Document:

EXHIBIT 4.8

                                                                       EXECUTION

                               DATED 23 JULY 2001

                                NORTHERN ROCK PLC
                                 as Cash Manager

                                     - AND -

                        GRANITE FINANCE TRUSTEES LIMITED
                              as Mortgages Trustee

                                     - AND -

                                NORTHERN ROCK PLC
                                    as Seller

                                     - AND -

                         GRANITE FINANCE FUNDING LIMITED
                                 as Beneficiary

                                     - AND -

                              THE BANK OF NEW YORK
                               as Security Trustee

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                           FIRST AMENDED AND RESTATED

                            CASH MANAGEMENT AGREEMENT

                               Dated 23 July 2001

                          which amends and restates the

                            CASH MANAGEMENT AGREEMENT

                               Dated 26 March 2001

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                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AW
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                                      REF:

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                                    CONTENTS

CLAUSE                                                                  PAGE NO.
------                                                                  --------

1.  Definitions and Interpretation..........................................  5

2.  Appointment of Cash Manager.............................................  5

3.  The Services............................................................  6

4.  Payments, Accounts, Ledgers.............................................  7

5.  Early Repayment Charges................................................. 14

6.  No Liability............................................................ 14

7.  Costs and Expenses...................................................... 14

8.  Information............................................................. 15

9.  Remuneration............................................................ 17

10. Covenants, Representations and Warranties of the Cash Manager........... 18

11. Services Non-Exclusive.................................................. 19

12. Termination............................................................. 19

13. Further Assurances...................................................... 22

14. Miscellaneous........................................................... 22

15. Confidentiality......................................................... 23

16. No Partnership.......................................................... 24

17. Assignment.............................................................. 24

18. The Security Trustee.................................................... 24

19. New Intercompany Loan Agreements........................................ 25

20. Non Petition Covenant; Limited Recourse................................. 25

21. Amendments and Waiver................................................... 26

22. Notices................................................................. 27

23. Third Party Rights...................................................... 28

24. Execution in Counterparts; Severability................................. 28

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25. Governing Law and Submission to Jurisdiction............................ 28

SCHEDULE 1 The Cash Management Services..................................... 29

SCHEDULE 2 Cash Management and Maintenance of Ledgers....................... 32

SCHEDULE 3A Form of Mortgages Trustee Quarterly Report...................... 42

SCHEDULE 3B Form of Funding Quarterly Report................................ 43

SCHEDULE 4 Cash Manager Representations and Warranties...................... 46

                                       3

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THIS FIRST AMENDED AND RESTATED CASH MANAGEMENT AGREEMENT DATED 23 JULY 2001
AMENDS AND RESTATES THE ORIGINAL CASH MANAGEMENT AGREEMENT DATED 26 MARCH 2001

BETWEEN:

(1)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as cash manager (the "CASH MANAGER", which expression shall
      include such other person as may from time to time be appointed as cash
      manager pursuant to this Agreement);

(2)   GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
      limited company incorporated under the laws of Jersey, Channel Islands
      whose registered office is at 22 Grenville Street, St. Helier, Jersey JE4
      8PX, Channel Islands (the "MORTGAGES TRUSTEE");

(3)   NORTHERN ROCK PLC (registered number 3273685), a public limited company
      incorporated under the laws of England and Wales whose registered office
      is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
      capacity as Seller of the Mortgage Loans (the "SELLER");

(4)   GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
      limited company incorporated under the laws of Jersey, Channel Islands
      having its principal place of business in the United Kingdom at 35 New
      Bridge Street, 4th Floor, Blackfriars, London EC4V 6BW ("FUNDING" and,
      together with the Seller, the "BENEFICIARIES"); and

(5)   THE BANK OF NEW YORK whose principal office is at One Canada Square, 48th
      Floor, London E14 5AL in its capacity as trustee (the "SECURITY TRUSTEE"
      which expression shall include such company and all other persons or
      companies for the time being acting as the trustee or trustees under the
      Funding Deed of Charge).

WHEREAS:

(A)   On the Initial Closing Date the First Issuer will issue the First Issuer
      Notes constituted by the First Issuer Trust Deed. From the proceeds of the
      issue of those First Issuer Notes, the First Issuer shall make a loan to
      Funding pursuant to the terms of the First Issuer Intercompany Loan
      Agreement. From the proceeds of that loan, Funding shall pay the Initial
      Contribution to the Mortgages Trustee as consideration in part for the
      Initial Funding Share of the Trust Property, which funds will be used by
      the Mortgages Trustee to pay to the Seller the Initial Purchase Price for
      the assignment by the Seller to the Mortgages Trustee of the Initial
      Mortgage Portfolio pursuant to the Mortgage Sale Agreement.

(B)      The Cash Manager is willing to provide Cash Management Services to the
         Mortgages Trustee, Funding and the Security Trustee on the terms and
         subject to the conditions contained in this Agreement.

                                       4

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IT IS HEREBY AGREED as follows:

1.    DEFINITIONS AND INTERPRETATION

1.1   The Master Definitions Schedule signed for the purposes of identification
      by Brown & Wood and Clifford Chance Limited Liability Partnership on 26
      March 2001 (as the same may be amended, varied or supplemented from time
      to time with the consent of the parties hereto) is expressly and
      specifically incorporated into this Agreement and, accordingly, the
      expressions defined in the Master Definitions Schedule (as so amended,
      varied or supplemented) shall, except where the context otherwise requires
      and save where otherwise defined herein, have the same meanings in this
      Agreement, including the recitals hereto, and this Agreement shall be
      construed in accordance with the interpretation provisions set out in
      Clause 2 of such Master Definitions Schedule.

1.2   Any reference in this Agreement to any discretion, power or right on the
      part of the Mortgages Trustee shall be as exercised by the Mortgages
      Trustee only as directed by the Beneficiaries but subject in each case to
      the provisions of Clause 17 (DIRECTIONS FROM BENEFICIARIES) of the
      Mortgages Trust Deed.

2.    APPOINTMENT OF CASH MANAGER

2.1   APPOINTMENT: Until termination pursuant to Clause 12 herein (Termination),
      the Mortgages Trustee, Funding and the Security Trustee (according to
      their respective estates and interests) each hereby appoints the Cash
      Manager as its lawful agent to provide the Cash Management Services set
      out in this Agreement, including in relation to:

      (a)   the Mortgages Trustee; and

      (b)   Funding,

      and the Cash Manager in each case hereby accepts such appointment on the
      terms and subject to the conditions of this Agreement.

2.2   DUTIES PRESCRIBED BY TRANSACTION DOCUMENTS: For the avoidance of doubt and
      in connection with the powers conferred under Clause 2.1 (APPOINTMENT),
      save as expressly provided elsewhere in this Agreement, nothing herein
      shall be construed so as to give the Cash Manager any powers, rights,
      authorities, directions or obligations other than as specified in this
      Agreement or any of the other Transaction Documents.

2.3   APPOINTMENT CONDITIONAL UPON ISSUANCE OF FIRST ISSUER NOTES: The
      appointment pursuant to Clause 2.1 (APPOINTMENT) is conditional upon the
      issue of the First Issuer Notes and the making of the First Issuer
      Intercompany Loan under the First Issuer Intercompany Loan Agreement and
      shall take effect upon and from the Initial Closing Date automatically
      without any further action on the part of any person, PROVIDED THAT, if
      the issue of the First Issuer Notes by the First Issuer has not occurred
      by 30 April 2001, or such later date as the First Issuer and the Lead
      Manager may agree, this Agreement shall cease to be of further effect.

                                       5

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3.    THE SERVICES

3.1   GENERAL: The Cash Manager shall provide the services set out in this
      Agreement (including, without limitation, Schedules 1 and 2 attached
      hereto) (the "CASH MANAGEMENT SERVICES").

3.2   APPROVALS AND AUTHORISATIONS: The Cash Manager shall maintain, or procure
      the maintenance of, the approvals, authorisations, consents and licences
      required in connection with the respective businesses of the Mortgages
      Trustee and Funding and shall prepare and submit, or procure the
      preparation and submission of, on behalf of the Mortgages Trustee and
      Funding, all necessary applications and requests for any further
      approvals, authorisations, consents or licences which may be required in
      connection with the respective businesses of the Mortgages Trustee and
      Funding and shall, so far as it reasonably can do so, perform the Cash
      Management Services in such a way as not to prejudice the continuation of
      any such approvals, authorisations, consents or licences.

3.3   COMPLIANCE WITH TRANSACTION DOCUMENTS, ETC.: The Cash Management Services
      shall include procuring (so far as the Cash Manager, using its reasonable
      endeavours, is able so to do) compliance by the Mortgages Trustee and
      Funding with all applicable legal requirements and with the terms of the
      Transaction Documents to which each of the Mortgages Trustee and/or
      Funding is a party, PROVIDED THAT the Cash Manager shall not lend or
      provide any sum to the Mortgages Trustee or Funding (other than as
      expressly contemplated by the Transaction Documents) and the Cash Manager
      shall have no liability whatsoever to the Mortgages Trustee, Funding, the
      Security Trustee or any other person for any failure by the Mortgages
      Trustee or Funding to make any payment due by any of them under any of the
      Transaction Documents (other than to the extent arising from (i) the Cash
      Manager failing to make a payment in its capacity as Administrator, or in
      any other capacity under the Transaction Documents, or (ii) the Cash
      Manager failing to perform any of its obligations under any of the
      Transaction Documents).

3.4   LIABILITY OF CASH MANAGER:

      (a)   The Cash Manager shall indemnify each of the Mortgages Trustee,
            Funding and the Security Trustee on demand for any loss, liability,
            claim, expense or damage suffered or incurred by any of them in
            respect of the negligence, bad faith or wilful default of the Cash
            Manager in carrying out its functions as Cash Manager under this
            Agreement or under the other Transaction Documents or as a result of
            a breach by the Cash Manager of the terms and provisions of this
            Agreement or such other Transaction Documents to which the Cash
            Manager is a party (in its capacity as such) in relation to such
            functions.

      (b)   For the avoidance of doubt, the Cash Manager shall not be liable in
            respect of any loss, liability, claim, expense or damage suffered or
            incurred by the Mortgages Trustee, Funding, or the Security Trustee
            and/or any other person as a result of the proper performance of the
            Cash Management Services (as

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            defined in Clause 3.1) by the Cash Manager save to the extent that
            such loss, liability, claim, expense or damage is suffered or
            incurred as a result of any negligence, bad faith or wilful default
            of the Cash Manager under, or as a result of, a breach by the Cash
            Manager of the terms and provisions of this Agreement or any of the
            other Transaction Documents to which the Cash Manager is a party (in
            its capacity as such) in relation to such functions.

4.    PAYMENTS, ACCOUNTS, LEDGERS

4.1   ESTABLISHMENT OF BANK ACCOUNTS:

      (a)   The Cash Manager hereby confirms that the Mortgages Trustee GIC
            Account has been established on or before the date hereof pursuant
            to the Bank Account Agreement and the Mortgages Trustee Guaranteed
            Investment Contract and that the Mortgages Trustee GIC Account
            Mandate in the agreed form will apply thereto at the Initial Closing
            Date. The Cash Manager undertakes (to the extent to which the same
            is within its control) that at the Initial Closing Date the
            Mortgages Trustee GIC Account will be operative and that the Cash
            Manager will not knowingly create or permit to subsist any Security
            Interest in relation to the Mortgages Trustee GIC Account (but
            without prejudice to the Mortgages Trust and the other Transaction
            Documents).

      (b)   The Cash Manager hereby confirms that the Mortgages Trustee
            Transaction Account has been established on or before the date
            hereof pursuant to the Bank Account Agreement and that the Mortgages
            Trustee Transaction Account Mandate in the agreed form will apply
            thereto at the Initial Closing Date. The Cash Manager undertakes (to
            the extent to which the same is within its control) that at the
            Initial Closing Date the Mortgages Trustee Transaction Account will
            be operative and that the Cash Manager will not knowingly create or
            permit to subsist any Security Interest in relation to the Mortgages
            Trustee Transaction Account (but without prejudice to the Mortgages
            Trust and the other Transaction Documents).

      (c)   The Cash Manager hereby confirms that the Funding GIC Account has
            been established on or before the date hereof pursuant to the Bank
            Account Agreement and the Funding Guaranteed Investment Contract and
            that the Funding GIC Account Mandate in the agreed form will apply
            thereto at the Initial Closing Date. The Cash Manager undertakes (to
            the extent to which the same is within its control) that at the
            Initial Closing Date the Funding GIC Account will be operative and
            that the Cash Manager will not knowingly create or permit to subsist
            any Security Interest in relation to the Funding GIC Account other
            than as created under or permitted pursuant to the Funding Deed of
            Charge.

      (d)   The Cash Manager hereby confirms that the Funding Transaction
            Account has been established on or before the date hereof pursuant
            to the Bank Account Agreement and that the Funding Transaction
            Account Mandate in the agreed

                                       7

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            form will apply thereto at the Initial Closing Date. The Cash
            Manager undertakes (to the extent to which the same is within its
            control) that at the Initial Closing Date the Funding Transaction
            Account will be operative and that the Cash Manager will not
            knowingly create or permit to subsist any Security Interest in
            relation to the Funding Transaction Account other than as created
            under or permitted pursuant to the Funding Deed of Charge.

      (e)   The Cash Manager hereby confirms that the Funding (First Issuer) GIC
            Account has been established on or before the date hereof pursuant
            to the Funding (First Issuer) Bank Account Agreement and the Funding
            (First Issuer) Guaranteed Investment Contract and that the Funding
            (First Issuer) GIC Account Mandate in the agreed form will apply
            thereto at the Initial Closing Date. The Cash Manager undertakes (to
            the extent to which the same is within its control) that at the
            Initial Closing Date the Funding (First Issuer) GIC Account will be
            operative and that the Cash Manager will not knowingly create or
            permit to subsist any Security Interest in relation to the Funding
            (First Issuer) GIC Account other than as created under or permitted
            pursuant to the Funding Deed of Charge.

      (f)   Upon Funding entering into any New Intercompany Loan Agreement with
            a New Issuer, the Cash Manager undertakes to establish a separate
            Funding (Issuer) GIC Account in respect of each New Issuer to which
            amounts in respect of any Issuer Reserve Fund and Issuer Liquidity
            Reserve Fund (if any) of such New Issuer will be credited.

      (g)   If Funding enters into a New Intercompany Loan Agreement, then the
            Cash Manager, the Seller, Funding, the Security Trustee and the
            Mortgages Trustee shall execute such amendments to this Agreement as
            may be necessary to reflect the establishment of any new Funding
            (Issuer) GIC Account.

4.2   MORTGAGES TRUSTEE LEDGERS:

      (a)   The Cash Manager shall open and maintain in the books of the
            Mortgages Trustee the following ledgers on behalf of the Mortgages
            Trustee:

            (i)   the Mortgages Trustee Principal Ledger, which shall separately
                  reflect all Principal Receipts standing to the credit of each
                  of the Mortgages Trustee GIC Account and the Mortgages Trustee
                  Transaction Account from time to time and distribution of the
                  same to Funding and the Seller;

            (ii)  the Mortgages Trustee Revenue Ledger, which shall separately
                  reflect all Revenue Receipts standing to the credit of each of
                  the Mortgages Trustee GIC Account and the Mortgages Trustee
                  Transaction Account from time to time and distribution of the
                  same to Funding and the Seller;

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            (iii) the Losses Ledger, which shall record Losses on the Mortgage
                  Portfolio;

            (iv)  the Funding Share/Seller Share Ledger which shall record the
                  Funding Share, the Seller Share, the Funding Share Percentage
                  and the Seller Share Percentage of the Trust Property;

            (v)   the Overpayments Ledger, which will reflect each Revenue
                  Receipt and/or Principal Receipt paid by a Borrower in excess
                  of the amount required under the terms of the relevant
                  Mortgage Loan (and in the case of any non-Flexible Mortgage
                  Loan any payment which is not a Capital Payment), which shall
                  be divided into (A) the Non-Flexible Overpayments Sub Ledger
                  to record Overpayments on Non-Flexible Mortgage Loans and (B)
                  the Flexible Overpayments Sub Ledger to record Overpayments on
                  Flexible Mortgage Loans, in each case as received into and
                  paid out of the Mortgages Trustee GIC Account from time to
                  time;

            (vi)  the Non-Flexible Underpayments Ledger, which shall record
                  Underpayments on Non-Flexible Mortgage Loans from time to
                  time;

            (vii) the Re-Draws Ledger, which will record Re-Draws on the
                  Flexible Mortgage Loans and which shall be divided into (A)
                  the Cash Re-Draws Sub Ledger to record Cash Re-Draws made in
                  respect of Flexible Mortgage Loans and (B) the Non-Cash
                  Re-Draws Sub Ledger to record Non-Cash Re-Draws made in
                  respect of Flexible Mortgage Loans; and

           (viii) the Contributions Ledger, which will be divided into sub
                  ledgers to record (i) the making by Funding to the Mortgages
                  Trustee of Contributions to the Mortgages Trust pursuant to
                  the Mortgages Trust Deed (ii) the making by the Seller to the
                  Mortgages Trustee of Contributions to the Mortgages Trust
                  pursuant to the Mortgages Trust Deed and the application of
                  such Contributions in accordance with the terms of the
                  Mortgages Trust Deed by (iii) the payment by the Mortgages
                  Trustee to the Seller of either (a) amounts of Initial
                  Purchase Price for the sale of any New Mortgage Portfolio
                  which is acquired by the Mortgages Trustee from the Seller
                  under the provisions of Mortgage Sale Agreement (b) amounts of
                  Deferred Purchase Price in accordance with the Mortgage Sale
                  Agreement and (iv) the payment by the Mortgages Trustee to the
                  Seller of any Special Distribution in accordance with the
                  Mortgages Trust Deed.

      (b)   The Cash Manager shall make credits and debits to the Mortgages
            Trustee Ledgers in the manner described in paragraphs 10, 11, 12,
            13, 20, 21 and 22 of Schedule 2 hereto.

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4.3   FUNDING LEDGERS:

      (a)   The Cash Manager shall open and maintain in the books of Funding the
            following ledgers on behalf of Funding:

            (i)   the Issuer Reserve Fund Ledger of any Issuer, which shall
                  record the amount credited to the Issuer Reserve Fund of such
                  Issuer on the related Closing Date, and subsequent withdrawals
                  and deposits in respect of such Issuer Reserve Fund;

            (ii)  the Issuer Liquidity Reserve Ledger of any Issuer, if any,
                  which shall record the amount credited to the Issuer Liquidity
                  Reserve Fund from time to time of such Issuer, and subsequent
                  withdrawals and deposits in respect of such Issuer Liquidity
                  Reserve Fund;

            (iii) the Funding Principal Ledger, which shall separately reflect
                  all Funding Principal Receipts received by Funding on each
                  Distribution Date and all Funding Principal Receipts standing
                  to the credit of each Funding Bank Account;

            (iv)  the Funding Principal Deficiency Ledger, which shall reflect
                  the aggregate position of the Issuer Principal Deficiency
                  Ledgers of all Issuers as to Losses on the Mortgage Loans and
                  the application of Funding Available Principal Receipts to
                  fund Issuer Liquidity Reserve Funds;

            (v)   the Funding Revenue Ledger, which shall separately reflect all
                  Funding Revenue Receipts received by Funding on each
                  Distribution Date and all Funding Revenue Receipts standing to
                  the credit of each Funding Bank Account;

            (vi)  the Funding Reserve Ledger, which shall record the amount
                  credited to the Funding Reserve Fund from time to time, and
                  subsequent withdrawals and deposits in respect of the Funding
                  Reserve Fund; and

            (vii) the Intercompany Loan Ledger, which shall be divided into
                  segregated sub ledgers each of which shall record payments of
                  interest and fees and repayments of principal made under such
                  Intercompany Loan.

      (b)   The Cash Manager shall make credits and debits to the Funding
            Ledgers in accordance with the provisions of paragraphs 14 through
            19 of Schedule 2 hereto.

4.4   PAYMENTS:

      (a)   The Cash Manager shall procure that so far as it may be able in
            relation to all Mortgage Loans comprised in the Mortgage Portfolio,
            the following amounts are paid into the Mortgages Trustee
            Transaction Account:

            (i)   all Monthly Payments, other interest received under and in
                  respect of the Mortgage Loans and any costs or other amounts
                  received under the

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                  Mortgage Loans (including in any such case amounts recovered
                  on enforcement of rights against any Borrower or guarantor of
                  the Borrower, any Mortgaged Property or any of the Borrower's
                  or guarantor's other property or assets);

            (ii)  all final releases and all repayments or prepayments of
                  principal under the Mortgage Loans;

            (iii) any amount received by or on behalf of the Mortgages Trustee
                  pursuant to any Insurance Policy; and

            (iv)  any other amounts whatsoever received by or on behalf of the
                  Mortgages Trustee on or after the Initial Closing Date,

      (b)   The Cash Manager shall procure that the following amounts are
            credited to the Mortgages Trustee GIC Account:

            (i)   from time to time upon written or electronic receipt of
                  instructions from the Administrator, all amounts standing to
                  the credit of the Mortgages Trustee Transaction Account; and

            (ii)  all interest earned on any of (A) the Mortgages Trustee
                  Transaction Account, (B) the Mortgages Trustee GIC Account and
                  (C) all investment proceeds from Authorised Investments
                  purchased from amounts standing to the credit of either the
                  Mortgages Trustee Transaction Account or the Mortgages Trustee
                  GIC Account.

      (c)   The Cash Manager shall procure that on each Distribution Date the
            following amounts are paid into the Funding GIC Account:

            (i)   all Funding Principal Receipts, PROVIDED HOWEVER that any
                  amounts recorded as a credit on the Non-Flexible Overpayments
                  Sub Ledger shall remain in the Mortgages Trustee GIC Account
                  on such Distribution Date;

            (ii)  all Funding Revenue Receipts; and

            (iii) any other amounts whatsoever received by or on behalf of
                  Funding after the Initial Closing Date,

            and the Cash Manager shall procure that all interest earned on the
            Funding GIC Account and the Funding Transaction Account and all
            investment proceeds from Authorised Investments purchased from
            amounts standing to the credit of such accounts are credited to the
            Funding GIC Account.

      (d)   The Cash Manager shall procure that all interest earned on each
            Funding (Issuer) GIC Account and all investment proceeds from
            Authorised Investments purchased from amounts standing to the credit
            of such Funding (Issuer) GIC Account are credited to such account.

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      (e)   The Cash Manager shall procure that on each Payment Date the lesser
            of (1) the amount standing to the credit of the Funding GIC Account
            and (2) the aggregate of all amounts required to be paid by Funding
            to all Issuers in accordance with the relevant Funding Priority of
            Payments, is credited to the Funding Transaction Account in
            accordance with the provisions of the Funding Deed of Charge.

      (f)   The Cash Manager shall procure that all transfers and withdrawals of
            amounts standing to the credit of the Funding Transaction Account
            and the Funding GIC Account shall be made in accordance with the
            provisions of the Funding Deed of Charge.

      (g)   The Cash Manager shall procure that all transfers and withdrawals of
            amounts standing to the credit of each Funding (Issuer) GIC Account
            shall be made in accordance with the provisions of the Funding Deed
            of Charge.

      (h)   Each of the payments into the Mortgages Trustee Transaction Account,
            the Mortgages Trustee GIC Account, the Funding Transaction Account,
            the Funding GIC Account and each Funding (Issuer) GIC Account
            referred to in Clauses 4.4(a) through (g) herein shall be made
            forthwith upon receipt by the Mortgages Trustee, Funding or the Cash
            Manager, as the case may be, of the amount in question.

      (i)   For the avoidance of doubt, as soon as reasonably practicable after
            becoming aware of the same, the Cash Manager may, and shall,
            withdraw Cash from, as the case may be, the Mortgages Trustee
            Transaction Account, the Mortgages Trustee GIC Account, the Funding
            Transaction Account, the Funding GIC Account or any Funding (Issuer)
            GIC Account if, and to the extent that, such Cash was credited
            thereto in error and shall use its reasonable endeavours to ensure
            that such Cash is applied correctly thereafter.

      (j)   The Cash Manager shall promptly notify each of the Mortgages
            Trustee, Funding and the Security Trustee of any additional account
            which supplements or replaces any account specifically referred to
            in the definitions of the "Mortgages Trustee Transaction Account",
            the "Mortgages Trustee GIC Account", the "Funding Transaction
            Account", the "Funding GIC Account" or any "Funding (Issuer) GIC
            Account" in the Master Definitions Schedule.

      (k)   Each of the Cash Manager, the Mortgages Trustee and Funding
            undertakes that, so far as it is able to procure the same, the
            Mortgages Trustee Transaction Account, the Mortgages Trustee GIC
            Account, the Funding Transaction Account and the Funding GIC Account
            and all instructions and Mandates in relation thereto will continue
            to be operative and will not, save as provided in Clause 4.6 herein
            (CASH MANAGEMENT) or as permitted pursuant to the Bank Account
            Agreement, be changed without the prior written consent of the
            Security Trustee (such consent not to be unreasonably withheld or
            delayed). Each of the Cash Manager and Funding undertakes that, so
            far as it is able to procure the same, any Funding (Issuer) GIC
            Account and all instructions and

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            Mandates in relation thereto will continue to be operative and will
            not, save as provided in Clause 4.6 herein (CASH MANAGEMENT) or as
            permitted pursuant to the related Funding (Issuer) Bank Account
            Agreement, be changed without the prior written consent of the
            Security Trustee (such consent not to be unreasonably withheld or
            delayed). For the avoidance of doubt, the Cash Manager may change
            the Authorised Signatories in respect of any instructions or
            Mandates relating to Funding and/or the Mortgages Trustee, without
            the prior written consent of the Security Trustee, in accordance
            with Clause 4.2 (AMENDMENT OR REVOCATION) of the Bank Account
            Agreement or any Funding (Issuer) Bank Account Agreement, as the
            case may be.

4.5   WITHDRAWALS: The Cash Manager may make withdrawals:

      (a)   on behalf of the Mortgages Trustee from the Mortgages Trustee
            Transaction Account and the Mortgages Trustee GIC Account;

      (b)   on behalf of Funding from the Funding GIC Account, any Funding
            (Issuer) GIC Account and the Funding Transaction Account, but only:

            (i)   with the prior consent of the Security Trustee as provided
                  under the Funding Deed of Charge or following receipt of a
                  request for withdrawal in writing from the Cash Manager on
                  behalf of Funding; and

            (ii)  until receipt of an Intercompany Loan Enforcement Notice
                  served by the Security Trustee on Funding (with a copy to the
                  Funding Secured Creditors as soon as reasonable thereafter in
                  accordance with and subject to the Funding Deed of Charge),

      as permitted by this Agreement, the Mortgages Trust Deed, the Bank Account
      Agreement, any Funding (Issuer) Bank Account Agreement, the Mortgages
      Trustee Guaranteed Investment Contract, the Funding Guaranteed Investment
      Contract, any Funding (Issuer) Guaranteed Investment Contract and the
      Funding Deed of Charge, but shall not in carrying out its functions as
      Cash Manager under this Agreement otherwise make withdrawals from the
      Mortgages Trustee Transaction Account, the Mortgages Trustee GIC Account
      or the Funding Bank Accounts. Following enforcement of the Funding
      Security, the Cash Manager will not be entitled to make withdrawals from
      any Funding Account other than in accordance with the instructions of the
      Security Trustee.

4.6   CASH MANAGEMENT: In administering the Mortgages Trustee Transaction
      Account, the Mortgages Trustee GIC Account, the Funding Transaction
      Account, the Funding GIC Account and any Funding (Issuer) GIC Account on
      behalf of the Mortgages Trustee, Funding and the Security Trustee, as
      applicable, the Cash Manager shall comply with the provisions of Schedule
      2 hereto prior to receipt by the Cash Manager of a copy of any
      Intercompany Loan Enforcement Notice served by the Security Trustee on
      Funding.

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4.7   CONTRIBUTIONS: Following the drawing of any Intercompany Loan by Funding
      from the First Issuer or any New Issuer on any date, the Cash Manager
      shall procure (i) the payment on such date by Funding to the Mortgages
      Trustee of Funding's Contribution to the Mortgages Trustee pursuant to the
      Mortgages Trust Deed and (ii) the application of such Contribution by the
      Mortgages Trustee for payment to the Seller of either (a) the amount of
      Initial Purchase Price for the sale of any New Mortgage Portfolio which is
      acquired by the Mortgages Trustee from the Seller on such date under the
      provisions of Mortgage Sale Agreement or (b) the amount of any Special
      Distribution made to the Seller as Beneficiary under the Mortgages Trust
      Deed, as applicable.

5.    EARLY REPAYMENT CHARGES

      The Cash Manager shall withdraw any Early Repayment Charges paid into the
      Mortgages Trustee Transaction Account or the Mortgages Trustee GIC Account
      and pay the same to the Seller, by telegraphic transfer to such account as
      may be specified by the Seller from time to time, promptly following a
      request for such withdrawal being received from the Seller. For the
      avoidance of doubt, the Cash Manager shall not record the receipt or
      withdrawal of Early Repayment Charges in any of the ledgers maintained
      under this Agreement.

6.    NO LIABILITY

      Save as otherwise provided in this Agreement, the Cash Manager shall have
      no liability for the obligations of any of the Mortgages Trustee, Funding
      or the Security Trustee under any of the Transaction Documents or
      otherwise and nothing herein shall constitute a guarantee, or similar
      obligation, by the Cash Manager of any of the Mortgages Trustee, Funding
      or the Security Trustee in respect of any of them.

7.    COSTS AND EXPENSES

7.1   Funding and the Mortgages Trustee, proportionately in accordance with and
      subject to the applicable Funding Priority of Payments set out in the
      Funding Deed of Charge or the applicable Priority of Payments for the
      Mortgages Trustee under the Mortgages Trust Deed, as the case may be, will
      on each Payment Date reimburse the Cash Manager for all out-of-pocket
      costs, expenses and charges (together with any amounts in respect of
      Irrecoverable VAT due thereon) properly incurred by the Cash Manager in
      the performance of the Cash Management Services including any such costs,
      expenses or charges not reimbursed to the Cash Manager on any previous
      Payment Date and the Cash Manager shall supply Funding and/or the
      Mortgages Trustee with an appropriate VAT invoice issued by the Cash
      Manager or, if the Cash Manager has treated the relevant cost, expense or
      charge as a disbursement for VAT purposes, by the person making the
      supply.

7.2   Unless and until otherwise agreed by Funding, the Mortgages Trustee and
      the Security Trustee in writing (notified to the Cash Manager), Funding
      and the Mortgages Trustee shall be jointly and severally responsible for
      reimbursing the Cash Manager for the out-of-pocket costs, expenses and
      charges (together with any

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<PAGE>

      amounts in respect of Irrecoverable VAT due thereon) referred to in Clause
      7.1 herein.

8.    INFORMATION

8.1   USE OF INFORMATION TECHNOLOGY SYSTEMS:

      (a)   The Cash Manager represents and warrants that at the date hereof in
            respect of the software which is to be used by the Cash Manager in
            providing the Cash Management Services it has in place all necessary
            licences and/or consents from the respective licensor or licensors
            (if any) of such software.

      (b)   The Cash Manager undertakes that it shall for the duration of this
            Agreement, use reasonable endeavours to:

            (i)   ensure that the licences and/or consents referred to in
                  paragraph (a) are maintained in full force and effect; and

            (ii)  except insofar as it would breach any other of its legal
                  obligations, grant to any person to whom it may sub-contract
                  or delegate the performance of all or any of its powers and
                  obligations under this Agreement and/or to such person as the
                  Mortgages Trustee, Funding and the Security Trustee elect as a
                  substitute cash manager in accordance with the terms of this
                  Agreement a licence to use any proprietary software together
                  with any updates which may be made thereto from time to time.

      (c)   The Cash Manager shall use reasonable endeavours to maintain in
            working order the information technology systems used by the Cash
            Manager in providing the Cash Management Services.

      (d)   The Cash Manager shall pass to any person to whom it may
            sub-contract or delegate the performance of all or any of its powers
            and obligations under this Agreement and/or to such person as the
            Mortgages Trustee, Funding and the Security Trustee elect as a
            substitute cash manager in accordance with the terms of this
            Agreement the benefit of any warranties in relation to the software
            insofar as the same are capable of assignment.

8.2   BANK ACCOUNT STATEMENTS: The Cash Manager shall take all reasonable steps
      to ensure that it receives:

      (a)   a monthly bank statement in relation to each of the Mortgages
            Trustee Transaction Account and the Mortgages Trustee GIC Account
            (and any additional or supplemental bank account of the Mortgages
            Trustee) and that it furnishes a copy of such statements to the
            Mortgages Trustee, each of the Beneficiaries and the Security
            Trustee (upon its request); and

      (b)   monthly bank statements in relation to each of the Funding
            Transaction Account, the Funding GIC Account and any Funding
            (Issuer) GIC Account

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<PAGE>

            (and any additional or supplemental bank account of Funding) and
            that it furnishes a copy of such statements to Funding and the
            Security Trustee (upon its request).

8.3   ACCESS TO BOOKS AND RECORDS: Subject to all applicable laws, the Cash
      Manager shall permit the Mortgages Trustee, Funding, the Auditors of the
      Mortgages Trustee and Funding, the Security Trustee and/or any other
      person nominated by the Security Trustee or the Beneficiaries (to whom the
      Cash Manager has no reasonable objection) at any time during normal office
      hours upon reasonable notice to have access, or procure that such person
      or persons are granted access, to all books of record and account relating
      to the Cash Management Services provided by the Cash Manager and related
      matters in accordance with this Agreement.

8.4   STATUTORY OBLIGATIONS: The Cash Manager will use its reasonable endeavours
      on behalf of the Mortgages Trustee and Funding, to prepare or procure the
      preparation of and file all reports, annual returns, financial statements,
      statutory forms and other returns which each of the Mortgages Trustee and
      Funding is required by law to prepare and file. Subject to approval
      thereof by the directors of the Mortgages Trustee or Funding (as
      appropriate), the Cash Manager shall cause such accounts to be audited by
      the Auditors and shall procure so far as it is able so to do that the
      Auditors shall make a report thereon as required by law and copies of all
      such documents shall be delivered to the Mortgages Trustee, the Security
      Trustee and Funding (as appropriate) and the Rating Agencies as soon as
      practicable after the end of each accounting reference period of the
      Mortgages Trustee or Funding (as appropriate).

8.5   INFORMATION COVENANTS:

      (a)   The Cash Manager shall provide the Mortgages Trustee, Funding, the
            Security Trustee, the Seller and the Rating Agencies:

            (i)   quarterly with a report in, or substantially in, the form set
                  out in Schedule 3A hereto in respect of the Mortgages Trustee;
                  and

            (ii)  quarterly with a report in, or substantially in, the form set
                  out in Schedule 3B hereto in respect of Funding.

            Such quarterly reports shall be delivered to the Mortgages Trustee,
            Funding, the Security Trustee (upon its request), the Seller and the
            Rating Agencies by the last Business Day of the month in which each
            Payment Date occurs.

      (b)   The Cash Manager shall provide, or procure the provision of, to the
            Mortgages Trustee, Funding, the Security Trustee (upon its request)
            and the Rating Agencies copies of any annual returns or financial
            statements referred to in Clause 8.4 herein (STATUTORY OBLIGATIONS)
            as soon as reasonably practicable after the preparation thereof.

      (c)   The Cash Manager shall notify the Rating Agencies and the Security
            Trustee in writing of the details of (i) any material amendment to
            the Transaction

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<PAGE>

            Documents of which it is or becomes aware, (ii) the occurrence of an
            Intercompany Loan Event of Default or Potential Intercompany Loan
            Event of Default and (iii) any other information relating to the
            Cash Manager as the Rating Agencies and the Security Trustee may
            reasonably request in connection with its obligations under this
            Agreement, PROVIDED THAT any such request by the Security Trustee
            does not adversely interfere with the Cash Manager's day-to-day
            provision of the Cash Management Services under the other terms of
            this Agreement.

      (d)   After becoming aware of any event described in paragraph (c)(i) and
            (ii) above, the Cash Manager shall give details to Funding, the
            Mortgages Trustee and Security Trustee of any pending legal action
            and any judgments given in respect of the Cash Manager if it could
            have a potential material adverse effect on the ability of the Cash
            Manager to perform its obligations hereunder.

      (e)   The Cash Manager shall, at the request of the Security Trustee,
            furnish the Security Trustee and the Rating Agencies with such other
            information relating to its business and financial condition as the
            Security Trustee may request in connection with this Agreement,
            PROVIDED THAT the Security Trustee shall not make such a request
            more than once every three months unless, in the belief of the
            Security Trustee, an Intercompany Loan Event of Default, a Note
            Event of Default or Cash Manager Termination Event (as defined in
            Clause 12.1 herein (CASH MANAGER TERMINATION EVENTS)) shall have
            occurred and is continuing or a Potential Intercompany Loan Event of
            Default or a Potential Note Event of Default shall have occurred and
            is continuing or may reasonably be expected to occur, PROVIDED THAT
            any such request by the Security Trustee does not adversely
            interfere with the Cash Manager's day to day provision of the Cash
            Management Services under the other terms of this Agreement.

9.    REMUNERATION

9.1   FEE PAYABLE:

      (a)   Subject to paragraph (b) below, Funding and the Mortgages Trustee,
            proportionately in accordance with and subject to the applicable
            Funding Priority of Payments set out in the Funding Deed of Charge
            and the applicable Priority of Payments for the Mortgages Trustee
            under the Mortgages Trust Deed, as the case may be, shall pay to the
            Cash Manager for its Cash Management Services hereunder an annual
            cash management fee of (pound)100,000 for its services which will be
            paid quarterly.

      (b)   Unless and until otherwise agreed by Funding, the Mortgages Trustee
            and the Security Trustee in writing (notified to the Cash Manager),
            Funding and the Mortgages Trustee shall be jointly and severally
            responsible for paying the cash management fee to the Cash Manager
            which is referred to in paragraph (a) above.

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<PAGE>

9.2   PAYMENT OF FEE: The cash management fee referred to in Clause 9.1 herein
      (FEE PAYABLE) shall only be payable to the Cash Manager on each Payment
      Date in the manner contemplated by, in accordance with and subject to the
      provisions of the applicable Priority of Payments for the Mortgages
      Trustee under the Mortgages Trust Deed and the applicable Funding Priority
      of Payments under the Funding Deed of Charge.

10.   COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE CASH MANAGER

10.1  COVENANTS: The Cash Manager hereby covenants with and undertakes to each
      of the Mortgages Trustee, Funding and the Security Trustee that without
      prejudice to any of its specific obligations hereunder:

      (a)   it will exercise all due skill, care and diligence to the
            performance of its obligations and the exercise of its discretions
            hereunder;

      (b)   it will comply with any proper directions, orders and instructions
            which the Mortgages Trustee, Funding or the Security Trustee may
            from time to time give to it in accordance with the provisions of
            this Agreement and, in the event of any conflict, those of the
            Security Trustee shall prevail;

      (c)   it will obtain and keep in force all licences, approvals,
            authorisations and consents which are necessary in connection with
            the performance of the Cash Management Services and prepare and
            submit all necessary applications and requests for any further
            approval, authorisation, consent or licence required in connection
            with the performance of the Cash Management Services;

      (d)   it will not knowingly fail to comply with any legal requirements in
            the performance of the Cash Management Services;

      (e)   it will make all payments required to be made by it pursuant to this
            Agreement on the due date for payment thereof for value in the
            specified currency on such day without set-off (including, without
            limitation, in respect of any fees owed to it) or counterclaim; and

      (f)   it will not without the prior written consent of the Security
            Trustee amend or terminate any of the Transaction Documents save in
            accordance with their terms.

10.2  DURATION OF COVENANTS: The covenants of the Cash Manager in Clause 10.1
      (COVENANTS) shall remain in force until this Agreement is terminated but
      without prejudice to any right or remedy of the Mortgages Trustee and/or
      Funding and/or the Security Trustee arising from breach of any such
      covenant prior to the date of termination of this Agreement.

10.3  REPRESENTATIONS AND WARRANTIES: The Cash Manager hereby makes the
      representations and warranties to each of the Mortgages Trustee, Funding
      and the Security Trustee that are specified on Schedule 4 hereto.

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<PAGE>

11.    SERVICES NON-EXCLUSIVE

       Nothing in this Agreement shall prevent the Cash Manager from rendering
       or performing services similar to those provided for in this Agreement to
       or for itself or other persons, firms or companies or from carrying on
       business similar to or in competition with the business of the Mortgages
       Trustee, Funding or the Security Trustee.

12.    TERMINATION

12.1   CASH MANAGER TERMINATION EVENTS: If any of the following events ("Cash
       Manager Termination Events") shall occur:

       (a)    default is made by the Cash Manager in the payment on the due date
              of any payment due and payable by it under this Agreement or in
              the performance of its obligations under Clauses 4.4 and 4.5
              herein and such default continues unremedied for a period of five
              (5) London Business Days after the earlier of the Cash Manager
              becoming aware of such default and receiving written notice from
              the Security Trustee requiring the same to be remedied;

       (b)    default is made by the Cash Manager in the performance or
              observance of any of its other covenants and obligations under
              this Agreement, which in the opinion of the Security Trustee
              (acting at the direction of the Note Trustee) is materially
              prejudicial to the Noteholders and such default continues
              unremedied for a period of twenty (20) days after the earlier of
              the Cash Manager becoming aware of such default and receipt by the
              Cash Manager of written notice from the Security Trustee requiring
              the same to be remedied; or

       (c)    the Cash Manager suffers an Insolvency Event,

       then Funding, the Mortgages Trustee and/or the Security Trustee may at
       once or at any time thereafter while such default continues by notice in
       writing to the Cash Manager with a copy to the Account Bank terminate its
       appointment as Cash Manager under this Agreement with effect from a date
       (not earlier than the date of the notice) specified in the notice.

12.1.1 Upon termination of the appointment of the Cash Manager, the Security
       Trustee agrees to use its reasonable endeavours to appoint a substitute
       cash manager. Any substitute cash manager:

       (i)    must agree to enter into an agreement substantially on the same
              terms as the relevant provisions of this Agreement or on such
              terms as are satisfactory to the Mortgages Trustee, Funding and
              the Security Trustee, and

       (ii)   must be a party that the Rating Agencies have previously confirmed
              in writing to the Mortgages Trustee, Funding and the Security
              Trustee

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<PAGE>

              will not cause the then-current ratings of the Notes to be
              downgraded, withdrawn or qualified.

       The Security Trustee shall have no liability to any person in the event
       that, having used reasonable endeavours, it is unable to appoint a
       substitute cash manager. In any event, the Security Trustee shall only be
       required to use its reasonable endeavours to appoint such substitute cash
       manager. Notwithstanding any other provision of the Transaction
       Documents, the Security Trustee shall not itself be required to perform
       any duties of the Cash Manager.

       The Security Trustee shall not be obliged to monitor or supervise the
       performance by any substitute Cash Manager of its duties hereunder or in
       relation to the other Transaction Documents nor shall the Security
       Trustee be responsible or liable for any act or omission of any
       substitute Cash Manager or for any loss caused thereby.

12.2   RESIGNATION OF CASH MANAGER: The Cash Manager may resign from its
       appointment under this Agreement only upon giving not less than twelve
       (12) months' notice to each of the Mortgages Trustee, Funding and the
       Security Trustee, PROVIDED THAT:

       (a)    the Mortgages Trustee, Funding and the Security Trustee each
              consent in writing to such resignation;

       (b)    a substitute cash manager shall be appointed, such appointment to
              be effective not later than the effective date of such
              resignation;

       (c)    such substitute cash manager enters into an agreement
              substantially on the same terms as the relevant provisions of this
              Agreement and the Cash Manager shall not be released from its
              obligations under the relevant provisions of this Agreement until
              such substitute cash manager has entered into such new agreement
              and the rights of the Mortgages Trustee and Funding under such
              agreement are charged in favour of the Security Trustee on terms
              satisfactory to the Security Trustee; and

       (d)    the then-current ratings of the Notes are not adversely affected
              as a result thereof.

12.3   EFFECT OF TERMINATION OR RESIGNATION:

       (a)    On and after termination or resignation of the appointment of the
              Cash Manager under this Agreement pursuant to this Clause 12, all
              authority and power of the Cash Manager under this Agreement shall
              be terminated and be of no further effect and the Cash Manager
              shall not thereafter hold itself out in any way as the agent of
              the Mortgages Trustee, Funding or the Security Trustee pursuant to
              this Agreement.

       (b)    Upon termination or resignation of the appointment of the Cash
              Manager under this Agreement pursuant to this Clause 12, the Cash
              Manager shall:

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<PAGE>

            (i)   forthwith deliver (and in the meantime hold on trust for, and
                  to the order of, the Mortgages Trustee, Funding or the
                  Security Trustee, as the case may be) to the Mortgages
                  Trustee, Funding or the Security Trustee, as the case may be
                  or as it shall direct, all books of account, papers, records,
                  registers, correspondence and documents in its possession or
                  under its control relating to the affairs of or belongings of
                  the Mortgages Trustee, Funding or the Security Trustee, as the
                  case may be (if practicable, on the date of receipt), any
                  monies then held by the Cash Manager on behalf of the
                  Mortgages Trustee, Funding or, the Security Trustee and any
                  other assets of the Mortgages Trustee, Funding and the
                  Security Trustee;

            (ii)  take such further action as the Mortgages Trustee, Funding or
                  the Security Trustee, as the case may be, may reasonably
                  direct at the expense of the Mortgages Trustee or Funding,
                  provided that the Cash Manager shall not be required to take
                  or direct to be taken such further action unless it has been
                  indemnified to its satisfaction (and in the event of a
                  conflict between the directions of Funding, the Mortgages
                  Trustee and the Security Trustee, the directions of the
                  Security Trustee shall prevail);

            (iii) provide all relevant information contained on computer records
                  in the form of magnetic tape, together with details of the
                  layout of the files encoded on such magnetic tapes; and

            (iv)  co-operate and consult with and assist the Mortgages Trustee,
                  Funding or the Security Trustee or its nominee, as the case
                  may be (which shall, for the avoidance of doubt, include any
                  Receiver appointed by it), for the purposes of explaining the
                  file layouts and the format of the magnetic tapes generally
                  containing such computer records on the computer system of the
                  Mortgages Trustee, Funding, or the Security Trustee or such
                  nominee, as the case may be.

12.4  NOTICE OF EVENT OF DEFAULT: The Cash Manager shall deliver to the
      Mortgages Trustee, Funding and the Security Trustee as soon as reasonably
      practicable but in any event within three London Business Days of becoming
      aware thereof a notice of any Cash Manager Termination Event or any event
      which with the giving of notice or expiry of any grace period or
      certification, as specified in such Cash Manager Termination Event would
      constitute the same or any Intercompany Loan Event of Default or any
      Potential Intercompany Loan Event of Default.

12.5  GENERAL PROVISIONS RELATING TO TERMINATION:

      (a)   Termination of this Agreement or the appointment of the Cash Manager
            under this Agreement shall be without prejudice to the liabilities
            of the Mortgages Trustee and Funding to the Cash Manager and VICE
            VERSA incurred before the effective date of such termination. The
            Cash Manager shall have no right of

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<PAGE>

            set-off or any lien in respect of such amounts against amounts held
            by it on behalf of the Mortgages Trustee, Funding or the Security
            Trustee.

      (b)   This Agreement shall terminate automatically at such time as Funding
            has no further interest in the Trust Property and all Intercompany
            Loans have been fully repaid or Funding's obligations under all
            Intercompany Loans have been otherwise discharged.

      (c)   On termination of the appointment of the Cash Manager under the
            provisions of this Clause 12, the Cash Manager shall be entitled to
            receive all fees and other monies accrued up to (but excluding) the
            date of termination subject to the applicable Funding Priority of
            Payments set out in the Funding Deed of Charge and/or the applicable
            Priority of Payments for the Mortgages Trustee under the Mortgages
            Trust Deed, as the case may be, but shall not be entitled to any
            other or further compensation. Such monies so receivable by the Cash
            Manager shall be paid by Funding and the Mortgages Trustee, on the
            dates on which they would otherwise have fallen due hereunder and
            under the terms of the Funding Deed of Charge and the Mortgages
            Trust Deed. For the avoidance of doubt, such termination shall not
            affect the Cash Manager's rights to receive payment of all amounts
            (if any) due to it from Funding and the Mortgages Trust Deed other
            than under this Agreement.

      (d)   Any provision of this Agreement which is stated to continue after
            termination of the Agreement shall remain in full force and effect
            notwithstanding termination.

13.   FURTHER ASSURANCES

13.1  CO-OPERATION, ETC: The parties hereto agree that they will co-operate
      fully to do all such further acts and things and execute any further
      documents as may be necessary or desirable to give full effect to the
      arrangements contemplated by this Agreement and the other Transaction
      Documents.

13.2  POWERS OF ATTORNEY: Without prejudice to the generality of Clause 13.1
      herein (CO-OPERATION, ETC.), the Mortgages Trustee and Funding shall upon
      request by the Cash Manager forthwith give to the Cash Manager such
      further powers of attorney or other written authorisations, mandates or
      instruments as are necessary to enable the Cash Manager to perform the
      Cash Management Services.

14.   MISCELLANEOUS

14.1  NO SET-OFF: Each of the Seller and the Cash Manager agrees that it will
      not make or exercise any claims or demands, any rights of counterclaim or
      any other equities against or withhold payment of any and all sums of
      money which may at any time and from time to time be standing to the
      credit of the Mortgages Trustee Transaction Account, the Mortgages Trustee
      GIC Account, the Funding Transaction Account, the Funding GIC Account or
      any Funding (Issuer) GIC Account or any replacement of additional bank
      account of either the Mortgages Trustee or Funding.

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<PAGE>

14.2  NO RECOURSE:

      (a)   In relation to all sums due and payable by the Mortgages Trustee or
            Funding to the Cash Manager, the Cash Manager agrees that it shall
            have recourse only to sums paid to or received by (or on behalf of)
            the Mortgages Trustee or Funding pursuant to the provisions of the
            Transaction Documents, in each case subject to the Mortgages Trustee
            Revenue Priority of Payments and the Funding Priority of Payments.

      (b)   For the avoidance of doubt, the Security Trustee shall not be liable
            to pay any amounts due under Clause 7 (COSTS AND EXPENSES), but
            without prejudice to the obligations of the Mortgages Trustee or
            Funding, as the case may be, or any receiver appointed pursuant to
            the Funding Deed of Charge in respect of such amounts.

      (c)   Notwithstanding any other provisions of this Agreement, all
            obligations to, and rights of, the Security Trustee under or in
            connection with this Agreement (other than its obligations under
            Clause 13 herein (FURTHER ASSURANCES)) shall automatically terminate
            upon the discharge in full of the Funding Secured Obligations,
            PROVIDED THAT this shall be without prejudice to any claims in
            respect of such obligations and rights arising on or prior to such
            date.

15.   CONFIDENTIALITY

      During the continuance of this Agreement or after its termination, each of
      the Mortgages Trustee, the Cash Manager, the Seller, Funding and the
      Security Trustee shall use its best endeavours not to disclose to any
      person, firm or company whatsoever any information relating to the
      business, finances or other matters of a confidential nature of any other
      party hereto of which it may exclusively by virtue of being party to the
      Transaction Documents have become possessed and shall use all reasonable
      endeavours to prevent any such disclosure as aforesaid, PROVIDED HOWEVER
      that the provisions of this Clause 15 shall not apply:

      (a)   to any information already known to the recipient otherwise than as
            a result of entering into any of the Transaction Documents;

      (b)   to any information subsequently received by the recipient which it
            would otherwise be free to disclose;

      (c)   to any information which is or becomes public knowledge otherwise
            than as a result of the conduct of the recipient;

      (d)   to any extent that the recipient is required to disclose the same
            pursuant to any law or order of any court or pursuant to any
            direction, request or requirement (whether or not having the force
            of law) of any central bank or any governmental or other authority
            (including, without limitation, any official bank examiners or
            regulators);

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<PAGE>

      (e)   to the extent that the recipient needs to disclose the same for
            determining the existence of, or declaring, an Event of Default, an
            Intercompany Loan Event of Default or a Cash Manager Termination
            Event, the protection or enforcement of any of its rights under any
            of the Transaction Documents or in connection herewith or therewith
            or for the purpose of discharging, in such manner as it thinks fit,
            its duties under or in connection with such agreements in each case
            to such persons as require to be informed of such information for
            such purposes; or

      (f)   in relation to any information disclosed to the professional
            advisers of the recipient or (in connection with a prospective
            rating of any debt to be issued by any Issuer) to any credit rating
            agency or any prospective new cash manager or prospective new
            security trustee.

16.   NO PARTNERSHIP

      It is hereby acknowledged and agreed by the parties that nothing in this
      Agreement shall be construed as giving rise to any partnership between any
      of the parties.

17.   ASSIGNMENT

17.1  ASSIGNMENT BY THE MORTGAGES TRUSTEE AND FUNDING: Neither of the Mortgages
      Trustee nor Funding may assign or transfer any of its respective rights
      and obligations under this Agreement without the prior written consent of:

      (a)   in the case of the Mortgages Trustee, each of the Beneficiaries and
            the Security Trustee; and

      (b)   in the case of Funding, each of the Security Trustee and the Cash
            Manager,

      except that Funding may assign its respective rights hereunder without
      such consent pursuant to the Funding Deed of Charge.

17.2  NO ASSIGNMENT BY CASH MANAGER: The Cash Manager may not assign or transfer
      any of its rights and obligations under this Agreement without the prior
      written consent of the Mortgages Trustee, each of the Beneficiaries and
      the Security Trustee.

18.   THE SECURITY TRUSTEE

18.1  CHANGE IN SECURITY TRUSTEE: If there is any change in the identity of the
      security trustee in accordance with the Funding Deed of Charge, the Cash
      Manager, the Seller, Funding and the Mortgages Trustee shall execute such
      documents and take such action as the successor security trustee and the
      outgoing security trustee may require for the purpose of vesting in the
      successor security trustee the rights and obligations of the outgoing
      security trustee under this Agreement and releasing the outgoing security
      trustee from its future obligations under this Agreement.

18.2  NO OBLIGATIONS: It is hereby acknowledged and agreed that by its execution
      of this Agreement the Security Trustee shall not assume or have any of the
      obligations or

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<PAGE>

      liabilities of the Cash Manager, the Seller, Funding or the Mortgages
      Trustee under this Agreement. Furthermore, any liberty or power which may
      be exercised or any determination which may be made hereunder by the
      Security Trustee may be exercised or made in the Security Trustee's
      absolute and unfettered discretion without any obligation to give reasons
      therefor, but in any event must be exercised or made in accordance with
      the provisions of the Funding Deed of Charge.

19.   NEW INTERCOMPANY LOAN AGREEMENTS

      If Funding enters into a New Intercompany Loan Agreement, then the Cash
      Manager, the Seller, Funding, the Security Trustee and the Mortgages
      Trustee shall execute such documents and take such action as may be
      necessary or required by the Rating Agencies for the purpose of including
      the New Issuer, any Basis Rate Swap Provider, any Currency Swap Provider,
      any New Start-up Loan Provider and any other person who has executed an
      Accession Undertaking or any New Intercompany Loan Agreement in the
      Transaction Documents.

20.   NON PETITION COVENANT; LIMITED RECOURSE

20.1  ONLY TRUSTEE TO ENFORCE: The Cash Manager hereby undertakes to each of the
      other parties hereto that only the Security Trustee may enforce the
      security created in favour of the Security Trustee by the Funding Deed of
      Charge in accordance with the provisions thereof.

20.2  LIMITED RECOURSE: The Cash Manager hereby undertakes to each of the other
      parties hereto that, notwithstanding any other provision of this Agreement
      or any other Transaction Document, no sum due or owing to the Cash Manager
      from or by Funding or the Mortgages Trustee under this Agreement shall be
      payable by Funding or the Mortgages Trustee except to the extent that
      Funding or the Mortgages Trustee, as applicable, has sufficient funds
      available subject to the applicable Funding Priority of Payments set out
      in the Funding Deed of Charge or the applicable Priority of Payments for
      the Mortgages Trustee under the Mortgages Trust Deed, as the case may be,
      or, following enforcement of the Funding Security the Security Trustee has
      realised sufficient funds from the Funding Security to pay such sum
      subject to and in accordance with the relevant Funding Priority of
      Payments, and provided that all liabilities of Funding or the Mortgages
      Trustee required to be paid in priority thereto or pari passu therewith
      pursuant to the applicable Funding Priority of Payments set out in the
      Funding Deed of Charge or the applicable Priority of Payments for the
      Mortgages Trustee under the Mortgages Trust Deed, as the case may be, have
      been paid, discharged and/or otherwise provided for in full.

20.3  NON-PETITION: The Cash Manager hereby undertakes to each of the other
      parties hereto that it shall not take any steps for the purpose of
      recovering any amount payable under this Agreement (including, without
      limitation, by exercising any rights of set-off) or enforcing any rights
      arising out of this Agreement against Funding or the Mortgages Trustee and
      it shall not take any steps or legal proceedings for the winding-up,
      dissolution or reorganisation of, or the institution of insolvency
      proceedings against, either Funding or the Mortgages Trustee or for the
      appointment

                                       25

<PAGE>

      of a receiver, administrator, liquidator or similar officer of Funding or
      the Mortgages Trustee in respect of any or all of its revenues except to
      the extent expressly permitted under the Funding Deed of Charge or the
      Mortgages Trust Deed, as the case may be.

20.4  FOLLOWING ENFORCEMENT: The Cash Manager hereby undertakes to each of the
      other parties hereto that, following any enforcement of the Funding
      Security, it will hold on trust for, and will pay to, the Security Trustee
      or the Receiver, as the case may be, all monies received or recovered by
      it (whether by way of set-off or otherwise) from Funding or in respect of
      any amount due hereunder by Funding, otherwise than in accordance with the
      Funding Post-Enforcement Priority of Payments in order that such monies
      may be applied by the Security Trustee or the Receiver in accordance with
      the Funding Post-Enforcement Priority of Payments.

20.5  CORPORATE OBLIGATIONS: To the extent permitted by law, no recourse under
      any obligation, covenant, or agreement of any person contained in this
      Agreement shall be had against any shareholder, officer or director of
      such person as such, by the enforcement of any assessment or by any legal
      proceeding, by virtue of any statute or otherwise; it being expressly
      agreed and understood that this Agreement is a corporate obligation of
      each person expressed to be a party hereto and no personal liability shall
      attach to or be incurred by the shareholders, officers, agents or
      directors of such person as such, or any of them, under or by reason of
      any of the obligations, covenants or agreements of such person contained
      in this Agreement, or implied therefrom, and that any and all personal
      liability for breaches by such person of any of such obligations,
      covenants or agreements, either under any applicable law or by statute or
      constitution, of every such shareholder, officer, agent or director is
      hereby expressly waived by each person expressed to be a party hereto as a
      condition of and consideration for the execution of this Agreement.

21.   AMENDMENTS AND WAIVER

21.1  ENTIRE AGREEMENT: This Agreement sets out the entire agreement and
      understanding between the parties with respect to the subject matter of
      this Agreement superseding all prior oral or written understandings other
      than the other Transaction Documents.

21.2  AMENDMENTS AND WAIVER: No amendment or waiver of any provision of this
      Agreement nor consent to any departure by any of the parties therefrom
      shall in any event be effective unless the same shall be in writing and
      signed by each of the parties hereto. In the case of a waiver or consent,
      such waiver or consent shall be effective only in the specific instance
      and as against the party or parties giving it for the specific purpose for
      which it is given.

21.3  RIGHTS CUMULATIVE: The respective rights of each of the parties to this
      Agreement are cumulative and may be exercised as often as they consider
      appropriate. No failure on the part of any party to exercise, and no delay
      in exercising, any right hereunder shall operate as a waiver thereof, nor
      shall any single or partial exercise of any such right preclude any other
      or further exercise thereof or the exercise of any other right. The
      remedies in this Agreement are cumulative and not exclusive of any
      remedies provided by law.

                                       26

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21.4  RATINGS: No variation or waiver of this Agreement shall be made if the
      same would adversely affect the then-current ratings of any of the Notes.

22.   NOTICES

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

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

      (b)   in the case of the Mortgages Trustee, to Granite Finance Trustees
            Limited, 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
            Islands (facsimile number 0153 469 9333) for the attention of
            Securitisation Team, Treasury;

      (c)   in the case of Funding, to Granite Finance Funding Limited, 35 New
            Bridge Street, 4th Floor, Blackfriars, London EC4V 6BW (facsimile
            number 0207 332 6199) for the attention of Securitisation Team,
            Treasury;

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

      (e)   in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2 Eldon
            Street, London EC2M 7UA (facsimile number 0207 417 6262) for the
            attention of European Structured Finance Surveillance;

      (f)   in the case of Moody's, to Moody's Investors Services, Inc., at 1st
            Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB (facsimile
            number 0207 772 5400) for the attention of David Harrison;

      (g)   in the case of S&P, to Standard & Poor's Ratings Services, a
            division of The McGraw-Hill Companies, Inc., at Garden House, 18
            Finsbury Circus, London EC2M 7NJ (facsimile number 0207 826 3598)
            for the attention of Heather Dyke;

      or to such other address or facsimile number or for the attention of such
      other person or entity as may from time to time be notified by any party
      or by any Rating Agency to the others by written notice in accordance with
      the provisions of this Clause 22. All notices served under this Agreement
      shall be simultaneously copied to the Security Trustee by the person
      serving the same.

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23.   THIRD PARTY RIGHTS

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

24.   EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

25.   GOVERNING LAW AND SUBMISSION TO JURISDICTION

25.1  GOVERNING LAW: This Agreement is governed by, and shall be construed in
      accordance with, English law.

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

25.3  PROCESS AGENT: The Mortgages Trustee irrevocably and unconditionally
      appoints Mourant & Co. Capital (SPV) Limited at Fourth Floor, 35 New
      Bridge Street, Blackfriars, London EC4V 6BW or otherwise at its registered
      office for the time being as its agent for service of process in England
      in respect of any proceedings in respect of this Agreement and undertakes
      that in the event of Mourant & Co. Capital (SPV) Limited ceasing so to act
      it will appoint another person with a registered office in London as its
      agent for service of process.

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

IN WITNESS WHEREOF the parties have caused this Agreement to be executed the day
and year first before written.

                                       28

<PAGE>

                                   SCHEDULE 1
                          THE CASH MANAGEMENT SERVICES

The Cash Manager shall:

     (a)  make the determinations set out in Schedule 2 hereto;

     (b)  invest sums, if any, standing to the credit of the Funding Transaction
          Account in short-term Authorised Investments as determined by Funding
          and, if applicable, the Security Trustee;

     (c)  invest sums, if any, standing to the credit of the Mortgages Trustee
          Transaction Account in short-term Authorised Investments as determined
          by the Mortgages Trustee and, if applicable, the Security Trustee;

     (d)  maintain the Funding Principal Deficiency Ledger, and record (1) any
          principal Losses on the Mortgage Loans allocated to Funding pursuant
          to the terms of the Mortgages Trust and (2) to record the application
          of Funding Available Principal Receipts to any Issuer to fund the
          Issuer Liquidity Reserve Fund of any Issuer.

     (e)  provide the Mortgages Trustee, Funding, the Security Trustee (upon its
          request) and the Rating Agencies with quarterly reports in relation to
          the Mortgages Trustee and Funding as set forth on Schedule 3;

     (f)  operate the Mortgages Trustee Transaction Account, the Mortgages
          Trustee GIC Account, the Funding GIC Account, any Funding (Issuer) GIC
          Account and the Funding Transaction Account and ensure that payments
          are made into and from such accounts in accordance with this
          Agreement, the Mortgages Trust Deed, the Funding Deed of Charge, the
          Bank Account Agreement, any Funding (Issuer) Bank Account Agreement,
          the Mortgages Trustee Guaranteed Investment Contract, the Funding
          Guaranteed Investment Contract, any Funding (Issuer) Guaranteed
          Investment Contract and any other applicable Transaction Document,
          PROVIDED HOWEVER, that nothing herein shall require the Cash Manager
          to make funds available to the Mortgages Trustee or Funding to enable
          such payments to be made other than as expressly required by the
          provisions of this Agreement;

     (g)  in relation to the payments to be made to each Issuer, make
          withdrawals under the Issuer Reserve Fund, if required;

     (h)  in relation to the payments to be made to each Issuer, make any
          required withdrawals under the Issuer Liquidity Reserve Fund;

     (i)  maintain any Issuer Reserve Fund Ledger, and record the amount
          credited to any Issuer Reserve Fund on the Initial Closing Date, and
          subsequent withdrawals and deposits in respect of any Issuer Reserve
          Fund;

                                       29

<PAGE>

     (j)  maintain any Issuer Liquidity Reserve Ledger, if any, and record the
          amount credited to any Issuer Liquidity Reserve Fund from time to
          time, and subsequent withdrawals and deposits in respect of any Issuer
          Liquidity Reserve Fund;

     (k)  keep records for all taxation purposes (including, without limitation
          VAT);

     (l)  subject to any applicable law, assist the auditors of the Mortgages
          Trustee and Funding and provide such information to them as they may
          reasonably request for the purpose of carrying out their duties as
          auditors;

     (m)  make all filings, give all notices and make all registrations and
          other notifications required in the day-to-day operation of the
          respective businesses of the Mortgages Trustee and Funding or required
          to be given by the Mortgages Trustee or Funding pursuant to the
          Transaction Documents;

     (n)  arrange for all payments due to be made by the Mortgages Trustee
          and/or Funding under any of the Transaction Documents, PROVIDED THAT
          such monies are at the relevant time available to the Mortgages
          Trustee and/or Funding and PROVIDED FURTHER that nothing herein shall
          constitute a guarantee by the Cash Manager of all or any of the
          obligations of the Mortgages Trustee or Funding under any of the
          Transaction Documents;

     (o)  without prejudice to the role of and in conjunction with the Corporate
          Services Provider to Funding and the Mortgages Trustee under the
          relevant Corporate Services Agreement, keep general books of account
          and records of the Mortgages Trustee and Funding; provide accounting
          services, including reviewing receipts and payments, supervising and
          assisting in the preparation of interim statements and final accounts
          and supervising and assisting in the preparation of Tax returns;

     (p)  without prejudice to the role of and in conjunction with the Corporate
          Services Provider to Funding and the Mortgages Trustee under the
          relevant Corporate Services Agreement, provide or procure the
          provision of company secretarial and administration services to the
          Mortgages Trustee and Funding including the keeping of all registers
          and the making of all returns and filings required by applicable law
          or by U.S., U.K. or Jersey regulatory authorities (including the
          Securities and Exchange Commission), co-operate in the convening of
          board and general meetings and provide registered office facilities;

     (q)  itself on behalf of the Mortgages Trustee and Funding, PROVIDED THAT
          such monies are at the relevant time available to the Mortgages
          Trustee and Funding, pay all the out-of-pocket expenses of the
          Mortgages Trustee and Funding, incurred by the Cash Manager on behalf
          of the Mortgages Trustee and Funding in the performance of the Cash
          Manager's duties hereunder including without limitation:

                                       30

<PAGE>

          (i)  all Taxes which may be due or payable by the Mortgages Trustee
               and Funding;

          (ii) all registration, transfer, filing and other fees and other
               charges payable in respect of the sale by the Seller of the
               Mortgage Portfolio to the Mortgages Trustee;

         (iii) all necessary filing and other fees in compliance with
               regulatory requirements;

          (iv) all legal and audit fees and other professional advisory fees;

          (v)  all communication expenses including postage, courier and
               telephone charges; and

          (vi) all premiums payable by the Mortgages Trustee in respect of the
               Insurance Policies;

     (r)  at the request of Funding (and following the enforcement of the
          Funding Security, with the prior written consent of the Security
          Trustee), the Cash Manager may invest monies standing from time to
          time to the credit of the Funding GIC Account or any Funding (Issuer)
          GIC Account (including any amounts credited thereto and representing
          amounts standing to the credit of such Issuer Liquidity Reserve Fund,
          if any) in Authorised Investments, subject to the following
          provisions:

          (i)  any such Authorised Investment shall be made in the joint names
               of Funding and the Security Trustee;

          (ii) any costs properly and reasonably incurred in making and changing
               Authorised Investments will be reimbursed to the Cash Manager and
               the Security Trustee by Funding;

         (iii) all income or proceeds following the disposal or maturity of
               Authorised Investments shall be credited to the Funding GIC
               Account or any Funding (Issuer) GIC Account, as applicable; and

          (iv) following the enforcement of the Funding Security no such
               investment may be made without the prior written consent of the
               Security Trustee.

          The Security Trustee and the Cash Manager shall not be responsible
          (save where any loss results from the Security Trustee's or the Cash
          Manager's own fraud, wilful default or gross negligence or that of its
          officers or employees) for any loss occasioned by reason of any such
          Authorised Investments whether by depreciation in value or otherwise
          provided that such Authorised Investments were made in accordance with
          the above provisions; and

     (s)  take such other action or provide any other Cash Management Services
          as is required in the Transaction Documents.

                                       31

<PAGE>

                                   SCHEDULE 2
                   CASH MANAGEMENT AND MAINTENANCE OF LEDGERS

1.   DETERMINATION

     (a)  On or before each Distribution Date based on the aggregate amount of
          monies standing to the credit of the Mortgages Trustee Transaction
          Account and the Mortgages Trustee GIC Account as at close of business
          on the preceding day, the Cash Manager shall determine each of the
          following:

          (i)  the amount of Principal Receipts and Revenue Receipts received
               during the immediately preceding Trust Calculation Period and
               during each Interim Calculation Period (as defined in the
               Mortgages Trust Deed), if any, during such immediately preceding
               Trust Calculation Period;

          (ii) the amount of any Mortgages Trustee Available Revenue Receipts
               received during the immediately preceding Trust Calculation
               Period;

         (iii) the amount of any net credit on the Non-Flexible Overpayments
               Sub Ledger;

          (iv) the amount of Mortgages Trustee Available Revenue Receipts and
               Principal Receipts to be distributed to Funding and to the Seller
               on such Distribution Date;

          (v)  whether each of the Issuer Arrears Test, the Issuer Reserve
               Requirement and the Subordinated Principal Test is satisfied on
               such date and shall promptly notify the Issuer Cash Manager of
               such determinations; and

          (vi) the various amounts, balances and rates to be calculated in
               accordance with any Basis Rate Swap and/or any Currency Rate
               Swap, and shall promptly notify the Issuer, the First Issuer Cash
               Manager, the Note Trustee and each Calculation Agent (as defined
               in each Basis Rate Swap Agreement and Currency Swap Agreement) of
               such amounts, balances and rates.

     (b)  On or before each Distribution Date (and, in respect of Clause
          1(b)(ii) below, on each Assignment Date), the Cash Manager shall
          determine each of the following:

          (i)  the amount of any Losses incurred on the Mortgage Loans during
               the immediately preceding Trust Calculation Period and during
               each Interim Calculation Period (as defined in the Mortgages
               Trust Deed), if any, during such immediately preceding Trust
               Calculation Period;

                                       32

<PAGE>

          (ii) (the Funding Share, the Seller Share, the Funding Share
               Percentage and the Seller Share Percentage in accordance with
               Clause 8 (ADJUSTMENT OF FUNDING SHARE PERCENTAGE AND SELLER SHARE
               PERCENTAGE) of the Mortgages Trust Deed;

         (iii) to the extent the Seller has assigned New Mortgage Loans to the
               Mortgages Trustee during the immediately preceding Trust
               Calculation Period, the Weighted Average Funding Share Percentage
               and the Weighted Average Seller Share Percentage (in respect of
               Revenue Receipts, Principal Receipts and Losses) in accordance
               with Clause 8.3 (WEIGHTED AVERAGE FUNDING SHARE PERCENTAGE) and
               Clause 8.7 (WEIGHTED AVERAGE SELLER SHARE PERCENTAGE),
               respectively, of the Mortgages Trust Deed; and

          (iv) the Minimum Seller Share in accordance with Clause 9.2
               (FLUCTUATION OF MINIMUM SELLER SHARE ON EACH DISTRIBUTION DATE)
               of the Mortgages Trust Deed.

     (c)  No later than each Distribution Date immediately prior to each Payment
          Date, the Cash Manager shall determine each of the following:

          (i)  the amount of any Funding Available Revenue Receipts to be
               applied on the relevant Payment Date in accordance with the
               Funding Pre-Enforcement Revenue Priority of Payments; and

          (ii) the amount of any Funding Available Principal Receipts to be
               applied on the following Payment Date in accordance the Funding
               Pre-Enforcement Principal Priority of Payments.

     (d)  No later than each Distribution Date immediately prior to each Payment
          Date, the Cash Manager shall determine each of the following:

          (i)  the amount of any Issuer Allocable Revenue Receipts for each
               Issuer to be applied on the relevant Payment Date in accordance
               with the Funding Pre-Enforcement Revenue Priority of Payments;

          (ii) the amount of any Issuer Allocable Principal Receipts for each
               Issuer to be applied on the following Payment Date in accordance
               the Funding Pre-Enforcement Principal Priority of Payments; and

         (iii) the amount of any Shared Issuer Revenue Receipts and Shared
               Issuer Principal Receipts to be applied on the following Payment
               Date in accordance with the Funding Priority of Payments.

     (e)  The Cash Manager shall make all the determinations referred to in
          paragraphs 1(a) to (d) herein on the basis of the following
          assumptions:

          (i)  that the amount of any Losses will not increase;

                                       33

<PAGE>

          (ii) that any debit balance on any Issuer Principal Deficiency Ledger
               will not increase; and

         (iii) such other assumptions (including without limitation as to the
               amount of any payments or provisions to be made in accordance
               with the applicable Funding Priority of Payments during the
               period from and including the Distribution Date immediately prior
               to each Payment Date to and excluding such Payment Date) as the
               Cash Manager considers appropriate.

          The Cash Manager shall notify the Mortgages Trustee, Funding and the
          Security Trustee on request of any such other assumptions and shall
          take account of any representations made by the Mortgages Trustee,
          Funding and the Security Trustee (as the case may be) in relation
          thereto.

     (f)  The Cash Manager shall:

          (i)  make or procure to be made all returns and filings required to be
               made by Funding and the Mortgages Trustee;

          (ii) itself on behalf of Funding and the Mortgages Trustee, provided
               that such moneys are at the relevant time available to Funding
               and the Mortgages Trustee, pay all out-of-pocket expenses of
               Funding and the Mortgages Trustee incurred in the performance of
               the Cash Manager's duties hereunder including, without
               limitation, all fees payable to the London Stock Exchange
               Limited.

     (g)  The Cash Manager shall, if necessary, perform all currency conversions
          free of charge, cost or expense at the relevant exchange rate (for the
          purposes of any calculations referred to above, (i) all percentages
          resulting from such calculations will be rounded, if necessary, to the
          nearest one hundred-thousandth of a percentage point (e.g. 9.876541%
          being rounded down to 9.87654% and (ii) any currency amounts used in
          or resulting from such calculations will be rounded in accordance with
          the relevant market practice).

     (h)  Each determination made in accordance with this paragraph 1 shall (in
          the absence of bad faith, wilful default, negligence and manifest
          error) be final and binding on all persons.

2.   NOTIFICATION OF DETERMINATIONS

     The Cash Manager shall cause each determination of Principal Receipts,
     Revenue Receipts, Losses, Mortgages Trustee Available Revenue Receipts, the
     Funding Share, the Seller Share, the Funding Share Percentage, the Seller
     Share Percentage, the Weighted Average Funding Share Percentage, the
     Weighted Average Seller Share Percentage and the Minimum Seller Share to be
     notified forthwith to the Mortgages Trustee, the Beneficiaries and the
     Security Trustee and will cause each determination of Funding Available
     Principal Receipts and Funding Available Revenue Receipts to be notified
     forthwith to Funding, the Security Trustee and the Issuer Cash Manager.

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<PAGE>

3.   PRIORITY OF PAYMENTS FOR MORTGAGES TRUSTEE AVAILABLE REVENUE RECEIPTS

     The Cash Manager shall (unless the intended recipient of the relevant
     payment agrees otherwise) on each Distribution Date withdraw Cash from the
     Mortgages Trustee GIC Account and/or, in the case of sums to be provided
     for, retain Cash in the amounts required (to the extent that such
     withdrawal does not cause the Mortgages Trustee GIC Account to become
     overdrawn or, if any amounts are retained by way of provision for the
     relevant liability and are thus not withdrawn, to the extent that
     withdrawal of those amounts that are withdrawn would not, if such retained
     amounts were also to be withdrawn, cause the balance on the Mortgages
     Trustee GIC Account to become overdrawn). The aggregate amount of the
     withdrawal shall equal the Mortgages Trustee Available Revenue Receipts on
     each Distribution Date. The withdrawal shall be used to make the payments
     and provisions in the order of priority set out in Clause 10.2
     (DISTRIBUTION OF MORTGAGES TRUSTEE AVAILABLE REVENUE RECEIPTS) of the
     Mortgages Trust Deed (in each case only if and to the extent that payments
     or provisions of a higher priority have been made in full).

4.   PRIORITY OF PAYMENTS FOR MORTGAGES TRUSTEE PRINCIPAL RECEIPTS

     The Cash Manager shall (unless the intended recipient of the relevant
     payment agrees otherwise) on each Distribution Date, (i) withdraw Cash from
     the Mortgages Trustee GIC Account in an amount equal to the Mortgages
     Trustee Principal Receipts (to the extent only that such withdrawal does
     not cause the Mortgages Trustee GIC Account to become overdrawn or, if any
     amounts are retained by way of provision for the relevant liability and are
     thus not withdrawn, to the extent that withdrawal of those amounts that are
     withdrawn would not, if such retained amounts were also to be withdrawn,
     cause the balance on the Mortgages Trustee GIC Account to become overdrawn)
     to make the payments in the order of priority set out in Clause 11 of the
     Mortgages Trust Deed (DISTRIBUTION OF PRINCIPAL RECEIPTS) and/or, (ii)
     until such time as the same may be distributed in accordance with the
     Mortgages Trust Deed, retain Cash in the Mortgages Trustee GIC Account in
     the amount of any net credit on the Non-Flexible Overpayments Sub Ledger.

5.   PRIORITY OF PAYMENTS FOR FUNDING AVAILABLE REVENUE RECEIPTS

     Funding Available Revenue Receipts (including Issuer Allocable Revenue
     Receipts) will be applied by the Cash Manager on each Payment Date until
     enforcement of the Funding Security pursuant to the Funding Deed of Charge
     or until such time as there are no outstanding Funding Secured Obligations,
     in making such payments and provisions in the order of priority set out in
     the Funding Pre-Enforcement Revenue Priority of Payments (in each case only
     if and to the extent that payments or provisions of a higher priority have
     been made in full) as set out in Part I of Schedule 3 to the Funding Deed
     of Charge (as the same may be amended, varied or restated from time to
     time).

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<PAGE>

6.   PRIORITY OF PAYMENTS FOR FUNDING AVAILABLE PRINCIPAL RECEIPTS

     Funding Available Principal Receipts (including Issuer Allocable Principal
     Receipts) will be applied by the Cash Manager on each Payment Date until
     enforcement of the Funding Security pursuant to the Funding Deed of Charge
     or until such time as there are no outstanding Funding Secured Obligations,
     in making such payments and provisions in the order of priority (in each
     case only if and to the extent that payments or provisions of a higher
     priority have been made in full) set out in Part II of Schedule 3 to the
     Funding Deed of Charge.

7.   OTHER PAYMENTS

     Each of the Beneficiaries and the Cash Manager agrees, and the Mortgages
     Trustee concurs, that (save as otherwise specified below) the following
     payments may be made from the Mortgages Trustee GIC Account (to the extent
     that withdrawal of those amounts would not cause the balance of the
     Mortgages Trustee GIC Account to become overdrawn) on any date:

     (a)  if any amount has been received from a Borrower for the express
          purpose of payment being made to a third party for the provision of a
          service (including giving insurance cover) to any of that Borrower or
          the Seller or the Mortgages Trustee, to pay such amount when due to
          such third party or, in the case of the payment of an insurance
          premium, where such third party and the Cash Manager have agreed that
          payment of commission should be made by deduction from such insurance
          premium, to pay such amount less such commissions when due to such
          third party and to pay such commission to the Cash Manager and to pay
          any premiums in respect of any Insurance Policy or other insurance
          policy relating to any Mortgage Loan comprised in the Mortgage
          Portfolio;

     (b)  to pay to any person (including the Cash Manager) any amounts due
          arising from any unintentional overpayment (and not an Overpayment) by
          any person or arising from any reimbursement by any person of any such
          overpayment (including, for the avoidance of doubt, where arising from
          the failure of a direct debit);

     (c)  to pay when due (but subject to any right to refuse or withhold
          payment or of set-off that has arisen by reason of the Borrower's
          breach of the terms of the relevant Mortgage or Mortgage Loan) any
          amount payable to a Borrower under the terms of the Mortgage or the
          Mortgage Loan to which that Borrower is a party, and to pay when due
          any amount payable by the Mortgages Trustee to the Seller pursuant to
          Clauses 3.2, 4.5 and 5.2 of the Mortgage Sale Agreement;

     (d)  to pay to the Seller any amounts (including, for the avoidance of
          doubt, any Early Repayment Charges) received and held by the Mortgages
          Trustee on trust for the Seller pursuant to Clause 5 (TRUST OF MONIES)
          of the Mortgage Sale Agreement;

                                       36

<PAGE>

     (e)  to pay when due and payable any amounts due and payable by the
          Mortgages Trustee to third parties and incurred without breach by the
          Mortgages Trustee of the Mortgages Trust Deed and not provided for
          payment elsewhere in this paragraph 7;

     (f)  to refund any amounts due arising from the rejection of any payments
          in respect of a Mortgage Loan and any other amounts which have not
          been received by the Mortgages Trustee as cleared funds; and

     (g)  to refund to the Seller any amounts which represent amounts received
          from Borrowers but which do not form part of the Mortgage Account or
          comprise unpaid interest as at the relevant Closing Date and which are
          amounts owed by such Borrowers in respect of any period prior to the
          relevant Closing Date as and when identified by the Cash Manager and
          if a Borrower fails to pay the full amount that it owes, the Cash
          Manager shall be obliged to refund to the Seller only such portion of
          the amount which relates to any period prior to the relevant Closing
          Date.

8.   USE OF LEDGERS

     The Cash Manager shall forthwith record monies received or payments made by
     it on behalf of the Mortgages Trustee or Funding in the ledgers in the
     manner set out in this Agreement. If, at any time, the Cash Manager is in
     any doubt as to which ledger a particular amount should be credited or
     debited, it shall consult with the Security Trustee thereon.

     Except in the case of the Funding Principal Deficiency Ledger, a debit item
     shall only be made in respect of any of the Mortgages Trustee Ledgers and
     the Funding Ledgers and the corresponding payment or transfer (if any) may
     only be made from the Mortgages Trustee Transaction Account, the Mortgages
     Trustee GIC Account, the Funding GIC Account, the Funding Transaction
     Account or any Funding (Issuer) GIC Account, as the case may be, to the
     extent that such entry does not cause the relevant ledger to have a debit
     balance. In the case of the Funding Principal Deficiency Ledger, a credit
     item shall only be made to the extent that such entry does not cause such
     ledger to have a credit balance.

9.   REVENUE LEDGER

     The Cash Manager shall ensure that:

     (a)  the following amounts shall be credited to the Revenue Ledger:

          (i)  all Revenue Receipts; and

          (ii) all interest received by the Mortgages Trustee on the Mortgages
               Trustee Transaction Account and the Mortgages Trustee GIC
               Account; and

                                       37

<PAGE>

     (b)  any payment or provision made under paragraph 3 herein shall be
          debited to the Revenue Ledger.

10.  PRINCIPAL LEDGER

     The Cash Manager shall ensure that:

     (a)  all Principal Receipts shall be credited to the Principal Ledger; and

     (b)  any payment or provision made under paragraph 4 herein shall be
          debited to the Principal Ledger.

11.  LOSSES LEDGER

     The Cash Manager shall ensure that all Losses shall be recorded in the
     Losses Ledger.

12.  FUNDING SHARE/SELLER SHARE LEDGER

     The Cash Manager shall ensure that the Current Funding Share and the
     Current Funding Share Percentage of the Trust Property and the Current
     Seller Share and the Current Seller Share Percentage of the Trust Property
     are recorded in the Funding Share/Seller Share Ledger on the Initial
     Closing Date and thereafter on each Distribution Date. In addition to the
     foregoing, if the Seller has assigned New Mortgage Loans to the Mortgages
     Trustee during the Trust Calculation Period immediately preceding a
     Distribution Date, the Cash Manager shall ensure that the Current Funding
     Share and the Current Funding Share Percentage of the Trust Property and
     the Current Seller Share and the Current Seller Share Percentage of the
     Trust Property, as recalculated on each Assignment Date, and the Weighted
     Average Funding Share Percentage and the Weighted Average Seller Share
     Percentage, as calculated on such Distribution Date in respect of Revenue
     Receipts, Principal Receipts and Losses, are recorded on the Funding
     Share/Seller Share Ledger on each such Distribution Date.

13.  FUNDING REVENUE LEDGER

     The Cash Manager shall ensure that:

     (c)  the following amounts shall be credited to the Funding Revenue Ledger:

          (i)  all Funding Revenue Receipts;

          (ii) all interest received by Funding in respect of the Funding Bank
               Accounts, including in respect of any Funding (Issuer) GIC
               Account, provided that the Cash Manager shall keep a separate
               record in respect of each Issuer of the amount of interest
               received by Funding in respect of the Funding (Issuer) GIC
               Account of such Issuer;

         (iii) all amounts received by Funding representing income on any of
               Funding's Authorised Investments; and

                                       38

<PAGE>

          (iv) any amount debited to the Funding Principal Ledger under
               paragraph 16(b)(ii) herein; and

     (d)  any payment or provision made under paragraph 5 above shall be debited
          to the Funding Revenue Ledger.

14.  ISSUER RESERVE FUND LEDGER

     If an Issuer Reserve Fund is required to be established, the Cash Manager
     will record on such Issuer Reserve Fund Ledger:

     (a)  an amount initially from that portion of Funding's Contribution to the
          Mortgages Trust which will be retained by Funding and not paid to the
          Mortgages Trustee and deposited into the related Funding (Issuer) GIC
          Account;

     (b)  amounts credited to the relevant Issuer Liquidity Reserve Ledger in
          accordance with the Funding Priority of Payments above; and

     (c)  amounts debited to an Issuer Liquidity Reserve Ledger in order to be
          applied in accordance with the Funding Priority of Payments.

15.  ISSUER LIQUIDITY RESERVE LEDGER

     If an Issuer Liquidity Reserve Fund is required to be established, the Cash
     Manager will record on such Issuer Liquidity Reserve Ledger:

     (a)  an amount funded initially from Funding Available Principal Receipts
          which are allocated to the relevant Issuer in accordance with the
          Funding Pre-Enforcement Principal Priority of Payments up to the
          amount of the Issuer Liquidity Reserve Required Amount and such amount
          will be deposited in the relevant Funding (Issuer) GIC Account;

     (b)  amounts credited to the relevant Issuer Liquidity Reserve Ledger in
          accordance with the Funding Priority of Payments above; and

     (c)  amounts debited to an Issuer Liquidity Reserve Ledger in order to be
          applied in accordance with Funding Priority of Payments.

16.  FUNDING PRINCIPAL LEDGER

     Without prejudice to paragraph 18 below, the Cash Manager shall ensure
     that:

     (a)  the following amounts shall be credited to the Funding Principal
          Ledger:

          (i)  all Funding Principal Receipts; and

          (ii) amounts credited to the Funding Principal Deficiency Ledger under
               paragraphs 8 and 17 herein; and

                                       39

<PAGE>

     (b)  the following amounts shall be debited to the Funding Principal
          Ledger:

          (i)  the aggregate amount of principal repaid on the Intercompany Loan
               Agreement pursuant to paragraph 6 herein.

17.  FUNDING PRINCIPAL DEFICIENCY LEDGER

     The Cash Manager will establish a Principal Deficiency Ledger for Funding
     and ensure that:

     (a)  on each occasion on which an Issuer Principal Deficiency Ledger is
          credited with respect to (1) Losses and (2) Issuer Liquidity Reserve
          Funds, the Funding Principal Deficiency Ledger is credited with
          respect to such Issuer; and

     (b)  on each occasion on which the principal deficiency of an Issuer is
          reduced with respect to a credit described in (a) above, the Funding
          Principal Deficiency Ledger will record a parallel reduction in
          aggregate principal deficiencies.

18.  FUNDING RESERVE LEDGER

     (a)  An amount initially drawn from excess Revenue Receipts distributed to
          Funding from the Mortgages Trust and deposited in the Funding GIC
          Account will be credited to the Funding Reserve Ledger.

     (b)  Amounts shall be credited to the Funding Reserve Ledger in accordance
          with the Funding Priority of Payments above.

     (c)  Amounts shall be debited to the Funding Reserve Ledger on each Payment
          Date in order to be applied in accordance with the Funding Priority of
          Payments.

19.  INTERCOMPANY LOAN LEDGER

     The Cash Manager shall ensure that all payments of interest and repayments
     of principal on each of the Intercompany Loans are recorded in the
     Intercompany Loan Ledger.

20.  OVERPAYMENTS LEDGER

     The Cash Manager shall ensure that:

     (a)  with respect to the Non-Flexible Mortgage Loans:

          (i)  there shall be credited to the Non-Flexible Overpayments Sub
               Ledger all Overpayments (not being Capital Payments) made on
               Non-Flexible Mortgage Loans; and

                                       40

<PAGE>

          (ii) there shall be debited from the Non-Flexible Overpayments Sub
               Ledger:

               (A)  all underpayments made by any Borrower on Non-Flexible
                    Mortgage Loans which do not exceed the amount of the
                    Overpayment previously made by such Borrower in the same
                    calendar year; and

               (B)  on the first Trust Determination Date of each calendar year,
                    all outstanding credits made to the Non-Flexible
                    Overpayments Sub Ledger during the previous calendar year;
                    and

     (b)  all Overpayments on the Flexible Mortgage Loans are recorded in the
          Flexible Overpayments Sub Ledger.

21.  NON-FLEXIBLE UNDERPAYMENTS LEDGER

     The Cash Manager shall ensure that all amounts debited from the
     Overpayments Ledger under paragraph 20(a)(ii) above shall be recorded on
     the Non-Flexible Underpayments Ledger.

22.  RE-DRAWS LEDGER

     The Cash Manager shall ensure that, with respect to the Flexible Mortgage
     Loans:

     (a)  all Non-Cash Re-Draws are recorded in the Non-Cash Re-Draws Sub
          Ledger; and

     (b)  all Cash Re-Draws are recorded in the Cash Re-Draws Sub Ledger.

23.  RECORDS

     The Cash Manager shall ensure that a separate record is kept of any amount
     drawn under any Issuer Reserve Fund or Issuer Liquidity Reserve Fund.

                                       41

<PAGE>

                                   SCHEDULE 3A
                   FORM OF MORTGAGES TRUSTEE QUARTERLY REPORT

GRANITE FINANCE TRUSTEES LIMITED
MEMORANDUM OF ACCOUNT

Period Ended                                         This Quarter  Prior Quarter
                                                    (pound) 000's  (pound) 000's
                                                    -------------  -------------
Fees Receivable
Fees Payable

Operating Expenses
Taxation
Dividend                                             0             0
Retained profit brought forward                      0             0
                                                     ------------  -------------
Retained profit for the year                         0             0
                                                     ============  =============

GRANITE FINANCE TRUSTEES LIMITED
BALANCE SHEET

Period Ended
                                       (pound)       (pound)
                                       -------       -------
Fixed Asset Investments

Current Assets

New Mortgage Loans                     0
Interest Receivable                    0
Other debtors                          0
Cash at Bank                           0
                                       ------------
                                       0
                                       ------------

Creditors: Amounts falling due within
one year
Accruals                               0
Interest Payable Accrual               0
Taxation                               0
                                       ============
                                       0
                                       ============
Net current assets                                  0
                                                    =============
Total Assets less current liabilities               0
                                                    =============

Share Capital                                       0
Reserves                                            0
                                                    =============
                                                    0
                                                    =============
                                       Diff         0

                                       42

<PAGE>

                                   SCHEDULE 3B
                        FORM OF FUNDING QUARTERLY REPORT

GRANITE FINANCE FUNDING LIMITED
PROFIT & LOSS ACCOUNT

Period Ended                               This Quarter       Prior Quarter
                                          (pound) 000's       (pound) 000's
                                          -------------       -------------
Interest Receivable
-- Mortgages
Interest Receivable
-- Cash/ Authorised
Investments

                                           0                  0
Interest Payable
-- Intercompany Loan
Interest Payable

                                           0                  0

Net Operating Income                       0                  0

Other Income

Operating Expenses
Deferred Consideration

Profit/loss on                             0                  0
ordinary activities
before tax

Taxation

Profit/loss on                             0                  0
ordinary activities
after tax

Dividend                                   0                  0

Retained profit                            0                  0
brought forward

Retained profit for                        0                  0
the year

                                       43

<PAGE>

GRANITE FINANCE FUNDING LIMITED
BALANCE SHEET

Period Ended
                                                  (pound)000's  (pound)000's
                                                  ------------  ------------
Fixed Asset Investments

Beneficial Interest in Mortgage Portfolio                        0

Current Assets

Interest Receivable                                0
Deferred Expenditure (costs of Securing)           0
Other debtors                                      0
Cash at Bank                                       0

Creditors: Amounts falling due within one year
Accruals                                           0
Deferred Consideration Creditor                    0
Interest Payable Accrual                           0
Taxation                                           0
                                                   -----------
                                                   0
                                                   -----------

Net current assets                                               0

Creditors: Amounts falling due after one year
Intercompany Loan                                                0
Start-up Loan(s) (specify)                                       0
                                                                 -----------
Total Assets less current liabilities                            0
                                                                 ===========
Share Capital                                                    0
Reserves                                                         0
                                                                 -----------
                                                                 0
                                                                 ===========
                                                   Diff          0

                                       44

<PAGE>

GRANITE FINANCE FUNDING LIMITED
NOTES TO BALANCE SHEET

Period Ended

Balance on Cash Accumulation Ledger                 0

Available Credit Enhancement

Reserve Fund at closing
Last Quarter Closing Reserve Fund
Drawings to make a bullet repayment
Other drawings
Closing Reserve Balance
Target Reserve Fund

Issuer Principal Deficiency Ledger                  AAA          AA         BBB

Opening PDL Balance                                 0            0          0
Losses this Quarter                                 0            0          0
PDL top up from Revenue Income                      0            0          0
Closing PDL Balance                                 0            0          0

Subordinated Loan Outstanding

Initial Balance
Last Quarter Closing Outstanding
Accrued Interest
Repayments Made
Closing Balance

                                       45

<PAGE>

                                   SCHEDULE 4
                   CASH MANAGER REPRESENTATIONS AND WARRANTIES

The Cash Manager makes the following representations and warranties to each of
the Mortgages Trustee, Funding and the Security Trustee:

1.   STATUS: It is a public limited company duly incorporated, validly existing
     and registered under the laws of the jurisdiction in which it is
     incorporated, capable of being sued in its own right and not subject to any
     immunity from any proceedings, and it has the power to own its property and
     assets and to carry on its business as it is being conducted.

2.   POWERS AND AUTHORITY: It has the power to enter into, perform and deliver,
     and has taken all necessary corporate and other action to authorise the
     execution, delivery and performance by it of each of the Transaction
     Documents to which it is or will be a party, and each such Transaction
     Document has been duly executed and delivered by it.

3.   LEGAL VALIDITY: Each Transaction Document to which it is or will be a party
     constitutes or when executed in accordance with its terms will constitute,
     a legal, valid and binding obligation.

4.   NON-CONFLICT: The execution by it of each of the Transaction Documents to
     which it is a party and the exercise by it of its rights and the
     performance of its obligations under such Transaction Documents will not:

     (a)  conflict with any document which is binding upon it or any of its
          assets;

     (b)  conflict with its constitutional documents; or

     (c)  conflict with any law, regulation or official or judicial order of any
          government, governmental body or court, domestic or foreign, having
          jurisdiction over it.

5.   NO LITIGATION: It is not a party to any material litigation, arbitration or
     administrative proceedings and, to its knowledge, no material litigation,
     arbitration or administrative proceedings are pending or threatened against
     it.

6.   CONSENTS AND LICENSES: All governmental consents, licences and other
     approvals and authorisations required in connection with the entry into,
     performance, validity and enforceability of, and the transactions
     contemplated by, the Transaction Documents have been obtained or effected
     (as appropriate) and are in full force and effect.

7.   SOLVENCY: No Insolvency Event has occurred in respect of the Cash Manager,
     and the Cash Manager is not insolvent.

8.   FINANCIAL STATEMENTS: The most recent financial statements of the Cash
     Manager:

                                       46

<PAGE>

     (a)  were prepared in accordance with accounting principles generally
          accepted in England and Wales consistently applied;

     (b)  disclose all liabilities (contingent or otherwise) and all unrealised
          and or anticipated losses of the Cash Manager; and

     (c)  save as disclosed therein, give a true and fair view of the financial
          condition and operations of the Cash Manager during the relevant
          financial year.

9.   NO ADVERSE CHANGE: Since the date as of which the most recent financial
     statements of the Cash Manager were stated to be prepared, there has been:

     (a)  no significant change in the financial position of the Cash Manager;
          and

     (b)  no material adverse change in the financial position or prospects of
          the Cash Manager.

10.  RANKING OF CLAIMS:

     Under the laws of England and Wales in force as at the date of making this
     representation, claims against the Cash Manager under the Transaction
     Documents will rank at least PARI PASSU with the claims of all its other
     unsecured and unsubordinated creditors, save those whose claims are
     preferred solely by any bankruptcy, liquidation or other similar laws of
     general application.

11.  INFORMATION IN PROSPECTUS AND OFFERING CIRCULAR:

     All information in the Prospectus and the Offering Circular with regard to
     the Cash Manager are true and accurate in all material respects and not
     misleading in any material respect.

     The Cash Manager has made all proper inquiries to ascertain and to verify
     the foregoing.

                                       47

<PAGE>

                                 EXECUTION PAGE

AS CASH MANAGER

EXECUTED for and on behalf of                                 )
NORTHERN ROCK PLC                                             )
by:                                                           )

--------------------------
Authorised Signatory

Name:

Title:

AS SELLER

EXECUTED for and on behalf of    )
NORTHERN ROCK PLC                )
by:                              )

--------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of    )
GRANITE FINANCE TRUSTEES LIMITED )
by:                              )

--------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of    )
GRANITE FINANCE FUNDING LIMITED  )
by:                              )

--------------------------
Authorised Signatory

Name:

Title:

                                       48

<PAGE>

EXECUTED for and on behalf of    )
THE BANK OF NEW YORK             )
by:                              )

--------------------------
Authorised Signatory

Name:

Title:

                                       49Exhibit 4.9

                            DATED [O] SEPTEMBER 2002

                                NORTHERN ROCK PLC
                         as Current Issuer Cash Manager

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                     - AND -

                              THE BANK OF NEW YORK
                                 as Note Trustee

            --------------------------------------------------------
                        ISSUER CASH MANAGEMENT AGREEMENT
            --------------------------------------------------------

<PAGE>

1.  Definitions and Interpretation.............................................1

2.  Appointment of Current Issuer Cash Manager.................................1

3.  The Current Issuer Cash Management Services................................2

4.  Payments, Accounts, Ledgers................................................3

5.  Payments Under Current Issuer Swap Agreements; Termination.................5

6.  No Liability...............................................................7

7.  Costs and Expenses.........................................................7

8.  Information................................................................8

9.  Remuneration..............................................................10

10. Covenants, Representations and Warranties of Current Issuer Cash Manager..11

11. Current Issuer Cash Management Services Non-Exclusive.....................11

12. Termination...............................................................11

13. Further Assurances........................................................15

14. Miscellaneous.............................................................15

15. Confidentiality...........................................................16

16. No Partnership............................................................16

17. Assignment................................................................17

18. The Note Trustee..........................................................17

19. Non Petition Covenant; Limited Recourse...................................17

20. Amendments and Waiver.....................................................18

21. Notices...................................................................19

22. Third Party Rights........................................................20

23. Execution in Counterparts; Severability...................................20

24. Governing Law and Jurisdiction; Appropriate Forum.........................20

SCHEDULE 1  The Current Issuer Cash Management Services.......................21
SCHEDULE 2  Cash Management and Maintenance of Ledgers........................24
SCHEDULE 3  Form of Issuer Quarterly Report...................................38

<PAGE>

SCHEDULE 4  Controlled Amortisation Amount/Target Balance.....................42
SCHEDULE 5  Current Issuer Cash Manager Representations and Warranties........45

<PAGE>

THIS ISSUER CASH MANAGEMENT AGREEMENT is made on [o] September 2002

BETWEEN:

(1)  NORTHERN ROCK PLC (registered number 3273685), a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as the Current Issuer Cash Manager;

(2)  GRANITE MORTGAGES 02-2 PLC (registered number 4482804), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as the Current
     Issuer; and

(3)  THE BANK OF NEW YORK, whose principal office is at One Canada Square, 48th
     Floor, London E14 5AL, in its capacity as Note Trustee.

WHEREAS:

(A)  On the Closing Date the Current Issuer will issue the Current Issuer Notes
     constituted by the Current Issuer Trust Deed. From the proceeds of the
     issue of those Current Issuer Notes, the Current Issuer shall make an
     Intercompany Loan to Granite Finance Funding Limited pursuant to the terms
     of the Current Issuer Intercompany Loan Agreement.

(B)  The Current Issuer Cash Manager is willing to provide cash management
     services to the Current Issuer and the Note Trustee on the terms and
     subject to the conditions contained in this Agreement.

IT IS HEREBY AGREED as follows:

1.   DEFINITIONS AND INTERPRETATION

1.1  The provisions of:

     (a)  the Master Definitions Schedule as amended and restated by (and
          appearing in Appendix 1 to) the Master Definitions Schedule Third
          Amendment Deed made on [o] September 2002 between, among others, the
          Seller, Funding and the Mortgages Trustee, and

     (b)  the Issuer Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy on [o]
          September 2002,

     (as the same have been and may be amended, varied or supplemented from time
     to time with the consent of the parties hereto) are expressly and
     specifically incorporated into and shall apply to this Agreement. The
     Issuer Master Definitions Schedule specified above shall prevail to the
     extent that it conflicts with the Master Definitions Schedule.

2.   APPOINTMENT OF CURRENT ISSUER CASH MANAGER

2.1  APPOINTMENT: Until termination pursuant to Clause 12 (Termination), the
     Current

                                       1
<PAGE>

     Issuer and the Note Trustee (according to their respective estates and
     interests) each hereby appoints the Current Issuer Cash Manager as its
     lawful agent on each of their behalves to provide the Current Issuer Cash
     Management Services set out in this Agreement, including in relation to the
     Current Issuer Notes to be issued by the Current Issuer. The Current Issuer
     Cash Manager in each case hereby accepts such appointment on the terms and
     subject to the conditions of this Agreement.

2.2  DUTIES PRESCRIBED BY TRANSACTION DOCUMENTS: For the avoidance of doubt and
     in connection with the powers conferred under Clause 2.1 (Appointment),
     save as expressly provided elsewhere in this Agreement, nothing herein
     shall be construed so as to give the Current Issuer Cash Manager any
     powers, rights, authorities, directions or obligations other than as
     specified in this Agreement or any of the other Transaction Documents.

2.3  APPOINTMENT CONDITIONAL UPON ISSUANCE OF CURRENT ISSUER NOTES: The
     appointment pursuant to Clause 2.1 (Appointment) is conditional upon the
     issue of the Current Issuer Notes and the making of the Current Issuer
     Intercompany Loan under the Current Issuer Intercompany Loan Agreement and
     shall take effect upon and from the Closing Date automatically without any
     further action on the part of any person, PROVIDED THAT if the issue of the
     Current Issuer Notes has not occurred by [31 October 2002], or such later
     date as the Current Issuer and the Lead Managers may agree, this Agreement
     shall cease to be of further effect.

3.   THE CURRENT ISSUER CASH MANAGEMENT SERVICES

3.1  GENERAL: The Current Issuer Cash Manager shall provide the services set out
     in this Agreement (including, without limitation, Schedules 1 and 2
     attached hereto) (the "CURRENT ISSUER CASH MANAGEMENT SERVICES").

3.2  APPROVALS AND AUTHORISATIONS: The Current Issuer Cash Manager shall
     maintain, or procure the maintenance of, the approvals, authorisations,
     consents and licences required in connection with the business of the
     Current Issuer and shall prepare and submit, or procure the preparation and
     submission of, on behalf of the Current Issuer, all necessary applications
     and requests for any further approvals, authorisations, consents or
     licences which may be required in connection with the business of the
     Current Issuer and shall, so far as it reasonably can do so, perform the
     Current Issuer Cash Management Services in such a way as not to prejudice
     the continuation of any such approvals, authorisations, consents or
     licences.

3.3  COMPLIANCE WITH TRANSACTION DOCUMENTS, ETC.: The Current Issuer Cash
     Management Services shall include procuring (so far as the Current Issuer
     Cash Manager, using its reasonable endeavours, is able so to do) compliance
     by the Current Issuer with all applicable legal requirements and with the
     terms of the Current Issuer Transaction Documents, PROVIDED THAT the
     Current Issuer Cash Manager shall not lend or provide any sum to the
     Current Issuer and the Current Issuer Cash Manager shall have no liability
     whatsoever to the Current Issuer, the Note Trustee or any other person for
     any failure by the Current Issuer to make any payment due by any of them
     under any of the Current Issuer Transaction Documents (other than to the
     extent arising from the Current Issuer Cash Manager failing to perform any
     of its obligations under any of the Transaction Documents).

                                       2
<PAGE>

3.4  LIABILITY OF CURRENT ISSUER CASH MANAGER:

     (a)  The Current Issuer Cash Manager shall indemnify each of the Current
          Issuer and the Note Trustee on demand for any loss, liability, claim,
          expense or damage suffered or incurred by it in respect of the
          negligence, bad faith or wilful default of the Current Issuer Cash
          Manager in carrying out its functions as Current Issuer Cash Manager
          under, or as a result of a breach by the Current Issuer Cash Manager
          of, the terms and provisions of this Agreement or such other
          Transaction Documents to which the Current Issuer Cash Manager is a
          party (in its capacity as such) in relation to such functions.

     (b)  For the avoidance of doubt, the Current Issuer Cash Manager shall not
          be liable in respect of any loss, liability, claim, expense or damage
          suffered or incurred by the Current Issuer or the Note Trustee and/or
          any other person as a result of the proper performance of the Current
          Issuer Cash Management Services (as defined in Clause 3.1 (General))
          by the Current Issuer Cash Manager save to the extent that such loss,
          liability, claim, expense or damage is suffered or incurred as a
          result of any negligence, bad faith or wilful default of the Current
          Issuer Cash Manager under, or as a result of a breach by the Current
          Issuer Cash Manager of, the terms and provisions of this Agreement or
          any of the other Transaction Documents to which the Current Issuer
          Cash Manager is a party (in its capacity as such) in relation to such
          functions.

4.   PAYMENTS, ACCOUNTS, LEDGERS

4.1  CURRENT ISSUER BANK ACCOUNTS: The Current Issuer Cash Manager hereby
     confirms that each of the Current Issuer Transaction Accounts have been
     established on or before the date hereof and that the mandates in the
     agreed form will apply thereto at the Closing Date. The Current Issuer Cash
     Manager undertakes (to the extent to which the same is within its control
     in its capacity as Current Issuer Cash Manager) that at the Closing Date
     the Current Issuer Transaction Accounts will be operative and that the
     Current Issuer Cash Manager will not knowingly create or permit to subsist
     any Security Interest in relation to the Current Issuer Transaction
     Accounts other than as created under or permitted pursuant to the Current
     Issuer Deed of Charge.

4.2  CURRENT ISSUER LEDGERS:

     (a)  The Current Issuer Cash Manager shall open and maintain in the books
          of the Current Issuer the following ledgers:

          (i)  the Current Issuer Revenue Ledger, which shall record all Current
               Issuer Revenue Receipts standing to the credit of the Current
               Issuer Transaction Accounts from time to time;

          (ii) the Current Issuer Principal Ledger, which shall record all
               Current Issuer Principal Receipts standing to the credit of the
               Current Issuer Transaction Accounts from time to time;

         (iii) the Current Issuer Principal Deficiency Ledger, which shall
               comprise three sub-ledgers to be known as the Class A Principal
               Deficiency Sub Ledger, the Class B Principal Deficiency Sub
               Ledger and the Class C

                                       3
<PAGE>

               Principal Deficiency Sub Ledger, and which shall record (A) any
               principal deficiencies arising from Losses on the Mortgage Loans
               which have been allocated by Funding to the Current Issuer
               Intercompany Loan, (B) the application of Current Issuer
               Principal Receipts to meet any deficiency in Current Issuer
               Revenue Receipts and (C) the application of Funding Available
               Principal Receipts to fund the Current Issuer Liquidity Reserve
               Fund.

     (b)  The Current Issuer Cash Manager shall make credits and debits to the
          Current Issuer Ledgers in accordance with the provisions of paragraphs
          5, 6, 7, 8 and 9 of Schedule 2 hereto.

4.3  PAYMENTS:

     (a)  The Current Issuer Cash Manager shall procure that the following
          amounts payable to the Current Issuer are paid into the Current Issuer
          Transaction Accounts:

          (i)  all Current Issuer Revenue Receipts;

          (ii) all Current Issuer Principal Receipts;

         (iii) all amounts received by the Current Issuer pursuant to the
               Current Issuer Basis Rate Swap Agreement and the Current Issuer
               Currency Swap Agreements; and

          (iv) any other amounts whatsoever received by or on behalf of the
               Current Issuer on or after the Closing Date,

          and the Current Issuer Cash Manager shall procure that all investment
          proceeds from Authorised Investments purchased from amounts standing
          to the credit of any of the Current Issuer Transaction Accounts are
          credited to each such account. All amounts received by the Current
          Issuer denominated (i) in Sterling shall be paid into the Current
          Issuer Sterling Account, (ii) in U.S. Dollars shall be paid into the
          Current Issuer Dollar Account and (iii) in Euro shall be paid into the
          Current Issuer Euro Account.

     (b)  The Current Issuer Cash Manager shall procure that all transfers and
          withdrawals of amounts standing to the credit of the Current Issuer
          Transaction Accounts shall be made in accordance with the provisions
          of the Current Issuer Bank Account Agreement and the Current Issuer
          Deed of Charge.

     (c)  Each of the payments into the Current Issuer Transaction Accounts
          referred to in Clause 4.3(a) shall be made forthwith upon receipt by
          the Current Issuer or the Current Issuer Cash Manager of the amount in
          question.

     (d)  For the avoidance of doubt, as soon as reasonably practicable after
          becoming aware of the same, the Current Issuer Cash Manager may, and
          shall, withdraw Cash from the Current Issuer Transaction Accounts, if,
          and to the extent that,

                                       4
<PAGE>

          such Cash was credited thereto in error and shall use its reasonable
          endeavours to ensure that such Cash is applied correctly thereafter.

     (e)  The Current Issuer Cash Manager shall promptly notify each of the
          Current Issuer and the Note Trustee of any additional account or
          sub-account which supplements or replaces any account or sub-account
          specifically referred to in the definition of the "Current Issuer
          Transaction Accounts" in the Current Issuer Master Definitions
          Schedule.

     (f)  Each of the Current Issuer Cash Manager and the Current Issuer
          undertakes that, so far as it is able to procure the same, the Current
          Issuer Transaction Accounts and all instructions and mandates in
          relation thereto will continue to be operative and will not, save as
          permitted pursuant to the Current Issuer Bank Account Agreement, be
          changed without the prior written consent of the Note Trustee (such
          consent not to be unreasonably withheld or delayed). For the avoidance
          of doubt, the Current Issuer Cash Manager may change the authorised
          signatories in respect of any instructions or mandates relating to the
          Current Issuer, without the prior written consent of the Note Trustee,
          in accordance with the terms of the Current Issuer Bank Account
          Agreement.

4.4  WITHDRAWALS:

     (a)  The Current Issuer Cash Manager may make withdrawals on behalf of the
          Current Issuer from the Current Issuer Transaction Accounts, but only
          until receipt of a copy of a Current Issuer Note Enforcement Notice
          served by the Note Trustee on the Current Issuer, as permitted by this
          Agreement, the Current Issuer Trust Deed, the Current Issuer Bank
          Account Agreement and the Current Issuer Deed of Charge, but shall not
          in carrying out its functions as Current Issuer Cash Manager under
          this Agreement otherwise make withdrawals from the Current Issuer
          Transaction Accounts.

     (b)  Upon receipt of such a Current Issuer Note Enforcement Notice, no
          amount shall be withdrawn from any Current Issuer Transaction Account
          by the Current Issuer Cash Manager without the prior written consent
          of the Note Trustee.

4.5  CASH MANAGEMENT: In administering the Current Issuer Transaction Accounts
     on behalf of the Current Issuer and the Note Trustee, the Current Issuer
     Cash Manager shall comply with the provisions of Schedule 2 prior to
     receipt by the Current Issuer Cash Manager of a copy of any Current Issuer
     Note Enforcement Notice served on the Current Issuer. Following service of
     a Current Issuer Note Enforcement Notice, the Note Trustee or any Receiver
     appointed by the Note Trustee will administer the Current Issuer
     Transaction Accounts in accordance with the terms of the Current Issuer
     Deed of Charge.

5.   PAYMENTS UNDER CURRENT ISSUER SWAP AGREEMENTS; TERMINATION

5.1  CURRENT ISSUER AVAILABLE REVENUE RECEIPTS: Subject to the order of
     priorities of payment set out in Schedule 2 or, as the case may be, the
     Current Issuer Deed of Charge, on each Payment Date prior to the
     enforcement of the Current Issuer Security under the Current Issuer Deed of
     Charge, the Current Issuer Cash Manager will pay

                                       5
<PAGE>

     Current Issuer Available Revenue Receipts received in respect of the
     Current Issuer Intercompany Loan (after making payments ranking higher in
     the order or priority of payments) to the Current Issuer Basis Rate Swap
     Provider. Amounts received by the Current Issuer Cash Manager from the
     Current Issuer Basis Rate Swap Provider will be applied to pay (1) in
     respect of the Dollar Notes, the Current Issuer Dollar Currency Swap
     Provider, and amounts received by the Current Issuer Cash Manager from the
     Current Issuer Dollar Currency Swap Provider will be applied to pay amounts
     due to the holders of the relevant classes of Dollar Notes in accordance
     with the Current Issuer Pre-Enforcement Revenue Priority of Payments, (2)
     in respect of the Sterling Notes, amounts due to the holders of the
     relevant classes of Sterling Notes in accordance with the Current Issuer
     Pre-Enforcement Revenue Priority of Payments, and (3) in respect of the
     Euro Notes, the Current Issuer Euro Currency Swap Provider, and amounts
     received by the Current Issuer Cash Manager from the Current Issuer Euro
     Currency Swap Provider will be applied to pay amounts due to the holders of
     the relevant classes of Euro Notes in accordance with the Current Issuer
     Pre-Enforcement Revenue Priority of Payments.

5.2  CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS: Subject to the order of
     priorities of payment set out in Schedule 2 or, as the case may be, the
     Current Issuer Deed of Charge, on each Payment Date prior to enforcement of
     the Current Issuer Security under the Current Issuer Deed of Charge, the
     Current Issuer Cash Manager will pay Current Issuer Available Principal
     Receipts received in respect of the Current Issuer Intercompany Loan (after
     making payments ranking higher in the order or priority of payments) to (1)
     in respect of the Dollar Notes, the Current Issuer Dollar Currency Swap
     Provider, and amounts received by the Current Issuer Cash Manager from the
     Current Issuer Dollar Currency Swap Provider will be applied to pay amounts
     due to the holders of the relevant classes of Dollar Notes in accordance
     with the Current Issuer Pre-Enforcement Principal Priority of Payments, (2)
     in respect of the Sterling Notes, amounts due to the holders of the
     relevant classes of Sterling Notes in accordance with the Current Issuer
     Pre-Enforcement Principal Priority of Payments, and (3) in respect of the
     Euro Notes, the Current Issuer Euro Currency Swap Provider, and amounts
     received by the Current Issuer Cash Manager from the Current Issuer Euro
     Currency Swap Provider will be applied to pay amounts due to the holders of
     the relevant classes of Euro Notes in accordance with the Current Issuer
     Pre-Enforcement Principal Priority of Payments.

5.3  FOLLOWING A NON-ASSET TRIGGER EVENT: On each Payment Date following the
     occurrence of a Non-Asset Trigger Event under the Mortgages Trust Deed but
     prior to enforcement of the Funding Security under the Funding Deed of
     Charge or the Current Issuer Security under the Current Issuer Deed of
     Charge, the Current Issuer Cash Manager will pay Current Issuer Available
     Principal Receipts received in respect of the Current Issuer Intercompany
     Loan (after making payments ranking higher in the order or priority of
     payments) to (1) in respect of the Dollar Notes, the Current Issuer Dollar
     Currency Swap Provider, and amounts received by the Current Issuer Cash
     Manager from the Current Issuer Dollar Currency Swap Provider will be
     applied to pay amounts due to the holders of the relevant classes of Dollar
     Notes, and (2) in respect of the Sterling Notes, amounts due to the holders
     of the relevant classes of Sterling Notes, and (3) in respect of the Euro
     Notes, the Current Issuer Euro Currency Swap Provider, and amounts received
     by the Current Issuer Cash Manager from the Current Issuer Euro Currency
     Swap Provider will be applied to pay amounts

                                       6
<PAGE>

     due to the holders of the relevant classes of Euro Notes, each in
     accordance with the priority of payments set forth in Clause 4.2
     (Distribution of Current Issuer Available Principal Receipts Following the
     Occurrence of a Non-Asset Trigger Event) of Schedule 2.

5.4  FOLLOWING AN ASSET TRIGGER EVENT: On each Payment Date following the
     occurrence of an Asset Trigger Event under the Mortgages Trust Deed but
     prior to enforcement of the Funding Security under the Funding Deed of
     Charge or the Current Issuer Security under the Current Issuer Deed of
     Charge, the Current Issuer Cash Manager will pay Current Issuer Available
     Principal Receipts received in respect of the Current Issuer Intercompany
     Loan (after making payments ranking higher in the order or priority of
     payments) to (1) in respect of the Dollar Notes, the Current Issuer Dollar
     Currency Swap Provider, and amounts received by the Current Issuer Cash
     Manager from the Current Issuer Dollar Currency Swap Provider will be
     applied to pay amounts due to the holders of the relevant classes of Dollar
     Notes, and (2) in respect of the Sterling Notes, amounts due to the holders
     of the relevant classes of Sterling Notes, and (3) in respect of the Euro
     Notes, the Current Issuer Euro Currency Swap Provider, and amounts received
     by the Current Issuer Cash Manager from the Current Issuer Euro Currency
     Swap Provider will be applied to pay amounts due to the holders of the
     relevant classes of Euro Notes, each in accordance with the priority of
     payments set forth in Clause 4.3 (Distribution of Current Issuer Available
     Principal Receipts Following the Occurrence of an Asset Trigger Event) of
     Schedule 2.

5.5  TERMINATION: If on or prior to the date of the earlier of (i) repayment in
     full of the Current Issuer Notes or (ii) the service of a Current Issuer
     Note Enforcement Notice, the Current Issuer Basis Rate Swap or any of the
     Current Issuer Currency Swaps is terminated, the Current Issuer Cash
     Manager (on behalf of the Current Issuer and the Note Trustee) shall
     purchase a replacement hedge, as applicable, in respect of the relevant
     Series of Current Issuer Notes in each case on terms acceptable to the
     Rating Agencies, the Current Issuer and the Note Trustee and with a swap
     provider that the Rating Agencies have previously confirmed in writing to
     the Current Issuer and the Note Trustee will not cause the then-current
     ratings of the Current Issuer Notes to be downgraded, withdrawn or
     qualified. The Current Issuer may apply any early termination payment
     received from, as appropriate, the relevant Swap Provider for such purpose.

6.   NO LIABILITY

     Save as otherwise provided in this Agreement, the Current Issuer Cash
     Manager shall have no liability for the obligations of either the Note
     Trustee or the Current Issuer under any of the Transaction Documents or
     otherwise and nothing herein shall constitute a guarantee, or similar
     obligation, by the Current Issuer Cash Manager of either the Note Trustee
     or the Current Issuer in respect of any of them.

7.   COSTS AND EXPENSES

7.1  Subject to and in accordance with the Current Issuer Pre-Enforcement
     Priority of Payments or, as the case may be, the Current Issuer
     Post-Enforcement Priority of Payments, the Current Issuer will on each
     Payment Date reimburse the Current Issuer Cash Manager for all
     out-of-pocket costs, expenses and charges (together with any amounts in
     respect of Irrecoverable VAT due thereon) properly incurred by the

                                       7
<PAGE>

     Current Issuer Cash Manager in the performance of the Current Issuer Cash
     Management Services, including any such costs, expenses or charges not
     reimbursed to the Current Issuer Cash Manager on any previous Payment Date
     and the Current Issuer Cash Manager shall supply the Current Issuer with an
     appropriate VAT invoice issued by the Current Issuer Cash Manager or, if
     the Current Issuer Cash Manager has treated the relevant cost, expense or
     charge as a disbursement for VAT purposes, by the person making the supply.

7.2  Unless and until otherwise agreed by the Current Issuer and the Note
     Trustee in writing (notified to the Current Issuer Cash Manager), the
     Current Issuer shall be solely responsible for reimbursing the Current
     Issuer Cash Manager for the out-of-pocket costs, expenses and charges
     (together with any amounts in respect of Irrecoverable VAT due thereon)
     referred to in Clause 7.1 (Costs and Expenses).

8.   INFORMATION

8.1  USE OF INFORMATION TECHNOLOGY SYSTEMS:

     (a)  The Current Issuer Cash Manager represents and warrants that at the
          date hereof (and in respect of the software which is to be used by the
          Current Issuer Cash Manager in providing the Current Issuer Cash
          Management Services) it has in place all necessary licences and/or
          consents from the respective licensor or licensors (if any) of such
          software.

     (b)  The Current Issuer Cash Manager undertakes that it shall for the
          duration of this Agreement, use reasonable endeavours to:

          (i)  ensure that the licences and/or consents referred to in paragraph
               (a) are maintained in full force and effect; and

          (ii) except insofar as it would breach any other of its legal
               obligations, grant to any person to whom it may sub-contract or
               delegate the performance of all or any of its powers and
               obligations under this Agreement (and/or to such person as the
               Current Issuer and the Note Trustee elects as a substitute cash
               manager in accordance with the terms of this Agreement) a licence
               to use any proprietary software together with any updates which
               may be made thereto from time to time.

     (c)  The Current Issuer Cash Manager shall use reasonable endeavours to
          maintain in working order the information technology systems used by
          the Current Issuer Cash Manager in providing the Current Issuer Cash
          Management Services.

     (d)  The Current Issuer Cash Manager shall pass to any person to whom it
          may sub-contract or delegate the performance of all or any of its
          powers and obligations under this Agreement (and/or to such person as
          the Current Issuer and the Note Trustee elects as a substitute cash
          manager in accordance with the terms of this Agreement) the benefit of
          any warranties in relation to such software insofar as the same are
          capable of assignment.

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<PAGE>

8.2  BANK ACCOUNT STATEMENTS: The Current Issuer Cash Manager shall take all
     reasonable steps to ensure that it receives a monthly bank statement in
     relation to each Current Issuer Transaction Account and that it furnishes a
     copy of such statements to the Current Issuer, with a copy to the Note
     Trustee upon its request.

8.3  ACCESS TO BOOKS AND RECORDS: Subject to all applicable laws, the Current
     Issuer Cash Manager shall permit the Current Issuer, the Auditors of the
     Current Issuer, the Note Trustee and/or any other person nominated by the
     Note Trustee (to whom the Current Issuer Cash Manager has no reasonable
     objection) at any time during normal office hours upon reasonable notice to
     have access, or procure that such person or persons are granted access, to
     all books of record and account relating to the Current Issuer Cash
     Management Services provided by the Current Issuer Cash Manager and related
     matters in accordance with this Agreement.

8.4  STATUTORY OBLIGATIONS: The Current Issuer Cash Manager will use its
     reasonable endeavours, on behalf of the Current Issuer, to prepare or
     procure the preparation of and file all reports, annual returns, financial
     statements, statutory forms and other returns which the Current Issuer is
     required by law to prepare and file. Subject to approval thereof by the
     directors of the Current Issuer, the Current Issuer Cash Manager shall
     cause such accounts to be audited by the Auditors and shall procure so far
     as it is able so to do that the Auditors shall make a report thereon as
     required by law, and copies of all such documents shall be delivered to the
     Note Trustee, the Current Issuer and the Rating Agencies as soon as
     practicable after the end of each accounting reference period of the
     Current Issuer.

8.5  INFORMATION COVENANTS:

     (a)  The Current Issuer Cash Manager shall provide the Current Issuer, the
          Note Trustee, the Seller and the Rating Agencies quarterly with a
          report in, or substantially in, the form set out in Schedule 3 in
          respect of the Current Issuer. Such quarterly report shall be
          delivered to the Current Issuer, the Note Trustee (upon its request),
          the Seller and the Rating Agencies by the last Business Day of the
          month in which each Payment Date occurs.

     (b)  The Current Issuer Cash Manager shall provide, or procure the
          provision of, to the Current Issuer, the Note Trustee and the Rating
          Agencies copies of any annual returns or financial statements referred
          to in Clause 8.4 (Statutory Obligations) as soon as reasonably
          practicable after the preparation thereof.

     (c)  The Current Issuer Cash Manager shall notify the Rating Agencies and
          the Note Trustee in writing of the details of (i) any material
          amendment to the Transaction Documents to which the Current Issuer is
          a party and of which it is or becomes aware, (ii) the occurrence of a
          Current Issuer Note Event of Default, or a Current Issuer Intercompany
          Loan Event of Default or a Current Issuer Cash Manager Termination
          Event (as defined in Clause 12.1 (Current Issuer Cash Manager
          Termination Events)) and (iii) any other information relating to the
          Current Issuer Cash Manager as the Rating Agencies and the Note
          Trustee may reasonably request in connection with its obligations
          under this Agreement, PROVIDED THAT the Note Trustee shall not make
          such a request more than once every three months unless, in the belief
          of the Note Trustee, a Current Issuer Intercompany Loan Event of
          Default, a Current

                                       9
<PAGE>

          Issuer Note Event of Default or a Current Issuer Cash Manager
          Termination Event shall have occurred and is continuing or may
          reasonably be expected to occur, and PROVIDED FURTHER THAT any such
          request by the Note Trustee does not adversely interfere with the
          Current Issuer Cash Manager's day-to-day provision of the Current
          Issuer Cash Management Services under the other terms of this
          Agreement.

     (d)  After becoming aware of any event described in paragraph (c)(i) or
          (ii) above, the Current Issuer Cash Manager shall give details to the
          Current Issuer and the Note Trustee of any pending legal action and
          any judgments given in respect of the Current Issuer Cash Manager if
          it could have a potential material adverse effect on the ability of
          the Current Issuer Cash Manager to perform its obligations hereunder.

     (e)  The Current Issuer Cash Manager shall, at the request of the Note
          Trustee, furnish the Note Trustee and the Rating Agencies with such
          other information relating to its business and financial condition as
          the Note Trustee may request in connection with this Agreement,
          PROVIDED THAT the Note Trustee shall not make such a request more than
          once every three months unless, in the belief of the Note Trustee, a
          Current Issuer Intercompany Loan Event of Default, a Current Issuer
          Note Event of Default or a Current Issuer Cash Manager Termination
          Event (as defined in Clause 12.1 (Current Issuer Cash Manager
          Termination Events)) shall have occurred and is continuing or may
          reasonably be expected to occur, and PROVIDED FURTHER THAT any such
          request of the Note Trustee does not adversely interfere with the
          Current Issuer Cash Manager's day-to-day provision of the Current
          Issuer Cash Management Services under the other terms of this
          Agreement.

9.   REMUNERATION

9.1  FEE PAYABLE:

     (a)  Subject to paragraph (b) below, the Current Issuer shall pay to the
          Current Issuer Cash Manager for the provision of the Current Issuer
          Cash Management Services hereunder a cash management fee which shall
          be agreed in writing between the Current Issuer, the Note Trustee and
          the Current Issuer Cash Manager from time to time.

     (b)  Unless and until otherwise agreed by the Current Issuer and the Note
          Trustee in writing (notified to the Current Issuer Cash Manager), the
          Current Issuer shall be solely responsible for paying the cash
          management fee to the Current Issuer Cash Manager which is referred to
          in paragraph (a) above.

9.2  PAYMENT OF FEE: The cash management fee referred to in Clause 9.1 (Fee
     Payable) shall only be payable to the Current Issuer Cash Manager on each
     Payment Date in the manner contemplated by, in accordance with and subject
     to the provisions of the Current Issuer Pre-Enforcement Revenue Priority of
     Payments or, as the case may be, the Current Issuer Post-Enforcement
     Priority of Payments.

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<PAGE>

10.  COVENANTS, REPRESENTATIONS AND WARRANTIES OF CURRENT ISSUER CASH MANAGER

10.1 COVENANTS: The Current Issuer Cash Manager hereby covenants with and
     undertakes to each of the Current Issuer and the Note Trustee that without
     prejudice to any of its specific obligations hereunder:

     (a)  it will exercise all due skill, care and diligence to the performance
          of its obligations and the exercise of its discretions hereunder;

     (b)  it will comply with any proper directions, orders and instructions
          which the Current Issuer or the Note Trustee may from time to time
          give to it in accordance with the provisions of this Agreement and, in
          the event of any conflict, those of the Note Trustee shall prevail;

     (c)  it will obtain and keep in force all licences, approvals,
          authorisations and consents which are necessary in connection with the
          performance of the Current Issuer Cash Management Services and prepare
          and submit all necessary applications and requests for any further
          approval, authorisation, consent or licence required in connection
          with the performance of the Current Issuer Cash Management Services;

     (d)  it will not knowingly fail to comply with any legal requirements in
          the performance of the Current Issuer Cash Management Services;

     (e)  it will make all payments required to be made by it pursuant to this
          Agreement on the due date for payment thereof for value in the
          specified currency on such day without set-off (including, without
          limitation, in respect of any fees owed to it) or counterclaim; and

     (f)  it will not without the prior written consent of the Note Trustee
          amend or terminate any of the Current Issuer Transaction Documents
          save in accordance with their terms.

10.2 DURATION OF COVENANTS: The covenants of the Current Issuer Cash Manager in
     Clause 10.1 (Covenants) shall remain in force until this Agreement is
     terminated but without prejudice to any right or remedy of the Current
     Issuer and/or the Note Trustee arising from breach of any such covenant
     prior to the date of termination of this Agreement.

10.3 REPRESENTATIONS AND WARRANTIES: The Current Issuer Cash Manager hereby
     makes the representations and warranties to each of the Current Issuer and
     the Note Trustee that are specified on Schedule 5 hereto.

11.  CURRENT ISSUER CASH MANAGEMENT SERVICES NON-EXCLUSIVE

     Nothing in this Agreement shall prevent the Current Issuer Cash Manager
     from rendering or performing services similar to those provided for in this
     Agreement to or for itself or other persons, firms or companies or from
     carrying on business similar to or in competition with the business of the
     Current Issuer or the Note Trustee.

12.  TERMINATION

12.1 CURRENT ISSUER CASH MANAGER TERMINATION EVENTS: If any of the following
     events

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<PAGE>

     ("CURRENT ISSUER CASH MANAGER TERMINATION EVENTS") shall occur:

     (a)  default is made by the Current Issuer Cash Manager in the payment on
          the due date of any payment due and payable by it under this Agreement
          and such default continues unremedied for a period of five (5) London
          Business Days after the earlier of the Current Issuer Cash Manager
          becoming aware of such default and receipt by the Current Issuer Cash
          Manager of written notice from the Current Issuer or the Note Trustee,
          as the case may be, requiring the same to be remedied; or

     (b)  default is made by the Current Issuer Cash Manager in the performance
          or observance of any of its other covenants and obligations under this
          Agreement, which in the opinion of the Note Trustee is materially
          prejudicial to the interests of the holders of the Current Issuer
          Notes and such default continues unremedied for a period of twenty
          (20) days after the earlier of the Current Issuer Cash Manager
          becoming aware of such default and receipt by the Current Issuer Cash
          Manager of written notice from the Note Trustee requiring the same to
          be remedied; or

     (c)  the Current Issuer Cash Manager suffers an Insolvency Event,

     then the Current Issuer and/or Note Trustee may at once or at any time
     thereafter while such default continues by notice in writing to the Current
     Issuer Cash Manager with a copy to the Current Issuer Account Bank
     terminate its appointment as Current Issuer Cash Manager under this
     Agreement with effect from a date (not earlier than the date of the notice)
     specified in the notice.

     Upon termination of the appointment of the Current Issuer Cash Manager, the
     Note Trustee agrees to use its reasonable endeavours to appoint a
     substitute Current Issuer Cash Manager. Any substitute Current Issuer Cash
     Manager must agree to enter into an agreement substantially on the same
     terms as the relevant provisions of this Agreement or on such terms as are
     satisfactory to the Current Issuer and the Note Trustee.

     Any termination of the appointment of the Current Issuer Cash Manager and
     the appointment of a substitute Current Issuer Cash Manager under this
     Clause 12.1 is conditional upon the Rating Agencies having previously
     confirmed in writing to the Current Issuer and the Note Trustee that the
     then-current ratings of the Current Issuer Notes will not be downgraded,
     withdrawn or qualified.

     The Note Trustee shall have no liability to any person in the event that,
     having used reasonable endeavours, it is unable to appoint a substitute
     Current Issuer Cash Manager. In any event, the Note Trustee shall only be
     required to use its reasonable endeavours to appoint such substitute
     Current Issuer Cash Manager. Notwithstanding any other provision of the
     Transaction Documents, the Note Trustee shall not itself be required to
     perform any duties of the Current Issuer Cash Manager.

     The Note Trustee shall not be obliged to monitor or supervise the
     performance by any substitute Current Issuer Cash Manager of its duties
     hereunder or in relation to the other Transaction Documents nor shall the
     Note Trustee be responsible or liable for

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<PAGE>

     any act or omission of any substitute Current Issuer Cash Manager or for
     any loss caused thereby.

12.2 RESIGNATION OF CURRENT ISSUER CASH MANAGER: The Current Issuer Cash Manager
     may resign from its appointment under this Agreement only upon giving not
     less than twelve (12) months' notice to each of the Current Issuer and the
     Note Trustee, PROVIDED THAT:

     (a)  the Current Issuer and the Note Trustee each consent in writing to
          such resignation;

     (b)  a substitute cash manager shall be appointed, such appointment to be
          effective not later than the effective date of such resignation;

     (c)  such substitute cash manager enters into an agreement substantially on
          the same terms as the relevant provisions of this Agreement or on such
          terms as are satisfactory to the Current Issuer and the Note Trustee,
          and the Current Issuer Cash Manager shall not be released from its
          obligations under the relevant provisions of this Agreement until such
          substitute cash manager has entered into such new agreement and the
          rights of the Current Issuer under such agreement are charged in
          favour of the Note Trustee on terms satisfactory to the Note Trustee;
          and

     (d)  the Rating Agencies have confirmed to the Current Issuer and the Note
          Trustee that the then-current ratings of the Current Issuer Notes are
          not adversely affected as a result thereof.

12.3 EFFECT OF TERMINATION OR RESIGNATION:

     (a)  On and after termination or resignation of the appointment of the
          Current Issuer Cash Manager under this Agreement pursuant to this
          Clause 12, all authority and power of the Current Issuer Cash Manager
          under this Agreement shall be terminated and be of no further effect
          and the Current Issuer Cash Manager shall not thereafter hold itself
          out in any way as the agent of the Current Issuer or the Note Trustee
          pursuant to this Agreement.

     (b)  Upon termination or resignation of the appointment of the Current
          Issuer Cash Manager under this Agreement pursuant to this Clause 12,
          the Current Issuer Cash Manager shall:

          (i)  forthwith deliver (and in the meantime hold on trust for, and to
               the order of, the Current Issuer or the Note Trustee, as the case
               may be) to the Current Issuer or the Note Trustee, as the case
               may be or as it shall direct, all books of account, papers,
               records, registers, correspondence and documents in its
               possession or under its control relating to the affairs of or
               belongings of the Current Issuer or the Note Trustee, as the case
               may be, (if practicable, on the date of receipt) any monies then
               held by the Current Issuer Cash Manager on behalf of the Current
               Issuer, the Note Trustee and any other assets of the Current
               Issuer and the Note Trustee;

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<PAGE>

          (ii) take such further action as the Current Issuer or the Note
               Trustee, as the case may be, may reasonably direct PROVIDED THAT
               the Note Trustee shall not be required to take or direct to be
               taken such further action unless it has been indemnified to its
               satisfaction (and in the event of a conflict between the
               directions of Current Issuer and the Note Trustee, the directions
               of the Note Trustee shall prevail);

         (iii) provide all relevant information contained on computer records
               in the form of magnetic tape, together with details of the layout
               of the files encoded on such magnetic tapes; and

          (iv) co-operate and consult with and assist the Current Issuer or the
               Note Trustee or its nominee, as the case may be, (which shall,
               for the avoidance of doubt, include any Receiver appointed by it)
               for the purposes of explaining the file layouts and the format of
               the magnetic tapes generally containing such computer records on
               the computer system of the Current Issuer or the Note Trustee or
               such nominee, as the case may be.

12.4 NOTICE OF EVENT OF DEFAULT: The Current Issuer Cash Manager shall deliver
     to the Current Issuer and the Note Trustee as soon as reasonably
     practicable (but in any event within three London Business Days of becoming
     aware thereof) a notice of any Current Issuer Cash Manager Termination
     Event, any Current Issuer Note Event of Default or any Current Issuer
     Intercompany Loan Event of Default, or any event which with the giving of
     notice or expiry of any grace period or certification, as specified in such
     Current Issuer Cash Manager Termination Event or Current Issuer Note Event
     of Default or Current Issuer Intercompany Loan Event of Default, would
     constitute the same.

12.5 GENERAL PROVISIONS RELATING TO TERMINATION:

     (a)  Termination of this Agreement or the appointment of the Current Issuer
          Cash Manager under this Agreement shall be without prejudice to the
          liabilities of the Current Issuer to the Current Issuer Cash Manager
          and vice versa incurred before the date of such termination. The
          Current Issuer Cash Manager shall have no right of set-off or any lien
          in respect of such amounts against amounts held by it on behalf of the
          Current Issuer or the Note Trustee.

     (b)  This Agreement shall terminate at such time as the Current Issuer
          Secured Obligations have been fully discharged.

     (c)  On termination of the appointment of the Current Issuer Cash Manager
          under the provisions of this Clause 12, the Current Issuer Cash
          Manager shall be entitled to receive all fees and other monies accrued
          up to (but excluding) the date of termination but shall not be
          entitled to any other or further compensation. The Current Issuer
          shall pay such moneys so receivable by the Current Issuer Cash Manager
          in accordance with the Current Issuer Pre-Enforcement Revenue Priority
          of Payments or, as the case may be, the Current Issuer
          Post-Enforcement Priority of Payments, on the dates on which they
          would otherwise have fallen due hereunder. For the avoidance of doubt,
          such termination shall not affect the Current Issuer Cash Manager's
          rights to

                                       14
<PAGE>

          receive payment of all amounts (if any) due to it from the Current
          Issuer other than under this Agreement.

     (d)  Any provision of this Agreement, which is stated to continue after
          termination of the Agreement, shall remain in full force and effect
          notwithstanding termination.

13.  FURTHER ASSURANCES

13.1 CO-OPERATION, ETC: The parties hereto agree that they will co-operate fully
     to do all such further acts and things and execute any further documents as
     may be necessary or desirable to give full effect to the arrangements
     contemplated by this Agreement and the other Transaction Documents.

13.2 POWERS OF ATTORNEY: Without prejudice to the generality of Clause 13.1
     (Co-operation, etc), the Current Issuer shall upon request by the Current
     Issuer Cash Manager forthwith give to the Current Issuer Cash Manager such
     further powers of attorney or other written authorisations, mandates or
     instruments as are necessary to enable the Current Issuer Cash Manager to
     perform the Current Issuer Cash Management Services.

14.  MISCELLANEOUS

14.1 NO SET-OFF: The Current Issuer Cash Manager agrees that it will not:

     (a)  set off or purport to set off any amount which either the Current
          Issuer is or will become obliged to pay to it under this Agreement
          against any amount from time to time standing to the credit of or to
          be credited to either of the Current Issuer Transaction Accounts or
          any replacement or additional bank account of the Current Issuer and
          established from time to time; or

     (b)  make or exercise any claims or demands, any rights of counterclaim or
          any other equities against or withhold payment of any and all sums of
          money which may at any time and from time to time standing to the
          credit of either of the Current Issuer Transaction Accounts or any
          replacement or additional bank account of the Current Issuer and
          established from time to time.

14.2 NO RECOURSE:

     (a)  In relation to all sums due and payable by the Current Issuer to the
          Current Issuer Cash Manager, the Current Issuer Cash Manager agrees
          that it shall have recourse only to sums paid to or received by (or on
          behalf of) the Current Issuer pursuant to the provisions of the
          Current Issuer Transaction Documents.

     (b)  For the avoidance of doubt, the Note Trustee shall not be liable to
          pay any amounts due under Clauses 7 (Costs and Expenses) and 9
          (Remuneration), but without prejudice to the obligations of the
          Current Issuer, or any receiver appointed pursuant to the Current
          Issuer Deed of Charge in respect of such amounts.

     (c)  Notwithstanding any other provisions of this Agreement, all
          obligations to, and rights of, the Note Trustee under or in connection
          with this Agreement

                                       15
<PAGE>

          (other than its obligations under Clause 13 (Further Assurances))
          shall automatically terminate upon the discharge in full of all
          Current Issuer Secured Obligations, PROVIDED THAT this shall be
          without prejudice to any claims in respect of such obligations and
          rights arising on or prior to such date.

15.  CONFIDENTIALITY

     During the continuance of this Agreement or after its termination, each of
     the Current Issuer, the Current Issuer Cash Manager and the Note Trustee
     shall use its best endeavours not to disclose to any person, firm or
     company whatsoever any information relating to the business, finances or
     other matters of a confidential nature of any other party hereto of which
     it may exclusively by virtue of being party to the Transaction Documents
     have become possessed and shall use all reasonable endeavours to prevent
     any such disclosure as aforesaid, PROVIDED HOWEVER that the provisions of
     this Clause 15 shall not apply:

     (a)  to any information already known to the recipient otherwise than as a
          result of entering into any of the Transaction Documents;

     (b)  to any information subsequently received by the recipient which it
          would otherwise be free to disclose;

     (c)  to any information which is or becomes public knowledge otherwise than
          as a result of the conduct of the recipient;

     (d)  to any extent that the recipient is required to disclose the same
          pursuant to any law or order of any court or pursuant to any
          direction, request or requirement (whether or not having the force of
          law) of any central bank or any governmental or other authority
          (including, without limitation, any official bank examiners or
          regulators);

     (e)  to the extent that the recipient needs to disclose the same for
          determining the existence of, or declaring, a Current Issuer Note
          Event of Default, or a Current Issuer Cash Manager Termination Event,
          the protection or enforcement of any of its rights under any of the
          Current Issuer Transaction Documents or in connection herewith or
          therewith or for the purpose of discharging, in such manner as it
          thinks fit, its duties under or in connection with such agreements in
          each case to such persons as require to be informed of such
          information for such purposes; or

     (f)  in relation to any information disclosed to the professional advisers
          of the recipient or (in connection with a prospective rating of any
          debt to be issued by the Current Issuer or any New Issuer) to any
          credit rating agency or any prospective new cash manager or
          prospective new Note Trustee.

16.  NO PARTNERSHIP

     It is hereby acknowledged and agreed by the parties that nothing in this
     Agreement shall be construed as giving rise to any partnership between any
     of the parties.

                                       16
<PAGE>

17.  ASSIGNMENT

17.1 ASSIGNMENT BY THE CURRENT ISSUER: The Current Issuer may not assign or
     transfer any of its rights and obligations under this Agreement without the
     prior written consent of each of the Note Trustee and the Current Issuer
     Cash Manager, except that the Current Issuer may assign its respective
     rights hereunder without such consent pursuant to the Current Issuer Deed
     of Charge.

17.2 NO ASSIGNMENT BY CURRENT ISSUER CASH MANAGER: The Current Issuer Cash
     Manager may not assign or transfer any of its rights and obligations under
     this Agreement without the prior written consent of the Current Issuer and
     the Note Trustee.

18.  THE NOTE TRUSTEE

18.1 CHANGE IN NOTE TRUSTEE: If there is any change in the identity of the note
     trustee in accordance with the Issuer Deed of Charge, the Current Issuer
     and the Current Issuer Cash Manager shall execute such documents and take
     such action as the successor note trustee and the outgoing Note Trustee may
     require for the purpose of vesting in the successor note trustee the rights
     and obligations of the outgoing Note Trustee under this Agreement and
     releasing the outgoing Note Trustee from its future obligations under this
     Agreement.

18.2 NO OBLIGATIONS: It is hereby acknowledged and agreed that by its execution
     of this Agreement the Note Trustee shall not assume or have any of the
     obligations or liabilities of the Current Issuer or the Current Issuer Cash
     Manager under this Agreement. Furthermore, any liberty or power which may
     be exercised or any determination which may be made hereunder by the Note
     Trustee may be exercised or made in the Note Trustee's absolute and
     unfettered discretion without any obligation to give reasons therefor, but
     in any event must be exercised or made in accordance with the provisions of
     the Current Issuer Deed of Charge.

19.  NON PETITION COVENANT; LIMITED RECOURSE

19.1 NOTE TRUSTEE TO ENFORCE: The Current Issuer Cash Manager hereby undertakes
     to each of the other parties hereto that only the Security Trustee, at the
     direction of the Note Trustee, may enforce the security created in favour
     of the Note Trustee by the Current Issuer Deed of Charge in accordance with
     the provisions thereof.

19.2 LIMITED RECOURSE: The Current Issuer Cash Manager hereby undertakes to each
     of the other parties hereto that, notwithstanding any other provision of
     this Agreement or any other Transaction Document, no sum due or owing to
     the Current Issuer Cash Manager from or by the Current Issuer under this
     Agreement shall be payable by the Current Issuer except to the extent that
     the Current Issuer has sufficient funds available or (following enforcement
     of the Current Issuer Security) the Security Trustee has realised
     sufficient funds from the Current Issuer Security to pay such sum subject
     to and in accordance with the relevant Current Issuer Priority of Payments,
     and provided that all liabilities of the Current Issuer required to be paid
     in priority thereto or pari passu therewith pursuant to such Current Issuer
     Priority of Payments have been paid, discharged and/or otherwise provided
     for in full.

19.3 NON PETITION: The Current Issuer Cash Manager hereby undertakes to each of
     the

                                       17
<PAGE>

     other parties hereto that it shall not take any steps for the purpose of
     recovering any amount payable under this Agreement (including, without
     limitation, by exercising any rights of set-off) or enforcing any rights
     arising out of this Agreement against the Current Issuer and it shall not
     take any steps or legal proceedings for the winding-up, dissolution or
     reorganisation of, or the institution of insolvency proceedings against,
     the Current Issuer or for the appointment of a receiver, administrator,
     liquidator or similar officer of the Current Issuer in respect of any or
     all of its revenues except to the extent expressly permitted under the
     Current Issuer Deed of Charge.

19.4 FOLLOWING ENFORCEMENT: The Current Issuer Cash Manager hereby undertakes to
     each of the other parties hereto that, following any enforcement of the
     Current Issuer Security, it will hold on trust for, and will pay to, the
     Note Trustee or the Receiver, as the case may be, all monies received or
     recovered by it (whether by way of set-off or otherwise) otherwise than in
     accordance with the Current Issuer Post-Enforcement Priority of Payments in
     order that such monies may be applied by the Note Trustee or the Receiver
     in accordance with the Current Issuer Post-Enforcement Priority of
     Payments.

19.5 CORPORATE OBLIGATIONS: To the extent permitted by law, no recourse under
     any obligation, covenant, or agreement of any person contained in this
     Agreement shall be had against any shareholder, officer or director of such
     person as such, by the enforcement of any assessment or by any legal
     proceeding, by virtue of any statute or otherwise; it being expressly
     agreed and understood that this Agreement is a corporate obligation of each
     person expressed to be a party hereto and no personal liability shall
     attach to or be incurred by the shareholders, officers, agents or directors
     of such person as such, or any of them, under or by reason of any of the
     obligations, covenants or agreements of such person contained in this
     Agreement, or implied therefrom, and that any and all personal liability
     for breaches by such person of any of such obligations, covenants or
     agreements, either under any applicable law or by statute or constitution,
     of every such shareholder, officer, agent or director is hereby expressly
     waived by each person expressed to be a party hereto as a condition of and
     consideration for the execution of this Agreement.

19.6 CURRENT ISSUER DEED OF CHARGE: The provisions of Clause 6 of the Current
     Issuer Deed of Charge shall prevail in the event that and to the extent
     that they conflict with the provisions of this Clause 19.

20.  AMENDMENTS AND WAIVER

20.1 ENTIRE AGREEMENT: This Agreement sets out the entire agreement and
     understanding between the parties with respect to the subject matter of
     this Agreement superseding all prior oral or written understandings other
     than the other Current Issuer Transaction Documents.

20.2 AMENDMENTS AND WAIVER: No amendment or waiver of any provision of this
     Agreement nor consent to any departure by any of the parties therefrom
     shall in any event be effective unless the same shall be in writing and
     signed by each of the parties hereto. In the case of a waiver or consent,
     such waiver or consent shall be effective only in the specific instance and
     as against the party or parties giving it for the specific purpose for
     which it is given.

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<PAGE>

20.3 RIGHTS CUMULATIVE: The respective rights of each of the parties to this
     Agreement are cumulative and may be exercised as often as they consider
     appropriate. No failure on the part of any party to exercise, and no delay
     in exercising, any right hereunder shall operate as a waiver thereof, nor
     shall any single or partial exercise of any such right preclude any other
     or further exercise thereof or the exercise of any other right. The
     remedies in this Agreement are cumulative and not exclusive of any remedies
     provided by law.

20.4 RATINGS: No variation or waiver of this Agreement shall be made if the same
     would adversely affect the then-current ratings of any of the Notes.

21.  NOTICES

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

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

     (b)  in the case of the Current Issuer, to Granite Mortgages 02-1 plc c/o
          Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile number 020
          7606 0643) for the attention of The Company Secretary with a copy to
          Northern Rock plc, Northern Rock House, Gosforth, Newcastle upon Tyne
          NE3 4PL (facsimile number 0191 213 2203) for the attention of the
          Group Secretary;

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

     (d)  in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2 Eldon
          Street, London EC2M 7UA (facsimile number 0207 417 6262) for the
          attention of European Structured Finance Surveillance;

     (e)  in the case of Moody's, to Moody's Investors Services, Inc., at 1st
          Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB (facsimile
          number 0207 772 5400) for the attention of Nick Lindstrom;

     (f)  in the case of S&P, to Standard & Poor's Ratings Services, a division
          of The McGraw-Hill Companies, Inc., at Garden House, 18 Finsbury
          Circus, London EC2M 7NJ (facsimile number 0207 826 3598) for the
          attention of Andre Vollmann;

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party or
     by any Rating Agency

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<PAGE>

     to the others by written notice in accordance with the provisions of this
     Clause 21. All notices served under this Agreement shall be simultaneously
     copied to the Note Trustee by the person serving the same.

22.  THIRD PARTY RIGHTS

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

23.  EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

24.  GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

24.1 GOVERNING LAW: This Agreement is governed by, and shall be construed in
     accordance with, English law.

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

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

IN WITNESS WHEREOF the parties have caused this Agreement to be executed the day
and year first before written.

                                       20
<PAGE>

                                   SCHEDULE 1

                   THE CURRENT ISSUER CASH MANAGEMENT SERVICES

The Current Issuer Cash Manager shall:

(a)  make the determinations as set forth in Schedule 2;

(b)  invest sums, if any, standing to the credit of the Current Issuer
     Transaction Accounts in short-term Authorised Investments as determined by
     the Current Issuer and, if applicable, the Note Trustee;

(c)  apply the Current Issuer Available Revenue Receipts and Current Issuer
     Available Principal Receipts in accordance with the relevant order of
     priority of payments for the Current Issuer set out in Schedule 2;

(d)  maintain the Current Issuer Principal Deficiency Ledger, and record (1)
     principal deficiencies arising from Losses on the Mortgage Loans which have
     been allocated by Funding to the Current Issuer Intercompany Loan, (2) the
     use of Current Issuer Principal Receipts to meet any deficiency in Current
     Issuer Revenue Receipts and (3) the use of Funding Available Principal
     Receipts to fund or replenish, as the case may be, the Current Issuer
     Liquidity Reserve Fund, if any;

(e)  each time it records a debit on a Current Issuer Principal Deficiency Sub
     Ledger, also record on such Current Issuer Principal Deficiency Sub Ledger
     whether such debit was caused by (1) Losses on the Mortgage Loans which
     have been allocated by Funding to the Current Issuer Intercompany Loan, (2)
     the application of Current Issuer Principal Receipts to meet any deficiency
     in Current Issuer Revenue Receipts, or (3) the application of Funding
     Available Principal Receipts to fund or replenish, as the case may be, the
     Current Issuer Liquidity Reserve Fund, if any;

(f)  provide the Current Issuer, Funding, the Note Trustee (upon its request)
     and the Rating Agencies with quarterly reports in relation to the Current
     Issuer as set out in Schedule 3;

(g)  operate the Current Issuer Bank Accounts and ensure that payments are made
     into and from such account in accordance with this Agreement, the Current
     Issuer Deed of Charge, the Current Issuer Bank Account Agreement and any
     other relevant Current Issuer Transaction Document, PROVIDED HOWEVER THAT
     nothing herein shall require the Current Issuer Cash Manager to make funds
     available to the Current Issuer to enable such payments to be made other
     than as expressly required by the provisions of this Agreement;

(h)  keep records for all taxation purposes (including, without limitation VAT);

(i)  subject to any applicable law, assist the auditors of the Current Issuer
     and provide such information to them as they may reasonably request for the
     purpose of carrying out their duties as auditors;

(j)  make all returns and filings, give all notices and make all registrations
     and other notifications required in the day-to-day operation of the
     business of the Current Issuer

                                       21
<PAGE>

     or required to be given by the Current Issuer pursuant to the Current
     Issuer Transaction Documents;

(k)  arrange for all payments due to be made by the Current Issuer under any of
     the Current Issuer Transaction Documents, PROVIDED THAT such moneys are at
     the relevant time available to the Current Issuer and PROVIDED FURTHER that
     nothing herein shall constitute a guarantee by the Current Issuer Cash
     Manager of all or any of the obligations of the Current Issuer under any of
     the Current Issuer Transaction Documents;

(l)  without prejudice to the role of and in conjunction with the Current Issuer
     Corporate Services Provider under the Current Issuer Corporate Services
     Agreement, keep general books of account and records of the Current Issuer;
     provide accounting services, including reviewing receipts and payments,
     supervising and assisting in the preparation of interim statements and
     final accounts and supervising and assisting in the preparation of tax
     returns;

(m)  without prejudice to the role of and in conjunction with the Current Issuer
     Corporate Services Provider under the Current Issuer Corporate Services
     Agreement, provide or procure the provision of company secretarial and
     administration services to the Current Issuer including the keeping of all
     registers and the making of all returns and filings required by applicable
     law or by UK regulatory authorities, co-operate in the convening of board
     and general meetings and provide registered office facilities;

(n)  itself on behalf of the Current Issuer, PROVIDED THAT such monies are at
     the relevant time available to the Current Issuer, pay all the
     out-of-pocket expenses of the Current Issuer, incurred by the Current
     Issuer Cash Manager on behalf of the Current Issuer in the performance of
     the Current Issuer Cash Manager's duties hereunder including without
     limitation:

     (i)  all Taxes which may be due or payable by the Current Issuer;

     (ii) all necessary filing and other fees in compliance with regulatory
          requirements;

    (iii) all legal and audit fees and other professional advisory fees; and

     (iv) all communication expenses including postage, courier and telephone
          charges,

(o)  the Current Issuer Cash Manager may invest monies standing from time to
     time to the credit of the Current Issuer Transaction Accounts subject to
     the following provisions:

     (i)  any such Authorised Investment shall be made in the joint names of the
          Current Issuer and the Note Trustee;

     (ii) any costs properly and reasonably incurred in making and changing
          Authorised Investments will be reimbursed to the Current Issuer Cash
          Manager and the Note Trustee by the Current Issuer;

    (iii) all income or proceeds following the disposal or maturity of
          Authorised Investments shall be credited to the Current Issuer
          Transaction Accounts from which moneys were withdrawn to make the
          relevant Authorised Investment; and

                                       22
<PAGE>

     (iv) following the enforcement of the Current Issuer Security no such
          investment may be made without the prior written consent of the Note
          Trustee.

          The Note Trustee and the Current Issuer Cash Manager shall not be
          responsible (save where any loss results from the Note Trustee's or
          the Current Issuer Cash Manager's own fraud, wilful default or gross
          negligence or that of its officers or employees) for any loss
          occasioned by reason of any such Authorised Investments whether by
          depreciation in value or otherwise provided that such Authorised
          Investments were made in accordance with the above provisions;

(p)  (i)  if necessary, perform all currency conversions free of charge, cost or
          expense at the relevant exchange rate; and

     (ii) if necessary, perform all interest rate conversions free of charge,
          cost or expense at the relevant interest swap rate.

          for the purposes of any calculations referred to in sub-paragraphs (i)
          and (ii) above, all percentages resulting from such calculations will
          be rounded, if necessary, to the nearest one hundred-thousandth of a
          percentage point (e.g. 9.876541% (or 0.09876541) being rounded down to
          9.87654% (or 0.0987654)) and (ii) any currency amounts used in or
          resulting from such calculations will be rounded in accordance with
          the relevant market practice; and

(q)  arrange payment of all fees to the London Stock Exchange plc or, as
     applicable, the UK Listing Authority.

                                       23
<PAGE>

                                   SCHEDULE 2

                   CASH MANAGEMENT AND MAINTENANCE OF LEDGERS

1.   DETERMINATION

     (a)  On or before each Current Issuer Note Determination Date immediately
          preceding a Payment Date, the Current Issuer Cash Manager shall
          determine each of the following in accordance with this paragraph 1:

          (i)  the amount of any Current Issuer Available Revenue Receipts to be
               applied on the following Payment Date in accordance with the
               Current Issuer Pre-Enforcement Revenue Priority of Payments set
               forth in paragraph 3 of this Schedule 2;

          (ii) the amount of any Current Issuer Available Principal Receipts to
               be applied on the following Payment Date in accordance with the
               Current Issuer Pre-Enforcement Principal Priority of Payments set
               forth in paragraph 4 of this Schedule 2;

         (iii) whether there will be an excess or a deficit of the Current
               Issuer Available Revenue Receipts to pay items (A) through (O) of
               the Current Issuer Pre-Enforcement Revenue Priority of Payments
               (after taking account of any Shared Issuer Revenue Receipts
               available therefor) as set forth in paragraph 3 of this Schedule
               2;

          (iv) the various amounts, balances and rates to be calculated in
               accordance with the Current Issuer Basis Rate Swap and the
               Current Issuer Currency Swaps, and shall promptly notify the
               Current Issuer, the Note Trustee and each Calculation Agent (as
               defined in each Current Issuer Basis Rate Swap Agreement and each
               Current Issuer Currency Swap Agreement) of such amounts, balances
               and rates; and

          (v)  the Principal Amount Outstanding of the Current Issuer Notes, the
               Pool Factor, and the Note Principal Payment of the Current Issuer
               Notes in accordance with the Conditions.

     (b)  If the Current Issuer Cash Manager determines (as set forth in
          paragraph 1(a)(iii)) that there is a deficit (a "CURRENT ISSUER INCOME
          DEFICIT") in the amount of Current Issuer Available Revenue Receipts
          to pay items (A) through (E), (G) and/or (I) of the Current Issuer
          Pre-Enforcement Revenue Priority of Payments, and the Current Issuer
          has provided for that deficit by the application of funds standing to
          the credit of the Current Issuer Principal Ledger, if any, then the
          Current Issuer Cash Manager shall make a corresponding debit entry in
          the relevant Current Issuer Principal Deficiency Sub Ledger, PROVIDED
          THAT the Current Issuer Cash Manager shall ensure that Current Issuer
          Principal Receipts are not used to pay interest on any class of
          Current Issuer Notes if and to the extent that would result in a
          deficiency being recorded, or an existing deficiency being increased,
          on a Current Issuer Principal Deficiency Sub Ledger relating to a
          higher ranking

                                       24
<PAGE>

          Class of Current Issuer Notes, and furthermore that Current Issuer
          Principal Receipts are not used to make up any deficit other than in
          respect of items (A) through (E), (G) and (I) of the Current Issuer
          Pre-Enforcement Revenue Priority of Payments. The Current Issuer Cash
          Manager shall thereafter record as a debit on the Current Issuer
          Revenue Ledger the application by the Current Issuer of any excess
          Current Issuer Available Revenue Receipts to extinguish any balance on
          a Current Issuer Principal Deficiency Sub Ledger.

     (c)  The Current Issuer Cash Manager may make all the determinations
          referred to in paragraph 1(a) on the basis of any reasonable and
          proper assumptions as the Current Issuer Cash Manager considers
          appropriate (including without limitation as to the amount of any
          payments to be made under paragraph 3 below during the period from and
          including the Current Issuer Note Determination Date immediately
          preceding a Payment Date to but excluding such Payment Date).

          The Current Issuer Cash Manager shall notify the Current Issuer and
          the Note Trustee on request of any such other assumptions and shall
          take account of any representations made by the Current Issuer and the
          Note Trustee (as the case may be) in relation thereto.

     (d)  Each determination made in accordance with this paragraph 1 shall (in
          the absence of bad faith, wilful default, negligence and manifest
          error) be final and binding on all persons.

2.   NOTIFICATION OF DETERMINATIONS

     (a)  The Current Issuer Cash Manager will cause each determination of
          Current Issuer Available Principal Receipts and Current Issuer
          Available Revenue Receipts (in accordance with paragraph 1(a)(i) and
          (ii)) and any Current Issuer Income Deficit (in accordance with
          paragraph 1(a)(iii)) to be notified forthwith, following the
          calculation thereof, to the Current Issuer.

     (b)  The Current Issuer Cash Manager shall procure that the determinations
          and notifications required to be made pursuant to Condition 5(C) of
          the Conditions are made.

3.   PRIORITY OF PAYMENTS FOR CURRENT ISSUER AVAILABLE REVENUE RECEIPTS

     Current Issuer Available Revenue Receipts will be applied, as applicable:

     (a)  on each Payment Date; or

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

     in each case prior to the enforcement of the Current Issuer Security
     pursuant to the Current Issuer Deed of Charge or until such time as there
     are no Current Issuer Secured Obligations outstanding, in making such
     payments and provisions in the following order of priority (in each case
     only if and to the extent that payments or

                                       25
<PAGE>

     provisions of a higher priority have been made in full) (the "CURRENT
     ISSUER PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS"):

     (A)  first, to pay amounts due to the Note Trustee, together with interest
          and (to the extent not already inclusive) VAT on those amounts, and to
          provide for any amounts due or to become due during the following
          Interest Period to the Note Trustee under the Current Issuer Trust
          Deed, the Current Issuer Deed of Charge or any other Transaction
          Document;

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

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

     (D)  fourth, in no order of priority between them but in proportion to the
          respective amounts due, to pay amounts due to the Current Issuer Cash
          Manager under the Current Issuer Cash Management Agreement, the
          Current Issuer Corporate Services Provider under the Current Issuer
          Corporate Services Agreement and the Current Issuer Account Bank under
          the Current Issuer Bank Account Agreement together with (to the extent
          not already inclusive) VAT on those amounts, and to provide for any
          amounts due, or to become due in the immediately succeeding interest
          period, to the Current Issuer Cash Manager under the Current Issuer
          Cash Management Agreement, to the Current Issuer Corporate Services
          Provider under the Current Issuer Corporate Services Agreement and to
          the Current Issuer Account Bank under the Current Issuer Bank Account
          Agreement;

     (E)  fifth, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (1)  amounts (including such part of any termination payment) due to
               the Current Issuer Basis Rate Swap Provider (except for any
               termination payment due and payable to the Current Issuer Basis
               Rate Swap Provider as a result of a Basis Rate Swap Provider
               Default);

                                       26
<PAGE>

          (2)  amounts due in respect of interest and such part of any
               termination payment due to the Series 1 Class A1 Dollar Currency
               Swap Provider under the Series 1 Class A1 Dollar Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Dollar Currency Swap Provider Default
               by that Swap Provider) and from amounts received in respect of
               interest from the Series 1 Class A1 Dollar Currency Swap Provider
               to pay interest due or overdue on the Series 1 Class A1 Notes to
               holders of the Series 1 Class A1 Notes;

          (3)  amounts due in respect of interest and such part of any
               termination payment due to the Series 1 Class A2 Dollar Currency
               Swap Provider under the Series 1 Class A2 Dollar Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Dollar Currency Swap Provider Default
               by that Swap Provider) and from amounts received in respect of
               interest from the Series 1 Class A2 Dollar Currency Swap Provider
               to pay interest due or overdue on the Series 1 Class A2 Notes to
               holders of the Series 1 Class A2 Notes;

          (4)  amounts due in respect of interest and such part of any
               termination payment due to the Series 2 Class A Euro Currency
               Swap Provider under the Series 2 Class A Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               interest from the Series 2 Class A Euro Currency Swap Provider to
               pay interest due or overdue on the Series 2 Class A Notes to the
               holders of the Series 2 Class A Notes; and

          (5)  amounts due to pay interest due or overdue on the Series 3 Class
               A Notes to the holders of the Series 3 Class A Notes;

     (F)  sixth, towards a credit to the Class A Principal Deficiency Sub Ledger
          in an amount up to the amount necessary to eliminate any debit on the
          Class A Principal Deficiency Sub Ledger;

     (G)  seventh, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (1)  amounts due in respect of interest and such part of any
               termination payment due to the Series 1 Class B Dollar Currency
               Swap Provider under the Series 1 Class B Dollar Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Dollar Currency Swap Provider Default
               by that Swap Provider) and from amounts received in respect of
               interest from the Series 1 Class B Dollar Currency Swap Provider
               to pay interest due or overdue on the Series 1 Class B Notes to
               the holders of the Series 1 Class B Notes;

                                       27
<PAGE>

          (2)  amounts due in respect of interest and such part of any
               termination payment due to the Series 2 Class B Euro Currency
               Swap Provider under the Series 2 Class B Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               interest from the Series 2 Class B Euro Currency Swap Provider to
               pay interest due or overdue on the Series 2 Class B Notes to the
               holders of the Series 2 Class B Notes; and

          (3)  amounts due to pay interest due or overdue on the Series 3 Class
               B Notes to the holders of the Series 3 Class B Notes;

     (H)  eighth, towards a credit to the Class B Principal Deficiency Sub
          Ledger in an amount up to the amount necessary to eliminate any debit
          on the Class B Principal Deficiency Sub Ledger;

     (I)  ninth, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (1)  amounts due in respect of interest and such part of any
               termination payment due to the Series 1 Class C Dollar Currency
               Swap Provider under the Series 1 Class C Dollar Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Dollar Currency Swap Provider Default
               by that Swap Provider) and from amounts received in respect of
               interest from the Series 1 Class C Dollar Currency Swap Provider
               to pay interest due or overdue on the Series 1 Class C Notes to
               the holders of the Series 1 Class C Notes;

          (2)  amounts due in respect of interest and such part of any
               termination payment due to the Series 2 Class C Euro Currency
               Swap Provider under the Series 2 Class C Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               interest from the Series 2 Class C Euro Currency Swap Provider to
               pay interest due or overdue on the Series 2 Class C Notes to the
               holders of the Series 2 Class C Notes; and

          (3)  amounts due to pay interest due or overdue on the Series 3 Class
               C Notes to the holders of the Series 3 Class C Notes;

     (J)  tenth, towards a credit to the Class C Principal Deficiency Sub Ledger
          in an amount up to the amount necessary to eliminate any debit on the
          Class C Principal Deficiency Sub Ledger;

     (K)  eleventh, to pay amounts due to pay interest due or overdue on the
          Series 3 Class D Notes to the holders of the Series 3 Class D Notes;

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<PAGE>

     (L)  twelfth, to pay up to the Series 3 Class D Controlled Amortisation
          Amount to the holders of the Series 3 Class D Notes

     (M)  thirteenth, in no order of priority between them but in proportion to
          the respective amounts due, to pay any termination payment to:

          (1)  the Current Issuer Basis Rate Swap Provider following a Basis
               Rate Swap Provider Default;

          (2)  any Dollar Currency Swap Provider following a Dollar Currency
               Swap Provider Default; and

          (3)  any Euro Currency Swap Provider following a Euro Currency Swap
               Provider Default;

     (N)  fourteenth, to pay to the Current Issuer an amount equal to 0.01% per
          annum of the interest received under the Current Issuer Intercompany
          Loan, to be retained by the Current Issuer as profit, less corporation
          tax in respect of those profits provided for or paid at item (C)
          above; and

     (O)  last, to pay to shareholders of the Current Issuer any dividend
          declared by the Current Issuer.

4.   PRIORITY OF PAYMENTS FOR CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS

4.1  DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS PRIOR TO
     ENFORCEMENT OF THE CURRENT ISSUER SECURITY

     Prior to enforcement of the Current Issuer Security pursuant to the Current
     Issuer Deed of Charge and/or the occurrence of a Trigger Event, or until
     such time as there are no Current Issuer Notes outstanding, Current Issuer
     Available Principal Receipts will be applied in the following order of
     priority (the "CURRENT ISSUER PRE-ENFORCEMENT PRINCIPAL PRIORITY OF
     PAYMENTS"):

     (A)  first, amounts due in respect of principal and such part of any
          termination payment due to the Series 1 Class A1 Dollar Currency Swap
          Provider under the Series 1 Class A1 Dollar Currency Swap (except for
          any termination payment due and payable to that Swap Provider as a
          result of a Dollar Currency Swap Provider Default by that Swap
          Provider) and from amounts received in respect of principal from the
          Series 1 Class A1 Dollar Currency Swap Provider to pay up to the
          Series 1 Class A1 Controlled Amortisation Amount to the holders of the
          Series 1 Class A1 Notes;

     (B)  second, amounts due in respect of principal and such part of any
          termination payment due to the Series 1 Class A2 Dollar Currency Swap
          Provider under the Series 1 Class A2 Dollar Currency Swap (except for
          any termination payment due and payable to that Swap Provider as a
          result of a Dollar Currency Swap Provider Default by that Swap
          Provider) and from amounts received in respect of principal from the
          Series 1 Class A2 Dollar Currency Swap Provider to pay up to the
          Series 1 Class A2 Controlled Amortisation Amount to the holders of the
          Series 1 Class A2 Notes;

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<PAGE>

     (C)  third, in no order of priority between them but in proportion to the
          respective amounts due, to pay:

          (1)  amounts due in respect of principal and such part of any
               termination payment due to the Series 2 Class A Euro Currency
               Swap Provider under the Series 2 Class A Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               principal from the Series 2 Class A Euro Currency Swap Provider
               to pay up to the Series 2 Class A Controlled Amortisation Amount
               to the holders of the Series 2 Class A Notes; and

          (2)  up to the Series 3 Class A Controlled Amortisation Amount to the
               holders of the Series 3 Class A Notes;

     (D)  fourth, provided that the Issuer Reserve Requirement, the Issuer
          Arrears Test and the Subordinated Principal Test are satisfied on such
          Payment Date (or, if any of the Issuer Reserve Requirement, the Issuer
          Arrears Test and the Subordinated Principal Test are not satisfied on
          such Payment Date, but the Class A Notes have been repaid in full), in
          no order of priority between them but in proportion to the respective
          amounts due, to pay:

          (1)  amounts due in respect of principal and such part of any
               termination payment due to the Series 1 Class B Dollar Currency
               Swap Provider under the Series 1 Class B Dollar Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Dollar Currency Swap Provider Default
               by that Swap Provider) and from amounts received in respect of
               principal from the Series 1 Class B Dollar Currency Swap Provider
               to pay up to the Series 1 Class B Controlled Amortisation Amount
               to the holders of the Series 1 Class B Notes;

          (2)  amounts due in respect of principal and such part of any
               termination payment due to the Series 2 Class B Euro Currency
               Swap Provider under the Series 2 Class B Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               principal from the Series 2 Class B Euro Currency Swap Provider
               to pay up to the Series 2 Class B Controlled Amortisation Amount
               to the holders of the Series 2 Class B Notes; and

          (3)  up to the Series 3 Class B Controlled Amortisation Amount to the
               holders of the Series 3 Class B Notes; and

     (E)  last, provided that the Issuer Reserve Requirement, the Issuer Arrears
          Test and the Subordinated Principal Test are satisfied on such Payment
          Date (or, if any of the Issuer Reserve Requirement, the Issuer Arrears
          Test and the Subordinated Principal Test are not satisfied on such
          Payment Date, but the Class A Notes have been repaid in full) to pay:

                                       30
<PAGE>

          (1)  amounts due in respect of principal and such part of any
               termination payment due to the Series 1 Class C Dollar Currency
               Swap Provider (except for any termination payment due and payable
               to that Swap Provider as a result of a Dollar Currency Swap
               Provider Default by that Swap Provider) under the Series 1 Class
               C Dollar Currency Swap and from amounts received in respect of
               principal from the Series 1 Class C Dollar Currency Swap Provider
               to pay up to the Series 1 Class C Controlled Amortisation Amount
               to the holders of the Series 1 Class C Notes;

          (2)  amounts due in respect of principal and such part of any
               termination payment due to the Series 2 Class C Euro Currency
               Swap Provider under the Series 2 Class C Euro Currency Swap
               (except for any termination payment due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default by
               that Swap Provider) and from amounts received in respect of
               principal from the Series 2 Class C Euro Currency Swap Provider
               to pay up to the Series 2 Class C Controlled Amortisation Amount
               to the holders of the Series 2 Class C Notes; and

          (3)  up to the Series 3 Class C Controlled Amortisation Amount to the
               holders of the Series 3 Class C Notes.

     The Controlled Amortisation Amount of each class of Current Issuer Notes
     for each Payment Date is as set forth on Schedule 4.

4.2  DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS FOLLOWING THE
     OCCURRENCE OF A NON-ASSET TRIGGER EVENT

     Following the occurrence of a Non-Asset Trigger Event but prior to
     enforcement of the Funding Security under the Funding Deed of Charge and/or
     the Current Issuer Security under the Current Issuer Deed of Charge, the
     Current Issuer Cash Manager will apply Current Issuer Available Principal
     Receipts in the following order of priority:

     (A)  first, to pay amounts (including such part of any termination payment)
          due to the Series 1 Class A1 Dollar Currency Swap Provider under the
          Series 1 Class A1 Dollar Currency Swap (except for any termination
          payment due and payable to that Swap Provider as a result of a Dollar
          Currency Swap Provider Default by that Swap Provider) and from amounts
          received from the Series 1 Class A1 Dollar Currency Swap Provider to
          repay the Series 1 Class A1 Notes until the Series 1 Class A1 Notes
          have been repaid in full;

     (B)  second, to pay amounts (including such part of any termination
          payment) due to the Series 1 Class A2 Dollar Currency Swap Provider
          under the Series 1 Class A2 Dollar Currency Swap (except for any
          termination payment due and payable to that Swap Provider as a result
          of a Dollar Currency Swap Provider Default by that Swap Provider) and
          from amounts received from the Series 1 Class A2 Dollar Currency Swap
          Provider to repay the Series 1 Class A2 Notes until the Series 1 Class
          A2 Notes have been repaid in full;

                                       31
<PAGE>

     (C)  third, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class A Euro Currency Swap Provider under the
               Series 2 Class A Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class A Euro Currency
               Swap Provider to repay the Series 2 Class A Notes until the
               Series 2 Class A Notes have been repaid in full; and

          (2)  to repay the Series 3 Class A Notes until the Series 3 Class A
               Notes have been repaid in full;

     (D)  fourth, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class B Dollar Currency Swap Provider under
               the Series 1 Class B Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class B
               Dollar Currency Swap Provider to repay the Series 1 Class B Notes
               until the Series 1 Class B Notes have been repaid in full;

          (2)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class B Euro Currency Swap Provider under the
               Series 2 Class B Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class B Euro Currency
               Swap Provider to repay the Series 2 Class B Notes until the
               Series 2 Class B Notes have been repaid in full; and

          (3)  to repay the Series 3 Class B Notes until the Series 3 Class B
               Notes have been repaid in full; and

     (E)  last, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class C Dollar Currency Swap Provider under
               the Series 1 Class C Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class C
               Dollar Currency Swap Provider to repay the Series 1 Class C Notes
               until the Series 1 Class C Notes have been repaid in full;

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<PAGE>

          (2)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class C Euro Currency Swap Provider under the
               Series 2 Class C Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class C Euro Currency
               Swap Provider to repay the Series 2 Class C Notes until the
               Series 2 Class C Notes have been repaid in full; and

          (3)  to repay the Series 3 Class C Notes until the Series 3 Class C
               Notes have been repaid in full.

4.3  DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS FOLLOWING THE
     OCCURRENCE OF AN ASSET TRIGGER EVENT

     Following the occurrence of an Asset Trigger Event but prior to enforcement
     of the Funding Security under the Funding Deed of Charge and/or the Current
     Issuer Security under the Current Issuer Deed of Charge, the Current Issuer
     Cash Manager will apply Current Issuer Available Principal Receipts in the
     following order of priority:

     (A)  first, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class A1 Dollar Currency Swap Provider under
               the Series 1 Class A1 Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class A1
               Dollar Currency Swap Provider to repay the Series 1 Class A1
               Notes until the Series 1 Class A1 Notes have been repaid in full;

          (2)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class A2 Dollar Currency Swap Provider under
               the Series 1 Class A2 Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class A2
               Dollar Currency Swap Provider to repay the Series 1 Class A2
               Notes until the Series 1 Class A2 Notes have been repaid in full;

          (3)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class A Euro Currency Swap Provider under the
               Series 2 Class A Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class A Euro Currency
               Swap Provider to repay the Series 2 Class A Notes until the
               Series 2 Class A Notes have been repaid in full; and

                                       33
<PAGE>

          (4)  to repay the Series 3 Class A Notes until the Series 3 Class A
               Notes have been repaid in full;

     (B)  second, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class B Dollar Currency Swap Provider under
               the Series 1 Class B Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class B
               Dollar Currency Swap Provider to repay the Series 1 Class B Notes
               until the Series 1 Class B Notes have been repaid in full; and

          (2)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class B Euro Currency Swap Provider under the
               Series 2 Class B Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class B Euro Currency
               Swap Provider to repay the Series 2 Class B Notes until the
               Series 2 Class B Notes have been repaid in full; and

          (3)  to repay the Series 3 Class B Notes until the Series 3 Class B
               Notes have been repaid in full; and

     (C)  last, in no order of priority between them, but in proportion to the
          amounts due:

          (1)  to pay amounts (including such part of any termination payment)
               due to the Series 1 Class C Dollar Currency Swap Provider under
               the Series 1 Class C Dollar Currency Swap (except for any
               termination payment due and payable to that Swap Provider as a
               result of a Dollar Currency Swap Provider Default by that Swap
               Provider) and from amounts received from the Series 1 Class C
               Dollar Currency Swap Provider to repay the Series 1 Class C Notes
               until the Series 1 Class C Notes have been repaid in full;

          (2)  to pay amounts (including such part of any termination payment)
               due to the Series 2 Class C Euro Currency Swap Provider under the
               Series 2 Class C Euro Currency Swap (except for any termination
               payment due and payable to that Swap Provider as a result of a
               Euro Currency Swap Provider Default by that Swap Provider) and
               from amounts received from the Series 2 Class C Euro Currency
               Swap Provider to repay the Series 2 Class C Notes until the
               Series 2 Class C Notes have been repaid in full; and

          (3)  to repay the Series 3 Class C Notes until the Series 3 Class C
               Notes have been repaid in full.

                                       34
<PAGE>

5.   USE OF LEDGERS

     The Current Issuer Cash Manager shall forthwith record monies received or
     payments made by it on behalf of the Current Issuer in the ledgers in the
     manner set out in this Agreement. If, at any time, the Current Issuer Cash
     Manager is in any doubt as to which ledger a particular amount should be
     credited or debited, it shall consult with the Note Trustee thereon.

     Except in the case of the Current Issuer Principal Deficiency Ledger, a
     debit item shall only be made in respect of any of the Current Issuer
     Ledgers, and the corresponding payment or transfer (if any) may only be
     made from the Current Issuer Transaction Accounts, to the extent that such
     entry does not cause the relevant ledger to have a debit balance. In the
     case of the Current Issuer Principal Deficiency Ledger and each Current
     Issuer Principal Deficiency Sub Ledger, a credit item shall only be made to
     the extent that such entry does not cause such ledger to have a credit
     balance.

6.   CURRENT ISSUER REVENUE LEDGER

     The Current Issuer Cash Manager shall ensure that:

     (a)  the following amounts shall be credited to the Current Issuer Revenue
          Ledger:

          (i)  all interest fees and any other amount (not including principal),
               if any, paid by Funding to the Current Issuer under the terms of
               the Current Issuer Intercompany Loan;

          (ii) all interest received by the Current Issuer in respect of the
               Current Issuer Bank Accounts;

         (iii) all amounts received by the Current Issuer representing income
               on any Current Issuer Authorised Investments;

          (iv) all amounts (other than any early termination payment which is to
               be used to acquire, if necessary, a new basis rate swap) received
               by the Current Issuer under the Basis Rate Swap Agreement;

          (v)  all revenue amounts (other than any early termination payment
               which is to be used to acquire, if necessary, a new currency
               swap) received by the Current Issuer under the Currency Swap
               Agreements; and

          (vi) any amount debited to the Current Issuer Principal Ledger under
               paragraph 8; and

     (b)  any payment or provision made under paragraphs 1 and 3 of this
          Schedule 2 shall be debited to the Current Issuer Revenue Ledger.

7.   CURRENT ISSUER PRINCIPAL LEDGER

     Without prejudice to paragraph 8 below, the Current Issuer Cash Manager
     shall ensure that:

     (a)  the following amounts shall be credited to the Current Issuer
          Principal Ledger:

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<PAGE>

          (i)  all principal paid by Funding to the Current Issuer under the
               terms of the Current Issuer Intercompany Loan; and

          (ii) amounts credited to the Current Issuer Principal Deficiency
               Ledger under paragraphs 3 and 8; and

     (b)  any payment or provision made under paragraph 4 of this Schedule 2
          shall be debited to the Current Issuer Principal Ledger.

8.   CURRENT ISSUER PRINCIPAL DEFICIENCY LEDGER

     (a)  Without prejudice to paragraph 7, the Current Issuer Cash Manager
          shall ensure that there shall be debited to the Current Issuer
          Principal Deficiency Ledger:

          (i)  principal deficiencies arising from Losses on the Mortgage Loans
               which have been allocated by Funding to the Current Issuer
               Intercompany Loan;

          (ii) the use of Current Issuer Available Principal Receipts to meet
               any deficiency in Current Issuer Available Revenue Receipts; and

         (iii) the use of Funding Available Principal Receipts to fund the
               Current Issuer Liquidity Reserve Fund, if any.

     (b)  The Current Issuer Cash Manager shall ensure that there shall be
          credited to the Current Issuer Principal Deficiency Ledger any amount
          to be credited in accordance with paragraph 3 above.

     (c)  Amounts to be debited to the Current Issuer Principal Deficiency
          Ledger shall be debited in the following order:

          (i)  first, on the Class C Principal Deficiency Sub Ledger, until the
               balance of the Class C Principal Deficiency Sub Ledger is equal
               to the aggregate Outstanding Principal Balance of the Class C
               Notes;

          (ii) Third, on the Class B Principal Deficiency Sub Ledger, until the
               balance of the Class B Principal Deficiency Sub Ledger is equal
               to the aggregate Outstanding Principal Balance of the Class B
               Notes; and

         (iii) last, on the Class A Principal Deficiency Sub Ledger, at which
               point an Asset Trigger Event will have occurred.

9.   RECORDS

     The Current Issuer Cash Manager shall ensure that a separate record is kept
     of any amount received from each of the Dollar Currency Swap Provider, the
     Euro Currency Swap Provider and the Basis Rate Swap Provider pursuant to,
     respectively, the Dollar Currency Swap Agreements, the Euro Currency Swap
     Agreements and the Basis Rate Swap Agreement.

                                       36
<PAGE>

     The Current Issuer Cash Manager hereby agrees that, each time the Current
     Issuer Cash Manager records a debit on a Current Issuer Principal
     Deficiency Sub Ledger, the Current Issuer Cash Manager shall also record on
     such Current Issuer Principal Deficiency Sub Ledger whether such debit was
     caused by (A) Losses on the Mortgage Loans which have been allocated by
     Funding to the Current Issuer Intercompany Loan, (B) the application of
     Current Issuer Available Principal Receipts to meet any deficiency in
     Current Issuer Available Revenue Receipts, or (C) the application of
     Funding Available Principal Receipts to fund the Current Issuer Liquidity
     Reserve Fund, if any.

                                       37
<PAGE>

                                   SCHEDULE 3

                         FORM OF ISSUER QUARTERLY REPORT

GRANITE MORTGAGES 02-2 PLC

PROFIT & LOSS ACCOUNT

PERIOD ENDED

                                                    This Quarter   Prior Quarter

                                                    (pound) 000's  (pound) 000's

Interest Receivable - Intercompany Loan

Interest  Receivable - Cash  Deposits/Authorised
Investments
                                                    ----------------------------
                                                    0              0
Interest Payable - Notes
Interest Payable
                                                    ----------------------------
                                                    0              0

                                                    ----------------------------
Net Operating Income                                0              0

Other Income

Operating Expenses

                                                    ----------------------------
Profit/loss on ordinary activities before tax       0              0

Taxation

                                                    ----------------------------
Profit/loss on ordinary activities after tax        0              0

Dividend                                            0              0

Retained profit brought forward                     0              0

                                                    ----------------------------
Retained profit for the year                        0              0
                                                    ============================

                                       38
<PAGE>

GRANITE MORTGAGES 02-2 PLC

BALANCE SHEET

PERIOD ENDED

                                                    (pound) 000's  (pound) 000's

FIXED ASSET INVESTMENTS

Intercompany Lending                                               0

CURRENT ASSETS

Interest Receivable                                 0

Other debtors                                       0

Cash at Bank                                        0

Current Issuer Transaction Account:
                                                    ---------------
                                                    0

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

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals                                            0

Interest Payable Accrual                            0

Taxation                                            0

                                                    ---------------
                                                    0

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

Net current assets                                                 0

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Amount due to Noteholders                                          0

                                                                   -------------
Total Assets less current liabilities                              0
                                                                   =============

Share Capital                                                      0

Reserves                                                           0

                                                                   -------------
                                                                   0

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

                                                                   0

                                       39
<PAGE>

Current Issuer Notes to Balance Sheet:

Principal Deficiency Ledger

Class A Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class B Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class C Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

                                       40
<PAGE>

<TABLE>
<CAPTION>

GRANITE MORTGAGES 02-2 PLC
NOTES OUTSTANDING

PERIOD ENDED

                               SERIES 1 CLASS A1    SERIES 1 CLASS A2    SERIES 2 CLASS A    SERIES 3 CLASS A
<S>                            <C>                  <C>                  <C>                 <C>
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

                               SERIES 1 CLASS B     SERIES 2 CLASS B     SERIES 3 CLASS B

Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

                               SERIES 1 CLASS C     SERIES 2 CLASS C     SERIES 3 CLASS C    SERIES 3 CLASS D

Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

                               SERIES 1 CLASS A1    SERIES 1 CLASS A2    SERIES 2 CLASS A    SERIES 3 CLASS A

Initial Note Balance
Previous Quarters Note
  Principal
Note Redemptions
Outstanding Note Principal

                               SERIES 1 CLASS B     SERIES 2 CLASS B     SERIES 3 CLASS B

Initial Note Balance
Previous Quarters Note
  Principal
Note Redemptions
Outstanding Note Principal

                               SERIES 1 CLASS C     SERIES 2 CLASS C     SERIES 3 CLASS C    SERIES 3 CLASS D

Initial Note Balance
Previous Quarters Note
  Principal
Note Redemptions
Outstanding Note Principal

                               SERIES 1 CLASS A     SERIES 2 CLASS A     SERIES 3 CLASS A

Note Interest Margins
Step Up Dates
Step Up Margins

                               SERIES 1 CLASS B     SERIES 2 CLASS B     SERIES 3 CLASS B

Note Interest Margins
Step Up Dates
Step Up Margins

                               SERIES 1 CLASS C     SERIES 2 CLASS C     SERIES 3 CLASS C    SERIES 3 CLASS D

Note Interest Margins
Step Up Dates
Step Up Margins

Payment Cycle
Payment Date
Next Payment Date

Amount  Credited to Principal
Deficiency Sub Ledger:
Current Quarter:
Aggregate:

</TABLE>

                                       41
<PAGE>

                                   SCHEDULE 4

                  CONTROLLED AMORTISATION AMOUNT/TARGET BALANCE

The "CONTROLLED AMORTISATION AMOUNT" for each Class of Current Issuer Notes for
any Payment Date set forth below is an amount not greater than the amount which
the Current Issuer would be required to repay in respect of such Class of
Current Issuer Notes so that on the relevant Payment Date the aggregate
Principal Amount Outstanding of such Class of Current Issuer Notes has been
reduced to (but is not less than) the "TARGET BALANCE" set out in the following
table:

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------
PAYMENT DATE   (POUND) TARGET  $ TARGET    (POUND) TARGET  $ TARGET    (POUND) TARGET  $ TARGET
OCCURRING IN:  BALANCE         BALANCE     BALANCE         BALANCE     BALANCE         BALANCE
               FOR SERIES      FOR SERIES  FOR SERIES      FOR SERIES  FOR             FOR SERIES
               1 CLASS A1      1 CLASS A1  1 CLASS A2      1 CLASS B   SERIES 1        1 CLASS C
               NOTES           NOTES       NOTES           NOTES       CLASS C         NOTES
                                                                       NOTES
<S>            <C>             <C>         <C>             <C>         <C>             <C>
--------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

                                       42
<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------
PAYMENT DATE   (POUND) TARGET  (EURO) TARGET  (POUND) TARGET  (EURO) TARGET  (POUND) TARGET  (EURO) TARGET
OCCURRING IN:  BALANCE         BALANCE        BALANCE         BALANCE        BALANCE         BALANCE
               FOR SERIES      FOR SERIES     FOR SERIES      FOR SERIES     FOR             FOR SERIES
               2 CLASS A       2 CLASS A      2 CLASS B       2 CLASS B      SERIES 2        2 CLASS C
               NOTES           NOTES          NOTES           NOTES          CLASS C         NOTES
                                                                             NOTES
----------------------------------------------------------------------------------------------------------
<S>            <C>             <C>            <C>             <C>            <C>             <C>
----------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

----------------------------------------------------------------------------
PAYMENT DATE   (POUND)TARGET  (POUND) TARGET  (POUND) TARGET  (POUND) TARGET
OCCURRING IN:  BALANCE FOR    BALANCE FOR     BALANCE FOR     BALANCE FOR
               SERIES 3       SERIES 3        SERIES 3        SERIES 3
               CLASS A        CLASS B         CLASS C         CLASS D
               NOTES          NOTES           NOTES           NOTES
----------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

                                       43
<PAGE>

PROVIDED THAT on the Payment Date immediately following the Step-up Date in
respect of the Current Issuer and on each Payment Date thereafter:

(1)  the Target Balance for the Series 1 Class A Notes will be zero; and

(2)  the Target Balances for each other Class of Current Issuer Notes will be an
     amount equal to the greater of:

     (a)  zero, and

     (b)  the aggregate Principal Amount Outstanding on such Class of Notes as
          at the immediately preceding Payment Date (after taking into account
          principal payments on such Payment Date) less an amount equal the
          product of:

          (i)  the product of (A) the sum of the Mortgages Trustee Principal
               Receipts for each Distribution Date since the immediately
               preceding Payment Date, and (B) the Funding Share Percentage
               applicable as at the later to occur of the immediately preceding
               Assignment Date and the immediately preceding Distribution Date;
               and

          (ii) the quotient of (A) the Outstanding Principal Balance on such
               Current Issuer's Intercompany Loan as at the immediately
               preceding Payment Date (after taking into account principal
               payments on such Payment Date) less the aggregate Outstanding
               Principal Balances of the Special Repayment Notes of the Third
               Issuer divided by (B) the aggregate Outstanding Principal Balance
               on all Intercompany Loans as at the immediately preceding Payment
               Date (after taking into account principal payments on such
               Payment Date) less the aggregate amount of all Special Repayment
               Notes; and

         (iii) the quotient of (A) the aggregate Principal Amount Outstanding
               on such Class of Notes as at the immediately preceding Payment
               Date (after taking into account principal payments on such
               Payment Date), divided by (B) the aggregate Principal Amount
               Outstanding on all Classes of Notes of the Current Issuer (other
               than Series 3 Class D Notes) as at the immediately preceding
               Payment Date (after taking into account principal payments on
               such Payment Date).

     In addition, notwithstanding the foregoing, following the occurrence of a
     Trigger Event, the Target Balance for the Series 3 Class D Notes will be
     zero.

     To the extent not repaid earlier, the full Principal Amount Outstanding on
     a class of Current Issuer Notes will become due and payable on the legal
     final maturity date of that class of Notes.

                                       44
<PAGE>

                                   SCHEDULE 5

           CURRENT ISSUER CASH MANAGER REPRESENTATIONS AND WARRANTIES

The Current Issuer Cash Manager makes the following representations and
warranties to each of the Mortgages Trustee, Funding and the Note Trustee:

     1.   STATUS: It is a public limited company duly incorporated, validly
          existing and registered under the laws of the jurisdiction in which it
          is incorporated, capable of being sued in its own right and not
          subject to any immunity from any proceedings, and it has the power to
          own its property and assets and to carry on its business as it is
          being conducted.

     2.   POWERS AND AUTHORITY: It has the power to enter into, perform and
          deliver, and has taken all necessary corporate and other action to
          authorise the execution, delivery and performance by it of each of the
          Transaction Documents to which it is or will be a party, and each such
          Transaction Document has been duly executed and delivered by it.

     3.   LEGAL VALIDITY: Each Transaction Document to which it is or will be a
          party constitutes or when executed in accordance with its terms will
          constitute, a legal, valid and binding obligation.

     4.   NON-CONFLICT: The execution by it of each of the Transaction Documents
          to which it is a party and the exercise by it of its rights and the
          performance of its obligations under such Transaction Documents will
          not:

          (a)  conflict with any document which is binding upon it or any of its
               assets;

          (b)  conflict with its constitutional documents; or

          (c)  conflict with any law, regulation or official or judicial order
               of any government, governmental body or court, domestic or
               foreign, having jurisdiction over it.

     5.   NO LITIGATION: It is not a party to any material litigation,
          arbitration or administrative proceedings and, to its knowledge, no
          material litigation, arbitration or administrative proceedings are
          pending or threatened against it.

     6.   CONSENTS AND LICENSES: All governmental consents, licences and other
          approvals and authorisations required in connection with the entry
          into, performance, validity and enforceability of, and the
          transactions contemplated by, the Transaction Documents have been
          obtained or effected (as appropriate) and are in full force and
          effect.

     7.   SOLVENCY: No Insolvency Event has occurred in respect of the Current
          Issuer Cash Manager, and the Current Issuer Cash Manager is not
          insolvent.

     8.   FINANCIAL STATEMENTS: The most recent financial statements of the
          Current Issuer Cash Manager:

                                       45
<PAGE>

          (a)  were prepared in accordance with accounting principles generally
               accepted in England and Wales consistently applied;

          (b)  disclose all liabilities (contingent or otherwise) and all
               unrealised and or anticipated losses of the Current Issuer Cash
               Manager; and

          (c)  save as disclosed therein, give a true and fair view of the
               financial condition and operations of the Current Issuer Cash
               Manager during the relevant financial year.

     9.   NO ADVERSE CHANGE: Since the date as of which the most recent
          financial statements of the Current Issuer Cash Manager were stated to
          be prepared, there has been:

          (a)  no significant change in the financial position of the Current
               Issuer Cash Manager; and

          (b)  no material adverse change in the financial position or prospects
               of the Current Issuer Cash Manager.

     10.  RANKING OF CLAIMS

          Under the laws of England and Wales in force as at the date of making
          this representation, claims against the Current Issuer Cash Manager
          under the Transaction Documents will rank at least pari passu with the
          claims of all its other unsecured and unsubordinated creditors, save
          those whose claims are preferred solely by any bankruptcy, liquidation
          or other similar laws of general application.

     11.  INFORMATION IN PROSPECTUS AND OFFERING CIRCULAR:

          All information in the Prospectus and the Offering Circular with
          regard to the Current Issuer Cash Manager are true and accurate in all
          material respects and not misleading in any material respect.

The Current Issuer Cash Manager has made all proper inquiries to ascertain and
to verify the foregoing.

                                       46
<PAGE>

                                 EXECUTION PAGE

EXECUTED for and on behalf of                                 )

NORTHERN ROCK PLC                                             )
by:                                                           )
                                                              )
                                                              )
Name:                                                         )
Title:

EXECUTED for and on behalf of                                 )
GRANITE MORTGAGES 02-2 PLC                                    )
by:                                                           )

Name:
representing LDC SECURITISATION DIRECTOR NO 2 LIMITED
Title: DIRECTOR

EXECUTED for and on behalf of                                 )
THE BANK OF NEW YORK                                          )
by:                                                           )

Name:
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]