of safe  harbor  treatment  as  provided  in the
regulation.   The  likely   respondents  are  businesses  and  other  for-profit
institutions.

                                    H-1-I-1
<PAGE>

      Comments on the collection of information  should be sent to the Office of
Management  and Budget,  Attn:  Desk Officer for the Department of the Treasury,
Office of Information and Regulatory Affairs, Washington, DC, 20503, with copies
to  the  Internal  Revenue  Service,   Attn:  IRS  Reports  Clearance   Officer,
W:CAR:MP:FP:S,  Washington,  DC 20224. Comments on the collection of information
should be received by September 17, 2002.  Comments are  specifically  requested
concerning:

      o     Whether the  collection of  information  is necessary for the proper
            performance  of the  functions  of  the  Internal  Revenue  Service,
            including whether the information will have practical utility;

      o     The accuracy of the estimated burden  associated with the collection
            of information (see below);

      o     How the  quality,  utility,  and  clarity of the  information  to be
            collected may be enhanced;

      o     How the burden of complying with the  collection of information  may
            be  minimized,   including  through  the  application  of  automated
            collection techniques or other forms of information technology; and

      o     Estimates  of  capital  or  start-up  costs and costs of  operation,
            maintenance, and purchase of service to provide information.

      An agency may not  conduct or  sponsor,  and a person is not  required  to
respond to, a  collection  of  information  unless it  displays a valid  control
number assigned by the Office of Management and Budget.

      The  estimated  total annual  reporting  burden is 470 hours,  based on an
estimated  number of respondents  of 470 and an estimated  average annual burden
hours per respondent of one hour.

      Books or records  relating to a collection of information must be retained
as long as their  contents  may become  material  in the  administration  of any
internal  revenue law.  Generally,  tax returns and tax return  information  are
confidential, as required by 26 U.S.C. 6103.

Background

      This document contains final regulations regarding the proposed amendments
to 26 CFR part 1 under  section  860E of the Internal  Revenue Code (Code).  The
regulations  provide the circumstances under which a transferor of a noneconomic
REMIC  residual   interest   meeting  the   investigation   and   representation
requirements  may avail  itself  of the safe  harbor by  satisfying  either  the
formula test or the asset test.

      Final  regulations   governing  REMICs,  issued  in  1992,  contain  rules
governing the transfer of noneconomic REMIC residual  interests.  In general,  a
transfer of a noneconomic  residual interest is disregarded for all tax purposes
if a significant  purpose of the transfer is to enable the  transferor to impede
the  assessment  or  collection  of tax. A purpose to impede the  assessment  or
collection of tax (a wrongful purpose) exists if the transferor,  at the time of
the  transfer,  either  knew or should have known that the  transferee  would be
unwilling or unable to pay taxes due on its share of the REMIC's taxable income.
Under a safe harbor, the transferor of a REMIC

                                    H-1-I-2
<PAGE>

noneconomic  residual interest is presumed not to have a wrongful purpose if two
requirements   are  satisfied:   (1)  the   transferor   conducts  a  reasonable
investigation  of  the  transferee's   financial  condition  (the  investigation
requirement);   and  (2)  the  transferor  secures  a  representation  from  the
transferee to the effect that the  transferee  understands  the tax  obligations
associated with holding a residual  interest and intends to pay those taxes (the
representation requirement).

      The  IRS and  Treasury  have  been  concerned  that  some  transferors  of
noneconomic  residual  interests  claim they  satisfy  the safe  harbor  even in
situations  where the economics of the transfer  clearly indicate the transferee
is unwilling or unable to pay the tax associated with holding the interest.  For
this reason,  on February 7, 2000, the IRS published in the Federal Register (65
FR 5807) a notice of proposed rulemaking (REG-100276-97; REG-122450-98) designed
to clarify the safe harbor by adding the "formula  test," an economic  test. The
proposed  regulation  provides  that the safe harbor is  unavailable  unless the
present value of the  anticipated  tax  liabilities  associated with holding the
residual  interest  does not  exceed the sum of:  (1) The  present  value of any
consideration  given to the transferee to acquire the interest;  (2) the present
value of the expected future distributions on the interest;  and (3) the present
value of the anticipated tax savings associated with holding the interest as the
REMIC generates losses.

      The notice of proposed rulemaking also contained rules for FASITs. Section
1.860H-6(g) of the proposed regulations  provides  requirements for transfers of
FASIT  ownership  interests  and adopts a safe harbor by  reference  to the safe
harbor provisions of the REMIC  regulations.  In January 2001, the IRS published
Rev. Proc.  2001-12 (2001-3 I.R.B.  335) to set forth an alternative safe harbor
that taxpayers could use while the IRS and the Treasury  considered  comments on
the proposed  regulations.  Under the alternative  safe harbor,  if a transferor
meets the investigation  requirement and the representation  requirement but the
transfer  fails to meet the formula  test,  the  transferor  may invoke the safe
harbor if the  transferee  meets a two-prong test (the asset test). A transferee
generally  meets the first  prong of this test if, at the time of the  transfer,
and in each of the two years  preceding the year of transfer,  the  transferee's
gross  assets  exceed $100  million  and its net assets  exceed $10  million.  A
transferee  generally  meets the second  prong of this test if it is a domestic,
taxable  corporation  and agrees in writing not to transfer  the interest to any
person other than another domestic,  taxable corporation that also satisfies the
requirements  of the asset test. A  transferor  cannot rely on the asset test if
the transferor knows, or has reason to know, that the transferee will not comply
with its written agreement to limit the restrictions on subsequent  transfers of
the residual interest.

      Rev. Proc.  2001-12  provides that the asset test fails to be satisfied in
the case of a transfer or  assignment of a  noneconomic  residual  interest to a
foreign  branch of an  otherwise  eligible  transferee.  If such a  transfer  or
assignment  were  permitted,  a corporate  taxpayer might seek to claim that the
provisions of an applicable  income tax treaty would resource  excess  inclusion
income as foreign  source  income,  and that,  as a  consequence,  any U.S.  tax
liability attributable to the excess inclusion income could be offset by foreign
tax credits.  Such a claim would impede the assessment or collection of U.S. tax
on excess inclusion income,  contrary to the  congressional  purpose of assuring
that such income will be taxable in all events. See, e.g., sections  860E(a)(1),
(b), (e) and 860G(b) of the Code.

      The Treasury and the IRS have learned that certain taxpayers  transferring
noneconomic residual interests to foreign branches have attempted to rely on the
formula test to obtain safe

                                    H-1-I-3
<PAGE>

harbor treatment in an effort to impede the assessment or collection of U.S. tax
on excess inclusion income. Accordingly, the final regulations provide that if a
noneconomic   residual   interest  is   transferred   to  a  foreign   permanent
establishment or fixed base of a U.S. taxpayer, the transfer is not eligible for
safe harbor treatment under either the asset test or the formula test. The final
regulations also require a transferee to represent that it will not cause income
from the noneconomic residual interest to be attributable to a foreign permanent
establishment or fixed base.

      Section  1.860E-1(c)(8)  provides  computational rules that a taxpayer may
use  to  qualify  for  safe  harbor  status  under  the  formula  test.  Section
1.860E-1(c)(8)(i)  provides that the transferee is presumed to pay tax at a rate
equal to the highest rate of tax specified in section 11(b).  Some  commentators
were  concerned that this presumed rate of taxation was too high because it does
not take into  consideration  taxpayers  subject to the alternative  minimum tax
rate. In light of the comments received,  this provision has been amended in the
final regulations to allow certain transferees that compute their taxable income
using the alternative  minimum tax rate to use the alternative  minimum tax rate
applicable to corporations.

      Additionally, Sec. 1.860E-1(c)(8)(iii) provides that the present values in
the  formula  test  are to be  computed  using  a  discount  rate  equal  to the
applicable  Federal  short-term  rate prescribed by section  1274(d).  This is a
change  from  the  proposed   regulation  and  Rev.  Proc.   2001-12.  In  those
publications  the  provision  stated that "present  values are computed  using a
discount rate equal to the applicable Federal rate prescribed in section 1274(d)
compounded  semiannually"  and that "[a] lower  discount rate may be used if the
transferee can demonstrate that it regularly borrows, in the course of its trade
or  business,  substantial  funds at such  lower  rate from an  unrelated  third
party." The IRS and the Treasury  Department  have learned  that,  based on this
provision,  certain taxpayers have been attempting to use unrealistically low or
zero interest rates to satisfy the formula test,  frustrating  the intent of the
test.  Furthermore,  the  Treasury  Department  and the IRS believe  that a rule
allowing  for a rate  other than a rate based on an  objective  index  would add
unnecessary complexity to the safe harbor. As a result, the rule in the proposed
regulations  that  permits a transferee  to use a lower  discount  rate,  if the
transferee can demonstrate that it regularly  borrows  substantial funds at such
lower rate, is not included in the final regulations; and the Federal short-term
rate  has  been  substituted  for  the  applicable  Federal  rate.  To  simplify
taxpayers' computations, the final regulations allow use of any of the published
short-term  rates,  provided  that  the  present  values  are  computed  with  a
corresponding  period  of  compounding.  With the  exception  of the  provisions
relating to transfers to foreign  branches,  these  changes  generally  have the
proposed  applicability  date of February 4, 2000,  but  taxpayers may choose to
apply the interest  rate formula set forth in the proposed  regulation  and Rev.
Proc. 2001-12 for transfers occurring before November 19, 2002.

      It is anticipated that when final  regulations are adopted with respect to
FASITs,  Sec.  1.860H-6(g)  of the  proposed  regulations  will  be  adopted  in
substantially  its  present  form,  with the result  that the final  regulations
contained  in this  document  will  also  govern  transfers  of FASIT  ownership
interests with substantially the same applicability date as is contained in this
document.

                                    H-1-I-4
<PAGE>

Effect on Other Documents

      Rev.  Proc.  2001-12  (2001-3  I.R.B.  335) is obsolete  for  transfers of
noneconomic  residual  interests in REMICs  occurring  on or after  November 19,
2002.

Special Analyses

      It is hereby certified that these  regulations will not have a significant
economic impact on a substantial number of small entities. This certification is
based  on the  fact  that it is  unlikely  that a  substantial  number  of small
entities will hold REMIC residual interests. Therefore, a Regulatory Flexibility
Analysis  under  the  Regulatory  Flexibility  Act (5 U.S.C.  chapter  6) is not
required.  It  has  been  determined  that  this  Treasury  decision  is  not  a
significant regulatory action as defined in Executive Order 12866.  Therefore, a
regulatory assessment is not required. It also has been determined that sections
553(b) and 553(d) of the  Administrative  Procedure Act (5 U.S.C.  chapter 5) do
not apply to these regulations.

Drafting Information

      The principal author of these regulations is Courtney Shepardson. However,
other  personnel  from the IRS and  Treasury  Department  participated  in their
development.

List of Subjects

26 CFR Part 1

      Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

      Reporting and record keeping requirements.

      Adoption of Amendments to the Regulations

      Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

      Paragraph 1. The authority citation for part 1 continues to read in

part as follows:

      Authority: 26 U.S.C. 7805 * * *

                                    H-1-I-5
<PAGE>

                                                                     EXHIBIT H-2

                         FORM OF TRANSFEROR CERTIFICATE

                                                            ______________, 20__

[__________________]
[__________________]
[__________________]
Attention:  Residential Asset Securities Corporation, Series 20[__]-KS[_]

            Re:   Mortgage  Asset-Backed   Pass-Through   Certificates,   Series
                  20[__]-KS[_]

Ladies and Gentlemen:

      This  letter  is  delivered  to you in  connection  with the  transfer  by
________________________   (the   "Seller")   to   ______________________   (the
"Purchaser") of $___________  Initial Certificate  Principal Balance of Mortgage
Asset-Backed  Pass-Through  Certificates,  Series 20[__]-KS[_],  Class R-__ (the
"Certificates"), pursuant to Section 5.02 of the Pooling and Servicing Agreement
(the  "Pooling  and  Servicing  Agreement"),  dated as of [___] 1, 20[__]  among
Residential  Asset  Securities  Corporation,  as  depositor  (the  "Depositor"),
Residential Funding Company, LLC, as master servicer, and [_______________],  as
trustee (the "Trustee").  All terms used herein and not otherwise  defined shall
have the meanings set forth in the Pooling and Servicing  Agreement.  The Seller
hereby certifies,  represents and warrants to, and covenants with, the Depositor
and the Trustee that:

      1. No purpose of the Seller relating to the transfer of the Certificate by
the Seller to the Purchaser is or will be to impede the assessment or collection
of any tax.

      2. The Seller  understands that the Purchaser has delivered to the Trustee
and the Master Servicer a transfer  affidavit and agreement in the form attached
to the Pooling and Servicing  Agreement as Exhibit H-1. The Seller does not know
or believe that any representation contained therein is false.

      3. The  Seller  has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-1(c)(4)(i)  and,  as  a  result  of  that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the  future.  The Seller  understands  that the  transfer of a Class R-__
Certificate  may not be respected for United States income tax purposes (and the
Seller may  continue  to be liable for United  States  income  taxes  associated
therewith) unless the Seller has conducted such an investigation.

                                     H-2-1
<PAGE>

      4. The Seller has no actual knowledge that the proposed  Transferee is not
both a United States Person and a Permitted Transferee.

                                             Very truly yours,

                                             __________________________________
                                                           (Seller)

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                     H-2-2
<PAGE>

                                                                       EXHIBIT I

                     FORM OF INVESTOR REPRESENTATION LETTER

                                                            ______________, 20__

Residential Asset Securities Corporation
8400 Normandale Lake Boulevard

Suite 250
Minneapolis, MN  55437

[__________________]
[__________________]
[__________________]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN  55437

Attention: Residential Funding Company, LLC Series 20[__]-KS[_]

            Re:   Mortgage  Asset-Backed   Pass-Through   Certificates,   Series
                  20[__]-KS[_], Class [B] [SB] [R-[__]]

Ladies and Gentlemen:

      _________________________  (the  "Purchaser")  intends  to  purchase  from
___________________________  (the "Seller")  $_____________  Initial Certificate
Principal Balance of Mortgage  Asset-Backed  Pass-Through  Certificates,  Series
20[__]-KS[_],  Class [B] [SB] [R-[__]] (the "Certificates"),  issued pursuant to
the Pooling and Servicing  Agreement  (the  "Pooling and Servicing  Agreement"),
dated as of [___] 1, 20[__] among Residential Asset Securities  Corporation,  as
depositor  (the  "Depositor"),  Residential  Funding  Company,  LLC,  as  master
servicer (the "Master Servicer"), and  [__________________________],  as trustee
(the "Trustee").  All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and Servicing Agreement.  The Purchaser hereby
certifies,  represents and warrants to, and covenants  with, the Depositor,  the
Trustee and the Master Servicer that:

                  1. The Purchaser  understands that (a) the  Certificates  have
            not  been  and  will  not  be  registered  or  qualified  under  the
            Securities  Act of  1933,  as  amended  (the  "Act")  or  any  state
            securities  law, (b) the Depositor is not required to so register or
            qualify the Certificates, (c) the Certificates may be resold only if
            registered  and qualified  pursuant to the  provisions of the Act or
            any state securities law, or if an exemption from such  registration
            and  qualification  is

                                      I-1
<PAGE>

            available,   (d)  the  Pooling  and  Servicing   Agreement  contains
            restrictions  regarding the transfer of the Certificates and (e) the
            Certificates will bear a legend to the foregoing effect.

                  2. The  Purchaser is acquiring  the  Certificates  for its own
            account  for  investment  only and not with a view to or for sale in
            connection  with any  distribution  thereof in any manner that would
            violate the Act or any applicable state securities laws.

                  3.  The   Purchaser  is  (a)  a   substantial,   sophisticated
            institutional  investor  having such  knowledge  and  experience  in
            financial and business matters, and, in particular,  in such matters
            related to securities  similar to the Certificates,  such that it is
            capable of  evaluating  the merits  and risks of  investment  in the
            Certificates,  (b)  able  to  bear  the  economic  risks  of such an
            investment  and (c) an "accredited  investor"  within the meaning of
            Rule 501(a) promulgated pursuant to the Act.

                  4. The  Purchaser  has  been  furnished  with,  and has had an
            opportunity  to  review  (a)  [a  copy  of  the  Private   Placement
            Memorandum,   dated  ___________________,   20__,  relating  to  the
            Certificates (b)] a copy of the Pooling and Servicing  Agreement and
            [b] [c] such other  information  concerning  the  Certificates,  the
            Mortgage  Loans  and the  Depositor  as has  been  requested  by the
            Purchaser  from the  Depositor  or the Seller and is relevant to the
            Purchaser's decision to purchase the Certificates. The Purchaser has
            had any questions arising from such review answered by the Depositor
            or  the  Seller  to  the  satisfaction  of the  Purchaser.  [If  the
            Purchaser  did not  purchase  the  Certificates  from the  Seller in
            connection with the initial distribution of the Certificates and was
            provided  with  a copy  of the  Private  Placement  Memorandum  (the
            "Memorandum") relating to the original sale (the "Original Sale") of
            the Certificates by the Depositor,  the Purchaser  acknowledges that
            such  Memorandum  was  provided  to  it  by  the  Seller,  that  the
            Memorandum  was  prepared  by  the  Depositor   solely  for  use  in
            connection  with  the  Original  Sale  and  the  Depositor  did  not
            participate  in or  facilitate  in  any  way  the  purchase  of  the
            Certificates  by the  Purchaser  from the Seller,  and the Purchaser
            agrees  that  it  will  look  solely  to the  Seller  and not to the
            Depositor  with respect to any damage,  liability,  claim or expense
            arising out of,  resulting  from or in connection  with (a) error or
            omission, or alleged error or omission, contained in the Memorandum,
            or (b) any information,  development or event arising after the date
            of the Memorandum.]

                  5. The Purchaser has not and will not nor has it authorized or
            will it authorize any person to (a) offer,  pledge, sell, dispose of
            or  otherwise   transfer  any  Certificate,   any  interest  in  any
            Certificate  or any  other  similar  security  to any  person in any
            manner,  (b)  solicit  any  offer  to buy  or to  accept  a  pledge,
            disposition  of other transfer of any  Certificate,  any interest in
            any Certificate or any other similar security from any person in any
            manner,  (c)  otherwise  approach or  negotiate  with respect to any
            Certificate,  any interest in any  Certificate  or any other similar
            security  with any  person  in any  manner,  (d)  make  any  general

                                      I-2
<PAGE>

            solicitation by means of general  advertising or in any other manner
            or (e) take any other  action,  that (as to any of (a)  through  (e)
            above) would constitute a distribution of any Certificate  under the
            Act,  that  would  render  the  disposition  of  any  Certificate  a
            violation  of Section 5 of the Act or any state  securities  law, or
            that would require  registration or qualification  pursuant thereto.
            The  Purchaser  will  not  sell  or  otherwise  transfer  any of the
            Certificates,  except  in  compliance  with  the  provisions  of the
            Pooling and Servicing Agreement.

                  6. The Purchaser hereby certifies, represents and warrants to,
            and  covenants  with  the  Depositor,  the  Trustee  and the  Master
            Servicer that the  following  statements in (a) or (b) [with respect
            to Class B - (a), (b), (c) or (d)] are correct:

                        (a) The  Purchaser  is not an employee  benefit  plan or
                  other  plan  or   arrangement   subject   to  the   prohibited
                  transaction  provisions  of  the  Employee  Retirement  Income
                  Security Act of 1974, as amended ("ERISA"), or Section 4975 of
                  the Internal Revenue Code of 1986, as amended (the "Code"), or
                  any person  (including  an  insurance  company  investing  its
                  general account, an investment manager, a named fiduciary or a
                  trustee  of any such plan) who is using  "plan  assets" of any
                  such plan to effect such acquisition (each of the foregoing, a
                  "Plan Investor"); or

                        (b)  the  Purchaser   has  provided  the  Trustee,   the
                  Depositor  and the Master  Servicer with an Opinion of Counsel
                  acceptable  to and in form and substance  satisfactory  to the
                  Trustee,  the Depositor and the Master  Servicer to the effect
                  that the purchase or holding of  Certificates  is  permissible
                  under  applicable  law,  will not  constitute or result in any
                  non-exempt  prohibited  transaction under Section 406 of ERISA
                  or Section 4975 of the Code (or  comparable  provisions of any
                  subsequent enactments),  and will not subject the Trustee, the
                  Depositor  or  the  Master   Servicer  to  any  obligation  or
                  liability (including obligations or liabilities under ERISA or
                  Section 4975 of the Code) in addition to those  undertaken  in
                  the Pooling and Servicing Agreement,  which Opinion of Counsel
                  shall not be an expense of the Trustee,  the  Depositor or the
                  Master Servicer; [or]

                        (c) [if at the time of such purchase,  the rating of the
                  Class B Certificates is BBB- or better][it has acquired and is
                  holding such  Certificate  in reliance on U.S.  Department  of
                  Labor Prohibited  Transaction Exemption ("PTE") 94-29, as most
                  recently amended, 67 Fed. Reg. 54487 (Aug. 22, 2002) (the "RFC
                  Exemption"),  and that it  understands  that there are certain
                  conditions to the availability of the RFC Exemption  including
                  that such  Certificate must be rated, at the time of purchase,
                  not lower than "BBB-" (or its equivalent) by Fitch, Standard &
                  Poor's or Moody's; or]

                                      I-3
<PAGE>

                  (d) (i) such Buyer is an insurance company, (ii) the source of
            funds  used  to  purchase  or hold  such  Certificate  (or  interest
            therein) is an "insurance  company  general  account" (as defined in
            Prohibited  Transaction Class Exemption  ("PTCE") 95-60),  and (iii)
            the  conditions  set forth in  Sections I and III of PTCE 95-60 have
            been satisfied.]

                                      I-4
<PAGE>

      In addition,  the Purchaser hereby certifies,  represents and warrants to,
and covenants with, the Depositor,  the Trustee and the Master Servicer that the
Purchaser  will not  transfer  such  Certificates  to any Plan or person  unless
either such Plan or person meets the  requirements  set forth in either (a), (b)
or (c) above.

                                             Very truly yours,

                                             ___________________________________
                                             (Purchaser)

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                      I-5
<PAGE>

                                                                       EXHIBIT J

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                            ______________, 20__

Residential Asset Securities Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[__________________]
[__________________]
[__________________]
Attention: Residential Funding Company, LLC Series 20[__]-KS[_]

            Re:   Mortgage  Asset-Backed   Pass-Through   Certificates,   Series
                  20[__]-KS[_], Class [B] [SB] [R-[__]]

Ladies and Gentlemen:

      In  connection  with the sale by __________  (the  "Seller") to __________
(the  "Purchaser")  of  $__________  Initial  Certificate  Principal  Balance of
Mortgage Asset- Backed Pass-Through Certificates, Series 20[__]-KS[_], Class [B]
[SB] [R-[__]] (the "Certificates"), issued pursuant to the Pooling and Servicing
Agreement (the "Pooling and Servicing  Agreement"),  dated as of [___] 1, 20[__]
among Residential Asset Securities Corporation,  as depositor (the "Depositor"),
Residential    Funding    Company,     LLC,    as    master    servicer,     and
[_______________________],   as  trustee  (the  "Trustee").  The  Seller  hereby
certifies, represents and warrants to, and covenants with, the Depositor and the
Trustee that:

      Neither  the  Seller nor  anyone  acting on its  behalf  has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification  pursuant thereto. The Seller will not act, in any
manner set forth in the foregoing sentence with respect to any Certificate.  The
Seller has not and will not sell or otherwise  transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                      J-1
<PAGE>

                                             Very truly yours,

                                             ___________________________________
                                             (Purchaser)

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                      J-2
<PAGE>

                                                                       EXHIBIT K

                   TEXT OF AMENDMENT TO POOLING AND SERVICING
                  AGREEMENT PURSUANT TO SECTION 11.01(e) FOR A
                                LIMITED GUARANTY

                                   ARTICLE XII

             Subordinate Certificate Loss Coverage; Limited Guaranty

      Section 12.01.  Subordinate  Certificate Loss Coverage;  Limited Guaranty.
(a) Subject to subsection  (c) below,  prior to the later of the third  Business
Day prior to each  Distribution  Date or the  related  Determination  Date,  the
Master Servicer shall determine  whether it or any Subservicer  will be entitled
to any  reimbursement  pursuant to Section  3.10 on such  Distribution  Date for
Advances or Subservicer Advances previously made, (which will not be Advances or
Subservicer  Advances  that were made with respect to  delinquencies  which were
subsequently determined to be Excess Special Hazard Losses, Excess Fraud Losses,
Excess  Bankruptcy  Losses or  Extraordinary  Losses)  and,  if so,  the  Master
Servicer shall demand payment from Residential Funding of an amount equal to the
amount of any Advances or Subservicer  Advances  reimbursed  pursuant to Section
3.10, to the extent such Advances or Subservicer Advances have not been included
in the amount of the  Realized  Loss in the  related  Mortgage  Loan,  and shall
distribute the same to the Class SB  Certificateholders in the same manner as if
such amount were to be distributed pursuant to Section 4.02.

      (b)  Subject  to  subsection  (c)  below,  prior to the later of the third
Business Day prior to each Distribution Date or the related  Determination Date,
the Master  Servicer  shall  determine  whether any Realized  Losses (other than
Excess Special Hazard Losses,  Excess Bankruptcy Losses, Excess Fraud Losses and
Extraordinary  Losses) will be allocated  to the Class SB  Certificates  on such
Distribution  Date  pursuant to Section  4.05,  and, if so, the Master  Servicer
shall demand  payment from  Residential  Funding of the amount of such  Realized
Loss and shall  distribute  the same to the Class SB  Certificateholders  in the
same manner as if such amount were to be  distributed  pursuant to Section 4.02;
provided, however, that the amount of such demand in respect of any Distribution
Date shall in no event be greater than the sum of (i) the  additional  amount of
Accrued  Certificate  Interest  that  would  have  been  paid  for the  Class SB
Certificateholders  on such  Distribution  Date had such Realized Loss or Losses
not occurred plus (ii) the amount of the reduction in the Certificate  Principal
Balances  of the Class SB  Certificates  on such  Distribution  Date due to such
Realized  Loss or Losses.  Notwithstanding  such payment,  such Realized  Losses
shall be deemed to have been borne by the  Certificateholders  for  purposes  of
Section  4.05.  Excess  Special  Hazard  Losses,  Excess  Fraud  Losses,  Excess
Bankruptcy   Losses  and   Extraordinary   Losses  allocated  to  the  Class  SB
Certificates will not be covered by the Subordinate Certificate Loss Obligation.

      (c) Demands for payments  pursuant to this Section  shall be made prior to
the  later of the third  Business  Day  prior to each  Distribution  Date or the
related Determination Date by the Master Servicer with written notice thereof to
the Trustee. The maximum amount that

                                      K-1
<PAGE>

Residential  Funding  shall be required to pay  pursuant to this  Section on any
Distribution  Date (the "Amount  Available") shall be equal to the lesser of (X)
________ minus the sum of (i) all previous  payments made under  subsections (a)
and (b) hereof and (ii) all draws  under the  Limited  Guaranty  made in lieu of
such payments as described below in subsection (d) and (Y) the then  outstanding
Certificate  Principal  Balances  of the Class SB  Certificates,  or such  lower
amount as may be established  pursuant to Section 12.02.  Residential  Funding's
obligations  as  described  in  this  Section  are  referred  to  herein  as the
"Subordinate Certificate Loss Obligation."

            (d) The  Trustee  will  promptly  notify  GMAC LLC of any failure of
Residential  Funding to make any payments  hereunder  and shall  demand  payment
pursuant to the limited  guaranty  (the "Limited  Guaranty"),  executed by [GMAC
LLC, of  Residential  Funding's  obligation  to make  payments  pursuant to this
Section,  in an amount equal to the lesser of (i) the Amount  Available and (ii)
such required  payments,  by delivering to GMAC LLC a written demand for payment
by  wire  transfer,  not  later  than  the  second  Business  Day  prior  to the
Distribution Date for such month, with a copy to the Master Servicer.

            (e)  All  payments  made by  Residential  Funding  pursuant  to this
Section or amounts paid under the Limited  Guaranty shall be deposited  directly
in the Certificate  Account,  for distribution on the Distribution Date for such
month to the Class SB Certificateholders.

            (f) The Depositor shall have the option, in its sole discretion,  to
substitute  for  either  or  both of the  Limited  Guaranty  or the  Subordinate
Certificate  Loss  Obligation  another  instrument  in the  form of a  corporate
guaranty,  an irrevocable  letter of credit, a surety bond,  insurance policy or
similar  instrument or a reserve fund;  provided that (i) the Depositor  obtains
(subject  to  the  provisions  of  Section  10.01(f)  as if  the  Depositor  was
substituted  for the Master  Servicer solely for the purposes of such provision)
an Opinion of Counsel (which need not be an opinion of  independent  counsel) to
the effect that obtaining such substitute corporate guaranty, irrevocable letter
of credit,  surety bond,  insurance policy or similar instrument or reserve fund
will not cause  either (a) any  federal  tax to be  imposed  on the Trust  Fund,
including   without   limitation,   any  federal  tax  imposed  on   "prohibited
transactions" under Section  860(F)(a)(1) of the Code or on "contributions after
the startup date" under Section  860(G)(d)(1)  of the Code or (b) the Trust Fund
to fail to qualify as a REMIC at any time that any  Certificate is  outstanding,
and (ii) no such  substitution  shall be made unless (A) the substitute  Limited
Guaranty or Subordinate Certificate Loss Obligation is for an initial amount not
less than the then current Amount Available and contains  provisions that are in
all material respects equivalent to the original Limited Guaranty or Subordinate
Certificate   Loss   Obligation   (including   that  no  portion  of  the  fees,
reimbursements  or other  obligations under any such instrument will be borne by
the Trust  Fund),  (B) the long  term debt  obligations  of any  obligor  of any
substitute  Limited Guaranty or Subordinate  Certificate Loss Obligation (if not
supported by the Limited Guaranty) shall be rated at least the lesser of (a) the
rating of the long term debt  obligations of GMAC LLC as of the date of issuance
of the Limited  Guaranty and (b) the rating of the long term debt obligations of
GMAC LLC at the date of such  substitution  and (C) if the Class SB Certificates
have been rated,  the Depositor  obtains written  confirmation  from each Rating
Agency that rated the Class SB Certificates at the request of the Depositor that
such substitution  shall not lower the rating on the Class SB Certificates below
the lesser of (a) the then-current  rating assigned to the Class SB Certificates
by such  Rating  Agency and (b) the  original  rating  assigned  to the Class SB

                                      K-2
<PAGE>

Certificates by such Rating Agency.  Any replacement of the Limited  Guaranty or
Subordinate  Certificate  Loss  Obligation  pursuant  to this  Section  shall be
accompanied  by a written  Opinion  of Counsel to the  substitute  guarantor  or
obligor,  addressed to the Master Servicer and the Trustee, that such substitute
instrument  constitutes a legal,  valid and binding obligation of the substitute
guarantor or obligor,  enforceable in accordance with its terms,  and concerning
such other  matters as the Master  Servicer  and the  Trustee  shall  reasonably
request.  Neither the  Depositor,  the Master  Servicer nor the Trustee shall be
obligated  to  substitute  for or replace  the Limited  Guaranty or  Subordinate
Certificate Loss Obligation under any circumstance.

      Section   12.02.    Amendments   Relating   to   the   Limited   Guaranty.
Notwithstanding  Sections 11.01 or 12.01: (i) the provisions of this Article XII
may be amended,  superseded or deleted, (ii) the Limited Guaranty or Subordinate
Certificate Loss Obligation may be amended,  reduced or canceled,  and (iii) any
other  provision of this Agreement which is related or incidental to the matters
described  in this  Article  XII may be amended in any  manner;  in each case by
written  instrument  executed or consented to by the Depositor  and  Residential
Funding but without the consent of any Certificateholder and without the consent
of the Master  Servicer or the Trustee being required  unless any such amendment
would impose any  additional  obligation on, or otherwise  adversely  affect the
interests of, the Master Servicer or the Trustee,  as applicable;  provided that
the Depositor  shall also obtain a letter from each Rating Agency that rated the
Class SB  Certificates  at the request of the  Depositor to the effect that such
amendment,  reduction, deletion or cancellation will not lower the rating on the
Class SB Certificates  below the lesser of (a) the then-current  rating assigned
to the Class SB  Certificates  by such Rating Agency and (b) the original rating
assigned  to the Class SB  Certificates  by such Rating  Agency,  unless (A) the
Holder  of 100% of the  Class  SB  Certificates  is  Residential  Funding  or an
Affiliate of Residential Funding, or (B) such amendment,  reduction, deletion or
cancellation is made in accordance with Section  11.01(e) and,  provided further
that the Depositor  obtains (subject to the provisions of Section 10.01(f) as if
the Depositor was substituted for the Master Servicer solely for the purposes of
such provision),  in the case of a material amendment or supersession (but not a
reduction,  cancellation or deletion of the Limited  Guaranty or the Subordinate
Certificate  Loss  Obligation),  an  Opinion of  Counsel  (which  need not be an
opinion  of  independent  counsel)  to the  effect  that any such  amendment  or
supersession  will not cause  either  (a) any  federal  tax to be imposed on the
Trust Fund, including without limitation, any federal tax imposed on "prohibited
transactions"  under Section  860F(a)(1) of the Code or on "contributions  after
the startup date" under Section  860G(d)(1) of the Code or (b) the Trust Fund to
fail to qualify as a REMIC at any time that any  Certificate is  outstanding.  A
copy of any such  instrument  shall be  provided  to the  Trustee and the Master
Servicer  together with an Opinion of Counsel that such amendment  complies with
this Section 12.02.

                                      K-3
<PAGE>

                                                                       EXHIBIT L

                            FORM OF LIMITED GUARANTY
                    RESIDENTIAL ASSET SECURITIES CORPORATION

                 Mortgage Asset-Backed Pass-Through Certificates
                               Series 20[__]-KS[_]

                                                                __________, 20__

[__________________]
[__________________]
[__________________]

Attention: Residential Funding Company, LLC Series 20[__]-KS[_]

Ladies and Gentlemen:

      WHEREAS,  Residential  Funding Company,  LLC, a Delaware limited liability
company ("Residential  Funding"),  an indirect  wholly-owned  subsidiary of GMAC
LLC, a Delaware  limited  liability  company  ("GMAC"),  plans to incur  certain
obligations  as  described  under  Section  12.01 of the Pooling  and  Servicing
Agreement  dated  as of [___]  1,  20[__]  (the  "Servicing  Agreement"),  among
Residential Asset Securities Corporation (the "Depositor"),  Residential Funding
and [________________]  (the "Trustee") as amended by Amendment No. ___ thereto,
dated as of ________,  with respect to the  Mortgage  Asset-Backed  Pass-Through
Certificates, Series 20[__]-KS[_] (the "Certificates"); and

      WHEREAS, pursuant to Section 12.01 of the Servicing Agreement, Residential
Funding agrees to make payments to the Holders of the Class SB Certificates with
respect to certain  losses on the Mortgage  Loans as described in the  Servicing
Agreement; and

      WHEREAS,  GMAC desires to provide  certain  assurances with respect to the
ability of  Residential  Funding to secure  sufficient  funds and  faithfully to
perform its Subordinate Certificate Loss Obligation;

      NOW  THEREFORE,  in  consideration  of the premises  herein  contained and
certain  other good and valuable  consideration,  the receipt of which is hereby
acknowledged, GMAC agrees as follows:

      2.  Provision of Funds.  (a) GMAC agrees to contribute  and deposit in the
Certificate  Account on behalf of Residential  Funding (or otherwise  provide to
Residential  Funding, or to cause to be made available to Residential  Funding),
either  directly  or  through a  subsidiary,  in any case  prior to the  related
Distribution Date, such moneys as may be required by

                                      L-1
<PAGE>

Residential Funding to perform its Subordinate  Certificate Loss Obligation when
and as the same  arises  from time to time upon the  demand  of the  Trustee  in
accordance with Section 12.01 of the Servicing Agreement.

      (b) The agreement set forth in the preceding clause (a) shall be absolute,
irrevocable and  unconditional and shall not be affected by the transfer by GMAC
or any other person of all or any part of its or their  interest in  Residential
Funding,  by  any  insolvency,   bankruptcy,  dissolution  or  other  proceeding
affecting  Residential  Funding or any other person,  by any defense or right of
counterclaim,  set-off  or  recoupment  that GMAC may have  against  Residential
Funding   or  any  other   person  or  by  any  other   fact  or   circumstance.
Notwithstanding  the  foregoing,  GMAC's  obligations  under  clause  (a)  shall
terminate  upon  the  earlier  of (x)  substitution  for this  Limited  Guaranty
pursuant to Section 12.01(f) of the Servicing Agreement,  or (y) the termination
of the Trust Fund pursuant to the Servicing Agreement.

      3.  Waiver.  GMAC  hereby  waives  any  failure  or  delay  on the part of
Residential  Funding,  the Trustee or any other person in asserting or enforcing
any  rights or in making  any  claims or demands  hereunder.  Any  defective  or
partial  exercise of any such  rights  shall not  preclude  any other or further
exercise  of  that  or  any  other  such  right.  GMAC  further  waives  demand,
presentment,  notice of default,  protest,  notice of  acceptance  and any other
notices with respect to this Limited Guaranty,  including,  without  limitation,
those of action or non-action on the part of Residential Funding or the Trustee.

      4. Modification,  Amendment and Termination.  This Limited Guaranty may be
modified,  amended or terminated  only by the written  agreement of GMAC and the
Trustee and only if such  modification,  amendment or  termination  is permitted
under Section 12.02 of the Servicing  Agreement.  The  obligations of GMAC under
this  Limited  Guaranty  shall  continue  and  remain  in  effect so long as the
Servicing  Agreement is not modified or amended in any way that might affect the
obligations  of GMAC under  this  Limited  Guaranty  without  the prior  written
consent of GMAC.

      5. Successor. Except as otherwise expressly provided herein, the guarantee
herein set forth shall be binding upon GMAC and its respective successors.

      6. Governing  Law. This Limited  Guaranty shall be governed by the laws of
the State of New York.

      7.  Authorization  and  Reliance.  GMAC  understands  that a copy  of this
Limited  Guaranty  shall be  delivered  to the  Trustee in  connection  with the
execution  of  Amendment  No.  __ to the  Servicing  Agreement  and GMAC  hereby
authorizes the Depositor and the Trustee to rely on the covenants and agreements
set forth herein.

      8.  Definitions.  Capitalized  terms used but not otherwise defined herein
shall have the meaning given them in the Servicing Agreement.

      9.  Counterparts.  This Limited  Guaranty may be executed in any number of
counterparts,  each  of  which  shall  be  deemed  to be an  original  and  such
counterparts shall constitute but one and the same instrument.

                                      L-2
<PAGE>

      IN WITNESS  WHEREOF,  GMAC has caused this Limited Guaranty to be executed
and delivered by its respective officers thereunto duly authorized as of the day
and year first above written.

                                             GENERAL MOTORS ACCEPTANCE
                                             CORPORATION

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

Acknowledged by:

[__________________________],
  as Trustee

By:______________________________
Name:____________________________
Title:___________________________

RESIDENTIAL ASSET SECURITIES
CORPORATION

By:______________________________
Name:____________________________
Title:___________________________

                                      L-3
<PAGE>

                                                                       EXHIBIT M

          FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

                                                                __________, 20__

Residential Asset Securities Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota  55437

[__________________]
[__________________]
[__________________]

Attention: Residential Funding Company, LLC Series 20[__]-KS[_]

            Re:   Mortgage  Asset-Backed   Pass-Through   Certificates,   Series
                  20[__]-KS[_] Assignment of Mortgage Loan

Ladies and Gentlemen:

      This letter is delivered to you in connection  with the  assignment by U.S
Bank  National  Association  (the  "Trustee")  to  _______________________  (the
"Lender") of  _______________  (the "Mortgage Loan") pursuant to Section 3.13(d)
of the Pooling and Servicing Agreement (the "Pooling and Servicing  Agreement"),
dated as of [___] 1, 20[__] among Residential Asset Securities  Corporation,  as
depositor  (the  "Depositor"),  Residential  Funding  Company,  LLC,  as  master
servicer, and the Trustee. All terms used herein and not otherwise defined shall
have the meanings set forth in the Pooling and Servicing  Agreement.  The Lender
hereby  certifies,  represents  and warrants to, and covenants  with, the Master
Servicer and the Trustee that:

            (ii) the Mortgage Loan is secured by Mortgaged Property located in a
jurisdiction  in which an  assignment  in lieu of  satisfaction  is  required to
preserve lien priority,  minimize or avoid mortgage recording taxes or otherwise
comply with, or facilitate a refinancing under, the laws of such jurisdiction;

            (iii) the substance of the  assignment  is, and is intended to be, a
refinancing  of such Mortgage Loan and the form of the  transaction is solely to
comply with, or facilitate the transaction under, such local laws;

            (iv) the Mortgage  Loan  following the proposed  assignment  will be
modified  to have a rate of interest  at least 0.25  percent  below or above the
rate of interest on such Mortgage Loan prior to such proposed assignment; and

                                      M-1
<PAGE>

            (v) such  assignment  is at the  request of the  borrower  under the
related Mortgage Loan.

                                             Very truly yours,

                                             ___________________________________
                                             (Lender)

                                             By:________________________________
                                             Name:______________________________
                                             Title:_____________________________

                                      M-2
<PAGE>

                                                                       EXHIBIT N

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

                 _______________________________________________
                 _______________________________________________
                 _______________________________________________
                 _______________________________________________

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

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

            2. The Buyer,  pursuant to Section 5.02 of the Pooling and Servicing
Agreement  (the  "Agreement"),  dated as of [___] 1,  20[__]  among  Residential
Funding Company,  LLC, as master servicer (the "Master  Servicer"),  Residential
Asset   Securities   Corporation,   as   depositor   (the   "Depositor"),    and
[___________________],  as trustee (the  "Trustee")  warrants and represents to,
and covenants with, the Seller, the Trustee and the Master Servicer as follows:

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

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

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

                                      N-1
<PAGE>

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

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

            3. The  Buyer of Class B  Certificates  represents  by virtue of its
purchase or holding of such Certificate (or interest therein) that either

                  a.  it is not an  employee  benefit  plan  or  other  plan  or
            arrangement  subject to the  prohibited  transaction  provisions  of
            ERISA or  Section  4975 of the Code,  or any  person  (including  an
            insurance  company  investing  its general  account,  an  investment
            manager,  a named  fiduciary  or a trustee  of any such plan) who is
            using  "plan  assets"  of any such plan to effect  such  acquisition
            (each of the foregoing, a "Plan Investor");

                  b. [if at the time of such purchase, the rating of the Class B
            Certificates  is BBB- or better][it has acquired and is holding such
            Certificate  in  reliance  on U.S.  Department  of Labor  Prohibited
            Transaction  Exemption ("PTE") 94-29, as most recently  amended,  67
            Fed. Reg. 54487 (Aug. 22, 2002) (the "RFC  Exemption"),  and that it
            understands that there are certain conditions to the availability of
            the RFC Exemption  including that such Certificate must be rated, at
            the time of purchase,  not lower than "BBB-" (or its  equivalent) by
            Fitch, Standard & Poor's or Moody's;]

                  c. (i) such Buyer is an insurance company,  (ii) the source of
            funds  used  to  purchase  or hold  such  Certificate  (or  interest
            therein) is an "insurance  company  general  account" (as defined in
            Prohibited  Transaction Class Exemption  ("PTCE") 95-60),  and (iii)
            the  conditions  set forth in  Sections I and III of PTCE 95-60 have
            been satisfied; or

                                      N-2
<PAGE>

                  d. has  provided  the Trustee,  the  Depositor  and the Master
            Servicer  with an Opinion of Counsel  acceptable  to and in form and
            substance satisfactory to the Trustee, the Depositor, and the Master
            Servicer  to the  effect  that  the  purchase  or  holding  of  this
            Certificate is permissible under applicable law, will not constitute
            or result in any non-exempt prohibited transaction under Section 406
            of ERISA or Section 4975 of the Code (or  comparable  provisions  of
            any subsequent  enactments),  and will not subject the Trustee,  the
            Depositor,  or the Master  Servicer to any  obligation  or liability
            (including obligations or liabilities under ERISA or Section 4975 of
            the Code) in addition to those  undertaken in the  Agreement,  which
            Opinion of  Counsel  shall not be an  expense  of the  Trustee,  the
            Depositor or the Master Servicer.

            4. The Buyer of Class SB Certificates or Class R Certificates

                  a. is not a Plan Investor; or

                  b. has  provided  the Trustee,  the  Depositor  and the Master
            Servicer  with an Opinion of Counsel  acceptable  to and in form and
            substance satisfactory to the Trustee, the Depositor, and the Master
            Servicer  to the  effect  that  the  purchase  or  holding  of  this
            Certificate is permissible under applicable law, will not constitute
            or result in any non-exempt prohibited transaction under Section 406
            of ERISA or Section 4975 of the Code (or  comparable  provisions  of
            any subsequent  enactments),  and will not subject the Trustee,  the
            Depositor,  or the Master  Servicer to any  obligation  or liability
            (including obligations or liabilities under ERISA or Section 4975 of
            the Code) in addition to those  undertaken in the  Agreement,  which
            Opinion of  Counsel  shall not be an  expense  of the  Trustee,  the
            Depositor or the Master Servicer.

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

                                      N-3
<PAGE>

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

______________________________               ______________________________
Print Name of Seller                         Print Name of Purchaser

By:___________________________               By:________________________________
   Name:                                        Name:
   Title:                                       Title:

Taxpayer Identification:                     Taxpayer Identification:

No.___________________________               No.________________________________

Date:_________________________               Date:______________________________

                                      N-4
<PAGE>

                                                            ANNEX I TO EXHIBIT N

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

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

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

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

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

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

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

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

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

                                     N-I-1
<PAGE>

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

      ___   ERISA Plan. The Buyer is an employee benefit plan within the meaning
            of Title I of the Employee  Retirement  Income Security Act of 1974,
            as amended ("ERISA").

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

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

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

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

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

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

                                     N-I-2
<PAGE>

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

____             ___          Will the Buyer be purchasing the Rule 144A
Yes              No           Securities for the Buyer's own account?

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

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

                                             ___________________________________
                                             Print Name of Buyer

                                             By:________________________________
                                                Name:
                                                Title:

                                             Date:______________________________

                                     N-I-3
<PAGE>

                                                           ANNEX II TO EXHIBIT N

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

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

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

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

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

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

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

            11.  The term  "securities"  as used  herein  does not  include  (i)
securities  of  issuers  that are  affiliated  with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of  deposit,  (iii)  loan  participations,   (iv)  repurchase  agreements,   (v)
securities  owned but  subject  to a  repurchase  agreement  and (vi)  currency,
interest rate and commodity swaps.

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

                                     N-II-1
<PAGE>

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

                                             ___________________________________
                                             Print Name of Buyer

                                             By:________________________________
                                                Name:
                                                Title:

                                             IF AN ADVISER:

                                             Print Name of Buyer

                                             Date:______________________________

                                     N-II-2
<PAGE>

                                                                       EXHIBIT O

                                   [RESERVED]

                                      O-1
<PAGE>

                                                                       EXHIBIT P

                       FORM OF ERISA REPRESENTATION LETTER

                                                                __________, 20__

Residential Asset Securities Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[__________________]
[__________________]
[__________________]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

Attention: Residential Asset Securities Corporation Series 20[__]-KS[_]

Re:   Mortgage  Asset-Backed  Pass-Through Certificates,
      Series  20[__]-KS[_], Class SB
      ------------------------------------------------------------

Ladies and Gentlemen:

      [____________________________________]   (the   "Purchaser")   intends  to
purchase from  [______________________________]  (the "Seller")  $[____________]
Initial  Certificate  Principal  Balance of Mortgage  Asset-Backed  Pass-Through
Certificates,  Series  20[__]-KS[_],  Class  ____ (the  "Certificates"),  issued
pursuant to the Pooling and  Servicing  Agreement  (the  "Pooling and  Servicing
Agreement"),  dated as of [___] 1, 20[__]  among  Residential  Asset  Securities
Corporation,  as the depositor (the "Depositor"),  Residential  Funding Company,
LLC, as master  servicer  (the  "Master  Servicer")  and  [_______________],  as
trustee (the "Trustee").  All terms used herein and not otherwise  defined shall
have the  meanings  set  forth  in the  Pooling  and  Servicing  Agreement.  The
Purchaser hereby certifies,  represents and warrants to, and covenants with, the
Depositor, the Trustee and the Master Servicer that:

            (a) The  Purchaser is not an employee  benefit plan or other plan or
      arrangement  subject  to  the  prohibited  transaction  provisions  of the
      Employee Retirement Income Security Act of 1974, as amended ("ERISA"),  or
      Section  4975 of the  Internal  Revenue  Code of  1986,  as  amended  (the
      "Code"),  or any person  (including  an insurance  company  investing  its
      general account,  an investment manager, a named fiduciary or a

                                      P-1
<PAGE>

      trustee of any such plan) who is using  "plan  assets" of any such plan to
      effect such acquisition (each of the foregoing, a "Plan Investor"); or

            (b) The  Purchaser  has provided the Trustee,  the Depositor and the
      Master  Servicer with an Opinion of Counsel  acceptable to and in form and
      substance  satisfactory  to the  Trustee,  the  Depositor  and the  Master
      Servicer to the effect that the  purchase  or holding of  Certificates  is
      permissible  under  applicable  law, will not  constitute or result in any
      non-exempt  prohibited  transaction  under Section 406 of ERISA or Section
      4975 of the Code (or comparable provisions of any subsequent  enactments),
      and will not subject the Trustee,  the Depositor or the Master Servicer to
      any obligation or liability  (including  obligations or liabilities  under
      ERISA or Section 4975 of the Code) in addition to those  undertaken in the
      Pooling and Servicing Agreement,  which Opinion of Counsel shall not be at
      the expense of the Trustee, the Depositor or the Master Servicer.

      In addition,  the Purchaser hereby certifies,  represents and warrants to,
and covenants with, the Depositor,  the Trustee and the Master Servicer that the
Purchaser will not transfer such  Certificates to any Plan or person unless such
Plan or person meets the requirements set forth in either (a) or (b) above.

                                             Very truly yours,

                                             ___________________________________
                                             (Purchaser)

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                      P-2
<PAGE>

                                                                       EXHIBIT Q

                                   [RESERVED]

                                       Q-1
<PAGE>

                                                                       EXHIBIT R

                              ASSIGNMENT AGREEMENT

                    (a copy can be obtained from the Trustee)

                                       R-1
<PAGE>

                                                                       EXHIBIT S

         SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      The assessment of compliance to be delivered by the Trustee shall address,
at a  minimum,  the  criteria  identified  as  below  as  "Applicable  Servicing
Criteria":

--------------------------------------------------------------------------------
                                                                      Applicable
                                                                       Servicing
                      Servicing Criteria                               Criteria
--------------------------------------------------------------------------------
Reference                          Criteria
--------------------------------------------------------------------------------
                        General Servicing Considerations
--------------------------------------------------------------------------------
1122(d)(1)(i)       Policies and procedures are instituted to
                    monitor any performance or other triggers and
                    events of default in accordance with the
                    transaction agreements.
--------------------------------------------------------------------------------
1122(d)(1)(ii)      If any material servicing activities are
                    outsourced to third parties, policies and
                    procedures are instituted to monitor the
                    third party's performance and compliance with
                    such servicing activities.
--------------------------------------------------------------------------------
1122(d)(1)(iii)     Any requirements in the transaction
                    agreements to maintain a back-up servicer for
                    the pool assets are maintained.
--------------------------------------------------------------------------------
1122(d)(1)(iv)      A fidelity bond and errors and omissions
                    policy is in effect on the party
                    participating in the servicing function
                    throughout the reporting period in the amount
                    of coverage required by and otherwise in
                    accordance with the terms of the transaction
                    agreements.
--------------------------------------------------------------------------------
                       Cash Collection and Administration
--------------------------------------------------------------------------------
1122(d)(2)(i)       Payments on pool assets are deposited into           |X|
                    the appropriate custodial bank accounts and
                    related bank clearing accounts no more than
                    two business days following receipt, or such
                    other number of days specified in the
                    transaction agreements.
--------------------------------------------------------------------------------
1122(d)(2)(ii)      Disbursements made via wire transfer on              |X|
                    behalf of an obligor or to an investor are
                    made only by authorized personnel.
--------------------------------------------------------------------------------
1122(d)(2)(iii)     Advances of funds or guarantees regarding
                    collections, cash flows or distributions, and
                    any interest or other fees charged for such
                    advances, are made, reviewed and approved as
                    specified in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(2)(iv)      The related accounts for the transaction,
                    such as cash reserve accounts or accounts
                    established as a form of
                    overcollateralization, are separately
                    maintained (e.g., with respect to commingling
                    of cash) as set forth in the transaction
                    agreements.
--------------------------------------------------------------------------------

                                      S-1
<PAGE>

--------------------------------------------------------------------------------
                                                                      Applicable
                                                                       Servicing
                      Servicing Criteria                               Criteria
--------------------------------------------------------------------------------
Reference                          Criteria
--------------------------------------------------------------------------------
1122(d)(2)(v)       Each custodial account is maintained at a
                    federally insured depository institution as
                    set forth in the transaction agreements. For
                    purposes of this criterion, "federally
                    insured depository institution" with respect
                    to a foreign financial institution means a
                    foreign financial institution that meets the
                    requirements of Rule 13k-1(b)(1) of the
                    Securities Exchange Act.
--------------------------------------------------------------------------------
1122(d)(2)(vi)      Unissued checks are safeguarded so as to
                    prevent unauthorized access.
--------------------------------------------------------------------------------
1122(d)(2)(vii)     Reconciliations are prepared on a monthly
                    basis for all asset-backed securities related
                    bank accounts, including custodial accounts
                    and related bank clearing accounts. These
                    reconciliations are (A) mathematically
                    accurate; (B) prepared within 30 calendar
                    days after the bank statement cutoff date, or
                    such other number of days specified in the
                    transaction agreements; (C) reviewed and
                    approved by someone other than the person who
                    prepared the reconciliation; and (D) contain
                    explanations for reconciling items. These
                    reconciling items are resolved within 90
                    calendar days of their original
                    identification, or such other number of days
                    specified in the transaction agreements.
--------------------------------------------------------------------------------
                       Investor Remittances and Reporting
--------------------------------------------------------------------------------
1122(d)(3)(i)       Reports to investors, including those to be
                    filed with the Commission, are maintained in
                    accordance with the transaction agreements
                    and applicable Commission requirements.
                    Specifically, such reports (A) are prepared
                    in accordance with timeframes and other terms
                    set forth in the transaction agreements; (B)
                    provide information calculated in accordance
                    with the terms specified in the transaction
                    agreements; (C) are filed with the Commission
                    as required by its rules and regulations; and
                    (D) agree with investors' or the trustee's
                    records as to the total unpaid principal
                    balance and number of pool assets serviced by
                    the servicer.
--------------------------------------------------------------------------------
1122(d)(3)(ii)      Amounts due to investors are allocated and           |X|
                    remitted in accordance with timeframes,
                    distribution priority and other terms set
                    forth in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(3)(iii)     Disbursements made to an investor are posted         |X|
                    within two business days to the servicer's
                    investor records, or such other number of
                    days specified in the transaction agreements.
--------------------------------------------------------------------------------

                                      S-2
<PAGE>

--------------------------------------------------------------------------------
                                                                      Applicable
                                                                       Servicing
                      Servicing Criteria                               Criteria
--------------------------------------------------------------------------------
Reference                          Criteria
--------------------------------------------------------------------------------
1122(d)(3)(iv)      Amounts remitted to investors per the                |X|
                    investor reports agree with cancelled checks,
                    or other form of payment, or custodial bank
                    statements.
--------------------------------------------------------------------------------
                            Pool Asset Administration

1122(d)(4)(i)       Collateral or security on pool assets is             |X|
                    maintained as required by the transaction
                    agreements or related asset pool documents.
--------------------------------------------------------------------------------
1122(d)(4)(ii)      Pool assets and related documents are                |X|
                    safeguarded as required by the transaction
                    agreements.
--------------------------------------------------------------------------------
1122(d)(4)(iii)     Any additions, removals or substitutions to
                    the asset pool are made, reviewed and
                    approved in accordance with any conditions or
                    requirements in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(iv)      Payments on pool assets, including any
                    payoffs, made in accordance with the related
                    pool asset documents are posted to the
                    servicer's obligor records maintained no more
                    than two business days after receipt, or such
                    other number of days specified in the
                    transaction agreements, and allocated to
                    principal, interest or other items (e.g.,
                    escrow) in accordance with the related pool
                    asset documents.
--------------------------------------------------------------------------------
1122(d)(4)(v)       The servicer's records regarding the pool
                    assets agree with the servicer's records with
                    respect to an obligor's unpaid principal
                    balance.
--------------------------------------------------------------------------------
1122(d)(4)(vi)      Changes with respect to the terms or status
                    of an obligor's pool asset (e.g., loan
                    modifications or re-agings) are made,
                    reviewed and approved by authorized personnel
                    in accordance with the transaction agreements
                    and related pool asset documents.
--------------------------------------------------------------------------------
1122(d)(4)(vii)     Loss mitigation or recovery actions (e.g.,
                    forbearance plans, modifications and deeds in
                    lieu of foreclosure, foreclosures and
                    repossessions, as applicable) are initiated,
                    conducted and concluded in accordance with
                    the timeframes or other requirements
                    established by the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(viii)    Records documenting collection efforts are
                    maintained during the period a pool asset is
                    delinquent in accordance with the transaction
                    agreements. Such records are maintained on at
                    least a monthly basis, or such other period
                    specified in the transaction agreements, and
                    describe the entity's activities in
                    monitoring delinquent pool assets including,
                    for
--------------------------------------------------------------------------------

                                      S-3
<PAGE>

--------------------------------------------------------------------------------
                                                                      Applicable
                                                                       Servicing
                      Servicing Criteria                               Criteria
--------------------------------------------------------------------------------
Reference                          Criteria
--------------------------------------------------------------------------------
                    for example, phone calls, letters and payment
                    rescheduling plans in cases where delinquency
                    is deemed temporary (e.g., illness or
                    unemployment).
--------------------------------------------------------------------------------
1122(d)(4)(ix)      Adjustments to interest rates or rates of
                    return for pool assets with variable rates
                    are computed based on the related pool asset
                    documents.
--------------------------------------------------------------------------------
1122(d)(4)(x)       Regarding any funds held in trust for an
                    obligor (such as escrow accounts): (A) such
                    funds are analyzed, in accordance with the
                    obligor's pool asset documents, on at least
                    an annual basis, or such other period
                    specified in the transaction agreements; (B)
                    interest on such funds is paid, or credited,
                    to obligors in accordance with applicable
                    pool asset documents and state laws; and (C)
                    such funds are returned to the obligor within
                    30 calendar days of full repayment of the
                    related pool asset, or such other number of
                    days specified in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xi)      Payments made on behalf of an obligor (such
                    as tax or insurance payments) are made on or
                    before the related penalty or expiration
                    dates, as indicated on the appropriate bills
                    or notices for such payments, provided that
                    such support has been received by the
                    servicer at least 30 calendar days prior to
                    these dates, or such other number of days
                    specified in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xii)     Any late payment penalties in connection with
                    any payment to be made on behalf of an
                    obligor are paid from the servicer's funds
                    and not charged to the obligor, unless the
                    late payment was due to the obligor's error
                    or omission.
--------------------------------------------------------------------------------
1122(d)(4)(xiii)    Disbursements made on behalf of an obligor
                    are posted within two business days to the
                    obligor's records maintained by the servicer,
                    or such other number of days specified in the
                    transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xiv)     Delinquencies, charge-offs and uncollectible
                    accounts are recognized and recorded in
                    accordance with the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xv)      Any external enhancement or other support,
                    identified in Item 1114(a)(1) through (3) or
                    Item 1115 of Regulation AB, is maintained as
                    set forth in the transaction agreements.
--------------------------------------------------------------------------------

                                      S-4
<PAGE>

                                                                     EXHIBIT T-1

                         FORM OF FORM 10-K CERTIFICATION

      I, [identify the certifying individual], certify that:

      1. I have  reviewed  the annual  report on Form 10-K for the  fiscal  year
[____], and all reports on Form 8-K containing distribution or servicing reports
filed in respect of periods  included in the year covered by that annual report,
of the trust  (the  "Trust")  created  pursuant  to the  Pooling  and  Servicing
Agreement dated as of [___] 1, 20[__] (the "P&S  Agreement")  among  Residential
Asset Securities Corporation (the "Depositor"), Residential Funding Company, LLC
(the "Master Servicer") and [______________] (the "Trustee");

      2. Based on my knowledge,  the  information in these  reports,  taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a  material  fact  necessary  to make  the  statements  made,  in  light  of the
circumstances  under which such  statements  were made, not misleading as of the
last day of the period covered by this annual report;

      3.  Based  on my  knowledge,  the  servicing  information  required  to be
provided  to the  Trustee by the Master  Servicer  under the P&S  Agreement  for
inclusion in these reports is included in these reports;

      4. I am responsible  for reviewing the activities  performed by the Master
Servicer  under the P&S  Agreement  and based upon my  knowledge  and the annual
compliance review required under the P&S Agreement,  and, except as disclosed in
the reports,  the Master  Servicer has fulfilled its  obligations  under the P&S
Agreement; and

      5. The  reports  disclose  all  significant  deficiencies  relating to the
Master Servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public  accountant,  after conducting a review
in compliance with the P&S Agreement, that is included in these reports.

      In  giving  the  certifications  above,  I have  reasonably  relied on the
information provided to me by the following unaffiliated parties: [the Trustee].

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.

                                                    ____________________________
                                                    Name:
                                                    Title:

* to be signed by the senior officer in charge of the servicing functions of the
Master Servicer

                                      T-1-1
<PAGE>

                                                                     EXHIBIT T-2

             FORM OF BACK-UP CERTIFICATE TO FORM 10-K CERTIFICATION

      The undersigned, a Responsible Officer of [______________] (the "Trustee")
certifies that:

      1.    The Trustee has performed all of the duties specifically required to
            be  performed  by it pursuant to the  provisions  of the Pooling and
            Servicing Agreement dated as of [___] 1, 20[__] (the "Agreement") by
            and among  Residential Asset Securities  Corporation,  as Depositor,
            Residential  Funding  Company,  LLC,  as  Master  Servicer,  and the
            Trustee in accordance with the standards set forth therein.

      2.    Based on my knowledge,  the list of  Certificateholders  as shown on
            the Certificate Register as of the end of each calendar year that is
            provided  by the  Trustee  pursuant  to  Section  4.03(e)(I)  of the
            Agreement is accurate as of the last day of the 20[ ] calendar year.

      Capitalized  terms used and not  defined  herein  shall have the  meanings
given such terms in the Agreement.

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.

                                                    ____________________________
                                                    Name:
                                                    Title:

                                     T-2-1
<PAGE>

                                                                       EXHIBIT U

        INFORMATION TO BE PROVIDED BY THE MASTER SERVICER TO THE RATING
             AGENCIES RELATING TO REPORTABLE MODIFIED MORTGAGE LOANS

Account number
Transaction Identifier
Unpaid Principal Balance prior to Modification
Next Due Date
Monthly Principal and Interest  Payment
Total Servicing Advances
Current Interest Rate
Original Maturity Date
Original Term to Maturity (Months)
Remaining Term to Maturity (Months)
Trial Modification Indicator
Mortgagor Equity Contribution
Total Servicer Advances
Trial Modification Term (Months)
Trial Modification Start Date
Trial Modification End Date
Trial Modification Period Principal and Interest Payment
Trial Modification Interest Rate
Trial Modification Term
Rate Reduction Indicator
Interest Rate Post Modification
Rate Reduction Start Date
Rate Reduction End  Date
Rate Reduction Term
Term Modified Indicator
Modified Amortization Period
Modified Final Maturity Date
Total Advances Written Off
Unpaid Principal Balance Written Off
Other Past Due Amounts Written Off
Write Off Date
Unpaid Principal Balance Post Write Off
Capitalization Indicator
Mortgagor Contribution
Total Capitalized Amount
Modification Close Date
Unpaid Principal Balance Post Capitalization Modification
Next Payment Due Date per Modification Plan
Principal and Interest Payment Post Modification
Interest Rate Post Modification
Payment Made Post Capitalization
Delinquency Status to Modification Plan

                                       U-1
<PAGE>

                                                                       EXHIBIT V

              FORM OF CERTIFICATE TO BE GIVEN BY CERTIFICATE OWNER

Euroclear                                  Cedel, societe anonyme
151 Boulevard Jacqmain                     67 Boulevard Grand-Duchesse Charlotte
B-1210 Brussels, Belgium                   L-1331 Luxembourg

      Re:  Residential  Asset  Securities  Corporation,   Mortgage  Asset-Backed
      Pass-Through  Certificates,  Series  20[__]-KS[_],  Class [B][SB],  issued
      pursuant  to the  Pooling  and  Servicing  Agreement  dated as of [___] 1,
      20[__] among Residential Asset Securities Corporation, Residential Funding
      Company, LLC, and [___________________], as Trustee (the "Certificates").

      This is to  certify  that as of the date  hereof  and  except as set forth
below, the beneficial  interest in the Certificates  held by you for our account
is owned by persons that are not U.S.  persons (as defined in Rule 901 under the
Securities Act of 1933, as amended).

      The  undersigned  undertakes  to advise you promptly by tested telex on or
prior to the date on which you intend to submit your  certification  relating to
the Certificates  held by you in which the undersigned has acquired,  or intends
to acquire, a beneficial  interest in accordance with your operating  procedures
if any applicable  statement  herein is not correct on such date. In the absence
of any such notification,  it may be assumed that this certification  applies as
of such date.

      [This certification excepts beneficial interests in and does not relate to
U.S. $_________ principal amount of the Certificates  appearing in your books as
being held for our  account  but that we have sold or as to which we are not yet
able to certify.]

      We  understand  that this  certification  is required in  connection  with
certain  securities laws in the United States of America.  If  administrative or
legal  proceedings  are commenced or  threatened  in connection  with which this
certification is or would be relevant,  we irrevocably  authorize you to produce
this   certification  or  a  copy  thereof  to  any  interested  party  in  such
proceedings.

Dated:_______________,*/   By:_____________________,
                                Account Holder

--------
*     Certification must be dated on or after the 15th day before
      the date of the Euroclear or Cedel certificate to which
      this certification releases.

                                       V-1
<PAGE>

                                                                       EXHIBIT W

              FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR OR CEDEL

      [______________]

      Re:   Residential  Asset  Securities  Corporation,  Mortgage  Asset-Backed
            Pass-Through  Certificates,   Series  20[__]-KS[_],  Class  [B][SB],
            issued  pursuant to the Pooling and Servicing  Agreement dated as of
            [___] 1, 20[__]  among  Residential  Asset  Securities  Corporation,
            Residential Funding Company, LLC, and [________________], as Trustee
            (the "Certificates").

      This is to certify that, based solely on  certifications  we have received
in  writing,  by  tested  telex  or  by  electronic   transmission  from  member
organizations appearing in our records as persons being entitled to a portion of
the principal amount set forth below (our "Member Organizations") as of the date
hereof,  $____________  principal amount of the Certificates is owned by persons
(a) that are not U.S.  persons (as defined in Rule 901 under the  Securities Act
of  1933.  as  amended  (the  "Securities  Act"))  or (b)  who  purchased  their
Certificates  (or interests  therein) in a transaction or transactions  that did
not require registration under the Securities Act.

      We further  certify  (a) that we are not  making  available  herewith  for
exchange any portion of the related Temporary  Regulation S Global Class [B][SB]
Certificate  excepted in such  certifications and (b) that as of the date hereof
we have not received any  notification  from any of our Member  Organizations to
the effect that the  statements  made by them with respect to any portion of the
part  submitted  herewith  for  exchange are no longer true and cannot be relied
upon as of the date hereof

      We  understand  that this  certification  is required in  connection  with
certain  securities laws of the United States of America.  If  administrative or
legal  proceedings  are commenced or  threatened  in connection  with which this
certification is or would be relevant,  we irrevocably  authorize you to produce
this certification or a copy hereof to any interested party in such proceedings.

Date:__________________*             Yours faithfully,

* To be dated no earlier             By:_____________________________
than the Effective Date.             Morgan Guaranty Trust Company of New York,
                                     Brussels Office, as Operator of the
                                     Euroclear Clearance System Cedel, Societe
                                     anonyme

                                       W-1
<PAGE>

                                                                       EXHIBIT X

                                     FORM OF
                      CERTIFICATE TO BE GIVEN BY TRANSFEREE
                    OF BENEFICIAL INTEREST IN A REGULATION S
                             BOOK-ENTRY CERTIFICATE

Euroclear                                  Cedel, societe anonyme
151 Boulevard Jacqmain                     67 Boulevard Grand-Duchesse Charlotte
B- 1210 Brussels, Belgium                  L- 1331 Luxembourg

      Re:   Residential  Asset  Securities  Corporation,  Mortgage  Asset-Backed
            Pass-Through  Certificates,   Series  20[__]-KS[_],  Class  [B][SB],
            issued  pursuant to the Pooling and Servicing  Agreement dated as of
            [___] 1, 20[__]  among  Residential  Asset  Securities  Corporation,
            Residential  Funding  Company,  LLC,  and  [__________________],  as
            Trustee (the "Certificates").

      This is to  certify  that as of the date  hereof,  and except as set forth
below, for purposes of acquiring a beneficial interest in the Certificates,  the
undersigned certifies that it is not a U.S. person (as defined in Rule 901 under
the Securities Act of 1933, as amended).

      The  undersigned  undertakes  to advise you promptly by tested telex on or
prior to the date on which you intend to submit your  certification  relating to
the  Certificates  held by you in which the  undersigned  intends  to  acquire a
beneficial  interest  in  accordance  with  your  operating  procedures  if  any
applicable  statement  herein is not correct on such date. In the absence of any
such notification,  it may be assumed that this certification applies as of such
date.

      We  understand  that this  certification  is required in  connection  with
certain  securities laws in the United States of America.  If  administrative or
legal  proceedings  are commenced or  threatened  in connection  with which this
certification is or would be relevant,  we irrevocably  authorize you to produce
this   certification  or  a  copy  thereof  to  any  interested  party  in  such
proceedings.

Dated:________________             By:_______________

                                       X-1
<PAGE>

                                                                       EXHIBIT Y

                                     FORM OF
                      TRANSFER CERTIFICATE FOR EXCHANGE OR
                    TRANSFER FROM 144A BOOK-ENTRY CERTIFICATE
                     TO REGULATION S BOOK-ENTRY CERTIFICATE

                              [___________________]

      Re:   Residential  Asset  Securities  Corporation,  Mortgage  Asset-Backed
            Pass-Through  Certificates,   Series  20[__]-KS[_],  Class  [B][SB],
            issued  pursuant to the Pooling and Servicing  Agreement dated as of
            [___]  1,  20[__]  (the   "Agreement"),   among   Residential  Asset
            Securities   Corporation,   Residential  Funding  Company,  LLC  and
            [___________________], as Trustee (the "Certificates").

      Capitalized  terms used but not  defined  herein  shall have the  meanings
given to them in the Agreement.

      This letter relates to U.S. $____________ principal amount of Certificates
that are held as a beneficial interest in the 144A Book-Entry Certificate (CUSIP
No.  ________)  with  DTC in the  name  of  [insert  name  of  transferor]  (the
"Transferor").  The  Transferor  has  requested  an  exchange or transfer of the
beneficial  interest for an interest in the Permanent  Regulation S Global Class
[B][SB]  Certificate  (CUSIP No. ________) to be held with  [Euroclear]  [Cedel]
through DTC.

      In  connection  with the request and in receipt of the  Certificates,  the
Transferor  does hereby  certify that the exchange or transfer has been effected
in accordance with the transfer  restrictions set forth in the Agreement and the
Certificates and:

            (a)  pursuant  to and in  accordance  with  Regulation  S under  the
      Securities Act of 1933, as amended (the "Securities Act"), and accordingly
      the Transferor does hereby certify that:

                  (i) the offer of the  Certificates was not made to a person in
            the United States of America,

                  [(ii) at the time the buy order was originated, the transferee
            was outside the United States of America or the  Transferor  and any
            person acting on its behalf reasonably  believed that the transferee
            was outside the United States of America,

                  (ii) the  transaction  was  executed  in,  on or  through  the
            facilities of a designated  offshore  securities  market and neither
            the  Transferor  nor any person

                                      Y-1
<PAGE>

            acting on its behalf  knows that the  transaction  was  pre-arranged
            with a buyer in the United States of America,]**/

                  (iii)  no  directed   selling   efforts   have  been  made  in
            contravention  of the  requirements  of Rule  903(b)  or  904(b)  of
            Regulation 5, as applicable,

                  (iv) the  transaction is not part of a plan or scheme to evade
            the registration requirements of the Securities Act, and

            (b) with respect to transfers made in reliance on Rule 144 under the
      Securities Act, the Transferor  does hereby certify that the  Certificates
      are being  transferred  in a  transaction  permitted by Rule 144 under the
      Securities Act.

      This  certification and the statements  contained herein are made for your
benefit and the benefit of the issuer and the [placement agent].

                                                    [Insert name of Transferor]

Date:________________                               By:_________________________
                                                    Title:______________________

----------
**    Insert  one of these two  provisions,  which come from the  definition  of
      "offshore transactions" in Regulation S.

                                      Y-2
<PAGE>

                                                                       EXHIBIT Z

                                     FORM OF
                     INITIAL PURCHASER EXCHANGE INSTRUCTIONS

Depository Trust Company
55 Water Street
50th Floor
New York, New York 10041

      Re:   Residential  Asset  Securities  Corporation,  Mortgage  Asset-Backed
            Pass-Through  Certificates,   Series  20[__]-KS[_],  Class  [B][SB],
            issued  pursuant to the Pooling and Servicing  Agreement dated as of
            [___] 1, 20[__] (the "Agreement") among Residential Asset Securities
            Corporation,     Residential     Funding    Company,     LLC,    and
            [__________________], as Trustee (the "Certificates").

      Pursuant  to Section  5.02(e) of the  Agreement,  ________________________
(the  "Initial  Purchaser")  hereby  requests  that  $______________   aggregate
principal amount of the Certificates held by you for our account and represented
by the  Temporary  Regulation  S Global  Class  [B][SB]  Certificate  (CUSIP No.
________)  (as defined in the  Agreement)  be exchanged  for an equal  principal
amount represented by the Rule 144A Global Class [B][SB]  Certificate (CUSIP No.
_______) to be held by you for our account.

Date:__________________                             [Initial Purchaser]

                                                    By:________________
                                                    Title:_____________

                                       Z-1EXHIBIT 4.2
                                                                     -----------

                             FORM OF TRUST AGREEMENT

                    RESIDENTIAL ASSET SECURITIES CORPORATION
                                    Company,

                       [NAME OF CERTIFICATE ADMINISTRATOR]
                            Certificate Administrator

                                       and

                                [NAME OF TRUSTEE]
                                     Trustee

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

                                 TRUST AGREEMENT
                              Dated as of [ , 200 ]

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

                 Mortgage Asset-Backed Pass-Through Certificates
                                 Series [200 - ]

<PAGE>

                               TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

Section 1.01.  Defined Terms.................................................  2

                                   ARTICLE II
                CONVEYANCE OF THE UNDERLYING MORTGAGE SECURITIES;
                     ORIGINAL ISSUANCE OF THE CERTIFICATES

Section 2.01.  Conveyance of the Underlying Agency Securities................ 11

Section 2.02.  Acceptance by Trustee......................................... 12

Section 2.03.  Execution and Authentication of Certificates.................. 12

                                   ARTICLE III
               ADMINISTRATION OF THE UNDERLYING AGENCY SECURITIES;
                         REPORTS TO CERTIFICATEHOLDERS

Section 3.01.  Administration of the Trust Fund and the
               Underlying Agency Securities.................................. 12

Section 3.02.  Collection of Monies.......................................... 13

Section 3.03.  Establishment of Certificate Account; Deposits
               in Certificate Account........................................ 13

Section 3.04.  Permitted Withdrawals From the Certificate Account............ 14

Section 3.05.  Annual Statement as to Compliance............................. 14

Section 3.06.  Annual Independent Public Accountants' Servicing Report....... 15

Section 3.07.  Rights of the Company in Respect of the
               Certificate Administrator..................................... 15

                                   ARTICLE IV
                         PAYMENTS TO CERTIFICATEHOLDERS

Section 4.01.  Distributions................................................. 16

Section 4.02.  Statements to Certificateholders.............................. 18

Section 4.03.  Access to Certain Documentation and Information............... 19

Section 4.04.  Permitted Investments......................................... 19

Section 4.05.  Exchange Act Reporting........................................ 19

                                    ARTICLE V
                                THE CERTIFICATES

Section 5.01.  The Certificates.............................................. 20

Section 5.02.  Registration of Transfer and Exchange of Certificates......... 21

Section 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates............. 25

Section 5.04.  Persons Deemed Owners......................................... 25

Section 5.05.  Appointment of Paying Agent................................... 25

                                       i
<PAGE>
                               TABLE OF CONTENTS

                                   ARTICLE VI
                  THE COMPANY AND THE CERTIFICATE ADMINISTRATOR

Section 6.01.  Respective Liabilities of the Company and the
               Certificate Administrator..................................... 26

Section 6.02.  Merger, Consolidation or Conversion of the Company
               or the Certificate Administrator.............................. 26

Section 6.03.  Limitation on Liability of the Company, the
               Certificate Administrator and Others.......................... 26

Section 6.04.  Company and Certificate Administrator Not to Resign........... 27

                                   ARTICLE VII
                                     DEFAULT

Section 7.01.  Events of Default............................................. 28

Section 7.02.  Trustee or Company to Act; Appointment of Successor........... 29

Section 7.03.  Notification to Certificateholders............................ 30

Section 7.04.  Waiver of Events of Default................................... 30

                                  ARTICLE VIII
                                   THE TRUSTEE

Section 8.01.  Duties of Trustee............................................. 30

Section 8.02.  Certain Matters Affecting the Trustee......................... 32

Section 8.03.  Trustee Not Liable for Certificates or
               Underlying Agency Securities.................................. 34

Section 8.04.  Trustee May Own Certificates.................................. 34

Section 8.05.  Certificate Administrator to Pay Trustee's
               Fees and Expenses; Indemnification............................ 34

Section 8.06.  Eligibility Requirements for Trustee.......................... 35

Section 8.07.  Resignation and Removal of the Trustee........................ 36

Section 8.08.  Successor Trustee............................................. 36

Section 8.09.  Merger or Consolidation of Trustee............................ 37

Section 8.10.  Appointment of Co-Trustee or Separate Trustee................. 37

Section 8.11.  Appointment of Office or Agency............................... 38

                                   ARTICLE IX
                                   TERMINATION

Section 9.01.  Termination................................................... 38

Section 9.02.  Additional Termination Requirements........................... 40

<PAGE>

                                    ARTICLE X
                                REMIC PROVISIONS

Section 10.01. REMIC Administration.......................................... 41

Section 10.02. Certificate Administrator and Trustee
               Indemnification............................................... 44

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

Section 11.01. Amendment..................................................... 44

Section 11.02. Counterparts.................................................. 46

Section 11.03. Limitation on Rights of Certificateholders.................... 46

Section 11.04. Governing Law................................................. 47

Section 11.05. Notices....................................................... 47

Section 11.06. Notices to Rating Agency...................................... 47

Section 11.07. Severability of Provisions.................................... 48

Section 11.08. Successors and Assigns........................................ 48

Section 11.09. Article and Section Headings.................................. 48

                                   ARTICLE XII
                          COMPLIANCE WITH REGULATION AB

Section 12.01. Intent of the Parties; Reasonableness......................... 48

Section 12.02. Additional Representations and Warranties
               of the Trustee................................................ 49

Section 12.03. Information to Be Provided by the Trustee..................... 49

Section 12.04. Report on Assessment of Compliance and Attestation............ 49

Section 12.05. Indemnification; Remedies..................................... 50

Exhibit A-1  Form of Class [A-1][A-2][A-3][S] Certificate
Exhibit A-2  Form of Class R Certificate
Exhibit B-1  Form of Transfer Affidavit and Agreement
Exhibit B-2  Form of Transferor Certificate
Exhibit C    Back-Up Certification of Trustee
Exhibit D    Servicing Criteria

<PAGE>

      THIS  TRUST  AGREEMENT,  dated as of [ 1, 200 ], by and among  Residential
Asset  Securities  Corporation,  as the  company  (together  with its  permitted
successors  and  assigns,  the  "Company"),  [ ]  (together  with its  permitted
successors and assigns,  the  "Certificate  Administrator")  and [ ], as trustee
(together with its permitted successors and assigns (the "Trustee")).

                              PRELIMINARY STATEMENT

      The  Company  is the  owner  of the  Underlying  Agency  Securities  being
conveyed  by it to the  Trustee  for  inclusion  in the Trust  Fund and has duly
authorized  the execution and delivery of this Agreement to provide for the sale
and  conveyance  to the  Trustee of the  Underlying  Agency  Securities  and the
issuance  of  the  Mortgage  Asset-Backed  Pass-Through   Certificates,   Series
[200_-__],  Class  [A-1],  Class  [A-2],  Class  [A-3],  Class [S],  and Class R
(collectively,  the  "Certificates"),  representing  in the aggregate all of the
"regular   interests"  and  "residual   interests"  in  the  Trust  Fund,  which
Certificates  are  issuable as provided in this  Agreement.  All  covenants  and
agreements made by the Company,  the Certificate  Administrator  and the Trustee
herein are for the benefit of the Holders of the  Certificates.  The Company and
the Certificate  Administrator are entering into this Agreement, and the Trustee
is accepting the trusts created hereby, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged.

      The Underlying  Agency Securities are [GNMA] [I] [II] Certificates and are
identified as [_______________]. The Aggregate Underlying Certificate Balance as
of the Closing Date will be $[_____________].

      The  following  table  sets  forth  the  designation,  Pass-Through  Rate,
aggregate Initial  Certificate  Principal Balance,  features,  Maturity Date and
initial  rating for each Class of  Certificates  comprising the interests in the
Trust Fund created hereunder.

<TABLE>
<CAPTION>
                                     Aggregate
                  Pass-Through   Initial Principal                  Maturity                    Initial
  Designation         Rate            Balance         Features        Date                       Rating
  -----------         ----            -------         --------        ----                       ------
                                                                                   [S&P]         [Fitch]     [Moody's]
                                                                                   -----         -------     ---------
<S>               <C>            <C>                  <C>           <C>            <C>          <C>          <C>
Class [A-1]      [________]%     $[____________]    Sequential

Class [A-2]      [________]%     $[____________]    Sequential

Class [A-3]      [________]%     $[____________]    Sequential/
                                                    Accrual

Class [S]        [________]%     $[____________]    Fixed Strip

Class R          [________]%     $[____________]    Residual
</TABLE>

      In  consideration  of  the  premises  and  the  mutual  agreements  herein
contained,  the Company, the Certificate  Administrator and the Trustee agree as
follows:

<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

Section 1.01  Defined Terms.

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

      Accretion  Termination Date: With respect to the Class [A-3] Certificates,
the first  Distribution Date on which the Certificate  Principal Balances of the
Class R, Class [A-1] and Class [A-2] Certificates have been reduced to zero.

      Accretion  Amount:  As to any  Distribution  Date, the amount set forth in
Section 4.01(b).

      Accrued Certificate Interest:  With respect to each Distribution Date, (a)
as to each Class of Certificates  (other than the Class [S]  Certificates),  one
month's   interest  accrued  on  the  Certificate   Principal   Balance  of  the
Certificates of such Class at the related  Pass-Through Rate and (b) in the case
of the Class [S]  Certificates,  one  month's  interest  accrued on the  related
Notional Amount at the related  Pass-Through Rate. Accrued Certificate  Interest
will be  calculated  on the basis of a 360-day year  consisting of twelve 30-day
months. In each case, Accrued Certificate  Interest on any Class of Certificates
will be reduced by the amount (to the extent  such  amount is  allocated  to the
Underlying  Agency  Securities)  of the  following  shortfalls:  (i)  Prepayment
Interest Shortfalls, and (ii) any other interest shortfalls,  including interest
that is not  collectible  from  the  Mortgagor  pursuant  to the  Soldiers'  and
Sailors'  Civil  Relief  Act of 1940,  as  amended;  with  all  such  reductions
allocated among the  Certificates in proportion to their  respective  amounts of
Accrued Certificate Interest which would have resulted absent such reductions.

      Affiliate:  An "affiliate"  of, or Person  "affiliated"  with, a specified
Person,  is  a  Person  that  directly,   or  indirectly  through  one  or  more
intermediaries,  controls or is controlled  by, or is under common control with,
the Person specified.

      Aggregate Underlying Certificate Balance: As of any date of determination,
the aggregate of the  Underlying  Certificate  Balances of all of the Underlying
Agency  Securities  as of such  date.  As of the  Closing  Date,  the  Aggregate
Underlying  Certificate  Balance  was  $[_________],   after  giving  effect  to
distributions made thereon prior to the Closing Date.

      Agreement:  This Trust Agreement  together with all amendments  hereof and
supplements hereto.

      Anticipated   Termination   Date:  Any  Distribution  Date  on  which  the
Certificate  Administrator  anticipates  that the Trust Fund will be  terminated
pursuant to Section 9.01.

      Available  Distribution Amount: As of any Distribution Date, the aggregate
amount on deposit in the Certificate  Account as of such Distribution  Date, net
of any portion thereof which represents amounts payable pursuant to clauses (ii)
and (iii) of Section 3.04.

                                       2
<PAGE>

      Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day
on which banking institutions in the State of New York[, the State of _________]
or the  State  of  [_______]  and  such  other  state or  states  in  which  the
Certificate  Account or any account relating to the Underlying Agency Securities
are required or authorized by law or executive order to be closed.

      Certificate: Any Class [A-1], Class [A-2], Class [A-3], Class [S] or Class
R Certificate.

      Certificate  Account:  The trust  account or accounts,  which shall at all
times be Eligible  Accounts,  created and maintained by the Trustee  pursuant to
Section 3.03. Funds deposited in the Certificate  Account shall be held in trust
for the  Certificateholders  for the uses and  purposes set forth in Article III
hereof.

      Certificate  Administrator:  [____________]  or its successor in interest,
solely in its capacity as certificate administrator under this Agreement, or any
successor certificate administrator appointed as provided herein.

      Certificateholder  or Holder:  The Person in whose name a  Certificate  is
registered  in the  Certificate  Register,  except that  neither a  Disqualified
Organization  nor a  Non-United  States  Person  shall be a Holder  of a Class R
Certificate for any purpose hereof. Solely for the purpose of giving any consent
or exercising  any Voting Rights  pursuant to this  Agreement,  any  Certificate
registered  in the name of the Company,  the  Certificate  Administrator  or any
Affiliate  of  either  of them  shall be deemed  not to be  Outstanding  and the
Percentage  Interest or Voting Rights evidenced  thereby shall not be taken into
account in determining  whether the requisite amount of Percentage  Interests or
Voting  Rights  necessary  to effect  any such  consent  or  direction  has been
obtained.

      Certificate  Principal  Balance:  With respect to each Certificate  (other
than the Class [S] Certificates),  on any date of determination, an amount equal
to (i)  the  Initial  Certificate  Principal  Balance  of  such  Certificate  as
specified  on the  face  thereof  plus  (ii)  in the  case  of the  Class  [A-3]
Certificates,   all  Accrued  Certificate  Interest  added  to  the  Certificate
Principal  Balances  thereof  on  each  Distribution  Date  on or  prior  to the
Accretion  Termination  Date  pursuant  to  Section  4.01(b),  minus  (iii)  the
aggregate of all amounts previously distributed with respect to such Certificate
and applied to reduce the  Certificate  Principal  Balance  thereof  pursuant to
Section 4.01. The Class [S] Certificates have no Certificate Principal Balance.

      Certificate  Registrar and Certificate  Register:  The registrar appointed
and the register maintained pursuant to Section 5.02.

      Class: Collectively, all of the Certificates bearing the same designation.

      Class [A-1] Certificate: Any one of the Class [A-1] Certificates, executed
by the Trustee and authenticated by the Certificate Registrar,  substantially in
the form annexed hereto as Exhibit A-1 and evidencing an interest  designated as
a "regular interest" in the REMIC for purposes of the REMIC Provisions.

                                       3
<PAGE>

      Class [A-2] Certificate: Any one of the Class [A-2] Certificates, executed
by the Trustee and authenticated by the Certificate Registrar,  substantially in
the form annexed hereto as Exhibit A-1 and evidencing an interest  designated as
a "regular interest" in the REMIC for purposes of the REMIC Provisions.

      Class [A-3] Certificate: Any one of the Class [A-3] Certificates, executed
by the Trustee and authenticated by the Certificate Registrar,  substantially in
the form annexed hereto as Exhibit A-1 and evidencing an interest  designated as
a "regular interest" in the REMIC for purposes of the REMIC Provisions.

      Class R Certificate: Any one of the Class R Certificates,  executed by the
Trustee and  authenticated  by the Certificate  Registrar,  substantially in the
form annexed  hereto as Exhibit A-2 and  evidencing an interest  designated as a
"residual interest" in the REMIC for purposes of the REMIC Provisions.

      Class [S] Certificate: Any one of the Class [S] Certificates,  executed by
the Trustee and authenticated by the Certificate Registrar, substantially in the
form annexed  hereto as Exhibit A-1 and  evidencing an interest  designated as a
"regular interest" in the REMIC for purposes of the REMIC Provisions.

      Closing Date: [_______________________, 200 ].

      Code: The Internal Revenue Code of 1986.

      Commission: The Securities and Exchange Commission.

      Corporate  Trust  Office:  The  principal  corporate  trust  office of the
Trustee in the State of New York at which at any  particular  time its corporate
trust  business  with respect to this  Agreement  shall be  administered,  which
office at the date of the execution of this Agreement is located at [_________].

      Disqualified  Organization:  Any of the following:  (i) the United States,
any State or political subdivision thereof, any possession of the United States,
or  any  agency  or  instrumentality  of any of the  foregoing  (other  than  an
instrumentality  which is a corporation  if all of its activities are subject to
tax and,  except for the  FHLMC,  a majority  of its board of  directors  is not
selected  by  such   governmental   unit),  (ii)  a  foreign   government,   any
international  organization,  or any  agency  or  instrumentality  of any of the
foregoing,  (iii) any  organization  (other than certain  farmers'  cooperatives
described  in Section  521 of the Code)  which is exempt from the tax imposed by
Chapter 1 of the Code (unless such organization is subject to the tax imposed by
Section  511 of the Code on  unrelated  business  taxable  income),  (iv)  rural
electric and telephone  cooperatives  described in Section  1381(a)(2)(C) of the
Code and (v) any other Person so designated by the Trustee based upon an Opinion
of Counsel that the holding of an Ownership Interest in a Class R Certificate by
such Person may cause Trust Fund or any Person  having an Ownership  Interest in
any Class of Certificates,  other than such Person, to incur a liability for any
federal tax imposed  under the Code that would not  otherwise be imposed but for
the Transfer of an Ownership  Interest in a Class R Certificate  to such Person.
The terms "United States",  "State" and "international  organization" shall have
the meanings set forth in Section 7701 of the Code or successor provisions.

                                       4
<PAGE>

      Distribution  Date:  The third  Business  Day  following  each  Underlying
Security   Distribution   Date,   commencing  with  the  Distribution   Date  on
[__________, 200 ].

      Eligible Account: An account that is any of the following:  (i) maintained
with a depository  institution the debt  obligations of which have been rated by
the Rating Agency in its highest rating  available,  (ii) an account or accounts
in a depository  institution  in which such  accounts  are fully  insured to the
limits  established by the FDIC,  provided that any such deposits not so insured
shall, to the extent  acceptable to the Rating Agency,  as evidenced in writing,
be maintained such that (as evidenced by an Opinion of Counsel  delivered to the
Trustee and the Rating Agency) the  registered  Holders of  Certificates  have a
claim with  respect to the funds in such account or a perfected  first  security
interest   against  any   collateral   (which  shall  be  limited  to  Permitted
Investments)  securing  such  funds  that is  superior  to  claims  of any other
depositors or creditors of the depository institution with which such account is
maintained,  (iii) a trust account or accounts maintained in the corporate trust
department  of  [___________],  or (iv) an account or accounts  of a  depository
institution  acceptable  to the Rating  Agency (as  evidenced  in writing by the
Rating Agency that use of any such account as the  Certificate  Account will not
reduce the rating  assigned to the  Certificates by such Rating Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the Closing Date by such Rating Agency).

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

      Event of Default: As defined in Section 7.01.

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

      [GNMA Issuer: Any one of the mortgage banking companies or other financial
concerns  approved by GNMA that has issued and is servicing an Underlying Agency
Security.]

      Independent: When used with respect to any specified Person, such a Person
who (i) is in fact independent of the Company, the Certificate Administrator and
the Trustee,  or any Affiliate thereof,  (ii) does not have any direct financial
interest in the Company,  the Certificate  Administrator and the Trustee, or any
Affiliate thereof,  and (iii) is not connected with the Company, the Certificate
Administrator and the Trustee as an officer,  employee,  promoter,  underwriter,
trustee, partner, director or Person performing similar functions.

      Initial  Certificate  Principal Balance:  With respect to each Certificate
(other than a Class [S] Certificate) the initial  Certificate  Principal Balance
of such Certificate as specified on the face thereof as of the Closing Date.

      Maturity Date: The latest possible  maturity date,  solely for purposes of
Section   1.860G-1(a)(4)(iii)   of  the  Treasury  regulations,   by  which  the
Certificate  Principal  Balance of each  Class of  Certificates  representing  a
regular  interest  in the REMIC  would be  reduced to zero,  which  shall be the
Distribution  Date immediately  following the latest stated maturity date of any
of the Underlying Agency Securities.

      Mortgage  Loans:  With  respect to any  Underlying  Agency  Security,  the
mortgage loans in which such Underlying  Agency  Security  evidence a beneficial
ownership interest.

                                       5
<PAGE>

      Non-United States Person: Any Person other than a United States Person.

      Notice  of Final  Distribution:  With  respect  to any  Underlying  Agency
Security,  the notice to be  provided  pursuant to the Trustee as holder of such
Underlying  Agency  Security  to the  effect  that  final  distribution  on such
Underlying  Agency Security shall be made only upon  presentation  and surrender
thereof.

      Notice of  Termination:  Any of the  notices  given to the  Trustee by the
Certificate Administrator pursuant to Section 9.01(b).

      Notional Amount:  As of any  Distribution  Date, with respect to the Class
[S] Certificates, the Aggregate Underlying Certificate Balance immediately prior
to the most recent Underlying Security Distribution Date.

      Officer's  Certificate:  A  certificate  signed  by the  President,  Chief
Financial Officer, Treasurer, any Vice President, Secretary or any other officer
authorized  by  the  board  of  directors  of  the  Company,   the   Certificate
Administrator or the Trustee, as required by this Agreement.

      Opinion of Counsel:  A written opinion of counsel,  who may be counsel for
the  Company or the  Certificate  Administrator,  which  opinion  is  reasonably
acceptable  to the Trustee;  except that any opinion of counsel  relating to (i)
the  qualification  of any account  required to be  maintained  pursuant to this
Agreement as an Eligible Account or (ii) the  qualification of the Trust Fund as
a  REMIC  or  compliance  with  the  REMIC  Provisions,  must be an  opinion  of
Independent counsel.

      Outstanding:  With  respect  to  the  Certificates,  as  of  the  date  of
determination,  all  Certificates  previously  executed and delivered under this
Agreement  except  (i)  Certificates  previously  canceled  by  the  Trustee  or
delivered to the Trustee for cancellation; and (ii) Certificates in exchange for
which or in lieu of which other  Certificates  have been  executed and delivered
pursuant to this Agreement.

      Ownership  Interest:  As to any  Certificate,  any  ownership  or security
interest in such Certificate,  including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial, as owner or as pledgee.

      Pass-Through  Rate:  With  respect  to each  Class  of  Certificates,  the
respective per annum rate set forth in the Preliminary Statement hereto.

      Paying Agent: Any Paying Agent appointed by the Trustee.

      Percentage Interest: With respect to a Certificate (other than a Class [S]
Certificate  or a Class  R  Certificate),  the  undivided  percentage  ownership
interest in the related Class evidenced by such  Certificate,  which  percentage
ownership interest shall be equal to the Initial  Certificate  Principal Balance
thereof divided by the aggregate Initial Certificate Principal Balance of all of
the  Certificates of the same Class.  With respect to a Class [S] Certificate or
Class R Certificate,  the interest in  distributions  to be made with respect to
such Class evidenced thereby,  expressed as a percentage,  as stated on the face
of such Certificate.

                                       6
<PAGE>

      Permitted Investments: One or more of the following:

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

      (ii)  repurchase   agreements  on  obligations  specified  in  clause  (i)
            maturing  not more  than  one  month  from  the date of  acquisition
            thereof,  provided  that  the  unsecured  obligations  of the  party
            agreeing to repurchase such obligations are at the time rated by the
            Rating Agency in its highest short-term rating available;

      (iii) federal  funds,  certificates  of  deposit,  demand  deposits,  time
            deposits and bankers' acceptances (which shall each have an original
            maturity  of not more  than 90 days  and,  in the  case of  bankers'
            acceptances,  shall in no event have an  original  maturity  of more
            than  365  days  or a  remaining  maturity  of more  than  30  days)
            denominated  in  United  States  dollars  of  any  U.S.   depository
            institution  or trust  company  incorporated  under  the laws of the
            United  States or any state  thereof or of any domestic  branch of a
            foreign depository  institution or trust company;  provided that the
            debt  obligations  of such  depository  institution or trust company
            (or, if the only  Rating  Agency is Standard & Poor's in the case of
            the principal  depository  institution  in a depository  institution
            holding  company,  debt  obligations of the  depository  institution
            holding company) at the date of acquisition  thereof have been rated
            by the Rating Agency in its highest short-term rating available; and
            provided further that if the only Rating Agency is Standard & Poor's
            and if the depository or trust company is a principal  subsidiary of
            a bank holding  company and the debt  obligations of such subsidiary
            are not separately rated, the applicable rating shall be that of the
            bank holding  company;  and provided  further  that, if the original
            maturity of such  short-term  obligations of a domestic  branch of a
            foreign  depository  institution  or trust  company  shall exceed 30
            days, the  short-term  rating of such  institution  shall be A-1+ if
            Standard & Poor's is the Rating Agency;

      (iv)  commercial  paper (having  original  maturities of not more than 365
            days) of any corporation  incorporated  under the laws of the United
            States or any state  thereof  which on the date of  acquisition  has
            been rated by the Rating  Agency in its  highest  short-term  rating
            available;   provided  that  such  commercial  paper  shall  have  a
            remaining maturity of not more than 30 days;

      (v)   a money market fund or qualified investment fund rated by the Rating
            Agency in its highest rating available; and

      (vi)  other  obligations  or securities  that are acceptable to the Rating
            Agency as a Permitted  Investment  hereunder and will not reduce the
            rating assigned to the  Certificates by such Rating Agency below the
            lower of the  then-current  rating  or the  rating  assigned  to the
            Certificates  as of the  Closing  Date by  such  Rating  Agency,  as
            evidenced in writing; provided, however, that no instrument shall be
            a Permitted  Investment  if it  represents,  either (1) the right to
            receive only interest  payments with respect to the underlying  debt
            instrument  or (2) the right to receive both  principal and interest
            payments derived from obligations underlying such instrument and the
            principal

                                       7
<PAGE>

            payments with respect to such instrument provide a yield to maturity
            greater than 120% of the yield to maturity at par of such underlying
            obligations.  References  herein to the highest rating  available on
            unsecured  long-term  debt  shall  mean Aaa in the  case of  Moody's
            Investors  Service,  Inc.,  AAA in the case of Standard & Poor's and
            Fitch  Investors  Service,  Inc. and in the case of any other Rating
            Agency  shall  mean such  ratings  without  any plus or  minus,  and
            references  herein to the  highest  rating  available  on  unsecured
            commercial paper and short-term debt  obligations  shall mean P-1 in
            the case of  Moody's  Investors  Service,  Inc.,  A-1 in the case of
            Standard  & Poor's  and  either  A-1 by  Standard  & Poor's,  P-1 by
            Moody's Investors  Service,  Inc. or F-1 by Fitch Investors Service,
            Inc. in the case of Fitch Investors Service, Inc.

      Permitted Transferee: Any Transferee of a Class R Certificate,  other than
a Disqualified Organization or a Non-United States Person.

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

      Prepayment  Assumption:  A prepayment  assumption  of [ ]% of the standard
prepayment  assumption  used for  determining  the  accrual  of  original  issue
discount  and  market  discount  on the  Certificates  for  federal  income  tax
purposes.  The  standard  prepayment  assumption  assumes  a  constant  rate  of
prepayment  of  mortgage  loans of [ ]% per annum of the  outstanding  principal
balance of such mortgage loans in the first month of life of the mortgage loans,
increasing  by an additional [ ]% per annum in each  succeeding  month until the
thirtieth month, and a constant [ ]% per annum rate of prepayment thereafter for
the life of the mortgage loans.

      Principal  Distribution Amount: With respect to any Distribution Date, the
sum of (i) the aggregate of the Underlying  Certificate  Principal  Distribution
Amount for the immediately preceding Underlying Security Distribution Date, plus
any amounts  received as described in Section  3.03(a)(ii)  since the  preceding
Distribution Date to the extent allocated to principal of one or more Underlying
Agency Securities and (ii) the Accretion Amount.

      Rating Agencies: [______________________] and [______________________]. If
an  agency or a  successor  is no longer in  existence,  "Rating  Agency"  shall
include such  statistical  credit rating  agency,  or other  comparable  Person,
designated  by the Company,  notice of which  designation  shall be given to the
Trustee and the Certificate Administrator.

      Record Date: With respect to any  Distribution  Date, other than the first
Distribution  Date,  the last  Business Day of the month  preceding the month in
which  the  Underlying  Security  Distribution  Date  on the  Underlying  Agency
Securities occurs and with respect to the first  Distribution  Date, the Closing
Date.

      Reference Date: [___________ 1, 200_].

      Regular  Certificates:  Any of the  Certificates  other  than the  Class R
Certificates.

                                       8
<PAGE>

      Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to time, and
subject to such  clarification  and  interpretation as have been provided by the
Commission in the adopting  release  (Asset-Backed  Securities,  Securities  Act
Release No.  33-8518,  70 Fed. Reg.  1,506,  1,531  (January 7, 2005)) or by the
staff of the  Commission,  or as may be provided by the  Commission or its staff
from time to time.

      REMIC: A "real estate mortgage  investment  conduit" within the meaning of
Section 860D of the Code.

      REMIC  Provisions:  Provisions  of the federal  income tax law relating to
REMICs,  which appear at Sections 860A through 860G of Subchapter M of Chapter 1
of the Code, and related provisions, and temporary and final regulations (or, to
the extent not inconsistent with such temporary or final  regulations,  proposed
regulations)  and  published  rulings,  notices  and  announcements  promulgated
thereunder, as the foregoing may be in effect from time to time.

      Residual Certificate: Any one of the Class R Certificates.

      Responsible Officer: When used with respect to the Trustee, any officer of
the Trustee  employed in its corporate  trust  department,  including any Senior
Vice President,  any Vice President, any Assistant Vice President, any Assistant
Secretary,  any Trust  Officer or Assistant  Trust  Officer or  Assistant  Trust
Officer,  or any other officer of the Trustee customarily  performing  functions
similar to those performed by any of the above designated officers to whom, with
respect to a particular  matter  arising  under this  Agreement,  such matter is
referred.

      Securitization  Transaction:  Any  transaction  involving  a sale or other
transfer of mortgage  loans or securities  backed by mortgage  loans directly or
indirectly to an issuing in connection  with an issuance of publicly  offered or
privately placed, rated or unrated mortgage-backed securities.

      Servicing Criteria:  The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

      Servicing  Fee:  With respect to any  Distribution  Date,  the fee payable
monthly  to  the  Certificate  Administrator  in  respect  of  its  compensation
hereunder  that  accrues at an annual  rate  equal to  [____]% on the  Aggregate
Underlying  Certificate  Balance as in effect immediately prior to the preceding
Underlying Security Distribution Date.

      Servicing Officer: Any officer of the Certificate  Administrator  involved
in, or responsible for, the administration and servicing of the Trust Fund whose
name and specimen  signature appear on a list of servicing officers furnished to
the Trustee by the Certificate Administrator, as such list may from time to time
be amended.

      Standard & Poor's:  Standard & Poor's  Ratings  Group or its  successor in
interest.

      Tax Returns:  The federal  income tax return on Internal  Revenue  Service
Form 1066,  U.S.  Real Estate  Mortgage  Investment  Conduit  Income Tax Return,
including  Schedule Q thereto,  Quarterly Notice to Residual Interest Holders of
REMIC Taxable Income or Net Loss

                                       9
<PAGE>

Allocation,  or any successor forms, to be filed on behalf of the Trust Fund due
to its  classification as a REMIC under the REMIC Provisions,  together with any
and all  other  information,  reports  or  returns  that may be  required  to be
furnished to the  Certificateholders  or filed with the Internal Revenue Service
or any other  governmental  taxing authority under any applicable  provisions of
federal, state or local tax laws.

      Termination  Date:  The  Distribution  Date on  which  the  Trust  Fund is
terminated pursuant to Section 9.01.

      Trust  Fund:  The corpus of the trust  created  by and to be  administered
under this Agreement  consisting of: (i) the Underlying Agency Securities,  (ii)
all  distributions  thereon  payable  after  the  Closing  Date  and  (iii)  the
Certificate  Account  and such assets that are  deposited  therein  from time to
time,  together  with any and all income,  proceeds  and  payments  with respect
thereto.

      Trustee:  [_____________________],  a [national bank] [[state bank] [trust
company] [organized under the laws of [______]] or its successor in interest, or
any successor trustee appointed as herein provided.

      Trustee Information: As specified in Section 12.05(a)(i)(A).

      Underlying  Agency  Security:  Any of the  [GNMA]  [I]  [II]  Certificates
transferred to the Trustee by the Company pursuant to Section 2.01 to be held as
a part of the Trust Fund, as more fully described in the  Preliminary  Statement
hereto.

      Underlying Agency Securityholder:  The registered holder of any Underlying
Agency Security which, following the execution and delivery of this Agreement by
the   parties   hereto,   shall  be  the   Trustee   for  the   benefit  of  the
Certificateholders.

      Underlying  Certificate  Balance:  With respect to any  Underlying  Agency
Security,  as of  any  Underlying  Security  Distribution  Date  (following  all
distributions to be made with respect to the Underlying  Agency Security on such
Underlying  Security  Distribution  Date),  and as of any date of  determination
thereafter until the next succeeding  Underlying Security Distribution Date, the
principal  balance  of such  Underlying  Agency  Security  as set  forth  in, or
calculated in accordance  with the terms of such  Underlying  Agency Security on
the basis of, the Underlying  Security  Distribution  Date Statement sent to the
Trustee as Underlying Agency Securityholder relating to such Underlying Security
Distribution Date.

      Underlying  Certificate Principal Distribution Amount: With respect to any
Distribution  Date, the aggregate amount actually  distributed on the Underlying
Agency Securities on the immediately  preceding Underlying Security Distribution
Date and  identified  as applied to reduce the  related  Underlying  Certificate
Balance in the respective Underlying Security Distribution Date Statement.

      Underlying  Certificate  Rate:  With  respect  to  any  Underlying  Agency
Security and any Underlying  Security  Distribution  Date, the rate per annum at
which interest  payable with respect to such Underlying  Agency Security on such
Underlying Security Distribution Date accrued.

                                       10
<PAGE>

      Underlying  Security  Distribution  Date:  With respect to any  Underlying
Agency  Security,  the  "Distribution  Date",  as such term is  defined  on such
Underlying Agency Security.

      Underlying  Security  Distribution  Date  Statement:  With  respect to any
Underlying Agency Security and any Underlying  Security  Distribution  Date, the
monthly  remittance  report forwarded to the holder thereof with respect to such
Underlying  Security  Distribution  Date  pursuant  to  such  Underlying  Agency
Security.

      United  States  Person:  A citizen or  resident  of the United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States is includible in gross
income  for  United  States  federal  income  tax  purposes  regardless  of  its
connection with the conduct of a trade or business within the United States. The
term  "United  States"  shall have the meaning set forth in Section  7701 of the
Code or successor provisions.

      Voting Rights:  The portion of the voting rights of all Certificates which
is  allocated  to  any  Certificate.  For so  long  as the  related  Classes  of
Certificates  remain  outstanding,  [ ]% of all of the  Voting  Rights  shall be
allocated  among  all  Holders  of the Class  [A-1]  Certificates,  Class  [A-2]
Certificates   and   Class   [A-3]   Certificates   in   proportion   to   their
then-outstanding Certificate Principal Balances; and [ ]% and [ ]% of the Voting
Rights  shall  be  allocated  among  the  Class  [S] and  Class R  Certificates,
respectively,  in  proportion  to the  Percentage  Interests  evidenced by their
respective Certificates.

                                   ARTICLE II

                          CONVEYANCE OF THE UNDERLYING
           MORTGAGE SECURITIES; ORIGINAL ISSUANCE OF THE CERTIFICATES

      Section 2.01. Conveyance of the Underlying Agency Securities.

      The Company,  concurrently  with the execution and delivery  hereof,  does
hereby sell, transfer,  assign, set-over and otherwise convey to the Trustee, in
trust, for the use and benefit of the Certificateholders,  without recourse, all
the right,  title and  interest of the Company in and to the  Underlying  Agency
Securities and all other assets  constituting  the Trust Fund.  Such  assignment
includes,  without  limitation,  all  amounts  payable  to and all rights of the
Underlying Agency Securityholders after the Closing Date.

      In connection with such transfer and  assignment,  the Company does hereby
deliver  to,  and  deposit  with,  the  Trustee  each of the  Underlying  Agency
Securities,  together with the following  documents or  instruments  relating to
each Underlying Agency Security:

            (i) a duly issued and authenticated  certificate for each Underlying
      Agency  Security,  each evidencing the entire interest in such [series and
      class] and registered in the name of "[Name of Trustee],  as trustee under
      the Trust Agreement relating to Residential Asset Securities  Corporation,
      Series [200_-__]"; and

                                       11
<PAGE>

            (ii) copies of the most recent Underlying Security Distribution Date
      Statements,   if  any,   delivered  to  the  related   Underlying   Agency
      Securityholder with respect to such Underlying Agency Security.

      The  transfer of the  Underlying  Agency  Securities  and all other assets
constituting the Trust Fund is absolute and is intended by the parties hereto as
a sale by the Company to the Trustee of the Underlying Agency Securities for the
benefit of the  Certificateholders.  Except as provided in Sections  3.02(b) and
9.01  hereof,  the Trustee  shall not assign,  sell,  dispose of or transfer any
interest in the Underlying Agency Securities or any other asset constituting the
Trust  Fund or permit  the  Underlying  Agency  Securities  or any  other  asset
constituting  the Trust Fund to be subjected to any lien,  claim or  encumbrance
arising by,  through or under the Trustee or any Person  claiming by, through or
under the Trustee.

      Section 2.02. Acceptance by Trustee.

      The Trustee hereby  acknowledges  receipt of the documents  referred to in
Section  2.01(i)  and (ii)  above and  declares  that it holds and will hold the
Underlying Agency Securities and such other documents and instruments  delivered
to it with respect to the Underlying  Agency Securities in trust for the use and
benefit of all  present  and future  Certificateholders.  Upon  delivery  of any
document or instrument  relating to a Underlying  Agency Security by the Company
or the Certificate Administrator,  the Trustee shall acknowledge receipt of such
documents.

      Section 2.03. Execution and Authentication of Certificates.

      Concurrently  with the  transfer  and  delivery of the  Underlying  Agency
Securities and all related documents and instruments,  the Trustee has executed,
authenticated  and  delivered,  to  or  upon  the  order  of  the  Company,  the
Certificates  duly  executed  and  authenticated  by the  Trustee in  authorized
Percentage Interests, registered in such names as the Company has requested.

                                  ARTICLE III

               ADMINISTRATION OF THE UNDERLYING AGENCY SECURITIES;
                          REPORTS TO CERTIFICATEHOLDERS

      Section 3.01.  Administration  of the Trust Fund and the Underlying Agency
                     Securities.

      (a) If at any time the Trustee,  as Underlying Agency  Securityholder,  is
requested in such  capacity to take any action or to give any consent,  approval
or  waiver,  or if an  Event  of  Default  as  defined  under  the  terms of the
Underlying  Agency Security occurs,  the Trustee,  in its capacity as Underlying
Agency  Securityholder,  may take such action in connection with the enforcement
of any rights and remedies available to it in such capacity with respect thereto
and only in accordance  with the written  directions of Holders of  Certificates
evidencing at least 51% of the Voting Rights.  The Trustee shall promptly notify
all of the Certificateholders of any such request.

                                       12
<PAGE>

      (b) The holders of the Class R  Certificates  shall pay in  proportion  to
their ownership  interests in such Class R Certificates any taxes imposed on the
Trust Fund resulting from the Certificate Administrator's exercise of any option
to repurchase any of the  Underlying  Agency  Securities in accordance  with the
Assignment and Assumption Agreement.

      Section 3.02. Collection of Monies.

      (a) In  connection  with its receipt of any  distribution  on a Underlying
Agency Security on any Underlying Security  Distribution Date, the Trustee shall
review the  Underlying  Security  Distribution  Date Statement and shall confirm
that the information  contained  therein is arithmetically  correct.  If (i) the
Trustee shall not have received a distribution on any Underlying Agency Security
by the  close  of  business  on the date on which  such  distribution  was to be
received by the Trustee, the Trustee shall notify the Certificate  Administrator
if such  distribution  shall not have been  received by the Trustee one Business
Day following such notice or (ii) the Trustee shall gain actual knowledge of any
event of default under and as defined in any  Underlying  Agency  Security,  the
Trustee  shall   promptly   notify  the   Certificate   Administrator   and  the
Certificateholders  and such parties shall proceed in accordance  with the terms
and conditions of Section 3.01(a).

      (b) Except as otherwise  provided in Section  9.01,  upon its receipt of a
Notice of Final  Distribution,  the  Trustee  shall  present and  surrender  the
applicable  Underlying  Agency  Security to which such notice  applies for final
payment  thereon in accordance  with the terms and conditions of such Underlying
Agency  Security  and such  Notice  of Final  Distribution.  The  Trustee  shall
promptly deposit in the Certificate Account the final distribution received upon
presentation and surrender of such Underlying Agency Security.

      Section  3.03.   Establishment   of  Certificate   Account;   Deposits  in
                       Certificate Account.

      (a)  The  Trustee,  for  the  benefit  of  the  Certificateholders,  shall
establish  and maintain one or more  accounts  (collectively,  the  "Certificate
Account"),  each of which  shall be an  Eligible  Account,  entitled  "[Name  of
Trustee],  in trust for the registered  holders of Residential  Asset Securities
Corporation,  Mortgage Asset-Backed Pass-Through Certificates, Series [200 - ]",
held in trust by the  Trustee  for the  benefit of the  Certificateholders.  The
Trustee shall cause the  following  payments and  collections  in respect of the
Underlying  Agency  Securities  to be deposited  directly  into the  Certificate
Account:

            (i) all  distributions  received on the Underlying Agency Securities
      subsequent to the Closing Date;

            (ii)  any  amounts  received  in  connection  with  the  sale of the
      Underlying Agency Securities pursuant to Section 9.01 in accordance with a
      plan of complete liquidation of the Trust Fund meeting the requirements of
      Section  860F(a)(4)A  of the Code [, or in  connection  with any  optional
      repurchase  by the  Certificate  Administrator  or any GNMA  Issuer of any
      Underlying Agency Security]; and

            (iii) any other amounts specifically required to be deposited in the
      Certificate Account hereunder.

                                       13
<PAGE>

      The foregoing requirements for deposit in the Certificate Account shall be
exclusive.

      (b) Funds in the  Certificate  Account shall be invested by the Trustee in
Permitted  Investments  in accordance  with the  provisions set forth in Section
4.04.  The Trustee shall give notice to the  Certificate  Administrator  and the
Company of the location of each Certificate  Account upon establishment  thereof
and prior to any change thereof.

      Section 3.04. Permitted Withdrawals From the Certificate Account.

      The Trustee  shall from time to time withdraw  funds from the  Certificate
Account for the following purposes:

            (i) to make  distributions in the amounts and in the manner provided
      for in Section 4.01;

            (ii) to pay to the Certificate  Administrator  on each  Distribution
      Date, as compensation for its services  hereunder,  the Servicing Fee plus
      any investment income on amounts in the Certificate Account;

            (iii) to reimburse the Company or the Certificate  Administrator for
      expenses  incurred by and  reimbursable  to the Company or the Certificate
      Administrator  pursuant to Section 6.03,  Sections  10.01(c) and (g) or as
      otherwise permitted under this Agreement; and

            (iv) to  clear  and  terminate  the  Certificate  Account  upon  the
      termination of this Agreement.

      On each  Distribution  Date, the Trustee shall withdraw all funds from the
Certificate  Account  and shall use such funds  withdrawn  from the  Certificate
Account  only for the  purposes  described  in this  Section 3.04 and in Section
4.01.

      Section 3.05. Annual Statement as to Compliance.

      The Certificate  Administrator will deliver to the Company and the Trustee
on or before the  earlier of (a) March 31 of each year,  or (b) with  respect to
any  calendar  year during  which the  Company's  annual  report on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the Commission,  the date on which the annual report on Form 10-K
is required to be filed in  accordance  with the  Exchange Act and the rules and
regulations of the Commission,  a servicer compliance certificate,  signed by an
authorized officer of the Certificate  Administrator,  as described in Item 1123
of Regulation AB, to the effect that:

      (i) A review of the  Certificate  Administrator's  activities  during  the
reporting period and of its performance under this Agreement has been made under
such officer's supervision.

                                       14
<PAGE>

      (ii) To the best of such officer's  knowledge,  based on such review,  the
Certificate  Administrator  has  fulfilled  all of its  obligations  under  this
Agreement in all materials respects throughout the reporting period or, if there
has been a failure to  fulfill  any such  obligation  in any  material  respect,
specifying  each such  failure  known to such  officer and the nature and status
thereof.

      The Certificate Administrator shall use commercially reasonable efforts to
obtain  from all other  parties  participating  in the  servicing  function  any
additional  certifications  required  under  Item 1123 of  Regulation  AB to the
extent required to be included in a Report on Form 10-K; provided, however, that
a failure to obtain such certifications shall not be a breach of the Certificate
Administrator's  duties  hereunder  if any such party  fails to  deliver  such a
certification.

      Section 3.06. Annual Independent Public Accountants' Servicing Report.

      On or before the earlier of (a) March 31 of each year, or (b) with respect
to any calendar  year during which the  Company's  annual report on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the  Commission,  the date on which the annual report is required
to be filed in accordance with the Exchange Act and the rules and regulations of
the Commission,  the Certificate Administrator at its expense shall cause a firm
of  independent  public  accountants,  which  shall be members  of the  American
Institute of Certified  Public  Accountants,  to furnish a report to the Company
and the Trustee the attestation required under Item 1122(b) of Regulation AB.

      Section  3.07.  Rights  of the  Company  in  Respect  of  the  Certificate
Administrator.

      The Certificate  Administrator  shall afford the Company,  upon reasonable
notice,  during normal  business  hours access to all records  maintained by the
Certificate Administrator in respect of its rights and obligations hereunder and
access  to  officers  of the  Certificate  Administrator  responsible  for  such
obligations.  Upon  request,  the  Certificate  Administrator  shall furnish the
Company with its most recent financial  statements and such other information as
the  Certificate  Administrator  possesses  regarding  its  business,   affairs,
property and condition,  financial or otherwise.  The Certificate  Administrator
shall also cooperate with all reasonable requests for information including, but
not limited to, notices and copies of files,  regarding  itself,  the Underlying
Agency Securities or the Certificates  from any Person or Persons  identified by
the  Company or the  Certificate  Administrator.  The  Company  may,  but is not
obligated to, enforce the obligations of the Certificate Administrator hereunder
and may, but is not obligated to, perform,  or cause a designee to perform,  any
defaulted obligation of the Certificate  Administrator hereunder or exercise the
rights of the Certificate Administrator hereunder; provided that the Certificate
Administrator  shall not be  relieved  of any of its  obligations  hereunder  by
virtue of such performance by the Company or its designee. The Company shall not
have any  responsibility  or  liability  for any action or failure to act by the
Certificate  Administrator  and is not obligated to supervise the performance of
the Certificate Administrator under this Agreement or otherwise.

                                       15
<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

      Section 4.01. Distributions.

      (a) On the Business Day prior to each  Distribution  Date, the Certificate
Administrator  shall provide written notice to the Trustee indicating the amount
of  Accrued  Certificate  Interest  on each Class of the  Certificates,  and the
Principal  Distribution  Amount  and the  allocation  thereof  to each  Class of
Certificates, for such Distribution Date. On each Distribution Date, the Trustee
shall withdraw from the Certificate  Account all funds then on deposit,  and the
Trustee or the Paying Agent  appointed by the Trustee  shall  distribute  to the
Holders  of  each  respective  Class  of   Certificates,   from  such  Available
Distribution  Amount, the following amounts, in the following order of priority,
in each case to the extent of the Available Distribution Amount:

            (i) first, concurrently to the Class [A-1] Certificateholders, Class
      [A-2]  Certificateholders,   Class  [S]  Certificateholders  and  Class  R
      Certificateholders  on a pro rata basis based on the  Accrued  Certificate
      Interest payable thereon,  Accrued  Certificate  Interest on such Class of
      Certificates  as applicable for such  Distribution  Date, plus any Accrued
      Certificate   Interest   thereon   remaining   unpaid  for  any   previous
      Distribution Date;

            (ii) second,  an amount equal to the Principal  Distribution  Amount
      shall be distributed in reduction of the Certificate Principal Balances of
      the Classes set forth below as follows:

                  (A) first, to the Class R Certificates,  until the Certificate
            Principal Balance thereof is reduced to zero;

                  (B)  second,  to  the  Class  [A-1]  Certificates,  until  the
            Certificate Principal Balance thereof is reduced to zero; and

                  (C)  third,  to  the  Class  [A-2]  Certificates,   until  the
            Certificate Principal Balance thereof is reduced to zero;

            (iii)  third,  to  the  Class  [A-3]   Certificateholders,   Accrued
      Certificate  Interest on such Classes of  Certificates  as applicable  for
      such  Distribution  Date, plus any Accrued  Certificate  Interest  thereon
      remaining unpaid from any previous  Distribution  Date (to the extent such
      unpaid  Accrued  Certificate  Interest  does not  constitute  an Accretion
      Amount);

            (iv) fourth,  an amount equal to the Principal  Distribution  Amount
      remaining after the  distribution  described in clause (ii) above shall be
      distributed in reduction of the Certificate Principal Balance of the Class
      [A-3]  Certificates,  until the Certificate  Principal  Balance thereof is
      reduced to zero;

provided,  that  if  such  Distribution  Date is on or  prior  to the  Accretion
Termination  Date, no distribution  shall be made pursuant to clause (iii) above
to the Class [A-3] Certificateholders to

                                       16
<PAGE>

the extent that Accrued  Certificate  Interest is not then payable in accordance
with  Section  4.01(b);  and provided  further,  that the amount  available  for
interest distributions on the Certificates on any Distribution Date as described
above shall not exceed the aggregate amount distributed on the Underlying Agency
Securities on the preceding Underlying Security  Distribution Date in respect of
interest,  reduced by the  Servicing  Fee;  and provided  further,  that no such
unpaid Accrued Certificate  Interest on the Certificates will be carried forward
to the  extent  that the  corresponding  amount  of any  shortfall  in  interest
distributions  on any of  the  Underlying  Agency  Securities  on the  preceding
Underlying  Security  Distribution  Date is not carried  forward with respect to
such Underlying Agency Securities;

      (b) On each Distribution Date prior to the Accretion  Termination Date, an
amount  equal to the amount of Accrued  Certificate  Interest on the Class [A-3]
Certificates for such  Distribution  Date that would otherwise be distributed on
such  Certificates on such  Distribution  Date pursuant to Section  4.01(a)(iii)
shall be added to the Certificate  Principal  Balance thereof (such amount,  the
"Accretion  Amount").  On and after the Accretion  Termination  Date, the entire
amount of Accrued Certificate  Interest on the Class [A-3] Certificates for such
Distribution  Date  shall be  payable  to such  Certificates  to the  extent not
required to retire fully the Class [A-1],  Class [A-2] and Class R  Certificates
on the Accretion Termination Date. Any Accrued Certificate Interest on the Class
[A-3]  Certificates  which is  required  to be paid to the  holders of the Class
[A-1], Class [A-2] or Class R Certificates on the Accretion  Termination Date as
provided in the preceding  sentence will be added to the  Certificate  Principal
Balance of the Class [A-3]  Certificates  in the manner  described  in the first
sentence of this Section 4.01(b).

      (c)   Payments   on   each   Distribution   Date   will  be  made  to  the
Certificateholders  of record on the related Record Date.  Distributions  to any
Certificateholder  on any  Distribution  Date shall be made by wire  transfer of
immediately  available funds to the account of such  Certificateholder at a bank
or   other   entity   having   appropriate    facilities   therefor,   if   such
Certificateholder  shall have so  notified  the  Trustee or the Paying  Agent in
writing  at  least  five  Business  Days  prior  to the  Record  Date and if the
aggregate  amount of distribution to be made to such Holder is at least $10,000,
or in  such  other  manner  as  shall  be  agreed  to by the  Trustee  and  such
Certificateholder,  or  otherwise  by check  mailed by first  class  mail to the
address of such Certificateholder  appearing in the Certificate Register.  Final
distribution  on each  Certificate  will be made in like  manner,  but only upon
presentment  and surrender of such  Certificate at the Corporate Trust Office or
such other location specified in the notice to  Certificateholders of such final
distribution.

      (d) Except as otherwise provided in Section 9.01, whenever the Trustee, as
of five  Business  Days  prior  to any  Record  Date,  expects  that  the  final
distribution  with  respect  to the  Certificates  will be  made on the  related
Distribution  Date,  the Trustee  shall,  no later than such related Record Date
mail to each  Holder of the  Certificates  on such  date a notice to the  effect
that:

            (i) the Trustee expects that the final  distribution with respect to
      the  Certificates  will be made on such  Distribution  Date but only  upon
      presentation  and  surrender  of such  Certificates  at the  office of the
      Trustee therein specified; and

                                       17
<PAGE>

            (ii) no interest  shall accrue on such  Certificates  from and after
      such Distribution Date.

      Section 4.02. Statements to Certificateholders.

      On each Distribution Date, the Certificate Administrator shall prepare and
the Trustee shall forward by mail a statement to each Certificateholder stating:

            (i) the Available Distribution Amount for such Distribution Date and
      the  respective  portions  thereof  constituting  interest  and  principal
      distributions on the Underlying Agency Securities;

            (ii) with respect to such Distribution Date, the aggregate amount of
      Accrued  Certificate  Interest and the amounts of interest  and  principal
      distributed to the  Certificateholders  of each Class on such Distribution
      Date pursuant to Section 4.01;

            (iii) the respective amounts of any prepayments and any purchases of
      Mortgage  Loans  (due  to  conversion  or  otherwise)   included  in  such
      distributions;

            (iv) the  Certificate  Principal  Balance or Notional  Amount of the
      Certificates  of each  Class  after  giving  effect  to  distributions  of
      principal on such Distribution Date; and

            (v) the Underlying  Certificate  Balance for each Underlying  Agency
      Security  as of the  Underlying  Security  Distribution  Date  immediately
      preceding such Distribution  Date, after giving effect to the distribution
      of principal made thereon on such Underlying Security Distribution Date.

      In the case of the  information  furnished  pursuant to clause (ii) above,
the  amounts  shall  also  be  expressed  as a  dollar  amount  per  Certificate
evidencing a $1,000 denomination.

      In addition,  the Trustee promptly will furnish to Certificateholders  and
the  Certificate  Administrator  copies of any notices,  statements,  reports or
other  communications  including,  without  limitation,  the Underlying Security
Distribution   Date  Statements  (or,  in  lieu  thereof,   if  the  Certificate
Administrator  so  elects,  a summary  report  of  information  relevant  to the
Certificates, reported by the [GNMA Issuer] with regard to the Underlying Agency
Securities)  for each Underlying  Security  Distribution  Date,  received by the
Trustee as the Underlying Agency Securityholder.

      On or before March 31st of each  calendar  year,  beginning  with calendar
year [200 ], the Trustee  shall  prepare and deliver by first class mail to each
Person who at any time during the previous calendar year was a Certificateholder
of record a statement containing the information required to be contained in the
regular monthly report to Certificateholders,  as set forth in clause (ii) above
aggregated for such calendar year or the applicable portion thereof during which
such Person was a  Certificateholder.  Such  obligation  of the Trustee shall be
deemed  to have been  satisfied  to the  extent  that  substantially  comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code and regulations  thereunder as from time to time are in force. The Trustee,
upon request,  will furnish the Certificate

                                       18
<PAGE>

Administrator  with  all  information  the  Trustee  has  as may  reasonably  be
requested in connection with the preparation by the Certificate Administrator of
all tax returns described in Section 10.01.

Section 4.03.     Access to Certain Documentation and Information.

      The Trustee shall provide to the Certificateholders access to certificates
and all reports,  documents and records  maintained by the Trustee in respect of
its duties  hereunder,  such access being afforded  without charge but only upon
reasonable   written  request  and  during  normal  business  hours  at  offices
designated by the Trustee.

Section 4.04.     Permitted Investments.

      The Certificate Administrator shall direct any institution maintaining the
Certificate Account to invest the funds in such Certificate Account in Permitted
Investments,  which shall  mature not later than the  Business  Day  immediately
preceding the next  Distribution  Date (except that,  (i) any  investment in the
institution with which the Certificate  Account is maintained may mature on such
Distribution  Date and (ii) any other investment may mature on such Distribution
Date  if the  Trustee  shall  advance  funds  on such  Distribution  Date to the
Certificate   Account  in  the  amount  payable  on  such   investment  on  such
Distribution  Date,  pending  receipt  thereof to the extent  necessary  to make
distributions on the  Certificates),  and shall not be sold or disposed of prior
to their maturity.  All such Permitted  Investments shall be made in the name of
the Trustee, in trust for the Holders of the Certificates,  or its nominee.  All
income and gain  received  from any such  investment  shall be  deposited in the
appropriate  Certificate  Account and may only be withdrawn  and applied for the
purposes set forth in Section 3.04. The amount of any losses incurred in respect
of any such  investments  shall be deposited in the  Certificate  Account by the
Certificate Administrator out of its own funds immediately as realized.

Section 4.05.     Exchange Act Reporting.

      (a) The Certificate  Administrator  shall, on behalf of the Company and in
respect of the Trust Fund,  sign and cause to be filed with the  Commission  any
periodic  reports required to be filed under the provisions of the Exchange Act,
and the rules and regulations of the Commission  thereunder  including,  without
limitation, reports on Form 10-K, Form 10-D and Form 8-K. In connection with the
preparation  and filing of such  periodic  reports,  the  Trustee  shall  timely
provide to the Certificate  Administrator  (i) a list of  Certificateholders  as
shown on the  Certificate  Register as of the end of each  calendar  year,  (ii)
copies of all pleadings, other legal process and any other documents relating to
any claims,  charges or complaints  involving the Trustee, as trustee hereunder,
or the Trust Fund that are received by the Trustee,  (iii) notice of all matters
that, to the actual knowledge of a Responsible Officer of the Trustee, have been
submitted  to a vote of the  Certificateholders,  other than those  matters that
have been  submitted to a vote of the  Certificateholders  at the request of the
Company or the Certificate Administrator,  and (iv) notice of any failure of the
Trustee  to  make  any  distribution  to  the  Certificateholders.  Neither  the
Certificate  Administrator nor the Trustee shall have any liability with respect
to the  Certificate  Administrator's  failure to  properly  prepare or file such
periodic reports  resulting from

                                       19
<PAGE>

or relating to the  Certificate  Administrator's  inability or failure to obtain
any  information  not  resulting  from  the  Certificate   Administrator's   own
negligence or willful misconduct.

      (b) Any Form  10-K  filed  with the  Commission  in  connection  with this
Section 4.03 shall include,  with respect to the  Certificates  relating to such
10-K:

            (i) A  certification,  signed by the senior officer in charge of the
      servicing functions of the Certificate Administrator, in the form required
      or  permitted  by the  Commission  (the  "Form  10-K  Certification"),  in
      compliance  with Rules  13a-14 and 15d-14  under the  Exchange Act and any
      additional directives of the Commission.

            (ii) A report  regarding its  assessment  of  compliance  during the
      preceding  calendar year with all applicable  servicing criteria set forth
      in  relevant  Commission   regulations  with  respect  to  mortgage-backed
      securities  transactions  taken  as  a  whole  involving  the  Certificate
      Administrator that are backed by the same types of assets as those backing
      the  certificates,  as well as similar reports on assessment of compliance
      received from other  parties  participating  in the servicing  function as
      required by relevant Commission regulations,  as described in Item 1122(a)
      of  Regulation  AB. The  Certificate  Administrator  shall obtain from all
      other  parties  participating  in  the  servicing  function  any  required
      certifications.

            (iii) With respect to each assessment  report described  immediately
      above, a report by a registered  public  accounting  firm that attests to,
      and reports on, the assessment  made by the asserting  party, as set forth
      in relevant Commission regulations,  as described in Regulation 1122(b) of
      Regulation AB and Section 3.06.

            (iv) The servicer  compliance  certificate  required to be delivered
      pursuant Section 3.06.

      (c) In  connection  with the Form 10-K  Certification,  the Trustee  shall
provide the Certificate Administrator with a back-up certification substantially
in the form attached hereto as Exhibit C.

      (d) This Section  4.05 may be amended in  accordance  with this  Agreement
without the consent of the Certificateholders.

                                   ARTICLE V

                                THE CERTIFICATES

      Section 5.01. The Certificates.

      The Certificates  shall be substantially in the form set forth in Exhibits
A-1 and A-2 hereto. The Certificates  (other than the Class [S] Certificates and
Class R Certificates)  will be issuable in registered form, with minimum initial
Certificate  Principal Balances as of the Closing Date of $[______] and integral
multiples  of  $[______] in excess  thereof[;provided,  however,  that one Class
[______]  Certificate  will  be  issued  in an  initial  denomination  equal  to
$[______], or the sum of $[______] and any integral multiple of $[______]].  The
Class [S] Certificates  and Class R

                                       20
<PAGE>

Certificates  will be issuable in registered  form, in minimum  denominations of
not less than a [ ]% Percentage Interest;  [provided, however, that at all times
one Class R Certificate will be held by [the Certificate  Administrator] as "tax
matters  person"  pursuant  to  Section  10.01(c)  in  a  minimum   denomination
representing a Percentage Interest of not less than 0.01%].

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

      Section 5.02. Registration of Transfer and Exchange of Certificates.

      (a) The  Trustee  shall cause to be kept at one of the offices or agencies
to be appointed by the Trustee in accordance with the provisions of this Section
5.02 a Certificate Register in which, subject to such reasonable  regulations as
it may prescribe, the Trustee shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein  provided.  The Trustee
is initially  appointed  Certificate  Registrar  for the purpose of  registering
Certificates and transfers and exchanges of Certificates as herein provided. The
Certificate   Registrar,   or  the  Trustee,   shall  provide  the   Certificate
Administrator with a certified list of Certificateholders as of each Record Date
prior to the  Distribution  Date. Upon  satisfaction of the conditions set forth
below,   the  Trustee  shall  execute  and  the   Certificate   Registrar  shall
authenticate  and  deliver,  in  the  name  of  the  designated   transferee  or
transferees,  one or  more  new  Certificates  of a  like  Class  and  aggregate
Percentage Interest. In addition,  the Trustee shall notify the Company of every
proposed transfer or exchange of the Certificates.

      (b) At the option of the Certificateholders, Certificates may be exchanged
for other Certificates of authorized denominations of a like Class and aggregate
Percentage  Interest,  upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for exchange
the Trustee shall execute and the Certificate  Registrar shall  authenticate and
deliver the  Certificates  which the  Certificateholder  making the  exchange is
entitled to receive.  Every Certificate presented or surrendered for transfer or
exchange shall (if so required by the Trustee or the  Certificate  Registrar) be
duly endorsed by, or be accompanied by a written  instrument of transfer in form
satisfactory to the Trustee and the Certificate  Registrar duly executed by, the
Holder thereof or his attorney duly authorized in writing.

      (c) In the case of any Certificate  presented for registration in the name
of  an  employee   benefit  plan  or  other  plan   subject  to  the   fiduciary
responsibility  provisions of ERISA,  or Section 4975 of the Code (or comparable
provisions  of any  subsequent  enactments),  an  investment  manager,  a  named
fiduciary or a trustee of such plan, or any other Person who is

                                       21
<PAGE>

using "plan assets" of any such plan to effect such  acquisition  (including any
insurance  company  using  funds in its general or  separate  accounts  that may
constitute "plan assets"), unless otherwise directed by the Company, the Trustee
shall  require an Opinion of  Counsel  acceptable  to and in form and  substance
satisfactory to the Trustee,  the Company and the Certificate  Administrator  to
the effect that the purchase or holding of such Certificate is permissible under
applicable  law,  will not  constitute  or result in any  non-exempt  prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, and will not
subject  the  Trustee,  the  Company  or the  Certificate  Administrator  to any
obligation or liability  (including  obligations or  liabilities  under ERISA or
Section  4975 of the Code) in addition to those  undertaken  in this  Agreement,
which Opinion of Counsel shall not be an expense of the Trustee,  the Company or
the   Certificate   Administrator.   Neither  the   Company,   the   Certificate
Administrator nor the Trustee will be required to obtain such Opinion of Counsel
on behalf of any prospective transferee.

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

            (A) Each Person  holding or acquiring  any  Ownership  Interest in a
      Class R Certificate  shall be a Permitted  Transferee  and shall  promptly
      notify the  Trustee of any change or  impending  change in its status as a
      Permitted Transferee.

            (B) In  connection  with  any  proposed  Transfer  of any  Ownership
      Interest in a Class R Certificate,  the Trustee shall require  delivery to
      it, and shall not register the Transfer of any Class R  Certificate  until
      its receipt of, (I) an affidavit and agreement (a "Transfer  Affidavit and
      Agreement"  attached hereto as Exhibit B-1) from the proposed  Transferee,
      in form and  substance  satisfactory  to the Trustee  and the  Certificate
      Administrator, representing and warranting, among other things, that it is
      a United States Person and Permitted Transferee,  that it is not acquiring
      its Ownership  Interest in the Class R Certificate  that is the subject of
      the proposed transfer as a nominee, trustee or agent for any Person who is
      not a Permitted  Transferee,  that for so long as it retains its Ownership
      Interest in a Class R Certificate,  it will endeavor to remain a Permitted
      Transferee,  and  that it has  reviewed  the  provisions  of this  Section
      5.02(d)  and agrees to be bound by them and (II) a  certificate,  attached
      hereto as Exhibit  B-2,  from the Holder  wishing to transfer  the Class R
      Certificate,  in  form  and  substance  satisfactory  to  the  Certificate
      Administrator,  representing and warranting,  among other things,  that no
      purpose of the proposed Transfer is to impede the assessment or collection
      of tax.

                                       22
<PAGE>

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

            (D) Each Person  holding or acquiring  any  Ownership  Interest in a
      Class R  Certificate  shall agree (1) to require a Transfer  Affidavit and
      Agreement  from any other Person to whom such Person  attempts to transfer
      its Ownership  Interest in a Class R  Certificate  and (2) not to transfer
      its Ownership Interest unless it provides a certificate to the Trustee and
      the Certificate Administrator in the form attached hereto as Exhibit B-2.

            (E) Each Person  holding or  acquiring  an  Ownership  Interest in a
      Class  R  Certificate,   by  purchasing  an  Ownership  Interest  in  such
      Certificate,  agrees  to give  the  Trustee  written  notice  that it is a
      "pass-through  interest  holder" within the meaning of Temporary  Treasury
      Regulations  Section  1.67-3T(a)(2)(i)(A)  immediately  upon  acquiring an
      Ownership  Interest in a Class R  Certificate,  if it is, or is holding an
      Ownership  Interest in a Class R Certificate  on behalf of,  "pass-through
      interest  holder."

            (F) Each Person  holding or acquiring  any  Ownership  Interest in a
      Class R Certificate shall be a "qualified  institutional buyer" as defined
      in Rule 144A under the Securities Act of 1933, as amended, or an Affiliate
      of the Company or the Certificate Administrator.

      (ii) The Trustee will  register  the  transfer of any Class R  Certificate
only  if it  shall  have  received  the  Transfer  Affidavit  and  Agreement,  a
Certificate of the Holder  requesting  such transfer in the form attached hereto
as Exhibit  B-2 and all of such other  documents  as shall have been  reasonably
required by the Certificate  Administrator as a condition to such  registration.
Transfers  of  the  Class  R  Certificates  to  Non-United  States  Persons  and
"Disqualified  Organizations" (as defined in Section 860E(e)(5) of the Code) are
prohibited.

      (iii)  (A) If any  Disqualified  Organization  shall  become a holder of a
Class R  Certificate,  then the last  preceding  Permitted  Transferee  shall be
restored,  to the  extent  permitted  by law,  to all  rights as Holder  thereof
retroactive  to the  date of  registration  of  such  transfer  of such  Class R
Certificate.  If a Non-United  States  Person shall become a holder of a Class R
Certificate,  then the last preceding United States Person shall be restored, to
the extent  permitted by law, to all rights and  obligations  as Holder  thereof
retroactive  to the  date of  registration  of  such  transfer  of such  Class R
Certificate.  If a transfer of a Class R Certificate is disregarded  pursuant to
the provisions of Treasury  Regulation  Sections 1.860E-1 or 1.860G-3,  then the
last preceding Permitted  Transferee shall be restored,  to the extent permitted
by law, to all rights and obligations as Holder thereof  retroactive to the date
of registration of such transfer of such Class R Certificate.  The Trustee shall
be under no liability to any Person for any  registration of transfer of a Class
R  Certificate  that is in fact not  permitted  by this  Section  5.02(d) or for
making any

                                       23
<PAGE>

payments due on such  Certificate  to the holder thereof or for taking any other
action with respect to such holder under the provisions of this Agreement.

      (B) If any  purported  Transferee  shall  become  a  Holder  of a  Class R
Certificate in violation of the  restrictions in this Section 5.02(d) and to the
extent  that the  retroactive  restoration  of the  rights of the Holder of such
Class R  Certificate  as  described in clause  (iii)(A)  above shall be invalid,
illegal or  unenforceable,  then the  Certificate  Administrator  shall have the
right,  without  notice  to the  Holder  or any  prior  Holder  of such  Class R
Certificate,  to sell such Class R  Certificate  to a purchaser  selected by the
Certificate  Administrator  on such terms as the Certificate  Administrator  may
choose. Such purported  Transferee shall promptly endorse and deliver each Class
R  Certificate  in  accordance   with  the   instructions   of  the  Certificate
Administrator.  Such purchaser may be the Company, the Certificate Administrator
itself or any  affiliate of the Company or the  Certificate  Administrator.  The
proceeds of such sale,  net of the  commissions  (which may include  commissions
payable to the Certificate Administrator or its affiliates),  expenses and taxes
due, if any, will be remitted by the Certificate Administrator to such purported
Transferee.  The terms and  conditions  of any sale under this  clause  (iii)(B)
shall be determined in the sole discretion of the Certificate Administrator, and
the  Certificate  Administrator  shall  not be liable  to any  Person  having an
Ownership  Interest in a Class R Certificate as a result of its exercise of such
discretion.

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

      (v) The  provisions  of this  Section  5.02(d)  set  forth  prior  to this
subsection (v) may be modified,  added or eliminated,  provided that there shall
have been delivered to the Trustee:

            (A) written  notification  from the Rating Agency to the effect that
      the  modification,  addition or  elimination of such  provisions  will not
      cause such Rating  Agency to  downgrade  its  then-current  ratings of the
      Certificates  below the  lower of the  then-current  rating or the  rating
      assigned to such  Certificates  on the Closing Date by such Rating Agency;
      and

            (B) a certificate of the Certificate  Administrator stating that the
      Certificate  Administrator has received an Opinion of Counsel, in form and
      substance  satisfactory  to the Certificate  Administrator,  to the effect
      that such  modification,  addition or absence of such  provisions will not
      cause the Trust

                                       24
<PAGE>

      Fund to cease to  qualify as a REMIC and will not cause (1) the Trust Fund
      to be subject to an entity-level tax caused by the transfer of any Class R
      Certificate  to a  Person  that  is not a  Permitted  Transferee  or (2) a
      Certificateholder  or another Person to be subject to a REMIC-related  tax
      caused by the transfer of a Class R Certificate  to a Person that is not a
      Permitted Transferee.

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

      (f) All  Certificates  surrendered  for  transfer  and  exchange  shall be
destroyed by the Certificate Registrar.

      Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

      If (i)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  and the  Certificate  Registrar  such
security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice to the Trustee or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute  and the  Certificate  Registrar  shall  authenticate  and  deliver,  in
exchange  for or in lieu  of any  such  mutilated,  destroyed,  lost  or  stolen
Certificate, a new Certificate of like Class and Percentage Interest but bearing
a  number  not  contemporaneously  outstanding.  Upon  the  issuance  of any new
Certificate  under this  Section,  the  Trustee may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and any other expenses  (including the fees and expenses of the
Trustee  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate  issued  pursuant to this  Section  shall  constitute  complete  and
indefeasible  evidence of ownership in the Trust Fund, as if originally  issued,
whether or not the lost,  stolen or destroyed  Certificate shall be found at any
time.

      Section 5.04. Persons Deemed Owners.

      Prior to due  presentation of a Certificate for  registration of transfer,
the  Company,  the  Certificate  Administrator,  the  Trustee,  the  Certificate
Registrar  and any agent of the  Company,  the  Certificate  Administrator,  the
Trustee  or the  Certificate  Registrar  may treat the  Person in whose name any
Certificate  is registered as the owner of such  Certificate  for the purpose of
receiving  distributions  pursuant  to Section  4.01 and for all other  purposes
whatsoever, and neither the Company, the Certificate Administrator, the Trustee,
the  Certificate  Registrar  nor  any  agent  of the  Company,  the  Certificate
Administrator,  the Trustee or the  Certificate  Registrar  shall be affected by
notice to the contrary except as provided in Section 5.02(d).

      Section 5.05. Appointment of Paying Agent.

      The  Trustee  may  appoint  a  Paying  Agent  for the  purpose  of  making
distributions  to  Certificateholders  pursuant to Section 4.01. In the event of
any such  appointment,  on or prior to each  Distribution Date the Trustee shall
deposit or cause to be deposited  with the Paying

                                       25
<PAGE>

Agent a sum sufficient to make the payments to Certificateholders in the amounts
and in the manner provided for in Section 4.01, such sum to be held in trust for
the benefit of Certificateholders.

      The Trustee  shall  cause each Paying  Agent to execute and deliver to the
Trustee an  instrument  in which such Paying  Agent shall agree with the Trustee
that  such  Paying  Agent  will  hold all  sums  held by it for the  payment  to
Certificateholders in trust for the benefit of the  Certificateholders  entitled
thereto  until such sums shall be paid to such  Certificateholders.  Any sums so
held by such Paying Agent shall be held only in Eligible  Accounts to the extent
such sums are not distributed to the  Certificateholders  on the date of receipt
by such Paying Agent.

                                   ARTICLE VI

                  THE COMPANY AND THE CERTIFICATE ADMINISTRATOR

      Section 6.01.  Respective  Liabilities of the Company and the  Certificate
                     Administrator.

      The  Company  and  the  Certificate   Administrator  shall  be  liable  in
accordance   herewith  only  to  the  extent  of  the   respective   obligations
specifically  imposed  upon and  undertaken  by the Company and the  Certificate
Administrator herein.

      Section 6.02.  Merger,  Consolidation  or Conversion of the Company or the
                     Certificate Administrator.

      Subject  to the  following  paragraph,  the  Company  and the  Certificate
Administrator will each keep in full effect its existence, rights and franchises
as a  corporation  or  association  under  the laws of the  jurisdiction  of its
incorporation,  and each  will  obtain  and  preserve  its  qualification  to do
business  as  a  foreign   corporation  in  each   jurisdiction  in  which  such
qualification   is  or  shall  be   necessary   to  protect  the   validity  and
enforceability  of  this  Agreement  and the  Certificates  and to  perform  its
respective duties under this Agreement.

      The Company or the Certificate Administrator may be merged or consolidated
with or into any Person,  or transfer all or substantially  all of its assets to
any Person,  in which case any Person resulting from any merger or consolidation
to which the Company or the Certificate  Administrator  shall be a party, or any
Person   succeeding   to  the  business  of  the  Company  or  the   Certificate
Administrator,  shall  be the  successor  of  the  Company  or  the  Certificate
Administrator, as the case may be, hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto,  anything
herein to the contrary notwithstanding; provided, that no Event of Default shall
result therefrom and such successor shall meet the  qualifications  set forth in
Section 7.02.

      Section  6.03.  Limitation  on Liability of the Company,  the  Certificate
                      Administrator and Others.

      Neither  the  Company,  the  Certificate  Administrator  nor  any  of  the
directors,  officers,  employees  or agents of the  Company  or the  Certificate
Administrator   shall  be  under  any   liability  to  the  Trust  Fund  or  the
Certificateholders for any action taken or for refraining from the

                                       26
<PAGE>

taking of any action in good faith pursuant to this Agreement,  or for errors in
judgment;  provided, however, that this provision shall not protect the Company,
the  Certificate  Administrator  or  any  such  Person  against  any  breach  of
warranties or  representations  made herein,  or against any specific  liability
imposed on the  Certificate  Administrator  pursuant to any Section  hereof,  or
against  any  liability  which would  otherwise  be imposed by reason of willful
misfeasance,  bad faith or gross  negligence in the  performance of duties or by
reason of reckless  disregard of obligations or duties  hereunder.  The Company,
the Certificate  Administrator and any director,  officer,  employee or agent of
the  Company  or the  Certificate  Administrator  may rely in good  faith on any
document of any kind which,  prima facie, is properly  executed and submitted by
any  Person  respecting  any  matters  arising  hereunder.   The  Company,   the
Certificate  Administrator and any director,  officer,  employee or agent of the
Company or the Certificate  Administrator shall be indemnified and held harmless
by the Trust Fund against any loss,  liability or expense incurred in connection
with any legal action relating to this Agreement or the Certificates, other than
any loss,  liability or expense incurred by reason of willful  misfeasance,  bad
faith or gross  negligence in the performance of duties or by reason of reckless
disregard  of  obligations  or duties  hereunder.  Neither  the  Company nor the
Certificate  Administrator shall be under any obligation to appear in, prosecute
or defend any legal  action  unless  such  action is  related to its  respective
duties under this  Agreement and which in its opinion does not involve it in any
expense or liability;  provided, however, that the Company may in its discretion
undertake any such action which it may deem  necessary or desirable with respect
to this  Agreement  and the  rights  and  duties of the  parties  hereto and the
interests of the Certificateholders  hereunder. In such event, and provided that
such action has been consented to by the Holders of  Certificates  evidencing at
least 51% of the Voting Rights,  the legal expenses and costs of such action and
any liability  resulting  therefrom shall be expenses,  costs and liabilities of
the Trust Fund, and the Company shall be entitled to be reimbursed therefor from
the  Certificate  Account as  provided  in Section  3.04.  In no event shall the
Certificate  Administrator  be liable  (solely in its  capacity  as  Certificate
Administrator) for any error arising out of any inaccurate information contained
in  any  Distribution  Date  Statement.  This  provision  shall  not  limit  the
Certificate Administrator's liability in any other capacity.

      Section 6.04. Company and Certificate Administrator Not to Resign.

      The  Certificate  Administrator  shall not resign from the obligations and
duties hereby imposed on it, except upon determination that its duties hereunder
are no longer  permissible  under applicable law or are in material  conflict by
reason of applicable law with any other  activities  carried on by it, the other
activities of the Certificate  Administrator so causing such a conflict being of
a type and nature  carried on by the  Certificate  Administrator  at the date of
this  Agreement.  Any  such  determination  permitting  the  resignation  of the
Certificate  Administrator  shall be  evidenced by an Opinion of Counsel to such
effect  which  shall be  delivered  in form and  substance  satisfactory  to the
Trustee.  No such  resignation  shall  become  effective  until the Trustee or a
successor   certificate   administrator   shall  have  assumed  the  Certificate
Administrator's responsibilities and obligations in accordance with Section 7.02
hereof.

                                       27
<PAGE>

                                   ARTICLE VII

                                     DEFAULT

      Section 7.01. Events of Default.

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

            (i) the Certificate  Administrator  shall fail to observe or perform
      in any material  respect any of the covenants or agreements on the part of
      the  Certificate  Administrator  contained in the  Certificates or in this
      Agreement and such failure shall  continue  unremedied  for a period of 30
      days after the date on which written notice of such failure, requiring the
      same  to  be   remedied,   shall  have  been  given  to  the   Certificate
      Administrator  by the  Trustee  or  the  Company,  or to  the  Certificate
      Administrator,  the Company and the Trustee by the Holders of Certificates
      evidencing Percentage Interests aggregating not less than 33%; or

            (ii) a decree or order of a court or agency or supervisory authority
      having  jurisdiction  in the  premises  in an  involuntary  case under any
      present or future federal or state  bankruptcy,  insolvency or similar law
      or appointing a conservator  or receiver or liquidator in any  insolvency,
      readjustment  of debt,  marshalling  of assets and  liabilities or similar
      proceedings,  or for the winding-up or  liquidation of its affairs,  shall
      have been entered against the Certificate Administrator and such decree or
      order shall have remained in force  undischarged  or unstayed for a period
      of 60 days; or

            (iii) the Certificate Administrator shall consent to the appointment
      of a conservator or receiver or liquidator in any insolvency, readjustment
      of debt, marshalling of assets and liabilities, or similar proceedings of,
      or relating to, the Certificate  Administrator  or of, or relating to, all
      or substantially all of the property of the Certificate Administrator; or

            (iv)  the  Certificate  Administrator  shall  admit in  writing  its
      inability to pay its debts  generally as they become due,  file a petition
      to take advantage of, or commence a voluntary  case under,  any applicable
      insolvency or reorganization  statute,  make an assignment for the benefit
      of its creditors, or voluntarily suspend payment of its obligations.

      If an Event of Default described in this Section shall occur, then, and in
each and every such case,  so long as such Event of Default  shall not have been
remedied, either the Company or the Trustee may, and at the direction of Holders
of Certificates evidencing at least 51% of the Voting Rights, the Trustee shall,
by notice in writing to the  Certificate  Administrator  (and to the  Company if
given by the Trustee or to the Trustee if given by the  Company),  terminate all
of the  rights  and  obligations  of the  Certificate  Administrator  under this
Agreement  and in and to the  Underlying  Agency  Securities  and  the  proceeds
thereof, other than its rights as

                                       28
<PAGE>

a  Certificateholder   hereunder;   provided,   however,  that  the  Certificate
Administrator  will  be  entitled  to all  compensation  and any  income  on the
Certificate Account that accrued to the Certificate  Administrator prior to such
termination.  The  Trustee is hereby  authorized  and  empowered  to execute and
deliver,  on behalf of the Certificate  Administrator,  as  attorney-in-fact  or
otherwise, any and all documents and other instruments,  and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of  termination,  whether to complete  the transfer  and  endorsement  or
assignment  of the  Underlying  Agency  Securities  and  related  documents,  or
otherwise. The Certificate Administrator agrees to cooperate with the Trustee in
effecting the  termination of the Certificate  Administrator's  responsibilities
and rights hereunder, including, without limitation, the transfer to the Trustee
or its designee for  administration by it of all cash amounts which shall at the
time be credited  to the  Certificate  Account or  thereafter  be received  with
respect to the Underlying Agency  Securities.  No such termination shall release
the  Certificate  Administrator  for any liability that it would  otherwise have
hereunder  for  any  act  or  omission  prior  to the  effective  time  of  such
termination.

      Section 7.02. Trustee or Company to Act; Appointment of Successor.

      On and after the time the Certificate  Administrator  receives a notice of
termination  pursuant  to Section  7.01,  the  Trustee  or,  upon  notice to the
Company,  and  with the  Company's  consent  (which  shall  not be  unreasonably
withheld) a designee (which meets the standards set forth below) of the Trustee,
shall be the successor in all respects to the Certificate  Administrator  in its
capacity as Certificate  Administrator under this Agreement and the transactions
set  forth  or   provided   for   herein   and  shall  be  subject  to  all  the
responsibilities,   duties  and  liabilities  relating  thereto  placed  on  the
Certificate  Administrator  (except for its  obligations  to deposit  amounts in
respect of losses incurred prior to such notice of termination on the investment
of funds in the  Certificate  Account  pursuant to Section 4.04 by the terms and
provisions hereof);  provided,  however, that any failure to perform such duties
or responsibilities caused by the preceding Certificate  Administrator's failure
to provide  information  required  by Section  4.01  shall not be  considered  a
default by the Trustee hereunder. As compensation therefor, the Trustee shall be
entitled to all funds relating to the  Underlying  Agency  Securities  which the
Certificate  Administrator would have been entitled to charge to the Certificate
Account if the Certificate  Administrator had continued to act hereunder and, in
addition,  shall be entitled to the income from any Permitted  Investments  made
with  amounts  attributable  to the  Underlying  Agency  Securities  held in the
Certificate  Account. If the Trustee has become the successor to the Certificate
Administrator in accordance with Section 7.01, then  notwithstanding  the above,
the Trustee may, if it shall be  unwilling to so act, or shall,  if it is unable
to so act,  appoint,  or petition a court of competent  jurisdiction to appoint,
any established housing and home finance  institution,  which is also a FNMA- or
FHLMC-approved  mortgage servicing  institution,  having a net worth of not less
than $10,000,000 as the successor to the Certificate  Administrator hereunder in
the assumption of all or any part of the responsibilities, duties or liabilities
of the Certificate  Administrator hereunder.  Pending appointment of a successor
to the Certificate  Administrator  hereunder, the Trustee shall become successor
to the Certificate  Administrator  and shall act in such capacity as hereinabove
provided.  In connection with such  appointment and assumption,  the Trustee may
make such arrangements for the compensation of such successor out of payments on
Underlying  Agency  Securities as it and such successor  shall agree;  provided,
however,  that no such  compensation  shall be in excess of that  permitted  the
initial  Certificate  Administrator  hereunder.  The Company,  the Trustee,  the
Certificate

                                       29
<PAGE>

Administrator,  the  Custodian  and  such  successor  shall  take  such  action,
consistent  with this  Agreement,  as shall be necessary to effectuate  any such
succession.

      Section 7.03. Notification to Certificateholders.

      (a)  Upon  any such  termination  or  appointment  of a  successor  to the
Certificate Administrator,  the Trustee shall give prompt written notice thereof
to Certificateholders at their respective addresses appearing in the Certificate
Register.

      (b)  Within 60 days  after the  occurrence  of any Event of  Default,  the
Trustee  shall  transmit by mail to all Holders of  Certificates  notice of each
such Event of  Default  hereunder  known to the  Trustee,  unless  such Event of
Default shall have been cured or waived.

      Section 7.04. Waiver of Events of Default.

      The Holders representing at least 66% of the Voting Rights of Certificates
may waive such default or Event of Default;  provided,  however,  that no waiver
pursuant to this Section 7.04 shall  affect the Holders of  Certificates  in the
manner set forth in Section 10.01. Upon any such waiver of a default or Event of
Default,  such  default  or Event of  Default by the  Holders  representing  the
requisite  percentage of Voting Rights of Certificates  affected by such default
or Event of  Default,  shall  cease to exist  and  shall be  deemed to have been
remedied  for  every  purpose  hereunder.  No such  waiver  shall  extend to any
subsequent or other  default or Event of Default or impair any right  consequent
thereon except to the extent expressly so waived.

                                  ARTICLE VIII

                                   THE TRUSTEE

      Section 8.01. Duties of Trustee.

      (a) The Trustee,  prior to the occurrence of an Event of Default and after
the curing of all  Events of  Default  which may have  occurred,  undertakes  to
perform such duties and only such duties as are  specifically  set forth in this
Agreement. In case an Event of Default has occurred (which has not been cured or
waived),  the Trustee shall  exercise such of the rights and powers vested in it
by this  Agreement,  and use the same degree of care and skill in their exercise
as a prudent  investor  would  exercise  or use under the  circumstances  in the
conduct of such investor's own affairs.

      (b)  The  Trustee,   upon  receipt  of  all   resolutions,   certificates,
statements,  opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically  required to be furnished  pursuant to any
provision  of this  Agreement,  shall  examine  them to  determine  whether they
conform to the  requirements  of this  Agreement and the terms of the Underlying
Agency Securities.  The Trustee shall notify the  Certificateholders of any such
documents which do not materially  conform to the requirements of this Agreement
in  the  event  that  the  Trustee,  after  so  requesting,   does  not  receive
satisfactorily  corrected documents or a satisfactory  explanation regarding any
such nonconformities.

                                       30
<PAGE>

      The Trustee shall forward or cause to be forwarded in a timely fashion the
notices, reports and statements required to be forwarded by the Trustee pursuant
to Sections  3.01,  4.02 and 9.01. The Trustee shall furnish in a timely fashion
to  the   Certificate   Administrator   such   information  as  the  Certificate
Administrator  may  reasonably  request  from  time to time for the  Certificate
Administrator to fulfill its duties as set forth in this Agreement.  The Trustee
covenants and agrees that it shall perform its obligations hereunder in a manner
so as to  maintain  the  status  of the Trust  Fund as a REMIC,  under the REMIC
Provisions and to prevent the imposition of any federal,  state or local income,
prohibited  transaction,  contribution  or other  tax on the  Trust  Fund to the
extent that  maintaining  such  status and  avoiding  such taxes are  reasonably
within the  control of the Trustee  and are  reasonably  within the scope of its
duties under this Agreement,  notwithstanding  the foregoing.  Also, the Trustee
shall have no additional  obligations  with respect to  maintenance of the Trust
Fund as a REMIC other than as specifically set forth herein.

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

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

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

            (iii) The Trustee shall not be personally liable with respect to any
      action  taken,  suffered  or  omitted  to be taken by it in good  faith in
      accordance  with the  direction  of the  Certificateholders  of any  Class
      holding  Certificates  which  evidence,  as  to  such  Class,   Percentage
      Interests  aggregating not less than 25% as to the time,  method and place
      of conducting any proceeding for any remedy  available to the Trustee,  or
      exercising  any trust or power  conferred  upon the  Trustee,  under  this
      Agreement;

            (iv) The Trustee shall not be charged with  knowledge of any default
      or an Event of Default under clauses (i),  (ii),  (iii) or (iv) of Section
      7.01 unless a Responsible  Officer of the Trustee  assigned to and working
      in the Corporate Trust Office obtains actual  knowledge of such failure or
      event or the Trustee  receives  written notice of such failure or event at
      its  Corporate  Trust  Office  from  the  Certificate  Administrator,  the
      Company, or any Certificateholder; and

                                       31
<PAGE>

            (v) Except to the extent  provided in Section  7.02, no provision in
      this  Agreement  shall require the Trustee to expend or risk its own funds
      or otherwise incur any personal financial  liability in the performance of
      any of its duties as Trustee  hereunder,  or in the exercise of any of its
      rights or  powers,  if the  Trustee  shall  have  reasonable  grounds  for
      believing that repayment of funds or adequate  indemnity against such risk
      or liability is not reasonably assured to it. In the event the Trustee has
      been  authorized  by  Certificateholders   evidencing  the  percentage  of
      Percentage  Interests  required to authorize  such action  pursuant to the
      terms of this Agreement and the indemnification provided to the Trustee by
      such Certificateholders is not reasonably satisfactory to the Trustee, the
      Trustee  may  require  the  approval  of  all  Certificateholders   and/or
      additional  indemnification  prior to taking any such action. In addition,
      the Trustee may seek indemnification from the Certificate Administrator or
      the Company  prior to taking any such  action  provided  that  neither the
      Certificate  Administrator  nor the  Company  shall be required to provide
      such indemnification.

      (d) The Trustee  shall timely pay,  from its own funds,  the amount of any
and all federal,  state and local taxes  imposed on the Trust Fund or its assets
or transactions  including,  without  limitation,  (i) "prohibited  transaction"
penalty  taxes as defined in Section 860F of the Code,  if, when and as the same
shall be due and payable,  and (ii) any tax on  contributions  to the Trust Fund
after the Closing Date imposed by Section  860G(d) of the Code, but only if such
taxes arise out of a breach by the Trustee of its  obligations  hereunder  which
breach constitutes negligence or willful misconduct of the Trustee.

      Section 8.02. Certain Matters Affecting the Trustee.

            (a) Except as otherwise provided in Section 8.01:

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

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

                  (iii) the Trustee shall be under no obligation to exercise any
            of the  trusts  or  powers  vested  in it by  this  Agreement  or to
            institute, conduct or defend any litigation hereunder or in relation
            hereto  at  the   request,   order  or   direction  of  any  of  the
            Certificateholders,  pursuant to the  provisions of this  Agreement,
            unless  such  Certificateholders  shall have  offered to the Trustee
            reasonable  security or  indemnity  against the costs,  expenses and
            liabilities  which  may be  incurred  therein  or  thereby;  nothing
            contained  herein  shall,  however,   relieve  the  Trustee  of  the
            obligation,  upon the  occurrence of an Event of Default  (which has
            not been cured), to exercise such of the rights and powers vested in
            it by this  Agreement,  and to use the same degree of care and

                                       32
<PAGE>

            skill in their exercise as a prudent  investor would exercise or use
            under  the  circumstances  in the  conduct  of such  investor's  own
            affairs;

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

                  (v) prior to the  occurrence of an Event of Default  hereunder
            and  after  the  curing  of all  Events  of  Default  which may have
            occurred,  the Trustee shall not be bound to make any  investigation
            into the facts or  matters  stated in any  resolution,  certificate,
            statement,  instrument,  opinion, report, notice, request,  consent,
            order, approval,  bond or other paper or document,  unless requested
            in writing so to do by Holders of Certificates evidencing Percentage
            Interests, aggregating not less than 50%; provided, however, that if
            the payment  within a  reasonable  time to the Trustee of the costs,
            expenses or liabilities likely to be incurred by it in the making of
            such investigation is, in the opinion of the Trustee, not reasonably
            assured to the Trustee by the  security  afforded to it by the terms
            of this  Agreement,  the Trustee may  require  reasonable  indemnity
            against such  expense or liability as a condition to so  proceeding.
            The reasonable  expense of every such  examination  shall be paid by
            the  Certificate  Administrator,  if an Event of Default  shall have
            occurred and is continuing,  and otherwise by the  Certificateholder
            requesting the investigation;

                  (vi) the  Trustee  may  execute  any of the  trusts  or powers
            hereunder or perform any duties  hereunder  either directly or by or
            through agents or attorneys; and

                  (vii) to the extent  authorized  or required from time to time
            under  the Code and the  regulations  promulgated  thereunder,  each
            Holder of a Class R  Certificate  hereby  irrevocably  appoints  and
            authorizes  the Trustee to be its  attorney-in-fact  for purposes of
            signing any Tax Returns  required to be filed on behalf of the Trust
            Fund. The Trustee shall sign on behalf of the Trust Fund and deliver
            to the Certificate  Administrator in a timely manner any Tax Returns
            prepared by or on behalf of the Certificate  Administrator  that the
            Trustee  is  required  to  sign  as  determined  by the  Certificate
            Administrator  pursuant to  applicable  federal,  state or local tax
            laws,  provided that the Certificate  Administrator  shall indemnify
            the Trustee for signing any such Tax Returns that contain  errors or
            omissions.

            (b)  Following the issuance of the  Certificates,  the Trustee shall
      not accept any  contribution  of assets to the Trust Fund  unless it shall
      have obtained or been  furnished  with an Opinion of Counsel to the effect
      that such  contribution will not (i) cause the REMIC to fail to qualify as
      a REMIC at any time that any  Certificates  are  outstanding or (ii) cause
      the Trust Fund to be  subject to any tax as a result of such  contribution
      (including the imposition of any tax on "prohibited  transactions"  of the
      Trust Fund imposed under Section 860F(a) of the Code).

                                       33
<PAGE>

      Section 8.03.  Trustee Not Liable for  Certificates  or Underlying  Agency
                     Securities.

      The  recitals  contained  herein and in the  Certificates  (other than the
execution of the  Certificates and relating to the acceptance and receipt of the
Underlying Agency Securities) shall be taken as the statements of the Company or
the  Certificate  Administrator,  as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or  sufficiency of this  Agreement or of the  Certificates  (except
that the Certificates shall be duly and validly executed and authenticated by it
as Certificate  Registrar) or of the Underlying Agency Securities or any related
document.  Except  as  otherwise  provided  herein,  the  Trustee  shall  not be
accountable  for  the  use or  application  by the  Company  or the  Certificate
Administrator   of  any  of  the   Certificates  or  of  the  proceeds  of  such
Certificates,  or for the use or application of any funds paid to the Company or
the Certificate  Administrator  in respect of the Underlying  Agency  Securities
deposited in or  withdrawn  from the  Certificate  Account by the Company or the
Certificate Administrator.

      Section 8.04. Trustee May Own Certificates.

      The Trustee in its  individual or any other  capacity may become the owner
or pledgee  of  Certificates  with the same  rights it would have if it were not
Trustee.

      Section  8.05.  Certificate   Administrator  to  Pay  Trustee's  Fees  and
                      Expenses; Indemnification.

      (a) The  Certificate  Administrator  covenants  and  agrees  to pay to the
Trustee and any co-trustee from time to time, and the Trustee and any co-trustee
shall be entitled to, reasonable compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for all services  rendered by each of them in the execution of the trusts hereby
created  and in the  exercise  and  performance  of any of the powers and duties
hereunder of the Trustee and any co-trustee,  and the Certificate  Administrator
will pay or  reimburse  the  Trustee  and any  co-trustee  upon  request for all
reasonable expenses,  disbursements and advances incurred or made by the Trustee
or any  co-trustee in accordance  with any of the  provisions of this  Agreement
(including the reasonable compensation and the expenses and disbursements of its
counsel  and of all  Persons  not  regularly  in its  employ,  and the  expenses
incurred by the Trustee or any co-trustee in connection  with the appointment of
an  office  or  agency  pursuant  to  Section  8.11)  except  any such  expense,
disbursement or advance as may arise from its negligence or bad faith.

      (b) The Certificate Administrator agrees to indemnify the Trustee for, and
to hold the Trustee harmless  against,  any loss,  liability or expense incurred
without  negligence  or willful  misconduct  on its part,  arising out of, or in
connection with, the acceptance and administration of the Trust Fund,  including
the costs  and  expenses  (including  reasonable  legal  fees and  expenses)  of
defending   itself  against  any  claim  in  connection  with  the  exercise  or
performance of any of its powers or duties under this Agreement, provided that:

                                       34
<PAGE>

            (i) with respect to any such claim, the Trustee shall have given the
      Certificate  Administrator  written  notice  thereof  promptly  after  the
      Trustee shall have actual knowledge thereof;

            (ii) while  maintaining  control over its own  defense,  the Trustee
      shall  cooperate and consult fully with the Certificate  Administrator  in
      preparing such defense; and

            (iii)  notwithstanding  anything in this  Agreement to the contrary,
      the  Certificate  Administrator  shall not be liable for settlement of any
      claim by the  Trustee  entered  into  without  the  prior  consent  of the
      Certificate   Administrator   which  consent  shall  not  be  unreasonably
      withheld.

No termination of this Agreement  shall affect the  obligations  created by this
Section 8.05(b) of the Certificate  Administrator to indemnify the Trustee under
the conditions and to the extent set forth herein.

      Notwithstanding  the  foregoing,   the  indemnification  provided  by  the
Certificate Administrator in this Section 8.05(b) shall not pertain to any loss,
liability  or  expense  of the  Trustee,  including  the costs and  expenses  of
defending  itself  against any claim,  incurred in  connection  with any actions
taken by the  Trustee at the  direction  of  Certificateholders  pursuant to the
terms of this Agreement.

      (c) Notwithstanding  Section 8.05(b) above, the Certificate  Administrator
shall not  indemnify the Trustee for any loss,  liability or expense,  including
the costs and  expenses  of  defending  itself  against  any claim,  incurred in
connection  with the Trustee's  establishment,  maintenance or management of the
Certificate Account;  provided,  however, that the foregoing shall not limit the
Certificate  Administrator's  obligation to made  deposits into the  Certificate
Account to cover losses incurred in respect of Permitted Investments pursuant to
Section 4.04.

      Section 8.06. Eligibility Requirements for Trustee.

      The Trustee  hereunder  shall at all times be a corporation  or a national
banking  association  having its principal office in a state and city acceptable
to the Company and organized and doing  business under the laws of such state or
the United States of America,  authorized under such laws to exercise  corporate
trust powers,  having a combined capital and surplus of at least $50,000,000 and
subject to supervision or  examination  by federal or state  authority.  If such
corporation or national banking  association  publishes  reports of condition at
least  annually,  pursuant  to  law  or to the  requirements  of  the  aforesaid
supervising  or examining  authority,  then for the purposes of this Section the
combined  capital  and  surplus  of such  corporation  shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so  published.  In case at any time the  Trustee  shall  cease to be eligible in
accordance  with the  provisions  of this  Section,  the  Trustee  shall  resign
immediately in the manner and with the effect specified in Section 8.07.

                                       35
<PAGE>

      Section 8.07. Resignation and Removal of the Trustee.

      (a) The Trustee may at any time resign and be  discharged  from the trusts
hereby created by giving  written notice thereof to the Company.  Upon receiving
such notice of  resignation,  the  Company  shall  promptly  appoint a successor
trustee by written instrument,  in duplicate, one copy of which instrument shall
be  delivered  to the  resigning  Trustee  and one  copy  each to the  successor
trustee.  If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation,  then
the resigning  Trustee may petition any court of competent  jurisdiction for the
appointment of a successor trustee.

      (b) If at any time the Trustee  shall  cease to be eligible in  accordance
with the  provisions  of  Section  8.06 and shall fail to resign  after  written
request  therefor by the  Company,  or if at any time the Trustee  shall  become
incapable of acting, or shall be adjudged  bankrupt or insolvent,  or a receiver
of the Trustee or of its  property  shall be  appointed,  or any public  officer
shall take  charge or control of the  Trustee or of its  property or affairs for
the purpose of rehabilitation, conservation or liquidation, then the Company may
remove the Trustee and appoint a  successor  trustee by written  instrument,  in
duplicate,  one copy of which  instrument  shall be  delivered to the Trustee so
removed and one copy to the successor trustee.

      (c) The  Holders  of  Certificates  evidencing  at least 51% of the Voting
Rights may at any time remove the  Trustee  and  appoint a successor  trustee by
written  instrument or  instruments,  in  triplicate,  signed by such Holders or
their  attorneys-in-fact duly authorized,  one complete set of which instruments
shall be delivered  to the  Company,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

      (d) Any  resignation  or  removal  of the  Trustee  and  appointment  of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.08.

      Section 8.08. Successor Trustee.

      (a) Any  successor  trustee  appointed  as provided in Section  8.07 shall
execute,  acknowledge and deliver to the Company and to its predecessor  trustee
an  instrument   accepting  such  appointment   hereunder,   and  thereupon  the
resignation  or removal of the  predecessor  trustee shall become  effective and
such  successor  trustee,  without any further act,  deed or  conveyance,  shall
become fully vested with all the rights,  powers,  duties and obligations of its
predecessor  hereunder,  with the like effect as if originally  named as trustee
herein.  The  predecessor  trustee shall  deliver to the  successor  trustee all
Underlying  Agency  Securities and related  documents and statements  held by it
hereunder,  and the Company,  the Certificate  Administrator and the predecessor
trustee shall execute and deliver such  instruments  and do such other things as
may  reasonably be required for more fully and certainly  vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

      (b) No  successor  trustee  shall accept  appointment  as provided in this
Section unless at the time of such  acceptance  such successor  trustee shall be
eligible under the provisions of Section 8.06.

                                       36
<PAGE>

      (c) Upon  acceptance of appointment by a successor  trustee as provided in
this Section,  the Company  shall mail notice of the  succession of such trustee
hereunder  to all Holders of  Certificates  at their  addresses  as shown in the
Certificate  Register.  If the Company  fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee,  the successor trustee
shall cause such notice to be mailed at the expense of the Company.

      Section 8.09. Merger or Consolidation of Trustee.

      Any corporation or national banking association into which the Trustee may
be merged or converted or with which it may be  consolidated  or any corporation
or  national  banking  association  resulting  from any  merger,  conversion  or
consolidation  to which the  Trustee  shall be a party,  or any  corporation  or
national  banking  association  succeeding  to all or  substantially  all of the
corporation trust business of the Trustee, shall be the successor of the Trustee
hereunder,  provided such corporation or national banking  association  shall be
eligible under the  provisions of Section 8.06,  without the execution or filing
of any  paper  or any  further  act on the  part of any of the  parties  hereto,
anything herein to the contrary  notwithstanding.  The Trustee shall mail notice
of any such merger or consolidation to the  Certificateholders  at their address
as shown in the Certificate Register.

      Section 8.10. Appointment of Co-Trustee or Separate Trustee.

      (a)  Notwithstanding  any other  provisions  hereof,  at any time, for the
purpose of meeting any legal  requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located,  the
Certificate  Administrator  and the Trustee  acting jointly shall have the power
and shall  execute and deliver all  instruments  to appoint one or more  Persons
approved by the Trustee to act as  co-trustee or  co-trustees,  jointly with the
Trustee,  or separate  trustee or separate  trustees,  of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity,  such title
to the Trust Fund, or any part thereof,  and, subject to the other provisions of
this Section 8.10, such powers,  duties,  obligations,  rights and trusts as the
Certificate  Administrator and the Trustee may consider  necessary or desirable.
If the  Certificate  Administrator  shall not have  joined  in such  appointment
within 15 days  after  the  receipt  by it of a request  so to do, or in case an
Event of Default shall have occurred and be continuing,  the Trustee alone shall
have the power to make such  appointment.  No  co-trustee  or  separate  trustee
hereunder  shall be  required  to meet the terms of  eligibility  as a successor
trustee under Section 8.06 hereunder and no notice to Holders of Certificates of
the appointment of co-trustee(s) or separate  trustee(s) shall be required under
Section 8.08 hereof.

      (b) In the case of any  appointment  of a co-trustee  or separate  trustee
pursuant  to this  Section  8.10 all  rights,  powers,  duties  and  obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Certificate Administrator  hereunder),  the Trustee shall be
incompetent  or  unqualified  to perform  such act or acts,  in which event such
rights,  powers,  duties and obligations  (including the holding of title to the
Trust Fund or any portion thereof in any such  jurisdiction)  shall be exercised
and  performed by such  separate  trustee or  co-trustee at the direction of the
Trustee.

                                       37
<PAGE>

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

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

      Section 8.11. Appointment of Office or Agency.

      The  Trustee  will  maintain  an  office or agency in the City of New York
where  Certificates may be surrendered for registration of transfer or exchange.
The Trustee initially designates [_______________________],  which is located at
[_________________________] for the purpose of keeping the Certificate Register.
The Trustee will  maintain an office at the address  stated in Section  11.05(c)
hereof  where  notices  and  demands  to or upon the  Trustee in respect of this
Agreement may be served.

                                   ARTICLE IX

                                   TERMINATION

      Section 9.01. Termination.

      (a)   Subject  to   Section   9.02,   the   respective   obligations   and
responsibilities of the Certificate  Administrator,  the Company and the Trustee
created  hereby with respect to the  Certificates  (other than the obligation to
make  certain  payments  and to send certain  notices to  Certificateholders  as
hereinafter  set  forth)  shall  terminate   immediately  upon  payment  to  the
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them hereunder  following the earlier to occur of (i) the
repurchase  by  the  Certificate  Administrator  or  the  Company  of all of the
Underlying  Agency  Securities and other assets remaining in the Trust Fund at a
price equal to 100% of the then  outstanding  Certificate  Principal  Balance of
each of the Class [A-1],  Class [A-2],  Class [A-3] and Class R Certificates  on
the day of  repurchase  together  with  accrued  interest  thereon  on such then
outstanding  Certificate  Principal Balance and on the Class [S] Certificates at
the then  applicable  Notional  Amount at the related  Pass-Through  Rate to the
first  day of the  month in which  the  proceeds  of such  repurchase  are to be
distributed, and (ii) the last action required to be taken by the Trustee on the
Termination  Date  pursuant to this  Article IX  following  receipt of the final
distribution to be made on the last remaining  Underlying Agency Security in the
Trust Fund upon presentation and

                                       38
<PAGE>

surrender of such  Underlying  Agency  Security in accordance with the terms and
conditions thereof; provided,  however, that in no event shall the trust created
hereby continue beyond the expiration of twenty-one  years from the death of the
survivor of the  descendants  of Joseph P. Kennedy,  the late  ambassador of the
United States to the United Kingdom, living on the date hereof.

      The right of the  Certificate  Administrator  or the Company to repurchase
all  of  the  Underlying  Agency  Securities  pursuant  to (i)  above  shall  be
conditioned  upon the aggregate of the Underlying  Certificate  Balances of such
Underlying Agency  Securities at the time of any such repurchase  aggregating an
amount equal to or less than [ ]% of the aggregate of the Underlying Certificate
Balances of the Underlying Agency Securities at the Closing Date.

      (b) The  Certificate  Administrator  shall give the Trustee and the Rating
Agency  notice  (a  "Notice  of  Termination")  as  soon as  practicable  of the
Distribution  Date on which the Certificate  Administrator  anticipates that the
final  distribution  will  be  made  to the  Certificateholders.  Notice  of any
termination  of the Trust Fund  pursuant to this Section 9.01 shall be mailed by
the  Trustee to  affected  Certificateholders  at their  addresses  shown in the
Certificate  Register  as soon as  practicable  after  the  Trustee  shall  have
received a Notice of  Termination  but in any event,  not more than thirty days,
and not less than ten  days,  prior to the  Anticipated  Termination  Date.  The
notice mailed by the Trustee to affected Certificateholders shall:

            (A)  specify  the  Anticipated  Termination  Date on which the final
      distribution is anticipated to be made to Holders of the Certificates;

            (B) specify the amount of any such final distribution, if known; and

            (C) state that the final distribution to Certificateholders  will be
      made only upon presentation and surrender of Certificates at the office of
      the Trustee therein specified.

If the Trust Fund is not terminated on the Anticipated  Termination Date for any
reason,  the  Trustee  shall  promptly  mail  notice  thereof  to each  affected
Certificateholder.

      (c)  Upon   presentation   and  surrender  of  the   Certificates  by  the
Certificateholders  on the Termination Date, the Trustee shall distribute to the
Certificateholders the amounts otherwise distributable on such Distribution Date
pursuant to Section  4.01(a).  Any funds not distributed on the Termination Date
because of the failure of any  Certificateholders  to tender their  Certificates
shall  be set  aside  and  held in  trust  for the  account  of the  appropriate
non-tendering  Certificateholders,  whereupon the Trust Fund shall terminate. If
any  Certificates  as to which  notice of the  Termination  Date has been  given
pursuant to this Section 9.01 shall not have been  surrendered for  cancellation
within six months after the time  specified in such  notice,  the Trustee  shall
mail a  second  notice  to  the  remaining  Certificateholders,  at  their  last
addresses shown in the Certificate Register, to surrender their Certificates for
cancellation in order to receive,  from such funds held, the final  distribution
with respect thereto. If within one year after the second notice any Certificate
shall not have been  surrendered for  cancellation,  the Trustee shall so notify
the Certificate Administrator who shall upon receipt of such notice, directly or

                                       39
<PAGE>

through   an  agent,   take   reasonable   steps  to   contact   the   remaining
Certificateholders  concerning  surrender of their  Certificates.  The costs and
expenses of maintaining such funds and of contacting Certificateholders shall be
paid out of the assets which  remain held.  If within two years after the second
notice any Certificates  shall not have been surrendered for  cancellation,  the
Trustee shall pay to the Certificate  Administrator all amounts distributable to
the Holders thereof and the Certificate Administrator shall thereafter hold such
amounts for the benefit of such Holders.  No interest shall accrue or be payable
to  any   Certificateholder   on  any   amount   held  as  a   result   of  such
Certificateholder's  failure to surrender its  Certificate(s)  for final payment
thereof in accordance with this Section 9.01.

      Section 9.02. Additional Termination Requirements.

      (a) The Trust Fund shall be terminated  in  accordance  with the following
additional  requirements,  unless the Trustee and the Certificate  Administrator
have  received an Opinion of Counsel to the effect that the failure of the Trust
Fund to comply with the requirements of this Section 9.02 will not (i) result in
the  imposition  on the Trust  Fund of taxes on  "prohibited  transactions",  as
described in Section  860F of the Code,  or (ii) cause the Trust Fund to fail to
qualify as a REMIC at any time that any Certificate is outstanding.

            (i)  The   Certificate   Administrator   shall  establish  a  90-day
      liquidation  period for the Trust Fund and  specify  the first day of such
      period in a  statement  attached  to the  Trust  Fund's  final Tax  Return
      pursuant  to  Treasury  regulations  Section  1.860F-1.   The  Certificate
      Administrator  also shall satisfy all of the  requirements  of a qualified
      liquidation  for the Trust  Fund  under  Section  860F of the Code and the
      regulations thereunder;

            (ii) The Certificate  Administrator  shall notify the Trustee at the
      commencement  of such  90-day  liquidation  period and, at or prior to the
      time of making of the final payment on the Certificates, the Trustee shall
      sell or otherwise dispose of all of the remaining assets of the Trust Fund
      in accordance with the terms hereof; and

            (iii)  After  making  the final  payment  on the  Certificates,  the
      Certificate  Administrator  shall  distribute  or  credit,  or cause to be
      distributed or credited,  to the Holders of the Class R  Certificates  all
      cash  remaining in the  Certificate  Account  (other than cash retained to
      meet claims), and the Trust Fund shall terminate at that time.

      (b) Each Holder of a Certificate hereby irrevocably  approves and appoints
the  Certificate  Administrator  as its  attorney-in-fact  for the  purposes  of
adoption of the plan of complete  liquidation and obtaining the signature of the
Trustee in accordance with the terms and conditions of this Agreement.

                                       40
<PAGE>

                                   ARTICLE X

                                REMIC PROVISIONS

      Section 10.01. REMIC Administration.

      (a) The  Certificate  Administrator  shall make an  election  to treat the
Trust Fund as a REMIC under the Code and, if necessary,  under  applicable state
law. Such election will be made on Form 1066 or other appropriate federal tax or
information return (including Form 8811) or any appropriate state return for the
taxable  year  ending  on the  last  day of  the  calendar  year  in  which  the
Certificates  are issued.  For the purposes of the REMIC  election in respect of
the Trust Fund, the Certificates  (other than the Class R Certificates) shall be
designated  as the "regular  interests"  and the Class R  Certificates  shall be
designated  as the sole class of  "residual  interest"  in the Trust  Fund.  The
Certificate  Administrator  and the Trustee shall not permit the creation of any
"interests"  (within the meaning of Section  860G of the Code) in the Trust Fund
other than the Trust Fund regular interests and the interests represented by the
Certificates, respectively.

      (b) The Closing  Date is hereby  designated  as the  "Startup  Day" of the
Trust Fund within the meaning of Section 860G(a)(9) of the Code.

      (c) [[The  Certificate  Administrator]  shall  hold a Class R  Certificate
representing a 0.01%  Percentage  Interest of all Class R Certificates and shall
be designated as the tax matters person of the Trust Fund in the manner provided
under  Treasury   regulations   section   1.860F-4(d)  and  temporary   Treasury
regulations section  301.6231(a)(7)-1T.] [the Certificate  Administrator] as tax
matters person, shall (i) act on behalf of the Trust Fund in relation to any tax
matter or controversy involving the Trust Fund and (ii) represent the Trust Fund
in any administrative or judicial proceeding relating to an examination or audit
by any governmental  taxing authority with respect thereto.  The legal expenses,
including without  limitation  attorneys' or accountants' fees, and costs of any
such proceeding and any liability  resulting  therefrom shall be expenses of the
Trust  Fund  and  [the   Certificate   Administrator]   shall  be   entitled  to
reimbursement  therefor out of amounts  attributable  to the  Mortgage  Loans on
deposit in the Certificate Account as provided by Section 3.04 unless such legal
expenses and costs are incurred by reason of [the  Certificate  Administrator's]
willful  misfeasance,  bad  faith  or  gross  negligence.  If  [the  Certificate
Administrator]  is  no  longer  the  Certificate  Administrator  hereunder  [the
Certificate   Administrator]  shall  be  paid  reasonable  compensation  by  any
successor  Certificate  Administrator  hereto  for so  acting  as  "tax  matters
person."]

      (d) The  Certificate  Administrator  shall prepare or cause to be prepared
all of the Tax Returns that it determines are required with respect to the Trust
Fund created  hereunder  and deliver such Tax Returns in a timely  manner to the
Trustee and the Trustee shall sign and file such Tax Returns in a timely manner.
The  expenses  of  preparing  such  returns  shall be  borne by the  Certificate
Administrator  without  any right of  reimbursement  therefor.  The  Certificate
Administrator  agrees to indemnify and hold harmless the Trustee with respect to
any tax or  liability  arising  from the  Trustee's  signing of Tax Returns that
contain errors or omissions.

                                       41
<PAGE>

      (e) The Certificate Administrator shall provide (i) to any transferor of a
Class R Certificate  such information as is necessary for the application of any
tax relating to the transfer of a Class R Certificate to any Person who is not a
Permitted  Transferee,  (ii) to the Trustee and the Trustee shall forward to the
Certificateholders  such  information  or reports as are required by the Code or
the REMIC  Provisions  including  reports  relating to interest,  original issue
discount and market  discount or premium (using the Prepayment  Assumption)  and
(iii) to the Internal  Revenue  Service the name,  title,  address and telephone
number of the person who will serve as the representative of the Trust Fund.

      (f) The Certificate  Administrator shall take such actions and shall cause
the Trust Fund created  hereunder to take such actions as are reasonably  within
the  Certificate  Administrator's  control  and the  scope  of its  duties  more
specifically  set forth  herein as shall be  necessary  to  maintain  the status
thereof as a REMIC under the REMIC  Provisions (and the Trustee shall assist the
Certificate Administrator, to the extent reasonably requested by the Certificate
Administrator  to do so). The Certificate  Administrator  shall not knowingly or
intentionally  take any action,  cause the Trust Fund to take any action or fail
to take (or fail to cause to be taken) any action  reasonably within its control
and the scope of duties more  specifically  set forth  herein,  that,  under the
REMIC Provisions,  if taken or not taken, as the case may be, could (i) endanger
the status of the Trust Fund as a REMIC or (ii)  result in the  imposition  of a
tax upon the Trust Fund  (including  but not  limited  to the tax on  prohibited
transactions  as  defined  in  Section  860F(a)(2)  of the  Code  and the tax on
contributions  to a REMIC set forth in Section 860G(d) of the Code) (either such
event,  an "Adverse  REMIC  Event")  unless the  Certificate  Administrator  has
received an Opinion of Counsel (at the expense of the party seeking to take such
action  or,  if such  party  fails  to pay  such  expense,  and the  Certificate
Administrator  determines that taking such action is in the best interest of the
Trust Fund and the Certificateholders,  at the expense of the Trust Fund, but in
no event at the expense of the Certificate  Administrator or the Trustee) to the
effect that the  contemplated  action will not,  with  respect to the Trust Fund
created hereunder, endanger such status or, unless the Certificate Administrator
determines in its sole  discretion to indemnify the Trust Fund against such tax,
result in the  imposition  of such a tax. The Trustee  shall not take or fail to
take  any  action  (whether  or  not  authorized  hereunder)  as  to  which  the
Certificate  Administrator  has  advised it in writing  that it has  received an
Opinion of Counsel to the effect  that an Adverse  REMIC  Event could occur with
respect to such action. In addition,  prior to taking any action with respect to
the Trust  Fund or its  assets,  or causing  the Trust Fund to take any  action,
which is not expressly permitted under the terms of this Agreement,  the Trustee
will consult with the  Certificate  Administrator  or its designee,  in writing,
with respect to whether such action could cause an Adverse  REMIC Event to occur
with respect to the Trust Fund,  and the Trustee  shall not take any such action
or cause the  Trust  Fund to take any such  action  as to which the  Certificate
Administrator has advised it in writing that an Adverse REMIC Event could occur.
The  Certificate  Administrator  may consult  with  counsel to make such written
advice,  and the cost of same  shall be borne by the party  seeking  to take the
action not expressly permitted by this Agreement, but in no event at the expense
of the Certificate  Administrator.  At all times as may be required by the Code,
the  Certificate  Administrator  will,  to the extent within its control and the
scope of its duties more specifically set forth herein,  maintain  substantially
all of the  assets of the Trust  Fund as  "qualified  mortgages"  as  defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

                                       42
<PAGE>

      (g) In the event that any tax is imposed on "prohibited  transactions"  of
the Trust Fund created  hereunder as defined in Section  860F(a)(2) of the Code,
on "net  income  from  foreclosure  property"  of the Trust  Fund as  defined in
Section  860G(c) of the Code, on any  contributions  to the Trust Fund after the
Startup Day therefor  pursuant to Section  860G(d) of the Code, or any other tax
is imposed by the Code or any applicable  provisions of state or local tax laws,
such tax shall be  charged  (i) to the  Certificate  Administrator,  if such tax
arises out of or results from a breach by the Certificate  Administrator  of any
of its obligations under this Agreement or the Certificate  Administrator has in
its sole  discretion  determined  to indemnify  the Trust Fund against such tax;
(ii) to the  Trustee,  if such tax arises out of or results from a breach by the
Trustee of any of its  obligations  under this  Agreement;  or  otherwise  (iii)
against  amounts on deposit in the  Certificate  Account as  provided by Section
3.04 and on the Distribution  Date(s) following such reimbursement the aggregate
of such  taxes  shall be  allocated  in  reduction  of the  Accrued  Certificate
Interest  on each Class  entitled  thereto  in the same  manner as if such taxes
constituted a Prepayment Interest Shortfall.

      (h) The  Trustee  and the  Certificate  Administrator  shall,  for federal
income tax purposes,  maintain  books and records with respect to the Trust Fund
on a calendar  year and on an accrual  basis or as otherwise  may be required by
the REMIC Provisions.

      (i) Following the Startup Day, neither the Certificate  Administrator  nor
the Trustee  shall accept any  contributions  of assets to the Trust Fund unless
the Certificate  Administrator and the Trustee shall have received an Opinion of
Counsel (at the expense of the party seeking to make such  contribution)  to the
effect  that the  inclusion  of such assets in the Trust Fund will not cause the
Trust Fund to fail to qualify as a REMIC at any time that any  Certificates  are
outstanding  or subject the Trust Fund to any tax under the REMIC  Provisions or
other applicable provisions of federal, state and local law or ordinances.

      (j) Neither the Certificate Administrator nor the Trustee shall enter into
any arrangement by which the Trust Fund will receive a fee or other compensation
for  services  nor permit  either  such REMIC to receive  any income from assets
other than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.

      (k) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations,  the  "latest  possible  maturity  date" by which  the  Certificate
Principal Balance of each Class of Certificates  representing a regular interest
in the Trust Fund would be reduced to zero is [_____________  ___, 20____] which
is the Distribution Date immediately  following the latest scheduled maturity of
any Mortgage Loan.

      (l) Within 30 days after the Closing Date, the  Certificate  Administrator
shall prepare and file with the Internal Revenue Service Form 8811, "Information
Return for Real  Estate  Mortgage  Investment  Conduits  (REMIC)  and Issuers of
Collateralized Debt Obligations" for the Trust Fund.

      (m)  Neither the Trustee  nor the  Certificate  Administrator  shall sell,
dispose of or  substitute  for any of the Mortgage  Loans  (except in connection
with (i) the  default,  imminent  default or  foreclosure  of a  Mortgage  Loan,
including but not limited to, the  acquisition  or sale of

                                       43
<PAGE>

a  Mortgaged  Property  acquired  by  deed  in lieu  of  foreclosure,  (ii)  the
bankruptcy of the Trust Fund,  (iii) the  termination of the Trust Fund pursuant
to Article IX of this Agreement or (iv) a purchase of Mortgage Loans pursuant to
Article II or III of this  Agreement) nor acquire any assets for the Trust Fund,
nor  sell  or  dispose  of any  investments  in  the  Custodial  Account  or the
Certificate  Account for gain,  nor accept any  contributions  to the Trust Fund
after the Closing  Date unless it has  received an Opinion of Counsel  that such
sale, disposition, substitution or acquisition will not (a) affect adversely the
status of the Trust Fund as a REMIC or (b) unless the Certificate  Administrator
has  determined in its sole  discretion to indemnify the Trust Fund against such
tax, cause the Trust Fund to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions.

      Section 10.02. Certificate Administrator and Trustee Indemnification.

      (a) The Trustee  agrees to indemnify  the Trust Fund,  the Company and the
Certificate Administrator for any taxes and costs including, without limitation,
any  reasonable  attorneys  fees  imposed on or incurred by the Trust Fund,  the
Company  or the  Certificate  Administrator,  as a  result  of a  breach  of the
Trustee's covenants set forth in Article VIII or this Article X.

      (b) The Certificate  Administrator agrees to indemnify the Trust Fund, the
Company and the Trustee for any taxes and costs (including,  without limitation,
any  reasonable  attorneys'  fees) imposed on or incurred by the Trust Fund, the
Company  or  the  Trustee,   as  a  result  of  a  breach  of  the   Certificate
Administrator's  covenants  set forth in this  Article X or in Article  III with
respect to compliance with the REMIC Provisions,  including without  limitation,
any penalties  arising from the Trustee's  execution of Tax Returns  prepared by
the Certificate Administrator that contain errors or omissions.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

      Section 11.01. Amendment.

            (a) This  Agreement may be amended from time to time by the Company,
      the Certificate  Administrator and the Trustee, without the consent of any
      of the Certificateholders:

                  (i) to cure any ambiguity;

                  (ii)  to  correct  or  supplement  any  provisions  herein  or
            therein, which may be inconsistent with any other provisions herein;

                  (iii) to modify,  eliminate or add to any of its provisions to
            such extent as shall be necessary to maintain the  qualification  of
            the  Trust  Fund as a REMIC at all  times  that any  Certificate  is
            outstanding  or to avoid or minimize the risk of the  imposition  of
            any tax on the Trust Fund pursuant to the Code that would be a claim
            against the Trust Fund,  provided  that the Trustee has  received an
            Opinion of Counsel to the effect that (A) such  action is  necessary
            or desirable to maintain such  qualification or to avoid or

                                       44
<PAGE>

            minimize  the  risk of the  imposition  of any such tax and (B) such
            action  will  not  adversely  affect  in any  material  respect  the
            interests of any Certificateholder;

                  (iv) to change the timing  and/or  nature of deposits into the
            Certificate  Account,  provided  that (A) such change  shall not, as
            evidenced by an Opinion of Counsel, adversely affect in any material
            respect the interests of any  Certificateholder  and (B) such change
            shall  not  adversely   affect  the   then-current   rating  of  the
            Certificates,  as evidenced by a letter from the Rating  Agency then
            rating the Certificates to such effect;

                  (v) to modify,  eliminate or add to the  provisions of Section
            5.02(d) or any other provision  hereof  restricting  transfer of the
            Class R  Certificates  by virtue of their being the REMIC  "residual
            interest",  provided that (A) such change shall not adversely affect
            the  then-current  ratings of the  Certificates,  as  evidenced by a
            letter from the Rating  Agency to such  effect,  and (B) such change
            shall not, as evidenced  by an Opinion of Counsel,  cause either the
            Trust  Fund  or  any  of  the  Certificateholders  (other  than  the
            transferor)  to  be  subject  to a tax  caused  by a  transfer  to a
            non-Permitted Transferee; and

                  (vi) to make any other  provisions  with respect to matters or
            questions arising under this Agreement which shall not be materially
            inconsistent  with the provisions of this  Agreement,  provided that
            such  action  shall not,  as  evidenced  by an  Opinion of  Counsel,
            adversely  affect  in any  material  respect  the  interests  of any
            Certificateholder.

            (b) This  Agreement  may also be  amended  from  time to time by the
      Company, the Certificate Administrator and the Trustee with the consent of
      the Holders of Certificates  evidencing in the aggregate not less than 66%
      of the Percentage Interests of each Class of Certificates affected thereby
      for the purpose of adding any  provisions  to or changing in any manner or
      eliminating any of the provisions of this Agreement or of modifying in any
      manner the rights of the Holders of Certificates of such Class;  provided,
      however, that no such amendment shall:

                  (i)  reduce in any  manner  the amount of, or delay the timing
            of, payments which are required to be distributed on any Certificate
            without the consent of the Holder of such Certificate,

                  (ii) reduce the aforesaid  percentage of  Certificates  of any
            Class the  Holders  of which are  required  to  consent  to any such
            amendment,  in any such case  without  the consent of the Holders of
            all Certificates of such Class then outstanding, or

                  (iii) adversely  affect in any material  respect the interests
            of the Holders of  Certificates  of any Class in a manner other than
            as described in clause (i) hereof  without the consent of Holders of
            Certificates of such Class evidencing,  as to such Class, Percentage
            Interests aggregating not less than 66%.

            (c)  Notwithstanding  any contrary provision of this Agreement,  the
      Trustee  shall not consent to any  amendment to this  Agreement  unless it
      shall have  first  received  an Opinion of Counsel to the effect  that (1)
      such  amendment  or the exercise of any power  granted to

                                       45
<PAGE>

      the  Certificate  Administrator,  the Company or the Trustee in accordance
      with such  amendment  will not  result in the  imposition  of a tax on the
      Trust  Fund or cause the Trust  Fund to fail to  qualify as a REMIC at any
      time that any Certificate is outstanding  and (2) such amendment,  if made
      pursuant to any  provision of Section  11.01(a),  is permitted  under such
      provision.

            (d) Promptly  after the execution of any such  amendment the Trustee
      shall furnish  written  notification of the substance of such amendment to
      each  Certificateholder.  It shall not be  necessary  for the  consent  of
      Certificateholders under this Section 11.01 to approve the particular form
      of any  proposed  amendment,  but it shall be  sufficient  if such consent
      shall approve the substance thereof. The manner of obtaining such consents
      and  of  evidencing  the   authorization  of  the  execution   thereof  by
      Certificateholders  shall be subject to such reasonable regulations as the
      Trustee may prescribe.

      Section 11.02. Counterparts.

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

      Section 11.03. Limitation on Rights of Certificateholders.

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

      (b) No Certificateholder shall have any right to vote (except as expressly
provided  for  herein) or in any manner  otherwise  control  the  operation  and
management  of the Trust Fund, or the  obligations  of the parties  hereto,  nor
shall anything herein set forth, or contained in the terms of the  Certificates,
be construed so as to  constitute  the  Certificateholders  from time to time as
partners or members of an association;  nor shall any Certificateholder be under
any liability to any third party by reason of any action taken by the parties to
this Agreement pursuant to any provision hereof.

      (c) No  Certificateholder  shall have any right by virtue of any provision
of this  Agreement to institute  any suit,  action or proceeding in equity or at
law  upon or  under  or with  respect  to this  Agreement,  unless  such  Holder
previously shall have given to the Trustee a notice of a default by the Company,
the  Certificate  Administrator  or  the  Trustee  in  the  performance  of  any
obligation  hereunder,  and  of  the  continuance  thereof,  as  herein-  before
provided, and unless also the Holders of Certificates of any Class evidencing at
least 33% of the Voting  Rights of such Class,  shall have made written  request
upon the Trustee to institute such action, suit or proceeding in its own name as
Trustee  hereunder  and  shall  have  offered  to the  Trustee  such  reasonable
indemnity as it may require  against the costs,  expenses and  liabilities to be
incurred therein or thereby,  and the Trustee,  for 60 days after its receipt of
such notice, request and offer of indemnity,  shall have neglected or refused to
institute  any  such  action,  suit  or  proceeding.   For

                                       46
<PAGE>

the protection and enforcement of the provisions of this Section, each and every
Certificateholder  and the  Trustee  shall be  entitled to such relief as can be
given either at law or in equity.

      Section 11.04. Governing Law.

      THIS AGREEMENT AND THE CERTIFICATES  SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 11.05. Notices.

      All demands and notices  hereunder shall be in writing and shall be deemed
to have been duly given if personally delivered at or mailed by registered mail,
postage prepaid (except for notices to the Trustee which shall be deemed to have
been duly given only when  received),  to (a) in the case of the Company,  Asset
Securities Corporation, [_________________________], Attention: [_____], or such
other address as may hereafter be furnished to the Certificate Administrator and
the  Trustee  in  writing  by the  Company,  (b) in the case of the  Certificate
Administrator, [___________________], Attention: [______________], or such other
address as may be  hereafter  furnished  to the  Company  and the Trustee by the
Certificate   Administrator  in  writing,  (c)  in  the  case  of  the  Trustee,
[_______________],  Attention:  Residential Asset Securities Corporation, Series
[200_-___], with a copy to [____________________],  Attention: Residential Asset
Securities Corporation, Series [200-___], or such other address as may hereafter
be furnished to the Company and the Certificate  Administrator in writing by the
Trustee,  and (d) in the case of [name of  rating  agency],  [ ], or such  other
address as may  hereafter  be  furnished  to the  Company,  the  Trustee and the
Certificate  Administrator  in  writing by [name of rating  agency].  Any notice
required  or  permitted  to be mailed to a  Certificateholder  shall be given by
first-class mail, postage prepaid, at the address of such holder as shown in the
Certificate Register and shall be conclusively  presumed to have been duly given
when mailed.

      Section 11.06. Notices to Rating Agency.

      The Company, the Certificate  Administrator or the Trustee, as applicable,
shall notify the Rating Agency at such time as it is otherwise required pursuant
to  this  Agreement  to  give  notice  of the  occurrence  of any of the  events
described  in clauses (a),  (b),  (c), (f) or (g) below or provide a copy to the
Rating  Agency at such time as otherwise  required to be  delivered  pursuant to
this Agreement of any of the statements described in clauses (d) and (e) below:

      (a) a material change or amendment to this Agreement;

      (b) the occurrence of an Event of Default;

      (c)  the   termination   or   appointment   of  a  successor   Certificate
Administrator or Trustee or a change in the majority ownership of the Trustee;

      (d)  the  statement  required  to be  delivered  to  the  Holders  of  the
Certificates pursuant to Section 4.02;

                                       47
<PAGE>

      (e) the statements required to be delivered pursuant to Section 3.05;

      (f) a change in the location of the Certificate Account;

      (g) the occurrence of the Final Distribution Date; and

      (h) the repurchase of any Underlying Agency Securities.

      Section 11.07. Severability of Provisions.

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

      Section 11.08. Successors and Assigns.

      The  provisions of this  Agreement  shall be binding upon and inure to the
benefit of the respective  successors and assigns of the parties hereto, and all
such provisions shall inure to the benefit of the Certificateholders.

      Section 11.09. Article and Section Headings.

      The article and section  headings  herein are for convenience of reference
only, and shall not limit or otherwise affect the meaning hereof.

                                  ARTICLE XII

                          COMPLIANCE WITH REGULATION AB

      Section 12.01. Intent of the Parties; Reasonableness.

      The Company, the Trustee and the Certificate Administrator acknowledge and
agree that the purpose of this Article XII is to  facilitate  compliance  by the
Company with the  provisions of Regulation AB and related rules and  regulations
of the Commission.  The Company shall not exercise its right to request delivery
of information or other  performance  under these  provisions other than in good
faith,  or for  purposes  other than  compliance  with the  Securities  Act, the
Exchange  Act  and  the  rules  and  regulations  of the  Commission  under  the
Securities Act and the Exchange Act. Each of the Certificate  Administrator  and
the Trustee  acknowledges that interpretations of the requirements of Regulation
AB may change over time,  whether due to interpretive  guidance  provided by the
Commission or its staff,  consensus among  participants  in the  mortgage-backed
securities markets,  advice of counsel, or otherwise,  and agrees to comply with
requests  made by the Company in good faith for  delivery of  information  under
these provisions on the basis of evolving interpretations of Regulation AB. Each
of the Certificate  Administrator and the Trustee shall cooperate fully with the
Company to deliver to the Company (including any of its assignees or designees),
any  and  all  statements,  reports,  certifications,   records  and  any  other
information  necessary in the good faith  determination of the

                                       48
<PAGE>

Company to permit the Company or such Company to comply with the  provisions  of
Regulation  AB,  together  with such  disclosures  relating  to the  Certificate
Administrator,  the Trustee and the  Mortgage  Loans,  or the  servicing  of the
Mortgage Loans,  reasonably  believed by the Company to be necessary in order to
effect such compliance.

      Section 12.02. Additional Representations and Warranties of the Trustee.

      (a) The Trustee shall be deemed to represent to the Company as of the date
on which  information is first provided to the Company under Section 12.03 that,
except as disclosed in writing to the Company prior to such date:  (i) it is not
aware and has not received notice that any default,  early amortization or other
performance  triggering  event  has  occurred  as to  any  other  Securitization
Transaction  due to any act or  failure to act of the  Trustee;  (ii) it has not
been terminated as trustee in a  securitization  of mortgage loans;  (iii) there
are no aspects of its  financial  condition  that could have a material  adverse
effect on the performance by it of its trustee  obligations under this Agreement
or any other  Securitization  Transaction;  (iv) there are no material  legal or
governmental  proceedings pending (or known to be contemplated)  against it; and
(v) there are no  affiliations,  relationships  or transactions  relating to the
Trustee with respect to the Company or any sponsor,  issuing  entity,  servicer,
trustee,  originator,  significant  obligor,  enhancement or support provider or
other  material  transaction  party (as such  terms are used in  Regulation  AB)
relating to the  Securitization  Transaction  contemplated by the Agreement (the
"Transaction Parties").

      (b) If so requested by the Company on any date following the date on which
information is first  provided to the Company under Section  12.03,  the Trustee
shall, within five Business Days following such request,  confirm in writing the
accuracy of the  representations  and  warranties  set forth in paragraph (a) of
this Section or, if any such  representation  and warranty is not accurate as of
the date of such  request  or such  confirmation,  provide  reasonably  adequate
disclosure of the pertinent facts, in writing, to the requesting party.

      Section 12.03. Information to Be Provided by the Trustee.

      (a) If so  requested  by the  Company for the  purpose of  satisfying  its
reporting  obligation  under  the  Exchange  Act with  respect  to any  class of
Certificates,  the  Trustee  shall (i) notify the  Company in writing of (A) any
material litigation or governmental  proceedings pending against the Trustee and
(B) any  affiliations or relationships  that develop  following the Closing Date
between the Trustee and any Transaction Party, and (ii) provide to the Company a
written description of such proceedings, affiliations or relationships.

      (b) In addition to such information as the Trustee is obligated to provide
pursuant to other provisions of this Agreement, if so requested by the Company ,
the Trustee shall provide such information  reasonably  available to the Trustee
regarding the  performance  or servicing of the Mortgage  Loans as is reasonably
required to facilitate  preparation of  distribution  reports in accordance with
Item 1121 of Regulation AB.

      Section 12.04. Report on Assessment of Compliance and Attestation.

      On or before March 15 of each calendar year, the Trustee shall:

                                       49
<PAGE>

      (a)  deliver  to the  Company a report (in form and  substance  reasonably
satisfactory  to the Company)  regarding the Trustee's  assessment of compliance
with the Servicing  Criteria during the immediately  preceding calendar year, as
required  under  Rules  13a-18 and 15d-18 of the  Exchange  Act and Item 1122 of
Regulation  AB. Such report  shall be  addressed to the Company and signed by an
authorized  officer of the  Trustee,  and shall  address  each of the  Servicing
Criteria  specified on a  certification  substantially  in the form of Exhibit D
hereto; and

      (b) deliver to the Company a report of a registered public accounting firm
reasonably  acceptable  to the  Company  that  attests  to, and  reports on, the
assessment  of  compliance  made by the  Trustee and  delivered  pursuant to the
preceding  paragraph.  Such  attestation  shall  be  in  accordance  with  Rules
1-02(a)(3)  and  2-02(g)  of  Regulation  S-X under the  Securities  Act and the
Exchange Act.

      Section 12.05. Indemnification; Remedies.

      (a) The  Trustee  shall  indemnify  the  Company,  each  affiliate  of the
Company,  the  Certificate  Administrator  and  each  broker  dealer  acting  as
underwriter,  placement agent or initial  purchaser of the  Certificates or each
Person who controls any of such parties (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange  Act); and the respective  present
and former directors,  officers,  employees and agents of each of the foregoing,
and shall hold each of them  harmless  from and  against  any  losses,  damages,
penalties,  fines,  forfeitures,  legal fees and  expenses  and  related  costs,
judgments,  and any other costs,  fees and expenses that any of them may sustain
arising out of or based upon:

            (i)(A) any untrue  statement of a material fact contained or alleged
      to be contained in any information,  report,  certification,  accountants'
      letter or other  material  provided under this Article XII by or on behalf
      of the  Trustee  (collectively,  the  "Trustee  Information"),  or (B) the
      omission  or  alleged  omission  to state  in the  Trustee  Information  a
      material  fact  required  to be  stated  in  the  Trustee  Information  or
      necessary  in order to make the  statements  therein,  in the light of the
      circumstances under which they were made, not misleading; provided, by way
      of  clarification,  that clause (B) of this  paragraph  shall be construed
      solely  by  reference  to the  Trustee  Information  and not to any  other
      information  communicated  in  connection  with  a  sale  or  purchase  of
      securities,  without  regard to whether  the  Trustee  Information  or any
      portion  thereof is presented  together with or separately from such other
      information;

            (ii) any failure by the Trustee to deliver any information,  report,
      certification,  accountants' letter or other material when and as required
      under this Article XII; or

            (iii) any breach by the Trustee of a representation  or warranty set
      forth in Section  12.02(a) or in a writing  furnished  pursuant to Section
      12.02(b).

      (b) In the case of any failure of performance  described in clause (ii) of
this  Section,  the Trustee shall  promptly  reimburse the Company for all costs
reasonably  incurred  by each  such  party in order to obtain  the  information,
report,  certification,  accountants'  letter or other material not delivered as
required by the Trustee.

                                       50
<PAGE>

      IN WITNESS WHEREOF,  the Company,  the Certificate  Administrator  and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto  duly  authorized  and  their  respective  seals,  if  required,  duly
attested,  to be  hereunto  affixed,  all as of the day  and  year  first  above
written.

                                          RESIDENTIAL ASSET SECURITIES
[Seal]                                    CORPORATION

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

Attest:
           ----------------------------
            Name:
            Title:

                                          [NAME OF CERTIFICATE ADMINISTRATOR]
[Seal]                                    as Certificate Administrator

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

Attest:
           ----------------------------
            Name:
            Title:

                                          [NAME OF TRUSTEE],
[Seal]                                    as Trustee

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

Attest:
           ----------------------------
            Name:
            Title:

                                       51
<PAGE>

STATE OF _______________________

COUNTY OF _____________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                            ------------------------------------
                                            Signature of the Notary

(Seal)

                                       52
<PAGE>

STATE OF _______________________

COUNTY OF _____________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                            ------------------------------------
                                            Signature of the Notary

(Seal)

                                       53
<PAGE>

STATE OF _______________________

COUNTY OF _____________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                            ------------------------------------
                                            Signature of the Notary

(Seal)

                                       54
<PAGE>
                                                                     EXHIBIT A-1
                                                                     -----------

                  FORM OF CLASS [A-1][A-2][A-3][S] CERTIFICATE

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

[NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN SUBJECT
TO THE FIDUCIARY  RESPONSIBILITY  PROVISIONS OF THE EMPLOYEE  RETIREMENT  INCOME
SECURITY  ACT OF 1974,  AS  AMENDED,  OR  SECTION  4975 OF THE CODE,  UNLESS THE
TRANSFEREE  PROVIDES  AN  OPINION  OF COUNSEL  SATISFACTORY  TO THE  CERTIFICATE
ADMINISTRATOR, THE COMPANY AND THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE
BY, ON BEHALF  OF,  OR WITH  "PLAN  ASSETS"  OF SUCH PLAN IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,  WILL NOT  CONSTITUTE  OR  RESULT  IN A  NON-EXEMPT  PROHIBITED
TRANSACTION AND WILL NOT SUBJECT THE CERTIFICATE  ADMINISTRATOR,  THE COMPANY OR
THE TRUSTEE TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE AGREEMENT
(AS DEFINED  BELOW),  PROVIDED THAT NO SUCH OPINION SHALL BE REQUIRED  UNDER THE
CIRCUMSTANCES SET FORTH IN THE AGREEMENT.]

[THE FOLLOWING  INFORMATION IS PROVIDED  SOLELY FOR THE PURPOSES OF APPLYING THE
U.S.   FEDERAL  INCOME  TAX  ORIGINAL  ISSUE  DISCOUNT  ("OID")  RULES  TO  THIS
CERTIFICATE.  THE ISSUE DATE OF THIS CERTIFICATE IS [ , 200 ]. ASSUMING THAT THE
MORTGAGE  LOANS  PREPAY  AT [ ]%  OF  THE  STANDARD  PREPAYMENT  ASSUMPTION  (AS
DESCRIBED IN THE  PROSPECTUS  SUPPLEMENT)  AND ASSUMING A CONSTANT  PASS-THROUGH
RATE EQUAL TO THE INITIAL  PASS-THROUGH  RATE, THIS  CERTIFICATE HAS BEEN ISSUED
WITH NO MORE  THAN $[ ] OF OID  PER  [$1,000/$100,000]  OF  [PRINCIPAL/NOTIONAL]
AMOUNT AND THE YIELD TO MATURITY IS [ ]%, COMPUTED UNDER THE APPROXIMATE METHOD.
THERE  IS  NO  SHORT  ACCRUAL  PERIOD  WITH  RESPECT  TO  THIS  CERTIFICATE.  NO
REPRESENTATION  IS MADE THAT THE  MORTGAGE  LOANS WILL PREPAY AT A RATE BASED ON
THE STANDARD  PREPAYMENT  ASSUMPTION OR AT ANY OTHER RATE OR AS TO THE CONSTANCY
OF THE PASS-THROUGH RATE.]

Class [A-1][A-2][A-3][S]          Certificate No. [____________]
Date of Trust Agreement:          [___]% Pass-Through Rate
[__________________ 1, 200_]      [based on Notional Amount]
Reference Date:
[__________________ 1, 200_]

                                     A-1-1
<PAGE>

First Distribution Date:

                                  [Aggregate Initial Certificate
[__________________ 1, 200_]      Principal Balance of the Class [A-1][A-2][A-3]
                                  Certificates as of the Reference Date:
                                  $[_____________]

Certificate Administrator:        [Initial Certificate Principal
[______________]                  Balance of this Certificate:
                                  $____________]

Assumed Termination Date:         [Percentage Interest:_________%]
[_______________ __, 20__]

                                  CUSIP [___________]

               MORTGAGE PASS-THROUGH CERTIFICATE, Series [200 - ]

      evidencing a  percentage  interest in any  distributions  allocable to the
      Class  [A-1][A-2][A-3][S]  Certificates  with  respect  to the Trust  Fund
      consisting  of  the  Underlying  Agency  Securities  formed  and  sold  by
      Residential Asset Securities Corporation.

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Certificate  Administrator,  the Trustee  referred to below or
GMAC Mortgage, LLC or any of their affiliates. Although payment of principal and
interest on the  Underlying  Agency  Securities is  guaranteed  by [GNMA],  this
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality or by Residential Asset Securities Corporation,  the Certificate
Administrator, the Trustee or GMAC Mortgage, LLC or any of their affiliates.

      This  certifies  that  [______________]  is the  registered  owner  of the
Percentage  Interest  evidenced by this  Certificate  ([obtained by dividing the
Certificate  Principal Balance of this Certificate by the aggregate  Certificate
Principal Balance of all Class [A-1][A-2][A-3] Certificates,  both] as specified
above)  in  certain  distributions  with  respect  to a  Trust  Fund  consisting
primarily  of a pool of the  Underlying  Agency  Securities,  formed and sold by
Residential  Asset  Securities  Corporation  (hereinafter  called the "Company",
which term includes any successor entity under the Agreement referred to below).
The Trust Fund was created  pursuant  to a Trust  Agreement  dated as  specified
above (the  "Agreement")  among the Company,  the Certificate  Administrator and
[_________________________], as trustee (the "Trustee"), a summary of certain of
the  pertinent  provisions  of which is set forth  hereafter.  To the extent not
defined herein,  the capitalized terms used herein have the meanings assigned in
the  Agreement.  This  Certificate  is issued under and is subject to the terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
third Business Day following the Underlying  Security  Distribution Date for the
Underlying Agency Securities (the "Distribution Date"),  commencing on the first
Distribution  Date specified above,

                                     A-1-2
<PAGE>

to the  Person in whose  name this  Certificate  is  registered  at the close of
business  on the  last  day (or if such  last  day is not a  Business  Day,  the
Business Day  immediately  preceding  such last day) of the month next preceding
the month of the Underlying Security Distribution Date for the Underlying Agency
Securities (the "Record  Date"),  from the Available Funds in an amount equal to
the product of the Percentage  Interest  evidenced by this  Certificate  and the
amount  required to be  distributed to Holders of Class [____]  Certificates  on
such Distribution Date. [The Notional Amount of the Class [S] Certificates as of
any  date of  determination  is equal to the  Aggregate  Underlying  Certificate
Balance. The Class [S] Certificates have no Certificate Principal Balance.]

      Distributions on this Certificate will be made either by the Trustee or by
a Paying Agent appointed by the Trustee in immediately  available funds (by wire
transfer or otherwise) for the account of the Person entitled  thereto except as
otherwise  provided in the  Agreement  if such Person shall have so notified the
Certificate  Administrator  or such  Paying  Agent,  or by check  mailed  to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in the City of New York. [The initial  aggregate
Certificate  Principal  Balance  of the  Certificates  is set forth  above.  The
Certificate  Principal  Balance  hereof  will be  reduced  to the  extent of the
distributions allocable to principal.]

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein  collectively called the "Certificates").
The  Certificates  are  limited in right of payment to certain  collections  and
recoveries respecting the Underlying Agency Securities, all as more specifically
set forth herein and in the Agreement.

      As provided in the Agreement,  withdrawals  from the  Certificate  Account
created for the  benefit of  Certificateholders  may be made by the  Certificate
Administrator  from  time to time  for  purposes  other  than  distributions  to
Certificateholders,  such purposes including without limitation reimbursement to
the Company and the Certificate  Administrator of certain expenses incurred,  by
either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Certificate Administrator and the Trustee and the rights of the
Certificateholders  under  the  Agreement  at  any  time  by  the  Company,  the
Certificate  Administrator  and the  Trustee  with the consent of the Holders of
Certificates  evidencing in the  aggregate  not less than 66% of the  Percentage
Interests of each Class of Certificates  affected  thereby.  Any such consent by
the Holder of this  Certificate  shall be conclusive  and binding on such Holder
and upon all future holders of this  Certificate and of any  Certificate  issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation  of such  consent  is made upon the  Certificate.  The  Agreement  also
permits the amendment thereof in certain circumstances without the consent

                                     A-1-3
<PAGE>

of  the  Holders  of  any  of  the  Certificates  and,  in  certain   additional
circumstances,  without  the  consent  of the  Holders  of  certain  Classes  of
Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by, the Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The  Company,   the  Certificate   Administrator,   the  Trustee  and  the
Certificate   Registrar   and  any  agent  of  the  Company,   the   Certificate
Administrator,  the Trustee or the Certificate Registrar may treat the Person in
whose name this  Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Certificate Administrator, the Trustee nor any such
agent shall be affected by notice to the contrary.

      THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the Agreement  following  receipt of the
final  distribution to be made on the last remaining  Underlying Agency Security
in the Trust Fund upon  presentation  and  surrender of such  Underlying  Agency
Security in accordance with the terms and conditions thereof.

                                     A-1-4
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

Dated:
      ----------------
                                           [NAME OF TRUSTEE],
                                           as Trustee

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

                          CERTIFICATE OF AUTHENTICATION

      This is one of the Class  [A-1][A-2][A-3][S]  Certificates  referred to in
the within-mentioned Agreement.

                                            [Name of Certificate Registrar],
                                            as Certificate Registrar

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

                                     A-1-5
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

      (Please print or typewrite name and address  including  postal zip code of
assignee) the beneficial  interest  evidenced by the within the  Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination to the above named assignee and deliver such Certificate
to the following address:
________________________________________________________________________________
________________________________________________________________________________
_________________________

Dated:____________________

                                                 -------------------------------
                                                 Signature by or on behalf of
                                                 assignor

                                                 -------------------------------
                                                 Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

      Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ________________ for the account of ________________  account
number __________________, or, if mailed by check, to ____________________.

Applicable statements should be mailed to: ___________________.

      This information is provided by  __________________________,  the assignee
named above, or _________________________, as its agent.

                                     A-1-6
<PAGE>
                                                                     EXHIBIT A-2
                                                                     -----------

                          FORM OF CLASS R CERTIFICATE

THIS  CERTIFICATE  MAY NOT BE  TRANSFERRED  TO A NON-UNITED  STATES  PERSON OR A
DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

NO TRANSFER OF THIS  CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN SUBJECT
TO THE FIDUCIARY  RESPONSIBILITY  PROVISIONS OF THE EMPLOYEE  RETIREMENT  INCOME
SECURITY ACT OF 1974, OR SECTION 4975 OF THE CODE,  AS AMENDED,  OR SECTION 4975
OF THE CODE, UNLESS THE TRANSFEREE  PROVIDES AN OPINION OF COUNSEL  SATISFACTORY
TO THE CERTIFICATE ADMINISTRATOR,  THE COMPANY AND THE TRUSTEE THAT THE PURCHASE
OF THIS  CERTIFICATE  BY, ON BEHALF  OF, OR WITH  "PLAN  ASSETS" OF SUCH PLAN IS
PERMISSIBLE   UNDER   APPLICABLE   LAW,   WILL  NOT  SUBJECT   THE   CERTIFICATE
ADMINISTRATOR, THE COMPANY OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN IN THE AGREEMENT  (AS DEFINED  BELOW),  PROVIDED THAT NO SUCH OPINION
SHALL BE REQUIRED UNDER THE CIRCUMSTANCES SET FORTH IN THE AGREEMENT.

ANY RESALE,  TRANSFER OR OTHER  DISPOSITION  OF THIS CLASS R CERTIFICATE  MAY BE
MADE ONLY IF THE  PROPOSED  TRANSFEREE  PROVIDES  A  TRANSFER  AFFIDAVIT  TO THE
CERTIFICATE ADMINISTRATOR AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER
(A) THE UNITED STATES, ANY STATE OR POLITICAL  SUBDIVISION  THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF
ANY OF THE FOREGOING,  (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE  DESCRIBED
IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
THE CODE UNLESS SUCH  ORGANIZATION  IS SUBJECT TO THE TAX IMPOSED BY SECTION 511
OF THE CODE,  (C) ANY  ORGANIZATION  DESCRIBED IN SECTION  1381(a)(2)(C)  OF THE
CODE, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING  CLAUSES (A), (B) OR (C) BEING
HEREINAFTER  REFERRED TO AS A "DISQUALIFIED  ORGANIZATION") OR (D) AN AGENT OF A
DISQUALIFIED  ORGANIZATION,  (2) NO  PURPOSE OF SUCH  TRANSFER  IS TO IMPEDE THE
ASSESSMENT  OR  COLLECTION  OF TAX, AND (3) SUCH  TRANSFEREE  SATISFIES  CERTAIN
ADDITIONAL   CONDITIONS  OF  THE  PROPOSED   TRANSFEREE.   NOTWITHSTANDING   THE
REGISTRATION  IN  THE  CERTIFICATE  REGISTER  OR ANY  TRANSFER,  SALE  OR  OTHER
DISPOSITION OF THIS RESIDUAL  CERTIFICATE TO A DISQUALIFIED  ORGANIZATION  OR AN
AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF
NO LEGAL FORCE OR EFFECT  WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,

                                     A-2-1
<PAGE>

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

Class R                                   Certificate No. [____________]
Date of Trust Agreement:                  [___]% Pass-Through Rate
[__________________ 1, 200_]
Reference Date:
[__________________ 1, 200_]
First Distribution Date:                  Aggregate Initial Certificate
[__________________ 1, 200_]              Principal the Class R
                                          Certificates $[_____________]
Certificate Administrator:                [Initial Certificate Principal
[______________]                          Balance of this Certificate:
                                          $____________]
Assumed Termination Date:                 [_________]% [Percentage Interest
[_______________ __, 200_]
                                          CUSIP [___________]

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                                Series [200_-___]

      evidencing a  percentage  interest in any  distributions  allocable to the
      Class R Certificates  with respect to the Trust Fund  consisting of a pool
      of  Underlying  Agency  Securities  formed and sold by  Residential  Asset
      Securities Corporation

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in Residential  Asset Securities
Corporation,  the Certificate  Administrator or the Trustee referred to below or
GMAC Mortgage, LLC or any of their affiliates. Although payment of principal and
interest on the  Underlying  Agency  Securities is  guaranteed  by [GNMA],  this
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality or by Residential Asset Securities Corporation,  the Certificate
Administrator, the Trustee or GMAC Mortgage, LLC or any of their affiliates.

      This  certifies  that  [_______________]  is  the  registered  owner  of a
percentage  interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance  of the  Certificate  by the  aggregate
Initial  Certificate  Principal  Balance  of all Class R  Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting primarily of a pool of Underlying Agency Securities,  formed and sold
by Residential Asset Securities  Corporation  (hereinafter called the "Company",
which term includes any successor entity under the Agreement referred to below).
The Trust Fund was created pursuant

                                     A-2-2
<PAGE>

to a Trust  Agreement  dated as  specified  above  (the  "Agreement")  among the
Company, the Certificate  Administrator and [________________],  as trustee (the
"Trustee"),  a summary of certain of the  pertinent  provisions  of which is set
forth hereafter.  To the extent not defined herein,  the capitalized  terms used
herein have the meanings  assigned in the Agreement.  This Certificate is issued
under and is subject to the terms,  provisions  and conditions of the Agreement,
to which  Agreement the Holder of this  Certificate  by virtue of the acceptance
hereof assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
third Business Day following the Underlying  Security  Distribution Date for the
Underlying Agency Securities (the "Distribution Date"),  commencing on the first
Distribution  Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately  preceding the month of the related  Distribution Date for the
Underlying Agency Securities (the "Record Date"), from the Available Funds in an
amount  equal  to the  product  of the  Percentage  Interest  evidenced  by this
Certificate  and the amount  required  to be  distributed  to Holders of Class R
Certificates on such Distribution Date.

      Each Holder of this  Certificate will be deemed to have agreed to be bound
by the  restrictions  set forth in the  Agreement  to the  effect  that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions,  then the Company will have the right, in its
sole  discretion and without notice to the Holder of this  Certificate,  to sell
this Certificate to a purchaser selected by the Company,  which purchaser may be
the Company,  or any affiliate of the Company,  on such terms and  conditions as
the Company may choose.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in the City of New York. The Initial Certificate
Principal  Balance  of this  Certificate  is set forth  above.  The  Certificate
Principal  Balance  hereof  will  be  reduced  to the  extent  of  distributions
allocable  to  principal.  Notwithstanding  the  reduction  of  the  Certificate
Principal Balance hereof to zero, this Certificate will remain outstanding under
the Agreement and the Holder hereof may have additional obligations with respect
to this Certificate,  including tax liabilities,  and may be entitled to certain
additional  distributions hereon, in accordance with the terms and provisions of
the Agreement.

      In  connection  with any  transfer of this  Certificate,  the Trustee will
require (a) a representation  letter, in the form as described by the Agreement,
stating  that the  transferee  is not an  employee  benefit  plan or other  plan
subject to the fiduciary  responsibility  provisions of the Employee  Retirement
Income Security Act of 1974, as amended ("ERISA"),  or (b) if such

                                     A-2-3
<PAGE>

transferee  is an  employee  benefit  plan or other plan  subject  to ERISA,  an
opinion of counsel  acceptable to and in form and substance  satisfactory to the
Trustee,  the  Company and the  Certificate  Administrator  with  respect to the
permissibility  of such  transfer  under ERISA and stating,  among other things,
that the  transferee's  acquisition  of this Class R Certificate  is permissible
under   applicable  law,  will  not  constitute  or  result  in  any  non-exempt
"prohibited  transaction"  under  Section  406 of ERISA or  Section  4975 of the
Internal  Revenue Code of 1986 and will not subject the Trustee,  the Company or
the  Certificate   Administrator  to  any  obligation  or  liability  (including
obligations  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in the  Agreement.  Each Holder of this Class R  Certificate  will be
deemed to have agreed to be bound by the restrictions set forth in the Agreement
to the effect that (i) each person  holding or acquiring any Ownership  Interest
in this Class R  Certificate  must be a Permitted  Transferee  (and may not be a
Non-United  States  Person),   (ii)  no  Ownership  Interest  in  this  Class  R
Certificate  may be  transferred  without  the  express  written  consent of the
Company,  which  consent may be  conditioned  on the delivery to the Company of,
among other  things,  an opinion of counsel,  (iii) any  attempted  or purported
transfer of any Ownership  Interest in this Class R Certificate  in violation of
such  restrictions  will be absolutely  null and void and will vest no rights in
the  purported  transferee,  and  (iv)  if any  Person  other  than a  Permitted
Transferee  acquires  any  Ownership  Interest  in this Class R  Certificate  in
violation of such  restrictions,  then the Company  will have the right,  in its
sole  discretion and without notice to the Holder of this Class R Certificate to
sell this Class R  Certificate  to a purchaser  selected by the  Company,  which
purchaser may be the Company, or any affiliate of the Company, on such terms and
conditions as the Company may choose.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein  collectively called the "Certificates").
The  Certificates  are  limited in right of payment to certain  collections  and
recoveries respecting the Underlying Agency Securities, all as more specifically
set forth herein and in the Agreement.

      As provided in the Agreement,  withdrawals  from the  Certificate  Account
created for the  benefit of  Certificateholders  may be made by the  Certificate
Administrator  from  time to time  for  purposes  other  than  distributions  to
Certificateholders,  such purposes including without limitation reimbursement to
the Company and the  Certificate  Administrator  of  advances  made,  or certain
expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Certificate Administrator and the Trustee and the rights of the
Certificateholders  under  the  Agreement  at  any  time  by  the  Company,  the
Certificate  Administrator  and the  Trustee  with the consent of the Holders of
Certificates  evidencing in the  aggregate  not less than 66% of the  Percentage
Interests of each Class of Certificates  affected  thereby.  Any such consent by
the Holder of this  Certificate  shall be conclusive  and binding on such Holder
and upon all future holders of this  Certificate and of any  Certificate  issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation  of such  consent  is made upon the  Certificate.  The  Agreement  also
permits the amendment  thereof in certain  circumstances  without the consent of
the Holders of any of the Certificates and, in certain additional circumstances,
without the consent of the Holders of certain Classes of Certificates.

                                     A-2-4
<PAGE>

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by, the Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The  Company,   the  Certificate   Administrator,   the  Trustee  and  the
Certificate   Registrar   and  any  agent  of  the  Company,   the   Certificate
Administrator,  the Trustee or the Certificate Registrar may treat the Person in
whose name this  Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Certificate Administrator, the Trustee nor any such
agent shall be affected by notice to the contrary.

      THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the Agreement  following  receipt of the
final  distribution to be made on the last remaining  Underlying Agency Security
in the Trust Fund upon  presentation  and  surrender of such  Underlying  Agency
Security in accordance with the terms and conditions thereof.

                                     A-2-5
<PAGE>

      IN WITNESS WHEREOF,  the Trustee has caused this Class R Certificate to be
duly executed.

Dated:

                                        [NAME OF TRUSTEE],
                                        as Trustee

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

                          CERTIFICATE OF AUTHENTICATION

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

                                        [NAME OF CERTIFICATE REGISTRAR],
                                        as Trustee

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

                                     A-2-6
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the   undersigned  hereby  sell(s),  assign(s)  and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

      (Please print or typewrite name and address  including  postal zip code of
assignee) the beneficial  interest  evidenced by the within the  Certificate and
hereby  authorizes the transfer of  registration of such interest to assignee on
the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination to the above named assignee and deliver such Certificate
to the following address:
________________________________________________________________________________
________________________________________________________________________________
_________________________

Dated:____________________

                                               --------------------------------
                                               Signature by or on behalf of
                                               assignor

                                               --------------------------------
                                               Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

      Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ________________ for the account of ________________  account
number     __________________,     or,    if     mailed     by     check,     to
_____________________________________.

Applicable statements should be mailed to: ____________________________________.

      This information is provided by  __________________________,  the assignee
named above, or _________________________, as its agent.

                                     A-2-7
<PAGE>
                                                                     EXHIBIT B-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF [_________________]        )
                                    )        ss:
COUNTY OF [________________]        )

      [NAME OF OFFICER], being first duly sworn, deposes and says:

      1. That he or she is  [Title of  Officer]  of [Name of Owner]  (record  or
beneficial owner (the "Owner") of the Residential Asset Securities  Corporation,
Class R  Certificate,  Series  [200__-____]  (the "Residual  Certificates")),  a
[savings  institution]  [corporation] duly organized and existing under the laws
of [the State of  ________________]  [the United States],  on behalf of which he
makes this  affidavit  and  agreement.  The  Residual  Certificates  were issued
pursuant to the Trust Agreement,  dated as of [________________ 1, 200__], among
Residential  Asset  Securities  Corporation,  as the  company  (the  "Company"),
[________________],    as   certificate    administrator    (the    "Certificate
Administrator") and [________________], as trustee (the "Trustee").

      2. That the Owner (i) is not and will not be a "disqualified organization"
as of [date of  transfer]  within  the  meaning  of  Section  860E(e)(5)  of the
Internal  Revenue Code of 1986, as amended (the  "Code"),  (ii) will endeavor to
remain  other than a  disqualified  organization  for so long as it retains  its
ownership  interest  in the  Residual  Certificate  and (iii) is  acquiring  the
Residual  Certificates  for its own account or for the account of another  Owner
from which it has received an affidavit in  substantially  the same form as this
affidavit and agreement. (For this purpose, a "disqualified  organization" means
the United States, any state or political  subdivision thereof, or any agency or
instrumentality  of any of the foregoing (other than an  instrumentality  all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation,  a majority of whose board of directors is not selected by
any  such  governmental  entity),  or  any  foreign  government,   international
organization  or any agency or  instrumentality  of such foreign  government  or
organization,  any rural electric or telephone cooperative,  or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated  business
taxable income).

      3.  That the  Owner  is aware  (i) of the tax  that  would be  imposed  on
transfers of the Residual  Certificates to disqualified  organizations under the
Code that applies to all transfers of Residual Certificates;  (ii) that such tax
would be on the  transferor,  or, if such  transfer  is through an agent  (which
person includes a broker, nominee or middleman) for a disqualified organization,
on the  agent;  (iii)  that the  person  otherwise  liable  for the tax shall be
relieved of liability for the tax if the transferee  furnishes to such person an
affidavit  that the transferee is not a  disqualified  organization  and, at the
time of transfer,  such person does not have actual knowledge that the affidavit
is false; and (iv) that the Residual  Certificates may be "noneconomic  residual
interests"  within the  meaning of  proposed  Treasury  regulations  promulgated
pursuant to the Code and that the transferor of a noneconomic  residual interest
will

                                     B-1-1
<PAGE>

remain  liable for any taxes due with  respect  to the  income of such  residual
interest,  unless no  significant  purpose  of the  transfer  was to impede  the
assessment or collection of tax.

      4. That the Owner is aware of the tax imposed on a  "pass-through  entity"
holding the Residual  Certificates if at any time during the taxable year of the
pass-through  entity a  disqualified  organization  is the  record  holder of an
interest in such entity.  (For this purpose,  a "pass through entity" includes a
regulated  investment  company,  a real estate  investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

      5. That the Owner is aware that the Trustee will not register the transfer
of any Residual  Certificates unless the transferee,  or the transferee's agent,
delivers to it an affidavit and agreement,  among other things, in substantially
the same form as this affidavit and agreement.  The Owner expressly  agrees that
it will not consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

      6. That the Owner has reviewed the  restrictions  set forth on the face of
the Residual  Certificates  and the provisions of Section 4.02(f) of the Pooling
and Servicing  Agreement under which the Residual  Certificates  were issued (in
particular,  clause (iii)(A) and (iii)(B) of Section 4.02(f) which authorize the
Trustee to deliver  payments  to a person  other than the Owner and  negotiate a
mandatory sale by the Trustee in the event the Owner holds such  Certificates in
violation of Section 4.02(f)).  The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

      7.  The  Owner   warrants  and   represents   that  it  is  [a  "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933, as amended] [a person involved in the  organization or operation of
the Company or Certificate  Administrator,  or an affiliate,  as defined in Rule
405 under the Securities Act of 1933, as amended, of either of them].

      8. That the Owner consents to any additional  restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement  to  ensure  that the  Residual  Certificates  will  only be  owned,
directly or indirectly, by an Owner that is not a disqualified organization.

      9. The Owner's Taxpayer Identification Number is [____________].

      10. This affidavit and agreement relates only to the Residual Certificates
held by the Owner and not to any other holder of the Residual Certificates.  The
Owner  understands  that the  liabilities  described  herein  relate only to the
Residual Certificates.

      11. That no purpose of the Owner  relating  to the  purchase of any of the
Residual  Certificates  by the Owner is or will be to impede the  assessment  or
collection of any tax.

      12. That the Owner has no present  knowledge or  expectation  that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Residual  Certificates  remain  outstanding.  In this  regard,  the Owner hereby
represents  to and for the

                                     B-1-2
<PAGE>

benefit of the person from whom it acquired  the Residual  Certificate  that the
Owner intends to pay taxes associated with holding such Residual  Certificate as
they become due, fully understanding that it may incur tax liabilities in excess
of any cash flows generated by the Residual Certificate.

      13.  The  Owner  is  a  citizen  or  resident  of  the  United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States is includible in gross
income  for  United  States  federal  income  tax  purposes  regardless  of  its
connection with the conduct of a trade or business within the United States.

      14. The Owner is not an employee benefit plan or other plan subject to the
Employee Retirement Income Security Act of 1974, as amended ("ERISA") or Section
4975 of the  Internal  Revenue  Code  of 1986  (the  "Code"),  or an  investment
manager,  a named  fiduciary  or a trustee of any such plan or any other  Person
acting,  directly  or  indirectly,  on  behalf  of or  purchasing  any  Residual
Certificate   with  "plan  assets"  of  any  such  plan,  and  understands  that
registration of transfer of any Residual Certificate to any such plan, or to any
Person acting on behalf of or  purchasing  any Residual  Certificate  with "plan
assets" of any such plan,  will not be made unless such plan or Person  delivers
an opinion of its  counsel,  addressed  and  satisfactory  to the  Trustee,  the
Company and the Certificate  Administrator,  to the effect that the purchase and
holding of a Residual  Certificate by, on behalf of or with "plan assets" of any
such plan is permissible under applicable law, would not constitute or result in
any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
of the Code, and would not subject the Company, the Certificate Administrator or
the Trustee to any obligation or liability (including  liabilities under Section
406 of ERISA or Section 4975 of the Code) in addition to those undertaken in the
Trust Agreement or any other liability.

                                     B-1-3
<PAGE>

      IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf,  pursuant to the authority of its Board of Directors,  by its [Title
of Officer]  and its  corporate  seal to be hereunto  attached,  attested by its
[Assistant] Secretary, this day of ________________, 200 .

                                          [NAME OF OWNER]

                                          By:
                                             -----------------------------
                                              [Name of Officer]
                                              [Title of Officer]

[Corporate Seal]

ATTEST:

-------------------------------
[Assistant] Secretary

STATE OF _______________________

COUNTY OF _____________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                            ------------------------------------
                                            Signature of the Notary

(Seal)

                                     B-1-4
<PAGE>
                                                                     EXHIBIT B-2
                                                                     -----------

                         FORM OF TRANSFEROR CERTIFICATE

                                                     [__________________, 20___]

Residential Asset Securities
Corporation
8300 Normandale Lake Blvd.
Suite 700
Minneapolis, Minnesota 55437

[Name of Trustee]
[Address of Trustee]

Attention:  [________________________]

      Re: Mortgage Asset-Backed Pass-Through Certificates,  Series [200__-____],
Residual

Ladies and Gentlemen:

      This  letter  is  delivered  to you in  connection  with the  transfer  by
[______________________]   (the  "Seller")  to   [______________________]   (the
"Purchaser") of $[______________________]  Initial Certificate Principal Balance
of the Mortgage  Asset-Backed  Pass-Through  Certificates,  Series  [200__-___],
Class R Certificate (the "Residual  Certificates"),  pursuant to Section [_____]
of   the   Trust    Agreement   (the   "Trust    Agreement"),    dated   as   of
[______________________   1,   200__]   among   Residential   Asset   Securities
Corporation,  as the company (the "Company"),  [______________________],  as the
certificate    administrator    (the    "Certificate    Administrator"),     and
[______________________],  as trustee (the "Trustee"). All terms used herein and
not otherwise  defined shall have the meanings set forth in the Trust Agreement.
The Seller hereby certifies, represents and warrants to, and covenants with, the
Company and the Trustee that:

      1.  No  purpose  of the  Seller  relating  to  transfer  of  the  Residual
Certificate  by  the  Seller  to the  Purchaser  is or  will  be to  impede  the
assessment or collection of any tax.

      2. The Seller  understands that the Purchaser has delivered to the Trustee
and the Certificate Administrator a Transfer Affidavit and Agreement in the form
attached  to the Trust  Agreement  as Exhibit  B-1.  The Seller does not know or
believe that any representation contained therein is false.

      3. The  Seller  has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-1(c)(r)(i)  and,  as  a  result  of  that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they become due and has found no

                                     B-2-1
<PAGE>

significant evidence to indicate that the Purchaser will not continue to pay its
debts as they become due in the future. The Seller understands that the transfer
of a Residual  Certificate  may not be respected  for United  States  income tax
purposes  (and the Seller may  continue  to be liable for United  States  income
taxes   associated   therewith)   unless  the  Seller  has  conducted   such  an
investigation.

                                              Very truly yours,

                                              [NAME OF SELLER]
                                              (Seller)

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                     B-2-2
<PAGE>

                                                                       EXHIBIT C
                                                                       ---------

            [FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE]

      The  undersigned,  a Responsible  Officer of [_________]  (the  "Trustee")
certifies that:

      (a) The Trustee has performed all of the duties  specifically  required to
be  performed  by it pursuant  to the  provisions  of the Pooling and  Servicing
Agreement  dated  as of  [_________],  20[__]  (the  "Agreement")  by and  among
[__________], as depositor,  [_____________],  as Certificate Administrator, and
the Trustee in accordance with the standards set forth therein.

      (b) Based on my knowledge,  the list of Certificateholders as shown on the
Certificate Register as of the end of each calendar year that is provided by the
Trustee  pursuant to the  Agreement is accurate as of the last day of the 20[__]
calendar year.

Capitalized terms used and not defined herein shall have the meanings given such
terms in the Agreement.

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.]

                                                 Name:
                                                 Title:

                                      C-1
<PAGE>
                                                                       EXHIBIT D
                                                                       ---------

         SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      The assessment of compliance to be delivered by the Trustee shall address,
at a  minimum,  the  criteria  identified  as  below  as  "Applicable  Servicing
Criteria":

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                          Criteria
-----------------------------------------------------------------------------------------------------------------
     Reference                                Criteria
-----------------------------------------------------------------------------------------------------------------
                                  General Servicing Considerations
-----------------------------------------------------------------------------------------------------------------
<S>                  <C>                                                                 <C>
1122(d)(1)(i)        Policies  and  procedures  are  instituted  to monitor  any
                     performance  or other  triggers  and  events of  default in
                     accordance with the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(ii)       If any material  servicing  activities  are  outsourced  to
                     third  parties,  policies and  procedures are instituted to
                     monitor the third party's  performance  and compliance with
                     such servicing activities.
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(iii)      Any requirements in the transaction  agreements to maintain
                     a back-up servicer for the credit card accounts or accounts
                     are maintained.
-----------------------------------------------------------------------------------------------------------------
1122(d)(1)(iv)       A  fidelity  bond and  errors  and  omissions  policy is in
                     effect on the party participating in the servicing function
                     throughout  the reporting  period in the amount of coverage
                     required by and otherwise in  accordance  with the terms of
                     the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
                                      Cash Collection and Administration
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(i)        Payments on credit card  accounts  are  deposited  into the                 |X|
                     appropriate   custodial  bank  accounts  and  related  bank
                     clearing  accounts no more than two business days following
                     receipt,  or such  other  number of days  specified  in the
                     transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(ii)       Disbursements  made  via  wire  transfer  on  behalf  of an                 |X|
                     obligor  or to an  investor  are  made  only by  authorized
                     personnel.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(iii)      Advances of funds or guarantees regarding collections, cash
                     flows or  distributions,  and any  interest  or other  fees
                     charged for such advances,  are made, reviewed and approved
                     as specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(iv)       The  related  accounts  for the  transaction,  such as cash
                     reserve  accounts  or  accounts  established  as a form  of
                     overcollateralization,  are  separately  maintained  (e.g.,
                     with  respect to  commingling  of cash) as set forth in the
                     transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(v)        Each custodial account is maintained at a federally insured
                     depository  institution  as set  forth  in the  transaction
                     agreements.  For  purposes  of this  criterion,  "federally
                     insured  depository  institution" with respect to a foreign
                     financial institution means a foreign financial institution
                     that  meets the  requirements  of Rule  13k-1(b)(1)  of the
                     Securities Exchange Act.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(vi)       Unissued   checks   are   safeguarded   so  as  to  prevent
                     unauthorized access.
-----------------------------------------------------------------------------------------------------------------
1122(d)(2)(vii)      Reconciliations  are  prepared  on a monthly  basis for all
                     asset-backed  securities  related bank accounts,  including
                     custodial  accounts  and related  bank  clearing  accounts.
                     These reconciliations are (A) mathematically  accurate; (B)
                     prepared  within 30 calendar days after the bank  statement
                     cutoff date, or such other number of days  specified in the
                     transaction  agreements;   (C)  reviewed  and  approved  by
                     someone   other   than  the   person   who   prepared   the
                     reconciliation;    and   (D)   contain   explanations   for
                     reconciling  items.  These  reconciling  items are resolved
                     within 90 calendar days of their  original  identification,
                     or such other number of days  specified in the  transaction
                     agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-1
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                          Criteria
-----------------------------------------------------------------------------------------------------------------
     Reference                                Criteria
-----------------------------------------------------------------------------------------------------------------
                                      Investor Remittances and Reporting
-----------------------------------------------------------------------------------------------------------------
<S>                  <C>                                                                 <C>
1122(d)(3)(i)        Reports to investors,  including those to be filed with the
                     Commission,   are   maintained  in   accordance   with  the
                     transaction    agreements   and    applicable    Commission
                     requirements.  Specifically,  such reports (A) are prepared
                     in accordance  with timeframes and other terms set forth in
                     the  transaction   agreements;   (B)  provide   information
                     calculated  in accordance  with the terms  specified in the
                     transaction  agreements;  (C) are filed with the Commission
                     as  required  by its rules and  regulations;  and (D) agree
                     with  investors' or the  trustee's  records as to the total
                     unpaid principal balance and number of credit card accounts
                     serviced by the Servicer.
-----------------------------------------------------------------------------------------------------------------
1122(d)(3)(ii)       Amounts due to  investors  are  allocated  and  remitted in                 |X|
                     accordance with timeframes, distribution priority and other
                     terms set forth in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(3)(iii)      Disbursements  made to an  investor  are posted  within two                 |X|
                     business days to the Servicer's  investor records,  or such
                     other  number  of  days   specified   in  the   transaction
                     agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(3)(iv)       Amounts  remitted to  investors  per the  investor  reports
                     agree with cancelled checks,  or other form of payment,  or
                     custodial bank |X|
                     statements.
-----------------------------------------------------------------------------------------------------------------
                                          Pool Asset Administration
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(i)        Collateral or security on credit card accounts is maintained as             |X|
                     required by the transaction agreements or related asset pool
                     documents.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(ii)       Account and related documents are safeguarded as required by the            |X|
                     transaction agreements
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(iii)      Any additions,  removals or substitutions to the asset pool
                     are made,  reviewed  and  approved in  accordance  with any
                     conditions or requirements in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(iv)       Payments on credit card  accounts,  including  any payoffs,
                     made in  accordance  with the related  credit card accounts
                     documents  are  posted to the  Servicer's  obligor  records
                     maintained no more than two business days after receipt, or
                     such  other  number of days  specified  in the  transaction
                     agreements,  and allocated to principal,  interest or other
                     items (e.g.,  escrow) in accordance  with the related asset
                     pool documents.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(v)        The  Servicer's  records  regarding  the  accounts  and the
                     accounts agree with the Servicer's  records with respect to
                     an obligor's unpaid principal balance.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(vi)       Changes with respect to the terms or status of an obligor's
                     account (e.g.,  loan  modifications or re-agings) are made,
                     reviewed and approved by authorized personnel in accordance
                     with the  transaction  agreements  and  related  pool asset
                     documents.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(vii)      Loss  mitigation  or recovery  actions  (e.g.,  forbearance
                     plans,  modifications  and  deeds  in lieu of  foreclosure,
                     foreclosures   and   repossessions,   as  applicable)   are
                     initiated,  conducted and concluded in accordance  with the
                     timeframes  or  other   requirements   established  by  the
                     transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(viii)     Records  documenting   collection  efforts  are  maintained
                     during  the period a Account is  delinquent  in  accordance
                     with  the   transaction   agreements.   Such   records  are
                     maintained  on at  least a  monthly  basis,  or such  other
                     period  specified  in  the  transaction   agreements,   and
                     describe the entity's  activities in monitoring  delinquent
                     Accounts including,  for example,  phone calls, letters and
                     payment  rescheduling  plans in cases where  delinquency is
                     deemed temporary (e.g., illness or unemployment).
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(ix)       Adjustments  to  interest  rates  or rates  of  return  for
                     Accounts  with  variable  rates are  computed  based on the
                     related Account documents.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-2
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                          Criteria
-----------------------------------------------------------------------------------------------------------------
     Reference                                Criteria
-----------------------------------------------------------------------------------------------------------------
<S>                  <C>                                                                 <C>
1122(d)(4)(x)        Regarding  any funds held in trust for an obligor  (such as
                     escrow   accounts):   (A)  such  funds  are  analyzed,   in
                     accordance  with the  obligor's  Account  documents,  on at
                     least an annual  basis,  or such other period  specified in
                     the transaction  agreements;  (B) interest on such funds is
                     paid,  or  credited,   to  obligors  in   accordance   with
                     applicable  Account  documents and state laws; and (C) such
                     funds are returned to the obligor  within 30 calendar  days
                     of full  repayment of the related  Accounts,  or such other
                     number of days specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xi)       Payments  made on  behalf  of an  obligor  (such  as tax or
                     insurance  payments)  are  made on or  before  the  related
                     penalty  or   expiration   dates,   as   indicated  on  the
                     appropriate  bills or notices for such  payments,  provided
                     that such  support  has been  received  by the  servicer at
                     least 30 calendar days prior to these dates,  or such other
                     number of days specified in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xii)      Any late payment  penalties in connection  with any payment
                     to be made on  behalf  of an  obligor  are  paid  from  the
                     servicer's funds and not charged to the obligor, unless the
                     late payment was due to the obligor's error or omission.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xiii)     Disbursements  made on  behalf  of an  obligor  are  posted
                     within  two  business   days  to  the   obligor's   records
                     maintained  by the  servicer,  or such other number of days
                     specified in the transaction
                     agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xiv)      Delinquencies,  charge-offs and uncollectible  accounts are
                     recognized and recorded in accordance  with the transaction
                     agreements.
-----------------------------------------------------------------------------------------------------------------
1122(d)(4)(xv)       Any external  enhancement or other  support,  identified in
                     Item 1114(a)(1)  through (3) or Item 1115 of Regulation AB,
                     is maintained as set forth in the transaction agreements.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-3

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