Document:

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                               TABLE OF CONTENTS
                               ------------------
ARTICLE  I  Definitions     1
SECTION  1.01.  Defined  Terms     1
SECTION  1.02.  Classification  of  Loans  and  Borrowings     22
SECTION  1.03.  Terms  Generally     22
SECTION  1.04.  Accounting  Terms;  GAAP     22
ARTICLE  II  The  Credits     23
SECTION  2.01.  Commitments.     23
SECTION  2.02.  Loans  and  Borrowings     23
SECTION  2.03.  Requests  for  Revolving  Borrowings     24
SECTION  2.04.  Competitive  Bid  Procedure     25
SECTION  2.05.  Letters  of  Credit     27
SECTION  2.06.  Funding  of  Borrowings     32
SECTION  2.07.  Interest  Elections     32
SECTION  2.08.  Termination  and  Reduction  of  Commitments.     34
SECTION  2.09.  Repayment  of  Loans;  Evidence  of  Debt     34
SECTION  2.10.  Prepayment  of  Loans     35
SECTION  2.11.  Fees     36
SECTION  2.12.  Interest     37
SECTION  2.13.  Alternate  Rate  of  Interest     38
SECTION  2.14.  Increased  Costs     39
SECTION  2.15.  Break  Funding  Payments     40
SECTION  2.16.  Taxes     41
SECTION  2.17.  Payments  Generally;  Pro  Rata  Treatment; Sharing of Set-offs
42
SECTION  2.18.  Mitigation  Obligations;  Replacement  of  Lenders.     44
SECTION  2.19.  Extension.     45
ARTICLE  III  Representations  and  Warranties     46
SECTION  3.01.  Organization;  Powers     46
SECTION  3.02.  Authorization;  Enforceability     46
SECTION  3.03.  Governmental  Approvals;  No  Conflicts     46
SECTION  3.04.  Financial  Condition;  No  Material  Adverse  Change     47
SECTION  3.05.  Properties     47
SECTION  3.06.  Intellectual  Property     48
SECTION  3.07.  Litigation  and  Environmental  Matters     49
SECTION  3.08.  Compliance  with  Laws  and  Agreements     51
SECTION  3.09.  Investment  and  Holding  Company  Status     51
SECTION  3.10.  Taxes     51
SECTION  3.11.  ERISA     51
SECTION  3.12.  Disclosure     52
SECTION  3.13.  Insurance     52
SECTION  3.14.  Margin  Regulations     52
SECTION  3.15.  Subsidiaries     52
ARTICLE  IV  Conditions     53
SECTION  4.01.  Effective  Date     53
SECTION  4.02.  Each  Credit  Event     54
ARTICLE  V  Affirmative  Covenants     54
SECTION  5.01.  Financial  Statements;  Ratings  Change  and  Other Information
54
SECTION  5.02.  Financial  Tests.     56
SECTION  5.03.  Notices  of  Material  Events     56
SECTION  5.04.  Existence;  Conduct  of  Business     57
SECTION  5.05.  Payment  of  Obligations     57
SECTION  5.06.  Maintenance  of  Properties;  Insurance     57
SECTION  5.07.  Books  and  Records;  Inspection  Rights     57
SECTION  5.08.  Compliance  with  Laws     58
SECTION  5.09.  Use  of  Proceeds  and  Letters  of  Credit     58
SECTION  5.10.  Fiscal  Year     58
SECTION  5.11.  Environmental  Matters.     58
SECTION  5.12.  Property  Pool     59
SECTION  5.13.  Guaranties     60
SECTION  5.14.  Further  Assurances     61
ARTICLE  VI  Negative  Covenants     61
SECTION  6.01.  Indebtedness     61
SECTION  6.02.  Liens     61
SECTION  6.03.  Fundamental  Changes     61
SECTION  6.04.  Investments,  Loans,  Advances  and  Acquisitions     62
SECTION  6.05.  Hedging  Agreements     64
SECTION  6.06.  Restricted  Payments     64
SECTION  6.07.  Transactions  with  Affiliates     64
SECTION  6.08.  Restrictive  Agreements     64
ARTICLE  VII  Events  of  Default     65
ARTICLE  VIII  The  Administrative  Agent     67
ARTICLE  IX  Miscellaneous     69
SECTION  9.01.  Notices     69
SECTION  9.02.  Waivers;  Amendments     70
SECTION  9.03.  Expenses;  Indemnity;  Damage  Waiver     71
SECTION  9.04.  Successors  and  Assigns     73
SECTION  9.05.  Survival     75
SECTION  9.06.  Counterparts;  Integration;  Effectiveness     75
SECTION  9.07.  Severability     76
SECTION  9.08.  Right  of  Setoff     76
SECTION  9.09.  Governing  Law;  Jurisdiction;  Consent  to  Service of Process
76
SECTION  9.10.  WAIVER  OF  JURY  TRIAL     77
SECTION  9.11.  Headings     77
SECTION  9.12.  Confidentiality     77
SECTION  9.13.  Interest  Rate  Limitation     78
SECTION  9.14.  Liability  of  Holders     79

<PAGE>
HOUSTON:007002/04097:564617v15

                                CREDIT AGREEMENT

                                   dated as of

                                November 21, 2000

                                      among

                          WEINGARTEN REALTY INVESTORS,

                            The Lenders Party Hereto

                                       And

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent

                                       and

                             BANK OF AMERICA, N.A.,
                              as Syndication Agent

                                       and

                        COMMERZBANK AG, NEW YORK BRANCH,
                             as Documentation Agent

                                       and

                                  BANK ONE, NA,
                            FIRST UNION NATIONAL BANK
                                       and
                         PNC BANK, NATIONAL ASSOCIATION
                               as Managing Agents

<PAGE>
                                                                               6

                             CHASE SECURITIES INC.,
                              as Sole Book Manager

            CHASE SECURITIES INC. and BANC OF AMERICA SECURITIES LLC,
                                 as Co-Arrangers

<PAGE>

SCHEDULES:
---------

Schedule  2.01  -  Commitments
Schedule  2.05(d)  -  Existing  Letters  of  Credit
Schedule  3.05(f)  -  Earthquake  or  Seismic  Area
Schedule  3.07  --  Disclosed  Matters
Schedule  3.15  -  Subsidiaries
Schedule  5.12(c)  -  Property  Without  Environmental  Assessments
Schedule  5.12.A  -  Pool
Schedule  6.02  --  Existing  Liens
Schedule  6.04  -  Certain  Investments
Schedule  6.08  --  Existing  Restrictions

EXHIBITS:
--------

Exhibit  A  --  Form  of  Assignment  and  Acceptance
Exhibit  B  -  Form  of  Compliance  Certificate
Exhibit  C  -  Form  of  Guaranty
Exhibit  D  --  Note
Exhibit  E  -  Form  of  Borrowing  Request/Interest  Rate  Election
Exhibit  F  -  Form  of  Competitive  Bid  Request

<PAGE>
                   CREDIT AGREEMENT ("Agreement") dated as of
              November 21, 2000, among WEINGARTEN REALTY INVESTORS,
         a Texas real estate investment trust, the LENDERS party hereto,
               THE CHASE MANHATTAN BANK, as Administrative Agent,
                  BANK OF AMERICA, N.A., as Syndication Agent,
                      and COMMERZBANK AG, NEW YORK BRANCH,
                             as Documentation Agent.

          The  parties  hereto  agree  as  follows:

ARTICLE  I

Definitions
SECTION 1.01.     Defined Terms.  As used in this Agreement, the following terms
                  --------------------------------------------------------------
     have  the  meanings  specified  below:
     --------------------------------------

          "ABR",  when  used  in  reference  to any Loan or Borrowing, refers to
           ---
whether  such Loan, or the Loans comprising such Borrowing, are bearing interest
at  a  rate  determined  by  reference  to  the  Alternate  Base  Rate.

          "Adjusted  LIBO  Rate" means, with respect to any Eurodollar Borrowing
           --------------------
for  any  Interest  Period,  an  interest  rate  per  annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest
Period  multiplied  by  (b)  the  Statutory  Reserve  Rate.

          "Adjusted  Net  Operating Income" shall mean, for any income producing
           -------------------------------
Real Property, the Net Operating Income less the Capital Expenditure Reserve for
such  property.

          "Administrative Agent" means The Chase Manhattan Bank, in its capacity
           --------------------
as  administrative  agent  for  the  Lenders  hereunder.

          "Administrative  Questionnaire"  means an Administrative Questionnaire
           -----------------------------
in  a  form  supplied  by  the  Administrative  Agent.

          "Affiliate"  means, with respect to a specified Person, another Person
           ---------
that  directly, or indirectly through one or more intermediaries, Controls or is
Controlled  by  or  is  under  common  Control  with  the  Person  specified.

          "Alternate  Base  Rate"  means, for any day, a rate per annum equal to
           ---------------------
the  greater  of  (a)  the Prime Rate in effect on such day, and (b) the Federal
Funds  Effective  Rate  in effect on such day plus 1/2 of 1%.  Any change in the
Alternate  Base  Rate  due  to  a  change in the Prime Rate or the Federal Funds
Effective  Rate shall be effective from and including the effective date of such
change  in  the  Prime  Rate  or the Federal Funds Effective Rate, respectively.

          "Applicable  Percentage"  means,  with  respect  to  any  Lender,  the
           ----------------------
percentage of the total Commitments represented by such Lender's Commitment.  If
the  Commitments have terminated or expired, the Applicable Percentages shall be
determined  based  upon  the  Revolving Credit Exposure most recently in effect,
giving  effect  to  any  assignments.

          "Applicable  Rate" means, for any day, with respect to any ABR Loan or
           ----------------
Eurodollar  Revolving  Loan,  or  with  respect  to  the  facility  fees payable
hereunder,  as  the  case  may be, the applicable rate per annum set forth below
under  the  caption "ABR Spread", "Eurodollar Spread" or "Facility Fee Rate", as
the  case  may  be,  based  upon  the  ratings by Moody's and S&P, respectively,
applicable  on  such  date  to  the  Index  Debt:

                         ABR     Eurodollar     Facility Fee
                         ---     ----------     ------------
               Index Debt Ratings:     Spread     Spread     Rate
               -------------------     ------     ------     ----
                                   Category 1
                                   ----------
                    A/A2 or better     0     0.50%     0.15%
                                   Category 2
                                   ----------
                         A-/A3     0     0.55%     0.15%
                                   Category 3
                                   ----------
                       BBB+Baa1     0     0.65%     0.15%
                                   Category 4
                                   ----------
                       BBB/Baa2     0     0.75%     0.20%
                                   Category 5
                                   ----------
                       BBB-/Baa3     0     0.90%     0.25%
                                     =     =====     =====
                                   Category 6
                                   ----------
               Worse than BBB-/Baa3     0.25%     1.45%     0.30%
               ====================     =====     =====     =====

          For  purposes of the foregoing, (i) if either Moody's or S&P shall not
have  in  effect  a  rating  for  the  Index  Debt  (other than by reason of the
circumstances  referred  to  in the last sentence of this definition), then such
rating  agency  shall be deemed to have established a rating in Category 6; (ii)
if the ratings established or deemed to have been established by Moody's and S&P
for  the  Index Debt shall fall within different Categories, the Applicable Rate
shall be based on the higher of the two ratings unless one of the two ratings is
two  or  more Categories lower than the other, in which case the Applicable Rate
shall  be  determined by reference to the Category next below that of the higher
of  the two ratings; and (iii) if the ratings established or deemed to have been
established  by  Moody's and S&P for the Index Debt shall be changed (other than
as  a  result  of  a change in the rating system of Moody's or S&P), such change
shall  be  effective  as  of  the  date  on  which  it is first announced by the
applicable  rating agency, irrespective of when notice of such change shall have
been  furnished by the Borrower to the Agent and the Lenders pursuant to Section
                                                                         -------
5.01(e)  hereof  or  otherwise.  Each  change in the Applicable Rate shall apply
-------
during  the period commencing on the effective date of such change and ending on
---
the  date  immediately preceding the effective date of the next such change.  If
the  rating  system  of  Moody's  or  S&P shall change, or if either such rating
agency  shall  cease to be in the business of rating corporate debt obligations,
the  Borrower  and  the  Lenders  shall  negotiate  in  good faith to amend this
definition  to  reflect  such  changed  rating  system  or the unavailability of
ratings  from  such  rating  agency  and,  pending the effectiveness of any such
amendment,  the  Applicable  Rate shall be determined by reference to the rating
most  recently  in  effect  prior  to  such  change  or  cessation.

          "Approved  Fund" means any Fund that is administered or managed by (a)
           --------------
a  Lender,  (b)  an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity  that  administers  or  manages  a  Lender.

          "Assignment and Acceptance" means an assignment and acceptance entered
           -------------------------
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in the form
            ------------
of  Exhibit  A  or  any  other  form  approved  by  the  Administrative  Agent.
    ----------

          "Availability  Period"  means  the  period  from  and  including  the
           --------------------
Effective  Date  to  but  excluding  the  Maturity  Date.

          "Board"  means the Board of Governors of the Federal Reserve System of
           -----
the  United  States  of  America.

          "Borrower"  means  Weingarten  Realty  Investors,  a Texas real estate
           --------
investment  trust.

          "Borrowing"  means  (a)  Revolving  Loans  of  the  same  Type,  made,
           ---------
converted or continued on the same date and, in the case of Eurodollar Loans, as
to  which  a  single  Interest Period is in effect, or (b) a Competitive Loan or
group  of  Competitive  Loans  of  the same Type made on the same date and as to
which  a  single  Interest  Period  is  in  effect.

          "Borrowing  Request"  means  a request by the Borrower for a Revolving
           ------------------
Borrowing  in  accordance  with  Section  2.03.
                                 -------------

          "Business  Day"  means any day that is not a Saturday, Sunday or other
           -------------
day  on  which  commercial  banks  in  Houston,  Texas or New York, New York are
authorized  or  required  by  law  to remain closed; provided that, when used in
                                                     --------
connection  with  a  Eurodollar Loan, the term "Business Day" shall also exclude
                                                ------------
any  day  on  which  banks  are  not open for dealings in dollar deposits in the
London  interbank  market.

     "Capital Expenditure Reserve" means, on an annual basis, an amount equal to
      ---------------------------
(a)  for  use in calculating the Fixed Charge Coverage Ratio, the product of (i)
the aggregate number of gross square feet of improvements contained in each Real
Property  parcel owned by Borrower or any Subsidiary measured as of the last day
of  each  of  the immediately preceding four (4) calendar quarters and averaged,
multiplied  by  (ii)  (x) $0.25 for Retail Property and (y) $0.15 for Industrial
Property; and (b) for use in calculating Value, the product of (i) the aggregate
number  of  gross  square  feet  of improvements contained in each Real Property
owned  by  Borrower  or  any  Subsidiary  as  of the last day of the immediately
preceding calendar quarter, multiplied by (ii) (x) $0.25 for Retail Property and
(y)  $0.15  for  Industrial  Property.  Capital  Expenditure  Reserve  shall  be
calculated  on  a  consolidated  basis  in  accordance  with GAAP, and including
(without  duplication)  the Equity Percentage of Capital Expenditure Reserve for
the  Borrower's  Unconsolidated  Affiliates.

          "Capital  Lease  Obligations"  of  any Person means the obligations of
           ---------------------------
such  Person  to  pay  rent  or  other  amounts  under  any  lease  of (or other
arrangement  conveying  the  right  to  use)  real  or  personal  property, or a
combination  thereof,  which  obligations  are  required  to  be  classified and
accounted  for  as  capital leases on a balance sheet of such Person under GAAP,
and  the  amount  of  such  obligations  shall be the capitalized amount thereof
determined  in  accordance  with  GAAP.

          "Change  in  Control" means (a) the acquisition of ownership, directly
           -------------------
or  indirectly,  beneficially  or  of record, by any Person or group (within the
meaning  of  the Securities Exchange Act of 1934 and the rules of the Securities
and  Exchange  Commission thereunder as in effect on the date hereof), of shares
representing more than 33% of the aggregate ordinary voting power represented by
the  issued  and  outstanding capital stock of the Borrower; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the
Borrower  by Persons who were neither (i) nominated by the board of directors of
the  Borrower  nor  (ii)  appointed  by  directors  so  nominated;  or  (c)  the
acquisition  of  direct  or  indirect  Control  of the Borrower by any Person or
group.

          "Change  in Law" means (a) the adoption of any law, rule or regulation
           --------------
after  the  date of this Agreement by any Governmental Authority, (b) any change
in  any  law, rule or regulation or in the interpretation or application thereof
by any Governmental Authority after the date of this Agreement or (c) compliance
by  any  Lender or the Issuing Bank (or, for purposes of Section 2.14(b), by any
                                                         ---------------
lending  office of such Lender or by such Lender's or the Issuing Bank's holding
company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of
this  Agreement.

          "Chase"  means  The  Chase  Manhattan  Bank,  a  New  York  banking
           -----
corporation,  in  its  individual  capacity.

          "Class",  when  used  in reference to any Loan or Borrowing, refers to
           -----
whether  such  Loan, or the Loans comprising such Borrowing, are Revolving Loans
or  Competitive  Loans.

          "Code"  means  the Internal Revenue Code of 1986, as amended from time
           ----
to  time.

          "Commitment"  means,  with  respect  to each Lender, the commitment of
           ----------
such  Lender to make Revolving Loans and to acquire participations in Letters of
Credit  hereunder,  expressed  as  an  amount representing the maximum aggregate
amount  of such Lender's Revolving Credit Exposure hereunder, as such commitment
may  be  reduced or increased from time to time pursuant to assignments by or to
such  Lender  pursuant  to  Section  9.04.  The  initial amount of each Lender's
                            -------------
Commitment  is  set  forth on Schedule 2.01, or in the Assignment and Acceptance
                              -------------
pursuant  to which such Lender shall have assumed its Commitment, as applicable.
The  initial  aggregate  amount  of the Lenders' Commitments is $350,000,000.00.

          "Competitive  Bid"  means  an  offer by a Lender to make a Competitive
           ----------------
Loan  in  accordance  with  Section  2.04.
                            -------------

          "Competitive Bid Rate" means, with respect to any Competitive Bid, the
           --------------------
Margin  or  the  Fixed  Rate,  as  applicable, offered by the Lender making such
Competitive  Bid.

          "Competitive  Bid  Request"  means  a  request  by  the  Borrower  for
           -------------------------
Competitive  Bids  in  accordance  with  Section  2.04.
                                         -------------

          "Competitive  Loan"  means  a  Loan  made  pursuant  to  Section 2.04.
           -----------------                                       ------------

          "Compliance  Certificate" has the meaning set forth in Section 5.01(c)
           -----------------------                               ---------------
hereof  and  a  form  of  which  is  attached  hereto  as  Exhibit  B.
                                                           ----------

          "Control"  means  the possession, directly or indirectly, of the power
           -------
to  direct  or  cause  the  direction of the management or policies of a Person,
whether  through the ability to exercise voting power, by contract or otherwise,
which  includes  the  customary  powers  of  a  managing  member  of any limited
liability  company, any general partner of any limited partnership, or any board
of  directors  of  a  corporation.  "Controlling" and "Controlled" have meanings
                                     -----------       ----------
correlative  thereto.

          "Credit  Party"  means  the  Borrower  and  each  Guarantor,  if  any.
           -------------

     "Debt  to  Total  Asset  Value  Ratio" shall mean the ratio (expressed as a
      ------------------------------------
percentage)  of  the  Borrower's  Indebtedness  to  Total  Asset  Value.

          "Default"  means  any event or condition which constitutes an Event of
           -------
Default  or  which  upon  notice,  lapse  of time or both would, unless cured or
waived,  become  an  Event  of  Default.

          "Disclosed  Matters"  means the actions, suits and proceedings and the
           ------------------
environmental  matters  disclosed  in  Schedule  3.07.
                                       --------------

          "Dollars"  or  "$"  refers  to  lawful  money  of the United States of
           -------        -
America.

     "EBITDA"  means  an  amount  derived  from  (a) net income, plus (b) to the
      ------
extent  included in the determination of net income, depreciation, amortization,
interest  expense  and income taxes, plus or minus (c) to the extent included in
the  determination  of  net  income, any extraordinary losses or gains resulting
from sales, write-downs, write-ups, write-offs or other valuation adjustments of
assets  or  liabilities,  in each case, as determined on a consolidated basis in
accordance  with GAAP, and including (without duplication) the Equity Percentage
of  EBITDA  for  the  Borrower's  Unconsolidated  Affiliates.

          "Effective  Date"  means the date on which the conditions specified in
           ---------------
Section  4.01  are  satisfied  (or  waived  in  accordance  with  Section 9.02).
 ------------                                                     ------------

     "Eligible  Assignee"  means (a) a Lender; (b) an Affiliate of a Lender; (c)
      ------------------
an  Approved  Fund;  and  (d)  any  other  Person  (other than a natural Person)
approved  by  the  Administrative  Agent, the Issuing Bank, and, unless (x) such
Person  is  taking  delivery  of  an  assignment  in  connection  with  physical
settlement of a credit derivatives transaction or (y) a Default has occurred and
is  continuing, the Borrower (each such approval not to be unreasonably withheld
or  delayed).  If the consent of the Borrower to an assignment or to an Eligible
Assignee  is required hereunder (including a consent to an assignment which does
not  meet  the  minimum assignment thresholds specified in Section 9.04(b)), the
                                                           ---------------
Borrower  shall be deemed to have given its consent ten (10) days after the date
notice  thereof  has  been  delivered  by  the  assigning  Lender  (through  the
Administrative  Agent)  unless such consent is expressly refused by the Borrower
prior  to  such  tenth  (10th)  day.

          "Revolving  Loan"  means  a  Loan  made  pursuant  to  Section  2.03.
           ---------------                                       -------------

          "S&P"  means  Standard  &  Poor's  Rating  Group.
           ---

          "Secured  Debt"  means the Indebtedness of the Borrower and any of its
           -------------
subsidiaries  secured  by  a  Lien,  and  (without duplication) any Indebtedness
(secured  and  unsecured)  of  any  Subsidiary  of  the  Borrower  that is not a
Guarantor.

          "Secured  Debt  to Total Asset Value Ratio" means the ratio (expressed
           -----------------------------------------
as  a  percentage)  of  Secured  Debt  to  Total  Asset  Value.

          "Stabilization  Date"  shall  mean,  with  respect  to a property, the
           -------------------
earlier  of  (a)  twelve  (12)  months  after  substantial  completion  of  new
construction  or  development,  and (b) the date the Occupancy Level is at least
ninety  percent  (90%).

          "Statutory  Reserve  Rate"  means a fraction (expressed as a decimal),
           ------------------------
the  numerator  of  which  is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal,  special,  emergency  or supplemental reserves) expressed as a decimal
established  by  the Governmental Authority to which the Administrative Agent is
subject,  with  respect  to  the  Adjusted  LIBO  Rate, for eurocurrency funding
(currently  referred  to  as  "Eurocurrency  Liabilities" in Regulation D of the
Board).  Such  reserve  percentages shall include those imposed pursuant to such
Regulation  D.  Eurodollar  Loans  shall  be  deemed  to constitute eurocurrency
funding  and  to  be  subject to such reserve requirements without benefit of or
credit  for  proration, exemptions or offsets that may be available from time to
time  to  any  Lender under such Regulation D or any comparable regulation.  The
Statutory  Reserve  Rate  shall  be  adjusted  automatically  on  and  as of the
effective  date  of  any  change  in  any  reserve  percentage.

          "Subsidiary"  means,  with respect to any Person (the "parent") at any
           ----------                                            ------
date,  any  corporation,  limited liability company, partnership, association or
other  entity  the  accounts  of  which  would be consolidated with those of the
parent  in  the  parent's  consolidated  financial  statements if such financial
statements  were prepared in accordance with GAAP as of such date (but excluding
ownership  interests  accounted  for  under  the equity method of accounting and
included  in clause (a) of the definition of Unconsolidated Affiliates), as well
as any other corporation, limited liability company, partnership, association or
other  entity  (a) of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or, in
the  case  of  a partnership, more than 50% of the general partnership interests
are,  as  of  such  date,  owned, controlled or held, or (b) that is, as of such
date,  otherwise  Controlled,  by  the parent or one or more subsidiaries of the
parent  or  by  the  parent  and  one  or  more  subsidiaries  of  the  parent.

          "Taxes"  means  any  and all present or future taxes, levies, imposts,
           -----
duties,  deductions,  charges  or  withholdings  imposed  by  any  Governmental
Authority.

     "Total  Asset  Value"  means  the  sum  of  (without  duplication)  (a) the
      -------------------
aggregate  Value  of  all of Borrower's Real Property (subject to the applicable
      --
maximum  investment  limitations  in  Section 6.04), plus (b) the amount of  any
                                      ------------
cash  and  cash  equivalents,  excluding  tenant  security  and other restricted
deposits of the Borrower, plus (c) investments in Unconsolidated Affiliates that
are  engaged  primarily in the business of investment in and operation of Retail
Property  or Industrial Property, valued at an amount equal to the Value of each
Unconsolidated Affiliate's Real Property multiplied by the Equity Percentage for
that  Unconsolidated  Affiliate  (subject  to  the maximum investment limitation
contained  in  Section  6.04(c)),  plus  (d)  investments in mortgages and notes
               ----------------
receivable permitted by Section 6.04(d) that are not then in default (calculated
                        ---------------
on  the  book  value  of the investment in accordance with GAAP) (subject to the
maximum investment limitations in Section 6.04(d)).  Total Asset Value for items
                                  ---------------
(a)  through (d) above shall be calculated on a consolidated basis in accordance
with  GAAP.

          "Transactions"  means  the  execution, delivery and performance by the
           ------------
Credit  Parties  of  the  Loan Documents, the borrowing of Loans, the use of the
proceeds  thereof  and  the  issuance  of  Letters  of  Credit  hereunder.

          "Type",  when  used  in  reference to any Loan or Borrowing, refers to
           ----
whether  the  rate  of  interest  on  such Loan, or on the Loans comprising such
Borrowing,  is  determined by reference to the Adjusted LIBO Rate, the Alternate
Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a
Fixed  Rate.

     "Unconsolidated  Affiliate"  means,  without duplication, (a) in respect of
      -------------------------
any  Person,  any  other  Person (other than a Person whose stock is traded on a
national  trading  exchange)  in  whom  such  Person  holds  a  voting equity or
ownership  interest  and whose financial results would not be consolidated under
GAAP  with  the  financial  results of such Person on the consolidated financial
statements  of  such  Person,  and  (b)  a  Minority  Subsidiary.

"Unencumbered  Interest  Coverage Ratio" means the ratio of (a) the Adjusted Net
 --------------------------------------
Operating  Income  for  Real  Property in the Pool for the immediately preceding
four (4) calendar quarters, to (b) the Borrower's Interest Expense on all of the
Borrower's Indebtedness other than Secured Debt for the period used to calculate
Adjusted  Net  Operating  Income.

     "Value"  means  the  sum  of  the  following:
      -----

(a)  for Real Property that has reached the Stabilization Date and that Borrower
or Subsidiary of Borrower has owned for all of the immediately preceding six (6)
calendar  months,  the result of dividing (i) the aggregate Net Operating Income
of  the  subject  property  based  on the immediately preceding six (6) calendar
months  and multiplied by two (2), less the Capital Expenditure Reserve for such
property,  by  (ii)  nine  and  three-fourths  percent  (9.75%);  plus

(b)  for  Real  Property that is completed but has not reached the Stabilization
Date  or that has not been owned by Borrower or a Subsidiary of Borrower for all
of  the  immediately  preceding six (6) calendar months, the Historical Value of
the  subject  property;  plus

(c)  for Real Property that is under construction or development, the Historical
Value  of  the  subject  property;  plus

(d)  for  Real  Property  that  is undeveloped land, the Historical Value of the
subject  property  calculated  in  accordance  with  GAAP.

          "Withdrawal  Liability"  means  liability to a Multiemployer Plan as a
           ---------------------
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms  are  defined  in  Part  I  of  Subtitle  E  of  Title  IV  of  ERISA.
SECTION  1.01.     Classification of Loans and Borrowings.  For purposes of this
                   ---------------------------------------
Agreement,  Loans may be classified and referred to by Class (e.g., a "Revolving
Loan")  or  by  Type  (e.g.,  a "Eurodollar Loan") or by Class and Type (e.g., a
"Eurodollar Revolving Loan").  Borrowings also may be classified and referred to
     by  Class  (e.g.,  a "Revolving Borrowing") or by Type (e.g., a "Eurodollar
Borrowing")  or  by  Class  and Type (e.g., a "Eurodollar Revolving Borrowing").
SECTION  1.02.     Terms Generally.  The definitions of terms herein shall apply
equally  to  the  singular  and plural forms of the terms defined.  Whenever the
context  may  require,  any  pronoun shall include the corresponding mascu-line,
feminine  and  neuter  forms.  The  words  "include", "includes" and "including"
shall  be  deemed  to  be followed by the phrase "without limitation".  The word
"will"  shall  be  construed  to  have  the  same meaning and effect as the word
"shall".  Unless  the  context  requires  otherwise  (a)  any  definition  of or
reference  to  any  agreement,  instrument  or  other  document  herein shall be
construed  as  referring to such agreement, instrument or other document as from
time  to  time  amended,  supplemented  or  otherwise  modified  (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b)  any  reference  herein  to  any  Person  shall be construed to include such
Person's  successors  and  assigns,  (c)  the  words  "herein",  "hereof"  and
"hereunder",  and  words  of similar import, shall be construed to refer to this
Agreement  in  its  entirety and not to any particular provision hereof, (d) all
references  herein  to  Articles,  Sections,  Exhibits  and  Schedules  shall be
construed  to  refer to Articles and Sections of, and Exhibits and Schedules to,
this  Agreement  and  (e) the words "asset" and "property" shall be construed to
have  the  same  meaning  and  effect  and  to refer to any and all tangible and
intangible  assets  and  properties,  including  cash,  securities, accounts and
contract  rights.
SECTION  1.03.     Accounting  Terms;  GAAP.  Except  as  otherwise  expressly
provided  herein,  all  terms  of  an  accounting  or  financial nature shall be
construed  in  accordance  with  GAAP,  as in effect from time to time; provided
that,  if  the  Borrower  notifies  the  Administrative  Agent that the Borrower
requests  an  amendment  to  any provision hereof to eliminate the effect of any
change  occurring after the date hereof in GAAP or in the application thereof on
the  operation  of  such  provision (or if the Administrative Agent notifies the
Borrower  that the Required Lenders request an amendment to any provision hereof
for  such  purpose),  regardless  of  whether any such notice is given before or
after  such  change  in  GAAP or in the application thereof, then such provision
shall  be  interpreted on the basis of GAAP as in effect and applied immediately
before  such  change  shall  have become effective until  such notice shall have
been  withdrawn  or  such  provision  amended  in  accordance herewith.  Without
limiting  the generality of the foregoing, if the Borrower changes its method of
accounting  to  the  full  consolidation  method  of  accounting  for  financial
accounting  purposes,  in  accordance  with GAAP, the Borrower shall continue to
calculate  compliance  with  the  financial covenants in this Agreement based on
GAAP  prior  to  the  change,  and  shall  prepare  footnotes to each Compliance
Certificate  and  the  financial  statements required to be delivered under this
Agreement  that  show the differences between the financial statements delivered
(which  reflect  such  changes) and the basis for calculating financial covenant
compliance  (without  reflecting  such  changes).
ARTICLE  II

The  Credits
SECTION  2.01.     Commitments.
                   ------------

     Subject to the terms and conditions set forth herein, each Lender agrees to
make  Revolving  Loans to the Borrower from time to time during the Availability
Period  in  an  aggregate  principal  amount  that  will  not result in (i) such
Lender's  Revolving  Credit  Exposure exceeding such Lender's Commitment or (ii)
the  sum  of  the  total Revolving Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans exceeding the total Commitments.  Within
the  foregoing  limits and subject to the terms and conditions set forth herein,
the  Borrower  may  borrow,  prepay  and  reborrow Revolving Loans.  Pursuant to
Chapter  346  ("Chapter 346") of the Texas Credit Code, Borrower, Administrative
Agent  and Lenders expressly agree that Chapter 346 shall not apply to the Notes
or  to  any  Loan evidenced by the Notes and that neither the Notes nor any such
Loan  shall  be  governed  by or subject to the provisions of Chapter 346 in any
manner  whatsoever.
SECTION  2.02.     Loans and Borrowings.  (a)  Each Revolving Loan shall be made
                   ---------------------
as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably
     in  accordance  with  their  respective Commitments.  Each Competitive Loan
shall  be made in accordance with the procedures set forth in Section 2.04.  The
failure  of  any  Lender  to  make  any Loan required to be made by it shall not
relieve  any  other  Lender  of  its  obligations  hereunder;  provided that the
Commitments  and Competitive Bids of the Lenders are several and no Lender shall
be  responsible  for  any  other  Lender's  failure  to  make Loans as required.

     (b)     Subject  to  Section  2.13,  (i)  each Revolving Borrowing shall be
                          -------------
comprised  entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in  accordance  herewith, and (ii) each Competitive Borrowing shall be comprised
entirely  of Eurodollar Loans or Fixed Rate Loans as the Borrower may request in
accordance  herewith.  Each Lender at its option may make any Eurodollar Loan by
causing  any domestic or foreign branch or Affiliate of such Lender to make such
Loan;  provided that any exercise of such option shall not affect the obligation
       --------
of  the  Borrower  to  repay  such  Loan  in  accord-ance with the terms of this
Agreement.

     (c)     At  the  commencement  of  each  Interest Period for any Eurodollar
Revolving  Borrowing,  such Borrowing shall be in an aggregate amount that is an
integral  multiple of $1,000,000 and not less than $5,000,000.  At the time that
each  ABR  Revolving  Borrowing is made, such Borrowing shall be in an aggregate
amount  that is an integral multiple of $1,000,000 and not less than $5,000,000,
provided  that  an ABR Revolving Borrowing may be in an aggregate amount that is
--------
equal  to the entire unused balance of the total Commitments or that is required
to  finance  the  reimbursement of an LC Disbursement as contemplated by Section
                                                                         -------
2.05(e).  Each  Competitive Borrowing shall be in an aggregate amount that is an
  -----
integral  multiple  of  $1,000,000 and not less than $10,000,000.  Borrowings of
more  than one Type and Class may be outstanding at the same time; provided that
                                                                   --------
there  shall not at any time be more than a total of eight Eurodollar Borrowings
(both  Revolving  and  Competitive)  outstanding.

     (d)     Notwithstanding any other provision of this Agreement, the Borrower
shall  not  be  entitled  to  request,  or  to elect to convert or continue, any
Borrowing  if the Interest Period requested with respect thereto would end after
the  Maturity  Date.
SECTION  2.03.     Requests  for  Revolving Borrowings.   To request a Revolving
                   ------------------------------------
Borrowing, the Borrower shall notify the Administrative Agent of such request by
     telephone  (a)  in the case of a Eurodollar Borrowing, not later than 11:00
a.m.,  Houston,  Texas time, three Business Days before the date of the proposed
Borrowing  or  (b)  in  the case of an ABR Borrowing, not later than 11:00 a.m.,
Houston, Texas time, one Business Day before the date of the proposed Borrowing;
provided  that  any  such  notice  of  an ABR Revolving Borrowing to finance the
reimbursement  of  an  LC Disbursement as contemplated by Section 2.05(e) may be
given  not  later  than  10:00  a.m.,  Houston,  Texas  time, on the date of the
proposed Borrowing.  Each such telephonic Borrowing Request shall be irrevocable
and  shall  be  confirmed  promptly  by  hand  delivery  or  telecopy  to  the
Administrative  Agent  of  a  written Borrowing Request in the form of Exhibit E
attached  hereto and hereby made a part hereof and signed by the Borrower.  Each
such  telephonic  and  written  Borrowing  Request  shall  specify the following
information  in  compliance  with  Section  2.02:
(i)     the  aggregate  amount  of  the  requested  Borrowing;
(ii)     the  date  of  such  Borrowing,  which  shall  be  a  Business  Day;
(iii)     whether  such  Borrowing  is  to  be  an ABR Borrowing or a Eurodollar
Borrowing;
(iv)     in  the  case  of  a  Eurodollar  Borrowing,  the Interest Period to be
applicable  thereto,  which  shall be a period contemplated by the definition of
the  term  "Interest  Period";  and
(v)     the  location and number of the Borrower's account to which funds are to
be  disbursed,  which  shall  comply  with  the  requirements  of  Section 2.06.
                                                                   ------------

If  no  election  as  to  the  Type  of  Revolving Borrowing is specified in the
Borrowing  Request,  then  the  requested  Revolving  Borrowing  shall be an ABR
Borrowing.  If  no  Interest  Period  is specified with respect to any requested
Eurodollar  Revolving  Borrowing,  then  the  Borrower  shall  be deemed to have
selected an Interest Period of one month's duration, in the case of a Eurodollar
Borrowing.  Promptly  following  receipt  of  a  Borrowing Request in accordance
with  this  Section,  the  Administrative  Agent shall advise each Lender of the
details  thereof  and  of the amount of such Lender's Loan to be made as part of
the  requested  Borrowing.
SECTION  2.04.     Competitive  Bid Procedure.  (a)  Wherever and for so long as
                   ---------------------------
the  Borrower's  Index  Debt  Rating  is  in  Category  5  (as referenced in the
definition  of  Applicable  Rate)  or  better,  and  subject  to  the  terms and
conditions  set  forth  herein, from time to time during the Availability Period
the  Borrower  may  request  Competitive  Bids  and  may (but shall not have any
obligation  to)  accept  Competitive  Bids and borrow Competitive Loans up to an
aggregate  principal  amount  outstanding  at  any  one time equal to 50% of the
aggregate  Commitments;  provided  that  the  sum  of the total Revolving Credit
Exposures  plus  the aggregate principal amount of outstanding Competitive Loans
at  any  time  shall  not  exceed the total Commitments.  To request Competitive
Bids,  the  Borrower  shall  notify  the Administrative Agent of such request by
telephone,  in  the  case  of a Eurodollar Borrowing, not later than 11:00 a.m.,
Houston,  Texas  time,  four  Business  Days  before  the  date  of the proposed
Borrowing and, in the case of a Fixed Rate Borrowing, not later than 10:00 a.m.,
     Houston,  Texas  time,  one  Business  Day  before the date of the proposed
Borrowing; provided that the Borrower may submit up to (but not more than) three
Competitive  Bid  Requests  on the same day, but a Competitive Bid Request shall
not be made within five Business Days after the date of any previous Competitive
Bid  Request,  unless  any  and all such previous Competitive Bid Requests shall
have been withdrawn by the Borrower or all Competitive Bids received in response
thereto  rejected.  Each  such  telephonic  Competitive  Bid  Request  shall  be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written  Competitive  Bid  Request  in the form of Exhibit F attached hereto and
signed  by  the  Borrower.  Each  such  telephonic  and  written Competitive Bid
Request shall specify the following information in compliance with Section 2.02:
(i)     the  aggregate  amount  of  the  requested  Borrowing;
(ii)     the  date  of  such  Borrowing,  which  shall  be  a  Business  Day;
(iii)     whether such Borrowing is to be a Eurodollar Borrowing or a Fixed Rate
Borrowing;
(iv)     the  Interest Period to be applicable to such Borrowing, which shall be
a  period  contemplated  by  the  definition  of the term "Interest Period"; and
(v)     the  location and number of the Borrower's account to which funds are to
be  disbursed,  which  shall  comply  with  the  requirements  of  Section 2.06.
                                                                   ------------

Promptly  following receipt of a Competitive Bid Request in accordance with this
Section,  the  Administrative  Agent  shall  notify  the  Lenders of the details
thereof  by  telecopy,  inviting  the  Lenders  to  submit  Competitive  Bids.

     (b)     Each  Lender may (but shall not have any obligation to) make one or
more  Competitive Bids to the Borrower in response to a Competitive Bid Request.
Each  Competi-tive  Bid  by  a  Lender  must  be  in  a  form  approved  by  the
Administrative  Agent  and  must  be  re-ceived  by  the Administrative Agent by
telecopy,  in  the  case of a Eurodollar Competi-tive Borrow-ing, not later than
10:00 a.m., Houston, Texas time, three Business Days before the proposed date of
such  Compet-itive  Borrowing,  and  in the case of a Fixed Rate Borrow-ing, not
later  than  10:00  a.m.,  Houston,  Texas  time,  on  the proposed date of such
Competi-tive Borrow-ing.  Competi-tive Bids that do not conform substantially to
the  form  approved  by  the  Administrative  Agent  may  be  rejected  by  the
Administrative  Agent,  and the Administrative Agent shall notify the applicable
Lender  as promptly as practi-cable.  Each Competitive Bid shall specify (i) the
principal  amount  (which  shall  be  a  minimum  of  $5,000,000 and an integral
multiple  of  $1,000,000  and which may equal the entire principal amount of the
Competi-tive  Bor-row-ing re-quested by the Borrower) of the Competitive Loan or
Loans  that  the  Lender  is  willing to make, (ii) the Competi-tive Bid Rate or
Rates at which the Lender is prepared to make such Loan or Loans (expressed as a
percentage  rate per annum in the form of a decimal to no more than four decimal
places)  and (iii) the Interest Period applicable to each such Loan and the last
day  thereof.

     (c)     The  Administrative  Agent  shall  promptly  notify the Borrower by
telecopy  of the Competitive Bid Rate and the principal amount specified in each
Competitive  Bid  and  the  identity  of  the  Lender  that shall have made such
Competitive  Bid.

     (d)     Subject  only to the provisions of this paragraph, the Borrower may
accept  or  reject  any  Competitive  Bid.  The  Borrower  shall  notify  the
Administrative  Agent  by telephone, confirmed by telecopy in a form approved by
the Administrative Agent, whether and to what extent it has decided to accept or
reject  each Competitive Bid, in the case of a Eurodollar Competitive Borrowing,
not  later  than 10:30 a.m., Houston, Texas time, three Business Days before the
date  of  the  proposed  Competitive Borrow-ing, and in the case of a Fixed Rate
Borrowing,  not later than 10:30 a.m., Houston, Texas time, on the proposed date
of the Competi-tive Bor-rowing; provided that (i) the failure of the Borrower to
                                --------
give  such  notice  shall  be deemed to be a rejec-tion of each Competitive Bid,
(ii)  the  Borrower  shall  not  accept  a Competitive Bid made at a particu-lar
Compet-itive  Bid Rate if the Borrower rejects a Competitive Bid made at a lower
Competitive  Bid  Rate,  (iii)  the  aggre-gate  amount  of the Competitive Bids
accepted  by the Borrower shall not exceed the aggregate amount of the requested
Competitive Borrowing speci-fied in the related Competitive Bid Request, (iv) to
the  extent necessary to comply with clause (iii) above, the Borrower may accept
Competitive  Bids at the same Competitive Bid Rate in part, which acceptance, in
the  case  of  multiple  Competitive Bids at such Competitive Bid Rate, shall be
made  pro  rata  in accordance with the amount of each such Competitive Bid, and
(v)  except  pursuant to clause (iv) above, no Competitive Bid shall be accepted
for  a Compet-itive Loan unless such Competi-tive Loan is in a minimum principal
amount  of  $5,000,000  and an integral multiple of $1,000,000; provided further
                                                                ----------------
that  if a Competitive Loan must be in an amount less than $5,000,000 because of
the  provisions of clause (iv) above, such Competitive Loan may be for a minimum
of  $1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation  of  acceptances  of  portions  of  multiple  Competitive  Bids  at a
particular  Competitive  Bid  Rate  pursuant to clause (iv) the amounts shall be
rounded  to  integral  multiples  of  $1,000,000  in  a manner determined by the
Borrower.  A  notice  given  by the Borrower pursuant to this paragraph shall be
irrevocable.

     (e)     The  Administrative Agent shall promptly notify each bidding Lender
by  telecopy  whether  or not its Competitive Bid has been accepted (and, if so,
the  amount  and  Competitive  Bid Rate so accepted), and each successful bidder
will thereupon become bound, subject to the terms and conditions hereof, to make
the  Competitive Loan in respect of which its Competitive Bid has been accepted.

     (f)     If the Administrative Agent shall elect to submit a Competitive Bid
in  its  capacity  as a Lender, it shall submit such Competitive Bid directly to
the  Borrower at least one quarter of an hour earlier than the time by which the
other  Lenders  are  required  to  submit  their  Competitive  Bids  to  the
Administrative  Agent  pursuant  to  paragraph  (b)  of  this  Section.
                                     --------------
SECTION  2.05.     Letters  of  Credit.  (a)  General.  Subject to the terms and
                   --------------------
conditions set forth herein, the Borrower may request the issuance of Letters of
     Credit  for  its  own account (or for the account of any Subsidiary, and in
such  event  the Borrower shall be obligated under this Agreement and under such
Letter of Credit as if the Borrower were the named account party and such Letter
of  Credit  shall  create  LC  Exposure), in a form reasonably acceptable to the
Administrative  Agent  and  the  Issuing Bank, at any time and from time to time
during  the  Availability Period.  In the event of any inconsistency between the
terms  and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the Borrower to,
or entered into by the Borrower with, the Issuing Bank relating to any Letter of
Credit,  the  terms  and  conditions  of  this  Agreement  shall  control.

     (b)     Notice  of  Issuance,  Amendment,  Renewal,  Extension;  Certain
             ----------------------------------------------------------------
Conditions.  To  request  the  issuance of a Letter of Credit (or the amendment,
        ---
renewal  or  extension  of  an outstanding Letter of Credit), the Borrower shall
hand  deliver  or  telecopy  (or  transmit  by  electronic  communication,  if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank  and  the Administrative Agent (reasonably in advance of the requested date
of  issuance,  amendment, renewal or extension) a notice requesting the issuance
of  a  Letter  of  Credit,  or  identifying  the Letter of Credit to be amended,
renewed  or extended, and specifying the date of issuance, amendment, renewal or
extension  (which  shall  be  a  Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the
amount of such Letter of Credit, the name and address of the beneficiary thereof
and  such  other  information  as shall be necessary to prepare, amend, renew or
extend  such  Letter  of Credit.  If requested by the Issuing Bank, the Borrower
also  shall submit a letter of credit application on the Issuing Bank's standard
form  in connection with any request for a Letter of Credit.  A Letter of Credit
shall  be  issued,  amended,  renewed  or  extended  only if (and upon issuance,
amendment,  renewal  or extension of each Letter of Credit the Borrower shall be
deemed  to  represent  and  warrant that), after giving effect to such issuance,
amendment,  renewal  or  extension  (i)  the  LC  Exposure  shall  not  exceed
$40,000,000,  (ii)  the  sum  of  the  total Revolving Credit Exposures plus the
aggregate principal amount of outstanding Competitive Loans shall not exceed the
total  Commitments,  (iii)  no  more  than  ten  Letters  of  Credit  shall  be
outstanding,  and (iv) the face amount of the subject Letter of Credit shall not
be  less  than  $100,000.

     (c)     Expiration Date.  Each Letter of Credit shall expire not later than
             ----------------
the close of business on the date that is thirty (30) days prior to the Maturity
Date.

     (d)     Participations.  By  the  issuance  of  a  Letter  of Credit (or an
             ---------------
amendment  to  a Letter of Credit increasing the amount thereof) and without any
further  action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby  grants  to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender's Applicable
Percentage  of  the  aggregate amount available to be drawn under such Letter of
Credit.  In  consideration  and  in  furtherance  of  the foregoing, each Lender
hereby absolutely and unconditionally agrees to pay to the Administrative Agent,
for the account of the Issuing Bank, such Lender's Applicable Percentage of each
LC  Disbursement  made by the Issuing Bank and not reimbursed by the Borrower on
the  date  due  as  provided  in  paragraph  (e)  of  this  Section,  or  of any
reimbursement  payment  required  to be refunded to the Borrower for any reason.
Each  Lender  acknowledges  and  agrees  that  its  obligation  to  acquire
participations  pursuant  to  this  paragraph in respect of Letters of Credit is
absolute  and  unconditional  and  shall  not  be  affected  by any circumstance
whatsoever,  including  any  amendment,  renewal  or  extension of any Letter of
Credit  or  the  occurrence  and  continuance  of  a  Default  or  reduction  or
termination of the Commitments, and that each such payment shall be made without
any  offset,  abatement, withholding or reduction whatsoever.  Letters of credit
referred  to  on  Schedule  2.05(d) have previously been issued by Chase under a
                  -----------------
previous  loan  agreement  by and between Chase and other banks, as lenders, and
Borrower.  Without  the  necessity  for  any  reissuance, such letters of credit
shall  be  deemed issued under this Agreement as "Letters of Credit" by Chase as
of the Effective Date hereof, and, with respect to such letters of credit, Chase
shall  have  all  the  rights  and  obligations  of  the Issuing Bank under this
Agreement.

     (e)     Reimbursement.  If  the Issuing Bank shall make any LC Disbursement
             --------------
in  respect  of  a  Letter  of  Credit,  the  Borrower  shall  reimburse such LC
Disbursement  by  paying  to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, Houston, Texas time, on the Business Day
that such LC Disbursement is made, if the Borrower shall have received notice of
such LC Disbursement prior to 10:00 a.m., Houston, Texas time, on such date, or,
if  such notice has not been received by the Borrower prior to such time on such
date,  then  not later than 12:00 noon, Houston, Texas time, on (i) the Business
Day  that the Borrower receives such notice, if such notice is received prior to
10:00 a.m., Houston, Texas time, on the day of receipt, or (ii) the Business Day
immediately  following  the  day that the Borrower receives such notice, if such
notice  is  not received prior to such time on the day of receipt; provided that
                                                                   --------
the  Borrower  may,  subject  to  the  conditions to borrowing set forth herein,
request  in  accordance  with Section 2.03 that such payment be financed with an
                              ------------
ABR  Revolving Borrowing in an equivalent amount and, to the extent so financed,
the  Borrower's obligation to make such payment shall be discharged and replaced
by  the  resulting  ABR Revolving Borrowing.  If the Borrower fails to make such
payment  when  due,  the  Administrative  Agent  shall notify each Lender of the
applicable  LC  Disbursement,  the payment then due from the Borrower in respect
thereof  and  such  Lender's  Applicable Percentage thereof.  Promptly following
receipt  of  such  notice, each Lender shall pay to the Administrative Agent its
Applicable  Percentage  of  the  payment then due from the Borrower, in the same
manner  as  provided  in  Section 2.06 with respect to Loans made by such Lender
                          ------------
(and  Section  2.06 shall apply, mutatis mutandis, to the payment obligations of
      -------------              ------- --------
the  Lenders),  and  the  Administrative Agent shall promptly pay to the Issuing
Bank the amounts so received by it from the Lenders.  Promptly following receipt
by  the  Administrative  Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing
Bank  or,  to  the  extent  that  Lenders  have  made  payments pursuant to this
paragraph  to  reimburse  the Issuing Bank, then to such Lenders and the Issuing
Bank  as  their  interests may appear.  Any payment made by a Lender pursuant to
this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than
the funding of ABR Revolving Loans as contemplated above) shall not constitute a
Loan  and  shall not relieve the Borrower of its obligation to reimburse such LC
Disbursement.

     (f)     Obligations  Absolute.  The  Borrower's  obligation to reimburse LC
             ---------------------
Disbursements  as  provided  in paragraph (e) of this Section shall be absolute,
unconditional  and  irrevocable,  and  shall be performed strictly in accordance
with  the terms of this Agreement under any and all circumstances whatsoever and
irrespective  of  (i)  any  lack  of validity or enforceability of any Letter of
Credit  or  this  Agreement, or any term or provision therein, (ii) any draft or
other  document  presented  under  a  Letter  of  Credit  proving  to be forged,
fraudulent  or  invalid  in any respect or any statement therein being untrue or
inaccurate  in  any respect, (iii) payment by the Issuing Bank under a Letter of
Credit  against  presentation  of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever,  whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide  a  right  of  setoff  against,  the  Borrower's  obligations hereunder.
Neither  the  Administrative Agent, the Lenders nor the Issuing Bank, nor any of
their  Related  Parties, shall have any liability or responsibility by reason of
or  in  connection  with the issuance or transfer of any Letter of Credit or any
payment  or  failure  to make any payment thereunder (irrespective of any of the
circumstances  referred  to  in the preceding sentence), or any error, omission,
interruption,  loss or delay in transmission or delivery of any draft, notice or
other  communication  under  or  relating to any Letter of Credit (including any
document  required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing  Bank;  provided that the foregoing shall not be construed to excuse the
                --------
Issuing  Bank from liability to the Borrower to the extent of any direct damages
(as  opposed  to  consequential  damages,  claims in respect of which are hereby
waived  by  the  Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by the Issuing Bank's failure to exercise care when
determining  whether  drafts  and  other  documents  presented under a Letter of
Credit  comply with the terms thereof.  The parties hereto expressly agree that,
in  the  absence  of  gross  negligence or willful misconduct on the part of the
Issuing  Bank,  the  Issuing Bank shall be deemed to have exercised care in each
such  determination.  In  furtherance  of the foregoing and without limiting the
generality  thereof, the parties agree that, with respect to documents presented
which  appear  on their face to be in substantial compliance with the terms of a
Letter  of  Credit,  the Issuing Bank may, in its sole discretion, either accept
and  make  payment  upon  such  documents  without  responsibility  for  further
investigation,  regardless  of  any  information  to  the contrary, or refuse to
accept  and make payment upon such documents if such documents are not in strict
compliance  with  the  terms  of  such  Letter  of  Credit.

     (g)     Disbursement  Procedures.  The  Issuing  Bank  shall,  promptly
             -------------------------
following  its  receipt thereof, examine all documents purporting to represent a
demand  for  payment  under a Letter of Credit.  The Issuing Bank shall promptly
notify  the  Administrative  Agent  and  the Borrower by telephone (confirmed by
telecopy)  of  such  demand for payment and whether the Issuing Bank has made or
will  make  an  LC Disbursement thereunder; provided that any failure to give or
                                            --------
delay  in giving such notice shall not relieve the Borrower of its obligation to
reimburse  the  Issuing  Bank  and  the  Lenders  with  respect  to  any such LC
Disbursement.

     (h)     Interim  Interest.  If  the  Issuing  Bank  shall  make  any  LC
             ------------------
Disbursement,  then, unless the Borrower shall reimburse such LC Disbursement in
full  on  the date such LC Disbursement is made, the unpaid amount thereof shall
bear  interest, for each day from and including the date such LC Disbursement is
made  to  but  excluding  the  date  that  the  Borrower  reimburses  such  LC
Disbursement,  at  the  rate  per  annum then applicable to ABR Revolving Loans;
provided  that, if the Borrower fails to reimburse such LC Disbursement when due
    ----
pursuant  to  paragraph  (e)  of this Section, then Section 2.12(e) shall apply.
              --------------                        ---------------
Interest  accrued  pursuant  to  this  paragraph shall be for the account of the
Issuing  Bank,  except that interest accrued on and after the date of payment by
any  Lender  pursuant  to paragraph (e) of this Section to reimburse the Issuing
Bank  shall  be  for  the  account of such Lender to the extent of such payment.

     (i)     Replacement  of the Issuing Bank.  The Issuing Bank may be replaced
             ---------------------------------
at  any  time by written agreement among the Borrower, the Administrative Agent,
the  replaced  Issuing  Bank and the successor Issuing Bank.  The Administrative
Agent  shall notify the Lenders of any such replacement of the Issuing Bank.  At
the time any such replacement shall become effective, the Borrower shall pay all
unpaid  fees  accrued  for  the account of the replaced Issuing Bank pursuant to
Section 2.11(b).  From and after the effective date of any such replacement, (i)
   ------------
the  successor  Issuing  Bank  shall  have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and  all  previous  Issuing  Banks,  as  the  context  shall require.  After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a  party  hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Letters
of  Credit.

     (j)     Cash Collateralization.  If any Event of Default shall occur and be
             -----------------------
continuing,  on  the  Business  Day  that  the Borrower receives notice from the
Administrative  Agent  demanding the deposit of cash collateral pursuant to this
paragraph,  the  Borrower  shall  deposit  in an account with the Administrative
Agent,  in  the  name  of  the  Administrative  Agent and for the benefit of the
Lenders,  an  amount  in  cash equal to the LC Exposure as of such date plus any
accrued  and  unpaid  interest  thereon; provided that the obligation to deposit
                                         --------
such  cash collateral shall become effective immediately, and such deposit shall
become  immediately due and payable, without demand or other notice of any kind,
upon  the  occurrence  of  any  Event  of  Default  with respect to the Borrower
described  in  clause  (g) or (h) of Article VII.  Such deposit shall be held by
               -----------    ---    -----------
the  Administrative  Agent  as collateral for the payment and performance of the
obligations  of  the  Borrower  under  this Agreement.  The Administrative Agent
shall  have  exclusive  dominion  and  control, including the exclusive right of
withdrawal, over such account.  Other than any interest earned on the investment
of  such  deposits,  which  investments  shall  be  made  at the option and sole
discretion  of  the Administrative Agent and at the Borrower's risk and expense,
such  deposits  shall  not  bear interest.  Interest or profits, if any, on such
investments  shall  accumulate in such account.  Moneys in such account shall be
applied  by  the  Administrative  Agent  to  reimburse  the  Issuing Bank for LC
Disbursements  for  which  it  has not been reimbursed and, to the extent not so
applied,  shall be held for the satisfaction of the reimbursement obligations of
the  Borrower  for the LC Exposure at such time or, if the maturity of the Loans
has  been  accelerated  (but  subject to the consent of Lenders with LC Exposure
representing  greater  than 51% of the total LC Exposure), be applied to satisfy
other  obligations  of  the  Borrower  under this Agreement.  If the Borrower is
required  to  provide  an amount of cash collateral hereunder as a result of the
occurrence  of  an  Event  of Default, such amount (to the extent not applied as
aforesaid)  shall  be  returned to the Borrower within three Business Days after
all  Events  of  Default  have  been  cured  or  waived.
SECTION  2.06.     Funding of Borrowings.  (a)  Each Lender shall make each Loan
                   ----------------------
to  be  made  by  it  hereunder on the proposed date thereof by wire transfer of
immediately  available  funds by 12:00 noon, Houston, Texas time, to the account
of  the  Administrative Agent most recently designated by it for such purpose by
notice  to the Lenders.  The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to
     an  account  of  the  Borrower  maintained with the Administrative Agent in
Houston,  Texas  and  designated  by  the  Borrower  in the applicable Borrowing
Request  or  Competitive  Bid Request; provided that ABR Revolving Loans made to
finance  the  reimbursement of an LC Disbursement as provided in Section 2.05(e)
shall  be  remitted  by  the  Administrative  Agent  to  the  Issuing  Bank.

     (b)     Unless  the  Administrative Agent shall have received notice from a
Lender  prior  to  the  proposed date of any Borrowing that such Lender will not
make  available  to  the  Administrative  Agent  such  Lender's  share  of  such
Borrowing,  the  Administrative  Agent may assume that such Lender has made such
share  available  on  such date in accordance with paragraph (a) of this Section
and  may,  in  reliance  upon  such assumption, make available to the Borrower a
corresponding amount.  In such event, if a Lender has not in fact made its share
of  the  applicable  Borrowing  available  to the Administrative Agent, then the
applicable  Lender and the Borrower severally agree to pay to the Administrative
Agent  forthwith  on demand such corresponding amount with interest thereon, for
each  day  from  and  including  the  date  such amount is made available to the
Borrower  to  but  excluding the date of payment to the Administrative Agent, at
(i)  in the case of such Lender, the greater of the Federal Funds Effective Rate
and  a  rate  determined  by the Administrative Agent in accordance with banking
industry  rules  on  interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to the corresponding Loan made to the Borrower.  If
such Lender pays such amount to the Administrative Agent, then such amount shall
constitute  such  Lender's  Loan  included  in  such  Borrowing.
SECTION  2.07.     Interest  Elections.  (a)  Each Revolving Borrowing initially
                   --------------------
shall  be  of the Type specified in the applicable Borrowing Request and, in the
case  of a Eurodollar Revolving Borrowing, shall have an initial Interest Period
as  specified  in such Borrowing Request.  Thereafter, the Borrower may elect to
convert such Borrowing to a different Type or to continue such Borrowing and, in
     the  case  of  a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor,  all  as  provided  in this Section.  The Borrower may elect different
options  with  respect to different portions of the affected Borrowing, in which
case  each such portion shall be allocated ratably among the Lenders holding the
Loans  comprising  such  Borrowing,  and  the Loans comprising each such portion
shall  be  considered  a  separate  Borrowing.  This  Section shall not apply to
Competitive  Borrowings,  which  may  not  be  converted  or  continued.

     (b)     To  make  an  election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing  Request  would  be  required  under Section 2.03 if the Borrower were
                                               ------------
requesting  a Revolving Borrowing of the Type resulting from such election to be
made  on  the  effective  date  of such election.  Each such telephonic Interest
Election  Request  shall  be irrevocable and shall be confirmed promptly by hand
delivery  or telecopy to the Administrative Agent of a written Interest Election
Request  in  the  form  of a Borrowing Request (with proper election made for an
interest  rate  election  only)  and  signed  by  the  Borrower.

     (c)     Each telephonic and written Interest Election Request shall specify
the  following  information  in  compliance  with  Section  2.02:
                                                   -------------
(i)     the  Borrowing  to  which such Interest Election Request applies and, if
different  options are being elected with respect to different portions thereof,
the  portions thereof to be allocated to each resulting Borrowing (in which case
the  information  to be specified pursuant to clauses (iii) and (iv) below shall
be  specified  for  each  resulting  Borrowing);
(ii)     the  effective  date  of  the  election  made pursuant to such Interest
Election  Request,  which  shall  be  a  Business  Day;
(iii)     whether  the  resulting  Borrowing  is  to  be  an  ABR Borrowing or a
Eurodollar  Borrowing;  and
(iv)     if  the  resulting  Borrowing  is  a Eurodollar Borrowing, the Interest
Period  to  be  applicable  thereto  after giving effect to such election, which
shall  be a period contemplated by the definition of the term "Interest Period".

If  any  such Interest Election Request requests a Eurodollar Borrowing but does
not  specify  an  Interest  Period,  then  the  Borrower shall be deemed to have
selected  an  Interest  Period  of  seven  days'  duration.

     (d)     Promptly  following  receipt  of  an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's  portion  of  each  resulting  Borrowing.

     (e)     If the Borrower fails to deliver a timely Interest Election Request
with  respect  to  a  Eurodollar  Revolving  Borrowing  prior  to the end of the
Interest  Period  applicable  thereto,  then, unless such Borrowing is repaid as
provided  herein,  at  the  end  of such Interest Period such Borrowing shall be
converted  to  a Eurodollar Revolving Borrowing with an Interest Period of seven
days'  duration.  Notwithstanding  any contrary provision hereof, if an Event of
Default  has  occurred  and  is  continuing and the Administrative Agent, at the
request  of  the Required Lenders, so notifies the Borrower, then, so long as an
Event  of  Default  is  continuing (i) no outstanding Revolving Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the end
of  the  Interest  Period  applicable  thereto.
SECTION  2.08.     Termination  and  Reduction  of  Commitments.
                   ---------------------------------------------
(a)     Unless  previously  terminated by the Administrative Agent in accordance
with  this  Agreement,  the  Commitments  shall  terminate on the Maturity Date.
(b)     The  Borrower  may only reduce the Commitments without the prior written
consent  of  the  Administrative  Agent  and all of the Lenders in the following
circumstances:  the  Borrower  may  from time to time prior to November 21, 2003
reduce the Commitments, provided that each reduction in the Commitments shall be
     in  an  amount  that  is  an  integral multiple of $5,000,000 and the total
Commitments  may  not  be reduced to less than $200,000,000.  The Borrower shall
not  reduce the Commitments if, after giving effect to any concurrent prepayment
of  the  Loans  in  accordance with Section 2.10, the sum of the total Revolving
                                    ------------
Credit  Exposures plus the aggregate principal amount of outstanding Competitive
Loans  would  exceed  the  total  Commitments  as  reduced.
(c)     The  Borrower  shall  notify the Administrative Agent of any election to
reduce  the  Commitments  under  Section 2.08(b) at least five (5) Business Days
                                 ---------------
prior  to the effective date of such reduction, specifying such election and the
effective  date  thereof.  Promptly  following  receipt  of  any  notice,  the
Administrative  Agent  shall  advise  the Lenders of the contents thereof.  Each
notice  delivered by the Borrower pursuant to this Section shall be irrevocable.
Any  reduction  of  the  Commitments  shall be permanent.  Each reduction in the
Commitments  shall  be  made  ratably among the Lenders in accordance with their
respective  Commitments.
SECTION 2.09.     Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby
                  -------------------------------------
     unconditionally  promises  to  pay  (i) to the Administrative Agent for the
account  of  each Lender the then unpaid principal amount of each Revolving Loan
on  the  Maturity  Date, and (ii) to the Administrative Agent for the account of
each  Lender  the  then  unpaid principal amount of each Competitive Loan on the
last  day  of  the  Interest Period applicable to such Loan.  The Loans shall be
evidenced  by  the  Notes.  The  Revolving Loans shall be evidenced by Revolving
Notes executed by the Borrower, one to each Lender for such Lender's Commitment.
The  Competitive  Loans  shall be evidenced by Competitive Notes executed by the
Borrower  to  each Lender, with each such Competitive Note being in the original
principal  sum  of  $175,000,000.00,  which  is  the maximum principal amount of
Competitive Loans that can be outstanding at any one time in the aggregate under
this  Agreement.  Borrower's liability to each Lender under its Competitive Note
shall  not  exceed the principal amount advanced by such Lender as a Competitive
Loan.

     (b)     Each Lender shall maintain in accordance with its usual practice an
account  or  accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal
and  interest  payable  and  paid  to  such  Lender from time to time hereunder.

     (c)     The  Administrative Agent shall maintain accounts in which it shall
record  (i)  the  amount of each Loan made hereunder, the Class and Type thereof
and  the Interest Period applicable thereto, (ii) the amount of any principal or
interest  due and payable or to become due and payable from the Borrower to each
Lender  hereunder and (iii) the amount of any sum received by the Administrative
Agent  hereunder for the account of the Lenders and each Lender's share thereof.

     (d)     The  entries  made in the accounts maintained pursuant to paragraph
                                                                       ---------
(b)  or  (c)  of this Section shall be prima facie evidence of the existence and
 --      ---                           ----- -----
amounts  of  the  obligations recorded therein; provided that the failure of any
 -                                              --------
Lender  or  the  Administrative  Agent  to  maintain  such accounts or any error
 -
therein  shall  not in any manner affect the obligation of the Borrower to repay
 -
the  Loans  in  accordance  with  the  terms  of  this  Agreement.
SECTION  1.01.     Prepayment  of Loans.  (a)  The Borrower shall have the right
                   ---------------------
at  any  time and from time to time to prepay, without penalty, any Borrowing in
whole  or  in  part, subject to prior notice in accordance with paragraph (b) of
this  Section,  and  subject  to  Section 2.15, if applicable; provided that the
Borrower  shall  not  have  the right to prepay any Competitive Loan without the
prior  consent  of  the  Lender  thereof.

     (b)     The  Borrower  shall  notify the Administrative  Agent by telephone
(confirmed  by  telecopy)  of  any  prepayment  hereunder  (i)  in  the  case of
prepayment  of  a  Eurodollar  Revolving  Borrowing,  not  later than 1:00 p.m.,
Houston,  Texas time, three Business Days before the date of prepayment, or (ii)
in  the  case  of  prepayment of an ABR Revolving Borrowing, not later than 1:00
p.m., Houston, Texas time, one Business Day before the date of prepayment.  Each
such  notice  shall be irrevocable and shall specify the prepayment date and the
principal  amount  of each Borrowing or portion thereof to be prepaid.  Promptly
following  receipt  of  any  such  notice relating to a Revolving Borrowing, the
Administrative  Agent  shall  advise the Lenders of the contents thereof.   Each
partial  prepayment  of any Revolving Borrowing shall be in an amount that would
be permitted in the case of an advance of a Revolving Borrowing of the same Type
as  provided in Section 2.02.  Each prepayment of a Revolving Borrowing shall be
                ------------
applied  ratably  to  the  Loans included in the prepaid Borrowing.  Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.12.
                                                                   ------------

     (c)     In  connection  with  the  prepayment  of  any  Loan  prior  to the
expiration  of  the  Interest Period applicable thereto, the Borrower shall also
pay  any  applicable  expenses  pursuant  to  Section  2.15.
                                              -------------

     (d)     Amounts to be applied to the prepayment of Loans pursuant to any of
the  preceding  subsections  of  this Section shall be applied, first, to reduce
outstanding  ABR  Loans  and  next,  to  the extent of any remaining balance, to
reduce  outstanding  Eurodollar Loans.  Each such prepayment shall be applied to
prepay  ratably  the  Loans  of  the  Lender.
SECTION  1.02.     Fees.  (a)  The  Borrower agrees to pay to the Administrative
                   ----
Agent  for  the account of each Lender a facility fee, which shall accrue at the
Applicable  Rate  on  the daily amount of the Commitment of such Lender (whether
used  or unused) during the period from and including the date of this Agreement
to but excluding the date on which such Commitment terminates; provided that, if
     such  Lender  continues  to  have  any  Revolving Credit Exposure after its
Commitment  terminates,  then  such facility fee shall continue to accrue on the
daily  amount  of such Lender's Revolving Credit Exposure from and including the
date  on which its Commitment terminates to but excluding the date on which such
Lender  ceases  to  have  any  Revolving Credit Exposure.  Accrued facility fees
shall  be  payable  in  arrears  on  the  last day of March, June, September and
December  of  each  year  and  on  the  date on which the Commitments terminate,
commencing  on the first such date to occur after the date hereof; provided that
any  facility  fees  accruing  after the date on which the Commitments terminate
shall be payable on demand.  All facility fees shall be computed on the basis of
a  year  of  360 days and shall be payable for the actual number of days elapsed
(including  the  first  day  but  excluding  the  last  day).

     (b)     The  Borrower agrees to pay (i) to the Administrative Agent for the
account of each Lender a participation fee with respect to its participations in
Letters  of  Credit,  which  shall  accrue  at  the Applicable Rate provided for
Eurodollar  Revolving  Loans  on  the  average  daily amount of such Lender's LC
Exposure  (excluding  any  portion  thereof  attributable  to  unreimbursed  LC
Disbursements)  during  the period from and including the date of this Agreement
to  but  excluding  the  later  of  the  date  on which such Lender's Commitment
terminates and the date on which such Lender ceases to have any LC Exposure, and
(ii)  to  the  Issuing  Bank a fronting fee, in the amount of 0.125% of the face
amount  of  each  Letter  of  Credit,  as  well  as  the Issuing Bank's standard
administrative  fees  with  respect  to  the  issuance,  amendment,  renewal  or
extension  of  any  Letter  of  Credit  or  processing  of  drawings thereunder.
Participation  fees  accrued  through and including the last day of March, June,
September  and  December of each year shall be payable on the third Business Day
following  such  last  day, commencing on the first such date to occur after the
date of this Agreement; provided that all such fees shall be payable on the date
                        --------
on  which the Commitments terminate and any such fees accruing after the date on
which the Commitments terminate shall be payable on demand.  Fronting fees shall
be  payable  in  full  in  advance  on  the  date of the issuance, or renewal or
extension  of  each  Letter  of  Credit, and are not refundable. Chase shall not
charge  a  fronting  fee  for  Letters  of Credit issued under this Agreement to
replace  or  extend the letters of credit listed on Schedule 2.05(d).  Any other
                                                    ----------------
fees  payable  to  the  Issuing Bank pursuant to this paragraph shall be payable
within  10 days after demand.  All participation fees and fronting fees shall be
computed  on the basis of a year of 360 days and shall be payable for the actual
number  of  days  elapsed  (including the first day but excluding the last day).

     (c)     The Borrower agrees to pay to the Administrative Agent, for its own
account,  fees  payable  in  the amounts and at the times separately agreed upon
between  the  Borrower  and  the  Administrative  Agent.

     (d)     All  fees  payable  hereunder  shall  be  paid on the dates due, in
immediately  available  funds,  to  the  Administrative Agent (or to the Issuing
Bank,  in  the  case  of  fees  payable  to it) for distribution, in the case of
facility  fees  and  participation fees, to the Lenders.  Fees paid shall not be
refundable  under  any  circumstances.

     (e)     In  the event that the Maturity Date is extended in accordance with
the  terms  of  Section  2.19,  the Borrower agrees to pay to the Administrative
                -------------
Agent  for  the  account  of  each Lender an extension fee equal to 0.15% of the
aggregate Revolving Credit Exposure on the first effective day of the extension.
SECTION  1.03.     Interest.  (a)  The Loans comprising each ABR Borrowing shall
                   ---------
bear  interest  at the lesser of (x) the Alternate Base Rate plus the Applicable
Rate,  or  (y)  the  Maximum  Rate.

     (b)     The  Loans comprising each Eurodollar Borrowing shall bear interest
(i)  in  the  case  of  a  Eurodollar  Revolving  Loan, at the lesser of (x) the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the
Applicable  Rate,  or  (y) the Maximum Rate, or (ii) in the case of a Eurodollar
Competitive  Loan, at the lesser of (x) the LIBO Rate for the Interest Period in
effect  for  such Borrowing plus (or minus, as applicable) the Margin applicable
to  such  Loan,  or  (y)  the  Maximum  Rate.

     (c)     Each  Fixed  Rate Loan shall bear interest at the lesser of (i) the
Fixed  Rate  applicable  to  such  Loan  or  (ii)  the  Maximum  Rate.

     (d)     Notwithstanding  the foregoing, (A) if any principal of or interest
on  any Loan or any fee or other amount payable by the Borrower hereunder is not
paid  when due, whether at stated maturity, upon acceleration or otherwise, such
overdue  amount shall bear interest, after as well as before judgment, at a rate
per  annum equal to (i) in the case of overdue principal of any Loan, the lesser
of  (x)  2%  plus  the rate otherwise applicable to such Loan as provided in the
preceding  paragraphs  of  this Section, or (y) the Maximum Rate, or (ii) in the
case  of  any other amount, the lesser of (x) 2% plus the rate applicable to ABR
Loans as provided in paragraph (a) of this Section, or (y) the Maximum Rate; and
                     -------------
(B)  after  the  occurrence  of  any  Event  of  Default,  at  the option of the
Administrative  Agent,  or if the Administrative Agent is directed in writing by
the  Required Lenders to do so, the Loan shall bear interest at a rate per annum
equal to the lesser of (x) 2% plus the rate otherwise applicable to such Loan as
provided  in  the preceding paragraphs of this Section, or (y) the Maximum Rate.

     (e)     Accrued  interest  on each Loan shall be payable in arrears on each
Interest  Payment  Date  for such Loan and, in the case of Revolving Loans, upon
termination  of  the Commitments; provided that (i) interest accrued pursuant to
                                  --------
paragraph  (d)  of this Section shall be payable on demand, (ii) in the event of
 -------------
any  repayment  or  prepayment  of  any  Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on
the  principal  amount  repaid  or  prepaid shall be payable on the date of such
repayment  or  prepayment  and  (iii)  in  the  event  of  any conversion of any
Eurodollar  Revolving  Loan  prior  to  the  end  of the current Interest Period
therefor,  accrued  interest on such Loan shall be payable on the effective date
of  such  conversion.

     (f)     All  interest hereunder shall be computed on the basis of a year of
360  days, except that interest computed by reference to the Alternate Base Rate
shall  be  computed  on  the  basis of a year of 365 days (or 366 days in a leap
year),  and  in each case shall be payable for the actual number of days elapsed
(including  the first day but excluding the last day).  The applicable Alternate
Base  Rate,  Adjusted  LIBO  Rate  or  LIBO  Rate  shall  be  determined  by the
Administrative Agent, and such determination shall be conclusive absent manifest
error.
SECTION  1.04.     Alternate  Rate of Interest.  If prior to the commencement of
                   ----------------------------
any  Interest  Period  for  a  Eurodollar  Borrowing:
(a)     the  Administrative  Agent  determines  (which  determination  shall  be
conclusive  absent  manifest  error)  that  adequate and reasonable means do not
exist  for  ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for  such  Interest  Period;  or
(b)     the  Administrative Agent is advised by the Required Lenders (or, in the
case  of a Eurodollar Competitive Loan, the Lender that is required to make such
Loan)  that (i) the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest  Period will not adequately and fairly reflect the cost to such Lenders
(or  Lender) of making or maintaining their Loans (or its Loan) included in such
Borrowing for such Interest Period and (ii) such fact is generally applicable to
its  loans  of  this  type to similar borrowers, as evidenced by a certification
from  such  Lenders;

then  the Administrative Agent shall give notice thereof to the Borrower and the
Lenders  by  telephone  or  telecopy  as promptly as practicable thereafter and,
until  the  Administrative  Agent notifies the Borrower and the Lenders that the
circumstances  giving  rise  to  such  notice  no longer exist, (i) any Interest
Election  Request that requests the conversion of any Revolving Borrowing to, or
continuation  of  any  Revolving  Borrowing  as, a Eurodollar Borrowing shall be
ineffective,  (ii)  if  any  Borrowing  Request  requests a Eurodollar Revolving
Borrowing,  such  Borrowing  shall  be  made  as  an ABR Borrowing and (iii) any
request  by  the  Borrower  for  a  Eurodollar  Competitive  Borrowing  shall be
ineffective;  provided  that (A) if the circumstances giving rise to such notice
              --------
do  not  affect  all  the  Lenders, then requests by the Borrower for Eurodollar
Competitive  Borrowings may be made to Lenders that are not affected thereby and
(B)  if  the  circumstances  giving  rise to such notice affect only one Type of
Borrowings,  then  the  other  Type  of  Borrowings  shall  be  permitted.
SECTION  1.05.     Increased  Costs.  (a)  If  any  Change  in  Law  shall:
                   -----------------
(i)     impose,  modify  or  deem  applicable  any  reserve,  special deposit or
similar  requirement  against assets of, deposits with or for the account of, or
credit extended by, any Lender (except any such reserve requirement reflected in
     the  Adjusted  LIBO  Rate)  or  the  Issuing  Bank;  or
(ii)     impose on any Lender or the Issuing Bank or the London interbank market
any  other  condition (other than one relating to Excluded Taxes) affecting this
Agreement  or  Eurodollar  Loans  or Fixed Rate Loans made by such Lender or any
Letter  of  Credit  or  participation  therein;

and  the  result  of  any of the foregoing shall be to increase the cost to such
Lender  of  making or main-taining any Eurodollar Loan or Fixed Rate Loan (or of
maintaining  its  obligation  to  make any such Loan) or to increase the cost to
such  Lender or the Issuing Bank of participating in, issuing or maintaining any
Letter  of  Credit or to reduce the amount of any sum received or receiv-able by
such  Lender  or  the  Issuing Bank hereunder (whether of principal, interest or
otherwise),  then  the  Borrower will pay to such Lender or the Issuing Bank, as
the  case  may  be,  such  additional  amount or amounts as will compensate such
Lender  or  the  Issuing  Bank,  as  the  case may be, for such additional costs
incurred  or  reduction  suffered.
(b)     If  any  Lender  or  the  Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
     of  return on such Lender's or the Issuing Bank's capital or on the capital
of such Lender's or the Issuing Bank's holding company, if any, as a consequence
of  this  Agreement or the Loans made by, or participations in Letters of Credit
held  by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a
level  below  that which such Lender or the Issuing Bank or such Lender's or the
Issuing  Bank's  holding  company could have achieved but for such Change in Law
(taking  into consideration such Lender's or the Issuing Bank's policies and the
policies  of such Lender's or the Issuing Bank's holding company with respect to
capital  adequacy),  then from time to time the Borrower will pay to such Lender
or  the  Issuing  Bank, as the case may be, such additional amount or amounts as
will  compensate such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's  holding  company  for  any  such  reduction  suffered.
(c)     A  certificate  of a Lender or the Issuing Bank setting forth the amount
or  amounts  necessary  to  compensate  such  Lender  or the Issuing Bank or its
holding  company,  as  the  case may be, as specified in paragraph (a) or (b) of
                                                         -------------    ---
this  Section  shall be delivered to the Borrower and shall be conclusive absent
manifest  error.  The Borrower shall pay such Lender or the Issuing Bank, as the
case  may  be,  the  amount  shown as due on any such certificate within 10 days
after  receipt  thereof.
(d)     Failure or delay on the part of any Lender or the Issuing Bank to demand
compensation  pursuant  to  this  Section  shall not constitute a waiver of such
Lender's  or the Issuing Bank's right to demand such compensation; provided that
                                                                   --------
the  Borrower  shall  not be required to compensate a Lender or the Issuing Bank
pursuant  to  this  Section  for any increased costs or reductions incurred more
than 60 days prior to the date that such Lender or the Issuing Bank, as the case
may be, notifies the Borrower of the Change in Law giving rise to such increased
costs  or  reductions  and  of  such Lender's or the Issuing Bank's intention to
claim  compensation therefor; provided further that, if the Change in Law giving
                              -------- -------
rise  to  such  increased  costs  or  reductions is retroactive, then the 60-day
period  referred to above shall be extended to include the period of retroactive
effect  thereof.
(e)     Notwithstanding the foregoing provisions of this Section, a Lender shall
not  be  entitled  to  compensation  pursuant  to this Section in respect of any
Competitive  Loan  if  the Change in Law that would otherwise entitle it to such
compensation  shall  have  been  publicly  announced  prior to submission of the
Competitive  Bid  pursuant  to  which  such  Loan  was  made.
SECTION  1.06.     Break  Funding  Payments.  In the event of (a) the payment of
                   -------------------------
any  principal  of any Eurodollar Loan or Fixed Rate Loan other than on the last
day  of an Interest Period applicable thereto (including as a result of an Event
of  Default),  (b)  the conversion of any Eurodollar Loan other than on the last
day  of  the  Interest  Period  applicable  thereto,  (c) the failure to borrow,
convert,  continue  or  prepay  any  Revolving Loan on the date specified in any
notice  delivered  pursuant  hereto  (regardless  of  whether such notice may be
revoked  under  Section 2.10(b)), (d) the failure to borrow any Competitive Loan
after  accepting the Competitive Bid to make such Loan, or (e) the assignment of
any  Eurodollar  Loan  or  Fixed  Rate  Loan  other  than on the last day of the
Interest  Period  applicable  thereto  as  a result of a request by the Borrower
pursuant to Section 2.18, then, in any such event, the Borrower shall compensate
     each  Lender for the loss, cost and expense attributable to such event.  In
the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be
deemed  to include an amount determined by such Lender to be the excess, if any,
of  (i)  the amount of interest which would have accrued on the principal amount
of  such  Loan had such event not occurred, at the Adjusted LIBO Rate that would
have been applicable to such Loan, for the period from the date of such event to
the  last day of the then current Interest Period therefor (or, in the case of a
failure  to borrow, convert or continue, for the period that would have been the
Interest  Period  for  such  Loan), over (ii) the amount of interest which would
accrue  on such principal amount for such period at the interest rate which such
Lender  would bid were it to bid, at the commencement of such period, for dollar
deposits  of  a  comparable amount and period from other banks in the eurodollar
market.  A  certifi-cate  of any Lender setting forth any amount or amounts that
such  Lender  is entitled to receive pursuant to this Section shall be delivered
to  the  Borrower  and  shall be conclusive absent manifest error.  The Borrower
shall  pay such Lender the amount shown as due on any such certificate within 10
days  after  receipt  thereof.
SECTION  1.07.     Taxes.  (a)  Any  and  all  payments  by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and without
deduction  for  any  Indemnified  Taxes  or  Other  Taxes;  provided that if the
Borrower  shall  be required to deduct any Indemnified Taxes or Other Taxes from
such  payments, then (i) the sum payable shall be increased as necessary so that
after  making  all  required  deductions  (including  deductions  applicable  to
additional  sums payable under this Section) the Administrative Agent, Lender or
Issuing  Bank  (as the case may be) receives an amount equal to the sum it would
have  received  had  no  such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant  Governmental  Authority  in  accordance  with  applicable  law.

     (b)     In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental  Authority  in  accordance  with  applicable  law.

     (c)     The  Borrower shall indemnify the Administrative Agent, each Lender
and the Issuing Bank, within 10 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent,
such  Lender  or the Issuing Bank, as the case may be, on or with respect to any
payment  by or on account of any obligation of the Borrower hereunder (including
Indemnified  Taxes  or  Other  Taxes  imposed  or asserted on or attributable to
amounts  payable  under this Section) and any penalties, interest and reasonable
expenses  arising  therefrom  or  with  respect  thereto,  whether  or  not such
Indemnified  Taxes  or Other Taxes were correctly or legally imposed or asserted
by  the relevant Governmental Authority.  A certificate as to the amount of such
payment  or liability delivered to the Borrower by a Lender or the Issuing Bank,
or by the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing  Bank,  shall  be  conclusive  absent  manifest  error.

     (d)     As  soon  as  practicable after any payment of Indemnified Taxes or
Other  Taxes  by  the  Borrower  to a Governmental Authority, the Borrower shall
deliver  to  the  Administrative  Agent  the  original  or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the  return  reporting such payment or other evidence of such payment reasonably
satisfactory  to  the  Administrative  Agent.

     (e)     Any  Foreign  Lender  that  is  entitled  to  an  exemption from or
reduction  of  withholding  tax  under  the law of the jurisdiction in which the
Borrower  is  located, or any treaty to which such jurisdiction is a party, with
respect  to  payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable
law  or  reasonably requested by the Borrower as will permit such payments to be
made  without  withholding  or  at  a  reduced  rate.
SECTION  1.08.     Payments  Generally; Pro Rata Treatment; Sharing of Set-offs.
                   -------------------------------------------------------------
(a)  The  Borrower  shall  make each payment required to be made by it hereunder
(whether  of  principal, interest, fees or reimbursement of LC Disbursements, or
of  amounts  payable  under  Section  2.14, 2.15 or 2.16, or otherwise) prior to
12:00  noon, Houston, Texas time, on the date when due, in immediately available
funds, without set-off or counterclaim.  Any amounts received after such time on
     any  date  may, in the discretion of the Administrative Agent, be deemed to
have  been  received  on  the  next  succeeding  Business  Day  for  purposes of
calculating  interest  thereon.  All  such  payments  shall  be  made  to  the
Administrative  Agent  at its offices at 712 Main Street, Houston, Texas, except
payments  to  be  made directly to the Issuing Bank as expressly provided herein
and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be
made  directly  to  the  Persons  entitled  thereto. If the Administrative Agent
receives  a  payment  for  the account of a Lender prior to 12:00 noon, Houston,
Texas  time, such payment must be delivered to the Lender on the same day and if
it  is  not  so  delivered  due  to  the  fault of the Administrative Agent, the
Administrative  Agent  shall  pay to the Lender entitled to the payment interest
thereon  for  each  day  after  payment  should have been received by the Lender
pursuant  hereto  until  the  Lender  receives  payment,  at  the greater of the
Federal  Funds  Effective Rate and a rate determined by the Administrative Agent
in  accordance  with  banking  industry rules on interbank compensation.  If any
payment hereunder shall be due on a day that is not a Business Day, the date for
payment  shall be extended to the next succeeding Business Day, and, in the case
of  any  payment  accruing  interest,  interest thereon shall be payable for the
period  of  such  extension.  All  payments  hereunder shall be made in Dollars.

     (b)     If  at any time insufficient funds are received by and available to
the  Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be applied
(i)  first,  towards  payment  of  interest and fees then due hereunder, ratably
among  the  parties  entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal
and  unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements  then  due  to  such  parties.

     (c)     If  any  Lender  shall,  by  exercising  any  right  of  set-off or
counterclaim  or  otherwise,  obtain  payment  in respect of any principal of or
interest  on  any  of  its Revolving Loans or participations in LC Disbursements
resulting  in  such  Lender  receiving  payment  of  a greater proportion of the
aggregate  amount  of its Revolving Loans and participations in LC Disbursements
and  accrued  interest thereon than the proportion received by any other Lender,
then  the  Lender  receiving such greater proportion shall purchase (for cash at
face  value)  participations  in  the  Revolving  Loans and participations in LC
Disbursements  of  other  Lenders to the extent necessary so that the benefit of
all  such payments shall be shared by the Lenders ratably in accordance with the
aggregate  amount  of  principal  of  and  accrued  interest on their respective
Revolving Loans and participations in LC Disbursements; provided that (i) if any
                                                        --------
such  participations  are purchased and all or any portion of the payment giving
rise  thereto  is  recovered,  such  participations  shall  be rescinded and the
purchase  price  restored  to the extent of such recovery, without interest, and
(ii)  the  provisions  of  this paragraph shall not be construed to apply to any
payment  made  by  the  Borrower  pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the  assignment  of  or  sale  of  a  participation  in  any  of  its  Loans  or
participations in LC Disbursements to any assignee or participant, other than to
the  Borrower or any Subsidiary or Affiliate thereof (as to which the provisions
of  this  paragraph  shall  apply).  The  Borrower consents to the foregoing and
agrees,  to  the  extent it may effectively do so under applicable law, that any
Lender  acquiring  a  participation  pursuant  to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect to
such  participation  as  fully  as  if such Lender were a direct creditor of the
Borrower  in  the  amount  of  such  participation.

     (d)     Unless the Administrative Agent shall have received notice from the
Borrower  prior  to  the  date on which any payment is due to the Administrative
Agent  for  the  account  of  the Lenders or the Issuing Bank hereunder that the
Borrower  will  not  make such payment, the Administrative Agent may assume that
the  Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the Issuing Bank,
as  the  case may be, the amount due.  In such event, if the Borrower has not in
fact  made  such  payment,  then each of the Lenders or the Issuing Bank, as the
case  may be, severally agrees to repay to the Administrative Agent forthwith on
demand  the  amount  so distributed to such Lender or Issuing Bank with interest
thereon,  for each day from and including the date such amount is distributed to
it  to  but  excluding  the  date of payment to the Administrative Agent, at the
greater  of  the  Federal  Funds  Effective  Rate  and  a rate determined by the
Administrative  Agent  in  accordance  with  banking industry rules on interbank
compensation.

     (e)     If any Lender shall fail to make any payment required to be made by
it  pursuant  to  Section  2.05(d)  or  (e),  2.06(b)  or  2.17(d),  then  the
                  ----------------      ---   -------      -------
Administrative  Agent  may,  in  its  discretion  (notwithstanding  any contrary
provision  hereof),  apply any amounts thereafter received by the Administrative
Agent  for the account of such Lender to satisfy such Lender's obligations under
such  Sections  until  all  such  unsatisfied  obligations  are  fully  paid.
SECTION  1.09.     Mitigation  Obligations;  Replacement  of  Lenders.
                   ---------------------------------------------------

(a)     Each  Lender  and the Issuing Bank will notify the Borrower of any event
occurring  after  the  date  of this Agreement which will entitle such Person to
compensation pursuant to Sections 2.12 and 2.14 as promptly as practicable after
                         -------------     ----
it  obtains  knowledge  thereof  and  determines  to  request such compensation,
provided  that  such  Person shall not be liable for the failure to provide such
notice.  If  any  Lender or the Issuing Bank requests compensation under Section
                                                                         -------
2.12,  or  if  the Borrower is required to pay any additional amount to any such
 ---
Person  or  any Governmental Authority for the account of any Lender pursuant to
 -
Section  2.14, then such Lender or the Issuing bank shall use reasonable efforts
 ------------
to  avoid  or  minimize  the amounts payable, including, without limitation, the
designation  of  a different lending office for funding or booking its Loans and
Letters  of  Credit  hereunder  or  the assignment of its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of  such  Lender  or  the Issuing Bank, such designation or assignment (i) would
eliminate  or  reduce  amounts  payable pursuant to Section 2.12 or 2.14, as the
                                                    --------------------
case may be, in the future and (ii) would not subject such Lender or the Issuing
Bank  to  any  unreimbursed  cost  or  expense  and  would  not  otherwise  be
disadvantageous  to  such Lender or the Issuing Bank. The Borrower hereby agrees
to  pay  all reasonable and documented costs and expenses incurred by any Lender
or  the  Issuing  Bank  in  connection  with any such designation or assignment.

     (b)     If  any  Lender requests compensation under Section 2.12, or if the
                                                         ------------
Borrower  is  required  to  pay  any  additional  amount  to  any  Lender or any
Governmental  Authority  for the account of any Lender pursuant to Section 2.14,
                                                                   ------------
or  if  any  Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative  Agent,  require  such  Lender  to  assign  and delegate, without
recourse  (in  accordance  with  and  subject  to  the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
      ------
an  assignee  that  shall assume such obligations (which assignee may be another
Lender,  if  a  Lender  accepts such assignment); provided that (i) the Borrower
                                                  --------
shall  have received the prior written consent of the Administrative Agent (and,
if  a  Commitment  is being assigned, the Issuing Bank), which consent shall not
unreasonably  be  withheld,  (ii)  such Lender shall have received payment of an
amount  equal to the outstanding principal of its Loans and participations in LC
Disbursements,  accrued  interest  thereon,  accrued  fees and all other amounts
payable  to  it  hereunder, from the assignee (to the extent of such outstanding
principal  and  accrued  interest  and fees) or the Borrower (in the case of all
other  amounts),  and  (iii) in the case of any such assignment resulting from a
claim  for  compensation  under  Section  2.12  or  payments required to be made
                                 -------------
pursuant  to  Section  2.14,  such assignment will result in a reduction in such
              -------------
compensation  or  payments.  A  Lender  shall  not  be required to make any such
assignment  and  delegation  if,  prior thereto, as a result of a waiver by such
Lender  or  otherwise,  the circumstances entitling the Borrower to require such
assignment  and  delegation  cease  to  apply.
SECTION  1.10.     Extension.
                   ---------
(a)     Subject  to  the provisions of this Section, the Borrower may extend the
Maturity  Date  of  the  Revolving Loans one (1) time for one (1) year by giving
written  request  therefor (the "Extension Request") to the Administrative Agent
                                 -----------------
of the Borrower's desire to extend such term, at least ninety (90) days prior to
     the  Maturity  Date.
(b)     If  the Maturity Date is extended, all of the other terms and conditions
of  this  Agreement  and  the  other  Loan Documents (including interest payment
dates) shall remain in full force and effect and unmodified, except as expressly
provided  for  herein.  The  extension  of  the  Maturity Date is subject to the
satisfaction  of  each  of  the  following  additional  conditions:
(i)     The  representations  and  warranties  of each Credit Party set forth in
this  Agreement  or  any  other  Loan  Document  to which such Credit Party is a
signatory  shall  be  true and correct in all material respects on the date that
the  Extension Request is given to the Administrative Agent and on the first day
of  the  extension  (except  to  the  extent such representations and warranties
relate  to  a  specified  date);
(ii)     no  Default  or  Event of Default has occurred and is continuing on the
date  on which the Borrower gives the Administrative Agent the Extension Request
or  on  the  first  day  of  the  extension;
(iii)     the  Borrower  shall  be  in  compliance  with  all  of  the financial
covenants set forth in Article VI hereof both on the date on which the Extension
                       ----------
Request  is  given  to  the  Administrative  Agent  and  on the first day of the
extension;
(iv)     the  Borrower  shall  have paid to the Administrative Agent all amounts
then  due  and  payable  to  any  of  the  Lenders,  the  Issuing  Bank  and the
Administrative  Agent  under  the  Loan  Documents,  including the extension fee
described  in  Section  2.11(e)  hereof;
               ----------------
(v)     the  Borrower  shall  pay for any and all reasonable out-of-pocket costs
and  expenses, including, reasonable attorneys' fees and disbursements, incurred
by  the  Administrative Agent in connection with or arising out of the extension
of  the  Maturity  Date;
(vi)     no  change in the business, assets, management, operations or financial
condition  of any Credit Party shall have occurred since the most recent funding
of  any  Loan,  which  change, in the judgment of the Administrative Agent, will
have  or  is  reasonably  likely  to  have  a  Material  Adverse  Effect;
(vii)     the  Borrower  shall  execute and deliver to Administrative Agent such
other  documents,  financial  statements, instruments, certificates, opinions of
counsel,  reports,  or  amendments  to  the Loan Documents as the Administrative
Agent  shall  reasonably  request  regarding  the  Credit  Parties  as  shall be
necessary  to  effect  such  extension;  and
(viii)     a  written  agreement  evidencing  the  extension  is  signed  by the
Administrative Agent, the Lenders, the Credit Parties and any other Person to be
charged with compliance therewith, which agreement such parties agree to execute
if  the  extension  conditions  set  forth  above  have  been  satisfied.
ARTICLE  II

Representations  and  Warranties

     The  Borrower  represents  and  warrants to the Lenders, the Administrative
Agent  and  the  Issuing  Bank  that:
SECTION  2.01.     Organization;  Powers.  Each  Credit Party is duly organized,
                   ----------------------
validly  existing and in good standing under the laws of the jurisdiction of its
organization,  has all requisite power and authority to carry on its business as
now  conducted  and,  except  where the failure to do so, individually or in the
aggregate,  could  not  reasonably  be  expected to result in a Material Adverse
Effect,  is  qualified  to  do  business  in,  and is in good standing in, every
juris-diction  where  such  qualification  is  required.
SECTION  2.02.     Authorization;  Enforceability.  The  Transactions are within
the  corporate,  partnership or limited liability company powers (as applicable)
of  the respective Credit Parties and have been duly authorized by all necessary
corporate,  partnership or limited liability company action.  This Agreement and
the  Loan  Documents  have been duly executed and delivered by each Credit Party
which  is a party thereto and constitute the legal, valid and binding obligation
of  each  such  Person,  enforceable  in  accordance  with its terms, subject to
applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or other laws
affecting  creditors'  rights  generally  and  subject  to general principles of
equity,  regardless  of  whether considered in a proceeding in equity or at law.
SECTION 2.03.     Governmental Approvals; No Conflicts.  The Transactions (a) do
not  require  any  consent  or  approval of, registration or filing with, or any
other  action  by, any Governmental Authority, except such as have been obtained
or  made  and  are in full force and effect, (b) will not violate any applicable
law  or  regulation or the charter, by-laws or other organizational documents of
any  Credit  Party  or  any  of  the Borrower's Subsidiaries or any order of any
Governmental  Authority,  (c)  will not violate or result in a default under any
indenture, agreement or other instrument binding upon any Credit Party or any of
the Borrower's Subsidiaries or its assets, or give rise to a right thereunder to
require  any  payment  to  be  made by any Credit Party or any of the Borrower's
Subsidiaries,  and (d) will not result in the creation or imposition of any Lien
on  any  asset  of  any  Credit  Party  or  any  of the Borrower's Subsidiaries.
SECTION  2.04.     Financial  Condition;  No Material Adverse Change.   (a)  The
Borrower  has heretofore furnished to the Lenders financial statements (i) as of
and  for  the  fiscal  year  ended  December 31, 1999, reported on by Deloitte &
Touche  LLP,  independent  public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended June 30, 2000, certified by its
chief  financial  officer.  Such  financial  state-ments  present fairly, in all
material  respects,  the  financial  position and results of operations and cash
flows of the Borrower and its consolidated Subsidiaries as of such dates and for
such  periods in accordance with GAAP, subject to year-end audit adjustments and
the  absence  of  footnotes  in the case of the statements referred to in clause
(ii)  above.

     (b)     Since  June  30, 2000, there has been no material adverse change in
the  business,  assets,  operations,  prospects  or  condition,  financial  or
otherwise,  of  the  Borrower  and  its  Subsidiaries,  taken  as  a  whole.
SECTION  2.05.     Properties.  (a)  Subject to Liens permitted by Section 6.02,
                   -----------
each  of  the  Borrower  and  its  Subsidiaries has title to, or valid leasehold
interests  in,  all  its  real  and  personal property material to its business,
except  for  minor  defects  in  title that do not interfere with its ability to
conduct  its  business  as currently conducted or to utilize such properties for
their  intended  purposes.

     (b)     Each  of  the Borrower and its Subsidiaries owns, or is licensed to
use,  all  trademarks,  tradenames,  copyrights,  patents and other intellectual
property  material  to  the  Borrower's  business,  and  the  use thereof by the
Borrower  and  its  Subsidiaries  does not infringe upon the rights of any other
Person,  except  for  any  such  infringements  that,  individually  or  in  the
aggregate,  could  not  reasonably  be  expected to result in a Material Adverse
Effect.

(c)     All  components  of  all  improvements included within the Real Property
owned  or leased, as lessee, by any Credit Party, including, without limitation,
the  roofs  and  structural  elements  thereof and the heating, ventilation, air
conditioning, plumbing, electrical, mechanical, sewer, waste water, storm water,
paving  and  parking  equipment, systems and facilities included therein, are in
good  working  order  and  repair,  subject  to  such  exceptions  which are not
reasonably  likely  to  have,  in the aggregate, a Material Adverse Effect.  All
water,  gas,  electrical, steam, compressed air, telecommunication, sanitary and
storm  sewage  lines  and  systems  and  other  similar systems serving the Real
Property owned or leased by any Credit Party are installed and operating and are
sufficient  to  enable  the Real Property to continue to be used and operated in
the  manner  currently  being  used  and  operated,  and no Credit Party has any
knowledge of any factor or condition that reasonably could be expected to result
in  the termination or material impairment of the furnishing thereof, subject to
such  exceptions  which  are  not  likely  to have, in the aggregate, a Material
Adverse  Effect.  No improvement or portion thereof is dependent for its access,
operation  or utility on any land, building or other improvement not included in
the  Real  Property  owned  or leased by the Borrower or its Subsidiaries, other
than  for  access provided pursuant to a recorded easement or other right of way
establishing  the  right of such access subject to such exceptions which are not
likely  to  have,  in  the  aggregate,  a  Material  Adverse  Effect.

     (d)     All  franchises,  licenses,  authorizations,  rights  of  use,
governmental  approvals and permits (including all certificates of occupancy and
building  permits)  required  to  have  been issued by Governmental Authority to
enable  all Real Property owned or leased by Borrower or any of its Subsidiaries
to  be operated as then being operated have been lawfully issued and are in full
force  and effect, other than those which the failure to obtain in the aggregate
could  not  be reasonably expected to have a Material Adverse Effect.  No Credit
Party  is  in  violation  of  the  terms  or  conditions of any such franchises,
licenses,  authorizations,  rights  of  use, governmental approvals and permits,
which  violation would reasonably be expected to have a Material Adverse Effect.

     (e)     None  of  the  Credit  Parties  has  received any notice or has any
knowledge,  of  any  pending, threatened or contemplated condemnation proceeding
affecting  any  Real  Property  owned  or  leased  by  Borrower  or  any  of its
Subsidiaries  or  any part thereof, or any proposed termination or impairment of
any  parking  at  any such owned or leased Real Property or of any sale or other
disposition  of  any  Real  Property  owned  or leased by Borrower or any of its
Subsidiaries  or  any  part  thereof  in  lieu  of  condemnation,  which  in the
aggregate,  are  reasonably  likely  to  have  a  Material  Adverse  Effect.

     (f)     Except  for  events or conditions not reasonably likely to have, in
the  aggregate,  a  Material Adverse Effect, (i) no portion of any Real Property
owned or leased by Borrower or any of its Subsidiaries has suffered any material
damage  by  fire or other casualty loss which has not heretofore been completely
repaired  and  restored  to  its  condition  prior to such casualty, and (ii) no
portion  of  any  Real  Property  owned  or  leased  by  Borrower  or any of its
Subsidiaries  is  located  in  a  special flood hazard area as designated by any
federal  Government Authorities or any area identified by the insurance industry
or  other  experts  acceptable  to the Administrative Agent as an area that is a
high  probable  earthquake  or  seismic  area,  except  as set forth on Schedule
                                                                        --------
3.05(f).
      -
SECTION 2.06.     Intellectual Property.  To the knowledge of each Credit Party,
                  ---------------------
     such Credit Party owns, or is licensed to use, all trademarks, trade names,
copyrights,  patents  and  other intellectual property material to its business,
and  the  use  thereof by such Credit Party does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the
aggregate,  could  not  reasonably  be  expected to result in a Material Adverse
Effect.  To the knowledge of each Credit Party, there are no material slogans or
other  advertising  devices,  projects, processes, methods, substances, parts or
components,  or other material now employed, or now contemplated to be employed,
by  any  Credit Party with respect to the operation of any Real Property, and no
claim  or  litigation  regarding  any  slogan  or  advertising  device, project,
process, method, substance, part or component or other material employed, or now
contemplated  to  be employed by any Credit Party, is pending or threatened, the
outcome of which could reasonably be expected to have a Material Adverse Effect.
SECTION  2.07.     Litigation  and  Environmental  Matters.  (a)  There  are  no
actions,  suits  or  proceedings  by  or  before  any arbitrator or Governmental
Authority  pending  against  or,  to  the  knowledge of the Borrower, threatened
against  or affecting any Credit Party or any of the Borrower's Subsidiaries (i)
as  to  which there is a reasonable possi-bility of an adverse determination and
that, if adversely deter-mined, could reasonably be expected, individually or in
the  aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters)  or  (ii)  that  involve  this  Agreement  or  the  Transactions.

     (b)     Except  for  the  Disclosed  Matters and except with respect to any
other  matters  that,  individually or in the aggregate, could not reasonably be
expected  to  result  in  a  Material  Adverse  Effect  :

(i)     to  the  knowledge  of  the  Credit Parties, all Real Property leased or
owned  by  Borrower or any of its Subsidiaries is free from contamination by any
Hazardous Material, except to the extent such contamination could not reasonably
be  expected  to  cause  a  Material  Adverse  Effect;

(ii)     to  the knowledge of the Credit Parties, the operations of Borrower and
its  Subsidiaries,  and  the  operations at the Real Property leased or owned by
Borrower  or  any  of  its  Subsidiaries  are  in compliance with all applicable
Environmental Laws, except to the extent such noncompliance could not reasonably
be  expected  to  cause  a  Material  Adverse  Effect;

(iii)     neither  the  Borrower  nor  any  of  its  Subsidiaries  have  known
liabilities  with  respect  to Hazardous Materials and, to the knowledge of each
Credit Party, no facts or circumstances exist which could reasonably be expected
to give rise to liabilities with respect to Hazardous Materials, in either case,
except to the extent such liabilities could not reasonably be expected to have a
Material  Adverse  Effect;

(iv)     neither the Real Property currently leased or owned by Borrower nor any
of  its  Subsidiaries,  nor,  to  the  knowledge  of  any  Credit Party, (x) any
predecessor  of  any  Credit Party, nor (y) any of Credit Parties' Real Property
owned  or  leased  in  the  past,  nor  (z) any owner of Real Property leased or
operated  by Borrower or any of its Subsidiaries, are subject to any outstanding
written  order  or contract, with any Governmental Authority or other Person, or
to  any  federal,  state, local, foreign or territorial investigation of which a
Credit  Party  has  been  given  notice  respecting  (A) Environmental Laws, (B)
Remedial  Action,  or  (C)  the  Release  or threatened Release of any Hazardous
Material,  in  each  case,  except to the extent such written order, contract or
investigation  could  not  reasonably  be  expected  to  have a Material Adverse
Effect;

(v)     none  of  the Credit Parties are subject to any pending legal proceeding
alleging  the  violation  of any Environmental Law nor, to the knowledge of each
Credit Party, are any such proceedings threatened, in either case, except to the
extent  any such proceedings could not reasonably be expected to have a Material
Adverse  Effect;

(vi)     neither  the Borrower nor any of its Subsidiaries nor, to the knowledge
of  each Credit Party, any predecessor of any Credit Party, nor to the knowledge
of  each  Credit  Party, any owner of Real Property leased by Borrower or any of
its  Subsidiaries,  have  filed  any  notice  under  federal,  state  or  local,
territorial  or  foreign  law  indicating past or present treatment, storage, or
disposal  of  or reporting a Release of Hazardous Material into the environment,
in  each case, except to the extent such Release of Hazardous Material could not
reasonably  be  expected  to  have  a  Material  Adverse  Effect;

(vii)     none  of the operations of the Borrower or any of its Subsidiaries or,
to the knowledge of each Credit Party, of any owner of premises currently leased
by  Borrower  or  any of its Subsidiaries or of any tenant of premises currently
leased  from Borrower or any of its Subsidiaries, involve or previously involved
the  generation,  transportation,  treatment,  storage  or disposal of hazardous
waste,  as  defined under 40 C.F.R. Part 261.3 (in effect as of the date of this
Agreement)  or any state, local, territorial or foreign equivalent, in violation
of  Environmental  Laws,  except  to  the  extent  the same could not readily be
expected  to  have  a  Material  Adverse  Effect;  and

(viii)     to  the  knowledge  of  the Credit Parties, there is not now, nor has
there  been  in  the  past  (except,  in  all cases, to the extent the existence
thereof could not reasonably be expected to have a Material Adverse Effect), on,
in  or  under  any  Real  Property  leased  or  owned  by Borrower or any of its
Subsidiaries,  or any of their predecessors (A) any underground storage tanks or
surface  tanks,  dikes  or  impoundments (other than for surface water); (B) any
friable asbestos-containing materials; (C) any polychlorinated biphenyls; or (D)
any  radioactive substances other than naturally occurring radioactive material.

     (c)     Since  the  date of this Agreement, there has been no change in the
status  of  the  Disclosed  Matters  that, individually or in the aggregate, has
resulted  in,  or  materially  increased  the  likelihood of, a Material Adverse
Effect.
SECTION  2.08.     Compliance  with  Laws  and  Agreements.  Each  of the Credit
                   ----------------------------------------
Parties  is  in  compliance  with  all  laws,  regulations  and  orders  of  any
Governmental  Authority  applicable  to  it  or its property and all indentures,
agreements  and  other instruments binding upon it or its property, except where
the  failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.  No Default has occurred and is
     continuing.
SECTION  2.09.     Investment  and  Holding  Company Status.  Neither any of the
Credit  Parties  nor  any  of  the Borrower's Subsidiaries is (a) an "investment
company"  as  defined in, or subject to regulation under, the Investment Company
Act  of 1940 or (b) a "holding company" as defined in, or subject to regula-tion
under,  the  Public  Utility  Holding  Company  Act  of  1935.
SECTION  2.10.     Taxes.  Each  Credit  Party  and  each  of  the  Borrower's
Subsidiaries  that  Borrower Controls has timely filed or caused to be filed all
Tax returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which such Person has
set  aside  on its books adequate reserves or (b) to the extent that the failure
to  do  so  could  not  reasonably  be  expected to result in a Material Adverse
Effect.
SECTION  2.11.     ERISA.  No ERISA Event has occurred or is reasonably expected
to  occur  that,  when taken together with all other such ERISA Events for which
liability  is  reasonably  expected  to  occur,  could reasonably be expected to
result  in  a  Material  Adverse  Effect.  The  present value of all accumulated
benefit  obligations under each Plan (based on the assumptions used for purposes
of  Statement  of Financial Accounting Standards No. 87) did not, as of the date
of  the most recent financial statements reflecting such amounts, exceed by more
than  $10,000,000  the  fair  market  value  of the assets of such Plan, and the
present  value  of  all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards  No.  87)  did  not,  as  of  the  date  of  the most recent financial
statements  reflecting  such  amounts,  exceed by more than $10,000,000 the fair
market  value  of  the  assets  of  all  such  underfunded  Plans.
SECTION  2.12.     Disclosure.  The  Borrower has disclosed or made available to
the  Lenders  all agreements, instruments and corporate or other restrictions to
which it, any other Credit Party, or any of its Subsidiaries is subject, and all
other  matters known to it, that, in the aggregate, could reasonably be expected
to  result  in  a Material Adverse Effect.  Neither the Confidential Information
Memorandum  dated  October  2000  prepared  by  the  Administrative  Agent  in
conjunction  with  the  Borrower,  nor  any  of  the  other  reports,  financial
statements,  certificates  or other information furnished by or on behalf of the
Borrower  to  the  Administrative  Agent  or  any  Lender in connection with the
negotiation  of  this  Agreement  or  delivered  hereunder  (as  modified  or
supplemented  by  other  information  so  furnished)  contains  any  material
misstatement  of  fact or omits to state any material fact necessary to make the
statements  therein,  in  the  light  of the circumstances under which they were
made,  not  misleading;  provided  that,  with  respect  to  projected financial
information,  the Borrower represents only that such information was prepared in
good  faith  based  upon  assumptions  believed  to  be  reasonable at the time.
SECTION  2.13.     Insurance.  Borrower  has provided to Administrative Agent an
insurance  schedule which accurately sets forth, in all material respects, as of
the  Effective Date all insurance policies and programs currently in effect with
respect  to the assets and business of Borrower and its Subsidiaries, specifying
for each such policy and program, (i) the amount thereof, (ii) the risks insured
against  thereby,  (iii)  the  name  of  the  insurer  and  each  insured  party
thereunder,  (iv)  the policy or other identification number thereof and (v) the
expiration  date  thereof.  Such  insurance policies and programs (or such other
similar  policies  as  are  permitted pursuant to Section 5.06) are currently in
full  force  and  effect, and, together with payment by the insured of scheduled
deductible payments, are in amounts sufficient to cover the replacement value of
the  respective  assets  of  the  Borrower  and  its  Subsidiaries.
SECTION  2.14.     Margin  Regulations.  The  Borrower  is  not  engaged  in the
business  of  extending  credit for the purpose of purchasing or carrying margin
stock  (within the meaning of Regulation U issued by the Board), and no proceeds
of  any  Loan  or  Letter of Credit will be used to purchase or carry any margin
stock.
SECTION 2.15.     Subsidiaries.  As of the Effective Date, the Borrower has only
the  Subsidiaries  listed  on  Schedule  3.15  attached  hereto.  Each  of  the
Borrower's  Subsidiaries that is a corporation other than Weingarten Investments
Inc.  is  a  "qualified  REIT  subsidiary"  under  Section  856  of  the  Code.
ARTICLE  III

Conditions
SECTION  3.01.     Effective Date.  The obligations of the Lenders to make Loans
                   ---------------
and  of  the  Issuing Bank to issue Letters of Credit hereunder shall not become
effective  until the date on which each of the following conditions is satisfied
(or  waived  in  accordance  with  Section  9.02):
(a)     The  Administrative Agent (or its counsel) shall have received from each
Credit  Party  either  (i)  a  counterpart  of this Agreement and all other Loan
Documents  to  which  it is party signed on behalf of such party or (ii) written
evidence  satisfactory  to  the Administrative Agent (which may include telecopy
transmission  of  a  signed signature page of each such Loan Document other than
the  Notes)  that  such  party  has  signed a counterpart of the Loan Documents,
together  with  copies  of  all  Loan  Documents.
(b)     The Administrative Agent shall have received a favorable written opinion
(addressed  to  the Administrative Agent and the Lenders and dated the Effective
Date)  of Dow, Cogburn & Friedman, P.C., counsel for the Borrower, covering such
matters  relating  to the Credit Parties, the Loan Documents or the Transactions
as  the Required Lenders shall reasonably request.  The Borrower hereby requests
such  counsel  to  deliver  such  opinion.
(c)     The  Administrative  Agent  shall  have  received  such  documents  and
certificates  as  the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Credit Parties,
the  authorization  of  the Transactions and any other legal matters relating to
the  Credit  Parties,  this  Agreement  or  the  Transactions,  all  in form and
substance  satisfactory  to  the  Administrative  Agent  and  its  counsel.
(d)     The  Administrative  Agent shall have received a Compliance Certificate,
dated  the  date  of  this  Agreement  and  signed by a Financial Officer of the
Borrower,  in  form  and  substance  satisfactory  to  the Administrative Agent.
(e)     The  Administrative Agent shall have received all fees and other amounts
due  and  payable  on  or  prior to the Effective Date, including, to the extent
invoiced,  reimbursement or payment of all out-of-pocket expenses required to be
reimbursed  or  paid  by  the  Borrower  hereunder.

The  Administrative  Agent  shall  notify  the  Borrower  and the Lenders of the
Effective  Date,  and  such  notice  shall  be  conclusive  and  binding.
SECTION  3.02.     Each  Credit  Event.  The obligation of each Lender to make a
                   --------------------
Loan  on the occasion of any Borrowing, and of the Issuing Bank to issue, amend,
renew  or  extend  any  Letter  of Credit, is subject to the satisfaction of the
following  conditions:
(a)     The  representations  and  warranties  of each Credit Party set forth in
this Agreement or in any other Loan Document shall be true and correct on and as
     of  the  date of such Borrowing or the date of issuance, amendment, renewal
or  extension  of  such  Letter  of  Credit,  as  applicable.
(b)     At  the time of and immediately after giving effect to such Borrowing or
the  issuance,  amendment,  renewal  or  extension  of such Letter of Credit, as
applicable,  no  Default  shall  have  occurred  and  be  continuing.
(c)     With  respect  to  (i) any requested Borrowings, the Borrower shall have
complied  with Section 2.03 or Section 2.04, as applicable, and (ii) the request
               ------------    ------------
for  the issuance, amendment, renewal or extension of any Letters of Credit, the
Borrower  shall  have  complied  with  Section  2.05(b).
                                       ----------------

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit  shall  be  deemed  to  constitute  a  representation and warranty by the
Borrower  on  the  date  thereof  as  to  the matters specified in this Section.
ARTICLE  IV

Affirmative  Covenants

     Until  the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in
full  and  all  Letters  of  Credit  shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with
the  Lenders  that:
SECTION  4.01.     Financial  Statements;  Ratings Change and Other Information.
                   -------------------------------------------------------------
The  Borrower  will  furnish  to  the  Administrative  Agent  and  each  Lender:
(a)     within  90  days  after the end of each fiscal year of the Borrower, its
audited  consolidated  balance  sheet  and  related  statements  of  operations,
stockholders'  equity and cash flows as of the end of and for such year, setting
forth in each case in comparative form the figures for the previous fiscal year,
     all  reported  on  by  Deloitte  &  Touche  LLP or other independent public
accountants  of  recognized national standing (without a "going concern" or like
qualification  or exception and without any qualification or exception as to the
scope  of  such audit) to the effect that such consolidated financial statements
present  fairly  in all material respects the financial condition and results of
operations  of  the Borrower and its consolidated Subsidiaries on a consolidated
basis  in  accordance  with  GAAP  consistently  applied;
(b)     within  45 days after the end of each of the first three fiscal quarters
of  each fiscal year of the Borrower, its consolidated balance sheet and related
statements  of  operations, stockholders' equity and cash flows as of the end of
and  for  such  fiscal  quarter and the then elapsed portion of the fiscal year,
setting forth in each case in comparative form the figures for the corresponding
period  or  periods  of (or, in the case of the balance sheet, as of the end of)
the  previous  fiscal  year,  all certified by one of its Finan-cial Officers as
presenting  fairly  in all material respects the financial condition and results
of  operations  of  the  Borrower  and  its  consolidated  Subsidiaries  on  a
consolidated  basis  in  accordance  with GAAP consis-tently applied, subject to
normal  year-end  audit  adjustments  and  the  absence  of  footnotes;
(c)     concurrently  with any delivery of financial statements under clause (a)
or  (b)  above,  a  certificate  of  a  Financial  Officer  of the Borrower (the
"Compliance  Certificate")  in  the  form  of  Exhibit  B  attached  hereto;
        ----------------                       ----------
(d)     promptly  after  the  same  become publicly available for Forms 10-K and
10-Q  described  below, and upon written request for items other than Forms 10-K
and  10-Q  described  below,  copies  of  all  periodic and other reports, proxy
statements  and other materials filed by the Borrower or any Subsidiary with the
Securities  and  Exchange  Commission  (including  registration  statements  and
reports on Form 10-K, 10-Q and 8-K (or their equivalents)), or any Govern-mental
Authority  succeeding to any or all of the functions of said Commission, or with
any  national  securities  exchange,  or  distributed  by  the  Borrower  to its
share-holders  generally,  as  the  case  may  be;
(e)     promptly  after  Moody's  or  S&P  shall  have announced a change in the
rating  established  or  deemed  to  have  been  established for the Index Debt,
written  notice  of  such  rating  change;
(f)     concurrently  with any delivery of financial statements under clause (a)
                                                                      ----------
above  (or  earlier if prepared and completed earlier by the Borrower) a current
capital  plan of the Borrower and its Subsidiaries (based on the Borrower's good
faith  estimates  and  projections)  for  the  next  four  (4) calendar quarters
including  projected  sources  and  uses  of  funds (including dividend and debt
payments);  and
(g)     promptly  following  any  request  therefor,  such  other  information
regarding the operations, business affairs and financial condition of any Credit
Party  or  any  Subsidi-ary of the Borrower, or compliance with the terms of the
Loan  Documents,  as  the  Administrative  Agent  or  any  Lender may reasonably
request.
SECTION  4.02.     Financial  Tests.  The Borrower shall have and maintain, on a
                   ----------------
consolidated  basis  in  accordance  with  GAAP:
(a)     a  Secured  Debt  to Total Asset Value Ratio no greater than thirty-five
percent  (35%)  at  all  times;
(b)     an  Interest  Coverage  Ratio  of  not less than 2.25:1.00 at all times;
(c)     a  Fixed  Charge Coverage Ratio of not less than 1.75:1.00 at all times;
(d)     a  Net  Worth  of  at  least  Nine  Hundred  Fifty  Million  Dollars
($950,000,000),  plus  fifty  percent  (50%) of the net proceeds (gross proceeds
less  reasonable  and  customary  costs of sale and issuance paid to Persons not
Affiliates  of  any  Credit Party) received by the Borrower at any time from the
issuance  of  capital stock of the Borrower after the date of this Agreement, at
all  times;
(e)     an  Unencumbered  Interest  Coverage Ratio of not less than 2.25:1.00 at
all  times;  and
(f)     a  Debt  to  Total  Asset Value Ratio no greater than fifty-five percent
(55%)  at  all  times.
SECTION  4.03.     Notices of Material Events.  The Borrower will furnish to the
                   ---------------------------
Administrative  Agent  and  each Lender written notice of the following promptly
after  it  becomes  aware  of  same:
(a)     the  occurrence  of  any  Default;
(b)     the  filing  or  commencement  of  any  action, suit or proceeding by or
before  any arbitrator or Governmental Authority against or affecting any Credit
Party  or  any Affiliate thereof that, if adversely determined, could reasonably
be  expected  to  result  in  a  Material  Adverse  Effect;
(c)     the occurrence of any ERISA Event that, alone or together with any other
ERISA  Events  that  have  occurred,  could  reasonably be expected to result in
liability  of the Borrower and its Subsidiaries in an aggregate amount exceeding
$10,000,000;  and
(d)     any  other  development that results in, or could reasonably be expected
to  result  in,  a  Material  Adverse  Effect.

Each  notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details  of  the event or development requiring such notice and any action taken
or  proposed  to  be  taken  with  respect  thereto.
SECTION  4.04.     Existence;  Conduct of Business.  The Borrower will, and will
                   --------------------------------
cause  each  of its Subsidiaries that it Controls to, do or cause to be done all
things  necessary to preserve, renew and keep in full force and effect its legal
existence  and the rights, licenses, permits, privileges and franchises material
to  the  conduct of its business; provided that the foregoing shall not prohibit
any  merger,  consolidation,  liquidation or dissolution permitted under Section
6.03.  The  Borrower  will  maintain  at least one class of common shares of the
Borrower  having  trading  privileges  on  the  New  York  Stock  Exchange.
SECTION  4.05.     Payment  of  Obligations.  The  Borrower will, and will cause
each  of  its  Subsidiaries that it Controls to, pay its obliga-tions, including
Tax  liabilities,  that,  if not paid, could result in a Material Adverse Effect
before  the  same  shall  become  delinquent or in default, except where (a) the
validity  or  amount  thereof  is  being contested in good faith by appropri-ate
proceedings,  (b)  the  Borrower  or  such Subsidiary has set aside on its books
adequate  reserves  with  respect  thereto  in  accordance with GAAP and (c) the
failure to make payment pending such contest could not reasonably be expected to
result  in  a  Material  Adverse  Effect.
SECTION  4.06.     Maintenance of Properties; Insurance.  The Borrower will, and
will  cause  each of its Subsidiaries that it Controls to, (a) keep and maintain
all  property  material to the conduct of its business in good working order and
condition,  ordinary  wear and tear excepted, and (b) maintain, with financially
sound  and  reputable insurance companies, insurance in such amounts and against
such  risks  as are set forth in the schedule provided pursuant to Section 3.13,
or  as  are  customarily  maintained by companies engaged in the same or similar
businesses  operating  in  the  same  or  similar  locations.
SECTION  4.07.     Books  and  Records;  Inspection  Rights.
(a)     The  Borrower  will,  and  will  cause  each of its Subsidiaries that it
Controls  to,  keep  proper  books of record and account in which full, true and
correct  entries  are  made  of all dealings and transactions in relation to its
business  and  activities.
(b)     The  Borrower  will,  and  will  cause  each of its Subsidiaries that it
Controls  to,  permit any representatives designated by the Administrative Agent
or any Lender, upon reasonable prior notice and subject to rights of tenants, to
visit  and  inspect  its properties, to examine and make extracts from its books
and  records,  and  to  discuss  its  affairs,  finances  and condition with its
officers  and independent accountants, all at such reasonable times and as often
as  reasonably  requested.
SECTION  4.08.     Compliance with Laws.  The Borrower will, and will cause each
                   --------------------
of  its  Subsidiaries  that  it  Controls  to,  comply  with  all  laws,  rules,
regulations and orders of any Governmental Authority (a) applicable to it or its
     property,  except  where  the  failure  to  do  so,  individually or in the
aggregate,  could  not  reasonably  be  expected to result in a Material Adverse
Effect,  and  (b)  required  to  maintain,  and will at all times qualify as and
maintain,  its  status as a real estate investment trust under Section 856(c)(1)
of  the  Code.
SECTION  4.09.     Use  of  Proceeds and Letters of Credit.  The proceeds of the
Loans  will  be  used  for  general  corporate  purposes  including acquisition,
development  and  enhancement  of Real Property.  No part of the proceeds of any
Loan  will  be  used,  whether directly or indirectly, for financing, funding or
completing the hostile acquisition of publicly traded Persons or for any purpose
that  entails  a  violation  of  any  of the Regulations of the Board, including
Regulations  G,  U  and  X.
SECTION  4.10.     Fiscal  Year.  Borrower shall maintain as its fiscal year the
twelve  (12)-month  period  ending  on  December  31  of  each  year.
SECTION  4.11.     Environmental  Matters.
(a)     Borrower  shall  comply and shall cause each of its Subsidiaries that it
Controls and each Real Property owned or leased by such parties to comply in all
     material  respects  with  all  applicable  Environmental  Laws currently or
hereafter  in effect, except to the extent noncompliance could not reasonably be
expected  to  have  a  Material  Adverse  Effect.
(b)     If  the  Administrative Agent or the Required Lenders at any time have a
reasonable  basis  to  believe  that  there  may  be a material violation of any
Environmental  Law  related  to any Real Property owned or leased by Borrower or
any of its Subsidiaries that it Controls, or Real Property adjacent to such Real
Property, which could reasonably be expected to have a Material Adverse Effect ,
then Borrower agrees, upon request from the Administrative Agent, to provide the
Administrative  Agent,  at  the  Borrower's  expense,  with  such  reports,
certificates,  engineering  studies  or  other  written  material or data as the
Administrative  Agent  or  the  Required Lenders may reasonably require so as to
reasonably  satisfy  the  Administrative Agent and the Required Lenders that any
Credit  Party or Real Property owned or leased by them is in material compliance
with  all  applicable  Environmental  Laws.
(c)     Borrower  shall,  and  shall  cause  each  of  its  Subsidiaries that it
Controls  to,  take  such  Remedial  Action  or  other  action  as  required  by
Environmental  Law  or  any  Governmental  Authority
SECTION 4.12.     Property Pool.  A.  The Borrower will at all times own (in fee
                  --------------
     simple title, through an Eligible Ground Lease, or (subject to Subsection C
below)  in a Subsidiary of Borrower) a pool (the "Pool") of Real Property assets
that are not subject to a Lien in any manner, other than Permitted Encumbrances,
with an aggregate Value equal to at least one hundred eighty-five percent (185%)
of  the Borrower's Indebtedness other than Secured Debt outstanding from time to
time,  with  the  following  characteristics:
(a)     assets  in  the Pool shall be completed income producing Retail Property
or  Industrial Property with parking consistent with market conditions that will
accommodate  full  occupancy  of the building; provided, however, that the River
Pointe  Apartment  project  in  Conroe,  Texas may be included in the Pool if it
satisfies  the  other  requirements  of  this  section,  and  its Value shall be
determined  using  a  Capital Expenditure Reserve of $200.00 per apartment unit;
(b)     each  individual  property must have signed leases with bonafide tenants
not  Affiliates  of  the  Borrower  or any of its Subsidiaries covering at least
eighty  percent (80%) of the net rentable space in such property, as of the date
of  determination  of  the  Value  of  the  Pool;
(c)     (i)  except for the property listed on Schedule 5.12(c) attached hereto,
                                               ----------------
the  Borrower  must have received Phase I environmental reports from third party
independent  consultants  for each property in, or to be added to, the Pool that
do  not  disclose  any  adverse  material environmental conditions, and (ii) the
Borrower must be able to make the representations and warranties in Section 3.05
                                                                    ------------
as  to  each  property  in,  or  to  be  added  to,  the  Pool;
(d)     the  property  is  not  subject to or affected by any limiting agreement
described  in  Section  6.08(a);  and
               ----------------
(e)     the  Occupancy  Level  of  the  Pool  in  the aggregate must be at least
eighty-five  percent  (85%)  as of the date of determination of the Value of the
Pool.

As  of  the  Effective  Date  the  Real Property assets included in the Pool are
listed  on  Schedule  5.12.A  attached  hereto.
            ----------------

If  requested  by  the  Administrative  Agent,  the Borrower will provide to the
Administrative  Agent  written  assessments  from  third  party  independent
environmental  consultants  for  all  Pool properties acquired after the date of
this  Agreement.  If the Administrative Agent determines that there are material
environmental conditions existing on or risks to such properties, the properties
will  be  excluded  from  the  Pool.

     B.     Notwithstanding the foregoing, at all times the maximum value of the
            -----------------------------
Pool  that  consists of Eligible Ground Leases is ten percent (10%) of the value
of  the  Pool.

     C.     Real  Property  to  be  included  in  the  Pool  may  be  owned by a
Subsidiary  of  the  Borrower  if:

          (a)     it  is  owned  by  either (i) a wholly owned Subsidiary of the
Borrower,  or  (ii)  if  not a wholly owned Subsidiary then (1) the value of the
Real  Property  owned by such Subsidiary ("Partial Subsidiary Real Property") to
be  used in the calculation of the Value of the Pool shall be as provided in the
definition  of Value multiplied by the Equity Percentage of the Subsidiary owned
by  the  Borrower,  (2)  the  maximum value of the Pool that consists of Partial
Subsidiary  Real  Property cannot be greater than ten percent (10%) of the value
of  the  Pool,  and (3) the Borrower must own at least 66-2/3% of the indicia of
ownership of such Subsidiary and control all major decisions of such Subsidiary;
and

          (b)     the  Subsidiary  owning  the Real Property executes a guaranty
and  delivers  to  the  Administrative  Agent  such  Subsidiary's organizational
documents  and current certificates of existence and good standing for the state
in  which  it  is  organized.

     D.     If the Borrower requests inclusion of assets in the Pool that do not
meet  the requirements of this Section, then such assets may only be included in
the  Pool  upon  the  prior  written approval of the Required Lenders; provided,
however that the requirements of Section 5.12.C(b) may not be waived without the
                                 -----------------
prior  written  approval  of  all  of  the  Lenders.
SECTION  4.13.     Guaranties.  In  addition  to  any  Guaranty  required  to be
                   -----------
executed  pursuant to Section 5.12, each wholly owned Subsidiary of Borrower now
or  hereafter  in  existence that (a) is not a special purpose entity, or formed
solely  to  own  an interest in a special purpose entity, formed to own a single
asset  or  group  of assets in a bankruptcy remote manner, and (b) owns material
unencumbered  assets  (as  determined by the Administrative Agent), must execute
and  deliver to the Administrative Agent a Guaranty (within forty-five (45) days
after  the calendar quarter when the Subsidiary was formed or otherwise acquired
for  Subsidiaries  formed or otherwise acquired after the Effective Date).  Each
Guaranty  executed pursuant to Section 5.12 must remain in full force and effect
so  long as the related Real Property is included in the calculation of Value of
the Pool.  Notwithstanding the foregoing SPM/WRI Overland Park, L.P. will not be
     a  Guarantor  unless  it is still a wholly owned Subsidiary of Borrower one
hundred twenty (120) days after the date of this Agreement.  If SPM/WRI Overland
Park,  L.P. is required to become a Guarantor it will then comply with the terms
of  this  Agreement  to  become a Guarantor within one hundred thirty (130) days
after  the  date  of  this  Agreement.
SECTION  4.14.     Further  Assurances.At  any  time  upon  the  request  of the
Administrative  Agent,  Borrower  will,  promptly  and  at its expense, execute,
acknowledge  and  deliver such further documents and perform such other acts and
things  as the Administrative Agent may reasonably request to evidence the Loans
made  hereunder  and  interest  thereon  in  accordance  with  the terms of this
Agreement.

ARTICLE  I

Negative  Covenants

     Until  the  Commitments have expired or terminated and the principal of and
interest  on  each  Loan and all fees   payable hereunder have been paid in full
and  all  Letters  of Credit have expired or terminated and all LC Disbursements
shall  have  been reimbursed, the Borrower covenants and agrees with the Lenders
that:
SECTION  1.01.     Indebtedness.  The Borrower will not, and will not permit any
                   -------------
Subsidiary  to,  create, incur, assume or permit to exist any  Secured Debt, not
including  (a)  Non-recourse  Debt and (b) liabilities customarily excepted from
nonrecourse  mortgage  financing, including, without limitation, fraud, criminal
activity,  misapplication  of funds, ad valorem taxes and environmental matters,
exceeding  $125,000,000  at  any  time  outstanding.
SECTION  1.02.     Liens.  The Borrower will not create, incur, assume or permit
to  exist  any  Lien on any property or asset now owned or hereafter acquired by
it,  or assign or sell any income or revenues (including accounts receivable) or
rights  in  respect  of  any  thereof,  except:
(a)     Permitted  Encumbrances;
(b)     any  Lien  on  any  property  or asset of the Borrower or any Subsidiary
existing  on  the  date hereof and set forth in Schedule 6.02; provided that (i)
                                                -------------  --------
such  Lien shall not apply to any other property or asset of the Borrower or any
Subsidiary  and  (ii)  such  Lien  shall secure only those obligations  (whether
present  or  future)  set  forth in the governing loan documents, as of the date
hereof  and  extensions,  renewals and replacements thereof that do not increase
the  outstanding  principal  amount  thereof;  and
(c)     any  Lien  securing  Indebtedness  permitted  under  Section  6.01.
                                                             --------------
SECTION  1.03.     Fundamental Changes.  (a) The Borrower will not, and will not
                   -------------------
permit  any  Subsidiary  to, merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or sell, transfer,
     lease  or  otherwise  dispose  of  (in  one  transaction  or in a series of
transactions)  all  or  substantially  all of the assets of the Borrower and its
Subsidiaries  when taken as a whole, or all or substantially all of the stock of
its  Subsidiaries  when  taken  as  a  whole (in each case, whether now owned or
here-after  acquired),  or  liquidate  or  dissolve, except that, if at the time
thereof  and  immediately  after  giving  effect  thereto  no Default shall have
occurred  and  be continuing (i) any Person may merge into, or consolidate with,
the  Borrower  in  a  transaction  in  which  the  Borrower  is  the  surviving
corporation,  (ii)  any Person not a Credit Party may merge into, or consolidate
with,  any  Subsidiary  in  a  transaction  in  which  the surviving entity is a
Subsidiary, (iii) any Subsidiary not a Credit Party may sell, transfer, lease or
otherwise  dispose  of its assets to the Borrower or to another Subsidiary, (iv)
any  Subsidiary  not  a  Credit  Party may liquidate or dissolve if the Borrower
determines  in  good  faith  that such liquidation or dissolution is in the best
interests  of the Borrower and is not materially disadvantageous to the Lenders,
(v)  any Subsidiary which is a Credit Party may merge into (or consolidate with)
or liquidate or dissolve into, any other Subsidiary which is a Credit Party, and
(vi)  any  Subsidiary  which  is  a  Credit  Party  may sell, transfer, lease or
otherwise  dispose of its assets to Borrower or to any other Subsidiary which is
a  Credit  Party; provided that any such merger involving a Person that is not a
wholly  owned Subsidiary immediately prior to such merger shall not be permitted
unless  also  permitted  by  Section  6.04.

     (b)     The  Borrower will not, and will not permit any of its Subsidiaries
to,  engage  to any material extent in any business other than businesses of the
type  conducted by the Borrower and its Subsidiaries on the date of execution of
this  Agreement  and  businesses  reasonably  related  thereto.
SECTION  1.04.     Investments,  Loans, Advances and Acquisitions.  The Borrower
                   -----------------------------------------------
will  not,  and  will  not  permit any of its Subsidiaries to, purchase, hold or
acquire  (including pursuant to any merger with any Person that was not a wholly
owned  Subsidiary  prior  to  such  merger)  any  capital  stock,  evidences  of
indebtedness  or  other securities (including any option, warrant or other right
to  acquire  any  of  the  foregoing)  of,  make or permit to exist any loans or
advances to, or make or permit to exist any investment or any other interest in,
     any other Person, or purchase or otherwise acquire (in one transaction or a
series  of  transactions) any assets of any other Person constituting a business
unit,  not  including  receivables,  deposits  or  prepaid  items,  except:
(a)     Permitted  Investments;
(b)     investments  in  the  capital  stock of new or existing Subsidiaries and
intercompany  loans  between  or  among  the  Borrower  and/or its Subsidiaries;
(c)     investments  in  Unconsolidated Affiliates (valued at an amount equal to
the  Value  of  each  Unconsolidated Affiliate's Real Property multiplied by the
Equity  Percentage  for that Unconsolidated Affiliate), and in other real estate
investment  trusts  (at  market  value)  so long as the aggregate amount of such
investments  described  in  this clause (c) does not exceed ten percent (10%) of
                                 ----------
the Total Asset Value after giving effect to such investments; provided, however
                                                               --------  -------
that  the  investments  listed  on  Schedule  6.04  attached hereto shall not be
                                    --------------
included  for  the  purposes  of  the  ten  percent  limitation;
(d)     loans,  advances,  and  extensions of credit to Persons secured by valid
and enforceable first priority liens on real estate so long as (i) the aggregate
amount  of  such  investments  does  not exceed ten percent (10%) of Total Asset
Value, and (ii) the aggregate amount of such investments in Persons in which the
Borrower  or  its Subsidiaries do not have an ownership interest does not exceed
five percent (5%) of Total Asset Value, in each case after giving effect to such
investments;
(e)     undeveloped land, so long as the aggregate Historical Value of such land
does  not  exceed ten percent (10%) of Total Asset Value, after giving effect to
such  investments;
(f)     Retail  Property;
(g)     Real  Property  that  is  being  constructed  or  developed to be Retail
Property or Industrial Property, but is not yet completed (including such assets
that  such  Person  has contracted to purchase for development with no option to
terminate  the  purchase  agreement),  so long as the aggregate Historical Value
thereof  does  not  exceed  twenty  percent (20%) of the Total Asset Value after
giving  effect  to  such  investments;
(h)     Real  Property  not  constituting Retail Property or undeveloped land so
long  as  the  aggregate  amount of such investments does not exceed twenty-five
percent  (25%)  of  Total  Asset  Value after giving effect to such investments;
(i)     capital stock, obligations or securities received in settlement of debts
     (created  in  the ordinary course of business) owing to the Borrower or any
Subsidiary,  so  long as the aggregate market value thereof does not exceed five
percent  (5%)  of Total Asset Value after giving effect to such investments; and
(j)     mergers,  consolidations  and other transactions permitted under Section
                                                                         -------
6.03,  so  long  as  same  do  not  cause the Borrower to be in violation of any
 ---
provision  of  this  Section  6.04.
 ---

In  addition  to the foregoing, the aggregate value of the investments described
------------------------------
in clauses (c), (d), (e), (g) and (i) above shall not exceed forty percent (40%)
-  ---------------------  ---     ---
of  Total  Asset  Value  after giving effect to such investments.  The loans and
investments  described  above  may  be  purchased  or  acquired,  directly  or
indirectly,  through  partnerships,  joint  ventures,  or  otherwise.  The
calculations  in  this  Section  will  be  made without duplication if a loan or
investment  is  within  more  than  one  category  described  in  this  Section.
SECTION  1.05.     Hedging  Agreements.  The  Borrower  will  not,  and will not
                   --------------------
permit  any of its Subsidiaries to, enter into any Hedging Agreement, other than
Hedging  Agreements  entered into in the ordinary course of business to hedge or
mitigate risks to which the Borrower or any Subsidiary is exposed in the conduct
     of  its  business  or  the  management  of  its  liabilities.
SECTION  1.06.     Restricted  Payments.  The  Borrower  will  not, and will not
permit  any  of  its  Subsidiaries to, declare or make, or agree to pay or make,
directly  or  indirectly,  during  any calendar quarter, any Restricted Payment,
except (a) Restricted Payments which, when added to all Restricted Payments made
during  the  three  immediately  preceding  calendar  quarters,  do  not  exceed
ninety-five percent (95%) of the sum of Funds From Operations plus capital gains
recognized  during  such  calendar  quarter  and the immediately preceding three
calendar  quarters,  (b) Subsidiaries may declare and pay dividends ratably with
respect  to  their  capital  stock,  and  (c)  the  Borrower may make Restricted
Payments  required  to  comply  with  Section  5.08(b).
SECTION 1.07.     Transactions with Affiliates.  The Borrower will not, and will
not  permit  any  of  its Subsidiaries to, sell, lease or otherwise transfer any
property  or  assets to, or purchase, lease or otherwise acquire any property or
assets  from,  or  otherwise  engage  in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on terms
and  conditions not less favorable to the Borrower or such Subsidiary than could
be  obtained  on  an  arm's-length  basis  from  unrelated  third  parties,  (b)
transactions between or among the Borrower and its wholly owned Subsidiaries not
involving  any  other  Affiliate  and  (c)  any  Restricted Payment permitted by
Section  6.06.
SECTION  1.08.     Restrictive  Agreements.  The Borrower will not, and will not
permit  any Guarantor to, directly or indirectly, enter into, incur or permit to
exist any agreement or other arrangement (including the organizational documents
of  such  Person) that prohibits or restricts (a) the ability of the Borrower or
any  Guarantor  to  create,  incur  or  permit  to exist any Lien upon, or sell,
transfer  or otherwise convey all or any part of, any of its property or assets,
or (b) the ability of any Guarantor to pay dividends or other distributions with
respect to any shares of its capital stock or to make or repay loans or advances
to  the  Borrower  or  any  other Subsidiary or to Guarantee Indebtedness of the
Borrower  or  any  other  Subsidiary;  provided that (i) the foregoing shall not
apply  to  restrictions and conditions imposed by law or by this Agreement, (ii)
the  foregoing  shall  not  apply to restrictions and conditions existing on the
date  hereof,  which  are  to  the  best  of Borrower's knowledge, identified on
Schedule  6.08 (but shall apply to any extension or renewal of, or any amendment
or  modification  expanding  the  scope  of, any such restriction or condition),
(iii)  the  foregoing  shall  not apply to customary restrictions and conditions
contained  in  agreements  relating  to  the  sale  or  other  disposition  of a
Subsidiary  pending  such  sale, provided such restrictions and conditions apply
only  to the Subsidiary that is to be sold and such sale is permitted hereunder,
(iv)  clause  (a) of the foregoing shall not apply to restrictions or conditions
imposed  by  any  agreement  relating  to secured Indebtedness permitted by this
Agreement  if  such  restrictions  or  conditions  apply only to the property or
assets  securing  such  Indebtedness,  (v) clause (a) of the foregoing shall not
apply  to customary provisions in leases restricting the assignment thereof, and
(vi)  clause  (a)  of  the  foregoing shall not apply to customary provisions in
joint venture and partnership agreements with Persons other than Borrower or its
Affiliates  restricting  Liens  on  property  owned  thereby  or  on  venture or
partnership  interests.
ARTICLE  II

Events  of  Default

     If  any  of  the  following  events  ("Events  of  Default")  shall  occur:
                                            -------------------
(a)     the  Borrower  shall  fail  to  pay  any  principal  of  any Loan or any
reimbursement  obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed
     for  prepay-ment  thereof  or  otherwise;
(b)     any  Credit  Party shall fail to pay any interest on any Loan or any fee
or  any  other  amount  (other  than an amount referred to in clause (a) of this
                                                              ----------
Article) payable under any Loan Documents, when and as the same shall become due
     and  payable,  and  such  failure shall continue unremedied for a period of
over  three  Business  Days;
(c)     any  representation  or  warranty made or deemed made by or on behalf of
any  Credit Party in or in connection with any Loan Document or any amendment or
modification  thereof  or  waiver  thereunder,  or  in  any report, certificate,
financial  statement  or  other  document furnished pursuant to or in connection
with this Agreement or any amendment or modification hereof or waiver hereunder,
shall  prove  to have been incorrect in any material respect when made or deemed
made;
(d)     the Borrower shall fail to observe or perform any covenant, condition or
agreement  contained in Article V or VI other than Sections 5.05, 5.06, 5.07(a),
                        ---------------            -------------  ----  -------
5.08,  and  5.11;
----        ----
(e)     any  Credit  Party  shall  fail  to  observe  or  perform  any covenant,
condition  or  agree-ment  contained  in  any  Loan  Document  (other than those
specified  in  clause  (a),  (b) or (d) of this Article), and such failure shall
               -----------------    ---
continue  unremedied  for a period of over 30 days after notice thereof from the
Administrative  Agent to the Borrower (which notice will be given at the request
of  any  Lender);
(f)     any  event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or
without  the  giving of notice, the lapse of time or both) the holder or holders
of  any  Material Indebtedness or any trustee or agent on its or their behalf to
cause  any  Material  Indebtedness  to become due, or to require the prepayment,
repurchase,  redemption  or defeasance thereof, prior to its scheduled maturity;
provided  that  this  clause  (f)  shall  not apply to secured Indebtedness that
 -------              -----------
becomes  due  as  a  result of the voluntary sale or transfer of the property or
 ----
assets  securing  such  Indebtedness;
 --
(g)     an  involuntary proceeding shall be commenced or an involuntary petition
shall  be  filed  seeking  (i)  liquidation,  reorganization  or other relief in
respect  of  any  Credit  Party  or  any other Subsidiary, other than a Minority
Subsidiary,  of  the  Borrower  or  its  debts,  or of a substantial part of its
assets,  under  any  Federal,  state  or  foreign  bankruptcy,  insolvency,
receivership  or  similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for  any Credit Party or any other Subsidiary, other than a Minority Subsidiary,
of  the Borrower or for a substantial part of its assets, and, in any such case,
such  proceeding  or petition shall continue undismissed for 60 days or an order
or  decree  approving  or  ordering  any  of  the  foregoing  shall  be entered;
(h)     any  Credit  Party  or  any  other  Subsidiary,  other  than  a Minority
Subsidiary,  of  the  Borrower  shall (i) voluntarily commence any proceeding or
file  any petition seeking liquidation, reorganization or other relief under any
Federal,  state  or  foreign bankruptcy, insolvency, receivership or similar law
now  or  hereafter  in  effect,  (ii)  consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described
in  clause (h) of this Article, (iii) apply for or consent to the appointment of
a  receiver,  trustee, custodian, sequestrator, conservator or similar offi-cial
for  such  Person  or for a substan-tial part of its assets, (iv) file an answer
admit-ting  the  material allegations of a petition filed against it in any such
proceeding,  (v)  make a general assignment for the benefit of creditors or (vi)
take  any  action  for  the  purpose  of  effecting  any  of  the  fore-going;
(i)     any  Credit  Party  or  any  other  Subsidiary,  other  than  a Minority
Subsidiary,  of the Borrower shall become unable, admit in writing its inability
or  fail  generally  to  pay  its  debts  as  they  become  due;
(j)     one or more judgments for the payment of money in an aggregate amount in
excess  of  $10,000,000  shall  be  rendered against any Credit Party, any other
Subsidiary, other than a Minority Subsidiary, of the Borrower or any combination
thereof  and  the  same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action shall
be  legally  taken  by  a judgment creditor to attach or levy upon any assets of
such  Person  to  enforce  any  such  judgment;
(k)     an  ERISA Event shall have occurred that, in the opinion of the Required
Lenders,  when  taken  together  with all other ERISA Events that have occurred,
could  reasonably  be  expected  to  result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding (i) $5,000,000 in any year or (ii)
$10,000,000  for  all  periods;  or
(l)     a  Change  in  Control  shall  occur;

then,  and  in  every such event (other than an event described in clause (g) or
                                                                   ----------
(h)  of this Article), and at any time thereafter during the continuance of such
  -
event,  the Administrative Agent may, and at the request of the Required Lenders
shall,  by notice to the Borrower, take some or all of the following actions, at
the  same  or different times:  (i) terminate the Commitments, and thereupon the
Commitments  shall  terminate  immediately,  (ii)  declare  the  Loans  then
out-standing  to  be  due  and  payable  in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be
due and payable), and thereupon the principal of the Loans so declared to be due
and  payable,  together  with  accrued  interest  thereon and all fees and other
obligations  of  the  Borrower  accrued hereunder, shall become  due and payable
immediately,  without  presentment, demand, protest or other notice of any kind,
all  of  which  are  hereby waived by the Borrower, and (iii) exercise any other
rights  or remedies provided under this Agreement (including Section 2.05(j)) or
                                                             ---------------
any  other  Loan  Document,  or  any  other  right or remedy available by law or
equity; and in case of any event described in clause (g) or (h) of this Article,
                                              ----------    ---
the  Commitments  shall  automatically  terminate and the principal of the Loans
then  outstanding, together with accrued interest thereon and all fees and other
obligations  of  the  Borrower accrued hereunder, shall automatically become due
and  payable, without present-ment, demand, protest or other notice of any kind,
all  of  which  are  hereby  waived  by  the  Borrower.
ARTICLE  III

The  Administrative  Agent

     Each  of  the  Lenders and the Issuing Bank hereby irrevocably appoints the
Administrative  Agent  as  its  agent and authorizes the Administrative Agent to
take  such actions on its behalf and to exercise such powers as are delegated to
the  Administrative  Agent  by  the terms hereof, together with such actions and
powers  as  are  reasonably  incidental  thereto.

     The  bank serving as the Administrative Agent hereunder shall have the same
rights  and  powers  in  its  capacity  as  a Lender as any other Lender and may
exercise  the same as though it were not the Administrative Agent, and such bank
and its Affili-ates may accept deposits from, lend money to and generally engage
in  any  kind of business with the Borrower or any Subsidiary or other Affiliate
thereof  as  if  it  were  not  the  Administrative  Agent  hereunder.

     The  Administrative  Agent  shall not have any duties or obligations except
those  expressly  set  forth  herein.  Without  limiting  the  generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other  implied  duties,  regardless  of  whether  a  Default has occurred and is
continuing,  (b)  the  Administrative  Agent shall not have any duty to take any
discretionary  action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing by the Required Lenders (or such other number or
percentage  of  the  Lenders  as  shall  be necessary under the circumstances as
provided  in  Section  9.02),  and (c) except as expressly set forth herein, the
              -------------
Administrative  Agent  shall  not  have  any  duty to disclose, and shall not be
liable for the failure to disclose, any information relating to any Credit Party
that  is communicated to or obtained by the bank serving as Administrative Agent
or any of its Affiliates in any capacity.  The Administrative Agent shall not be
liable  for  any  action  taken  or  not  taken by it with the consent or at the
request  of  the  Required  Lenders  (or  such other number or percentage of the
Lenders  as  shall  be  necessary under the circumstances as provided in Section
                                                                         -------
9.02)  or in the absence of its own gross negligence or willful misconduct.  The
   -
Administrative Agent shall be deemed not to have knowledge of any Default unless
and  until  written  notice  thereof is given to the Administrative Agent by the
Borrower  or a Lender, and the Administrative Agent shall not be responsible for
or  have  any  duty  to ascertain or inquire into (i) any statement, warranty or
representation  made  in or in connection with this Agreement, (ii) the contents
of  any  certificate,  report  or  other  document  delivered  hereunder  or  in
connection  herewith,  (iii)  the  performance  or  observance  of  any  of  the
covenants,  agreements  or  other terms or conditions set forth herein, (iv) the
validity,  enforceability, effectiveness or genuineness of this Agreement or any
other  agreement,  instrument  or  document,  or  (v)  the  satisfaction  of any
condition  set  forth  in  Article IV or elsewhere herein, other than to confirm
                           ----------
receipt of items expressly required to be delivered to the Administrative Agent.

     The  Administrative  Agent  shall  be  entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement,  instrument,  document  or other writing believed by it to be genuine
and  to have been signed or sent by the proper Person.  The Administrative Agent
also  may rely upon any statement made to it orally or by telephone and believed
by  it  to  be  made by the proper Person, and shall not incur any liability for
relying  thereon.  The  Administrative Agent may consult with legal counsel (who
may  be  counsel  for  the  Borrower), independent accountants and other experts
selected  by it, and shall not be liable for any action taken or not taken by it
in  accordance  with  the  advice  of  any such counsel, accountants or experts.

     The  Administrative  Agent  may perform any and all its duties and exercise
its  rights and powers by or through any one or more sub-agents appointed by the
Administrative  Agent.  The  Administrative  Agent  and  any  such sub-agent may
perform  any and all its duties and exercise its rights and powers through their
respective  Related  Parties.  The  exculpatory  provisions  of  the  preceding
paragraphs  shall  apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities  in connection with the syndication of the credit facilities provided
for  herein  as  well  as  activities  as  Administrative  Agent.

     Subject  to  the  appointment  and acceptance of a successor Administrative
Agent  as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Bank and the Borrower.  Upon any such
resignation,  the  Required  Lenders  shall have the right, with the approval of
Borrower  (provided  no  Default has occurred and is continuing), which approval
shall  not  be  unreasonably  withheld, to appoint a successor.  If no successor
shall  have  been  so  appointed by the Required Lenders and shall have accepted
such  appointment  within  30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on behalf
of  the  Lenders  and the Issuing Bank, appoint a successor Administrative Agent
which  shall  be a bank with an office in Houston, Texas, or an Affiliate of any
such  bank.  Upon  the  acceptance  of  its  appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all  the  rights,  powers,  privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and  obligations  hereunder.  The  fees  payable  by the Borrower to a successor
Administrative  Agent  shall  be  the  same  as those payable to its predecessor
unless  otherwise  agreed  between  the  Borrower and such successor.  After the
Administrative Agent's resignation hereunder, the provisions of this Article and
Section  9.03  shall  continue  in  effect  for  the  benefit  of  such retiring
-------------
Administrative  Agent,  its  sub-agents  and their respective Related Parties in
---------
respect  of any actions taken or omitted to be taken by any of them while it was
---
acting  as  Administrative  Agent.

     Each  Lender  acknowledges  that it has, independently and without reliance
upon  the  Administrative  Agent or any other Lender and based on such documents
and  information  as it has deemed appropriate, made its own credit analysis and
decision  to  enter  into this Agreement.  Each Lender also acknowledges that it
will,  independently  and  without reliance upon the Administrative Agent or any
other  Lender and based on such documents and informa-tion as it shall from time
to  time  deem  appropriate, continue to make its own decisions in taking or not
taking  action  under or based upon this Agreement, any related agreement or any
document  furnished  hereunder  or  thereunder.
ARTICLE  IV

Miscellaneous
SECTION  4.01.     Notices.  Except  in  the  case  of  notices  and  other
                   --------
communications  expressly  permitted  to  be given by telephone, all notices and
other  communications  provided  for  herein  shall  be  in writing and shall be
delivered  by  hand  or  overnight  courier  service,  mailed  by  certified  or
registered  mail  or  sent  by  telecopy,  as  follows:
(a)     if  to  the  Borrower,  to  it  at  2600  Citadel Plaza Drive, P. O. Box
924111,  Houston,  Texas  77292,  Attention:  Steve  Richter  (Telecopy  No.
713/868-6981);  with  a  copy to Weingarten Realty Investors, 2600 Citadel Plaza
Drive, P. O. Box 924111, Houston, Texas 77292, Attention: Linda Kubena (Telecopy
     No. 713/868-6981); with a copy to Dow, Cogburn & Friedman, P.C., 9 Greenway
Plaza, Suite 2300, Houston, Texas 77046, Attention:  Melvin A. Dow (Telecopy No.
713/940-6099);
(b)     if  to  the  Administrative Agent, to The Chase Manhattan Bank, 712 Main
Street,  Houston, Texas 77002, Attention:  Manager, Real Estate Group (Telephone
No.  713/216-1511  (Susan Tate) and Telecopy No. (713) 216-7713), with a copy to
The  Chase  Manhattan  Bank, One Chase Manhattan Plaza, 8th Floor, New York, New
York  10081,  Attention:  Agency  Services  (Paul  Anemone)  (Telephone  No.
212/552-7307  and  Telecopy  No.  212/552-2261);
(c)     if  to  the  Issuing  Bank,  to it at The Chase Manhattan Bank, 712 Main
Street, Houston, Texas  77002, Attention:  Manager, Real Estate Group (Telephone
No.  713/216-1511  (Susan  Tate)  and  Telecopy  No.  713/216-7713);  and
(d)     if  to  any  other Lender, to it at its address (or telecopy number) set
forth  on  the  signature pages of this Agreement, or as provided to Borrower in
writing  by  the  Administrative  Agent  or  the  Lender.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All notices and
other communications given to any party hereto in accordance with the provisions
of  this  Agreement shall be deemed to have been given (i) if given by telecopy,
when  such  telecopy  is  transmitted  to  the telecopy number specified in this
Section  and  the  appropriate confirmation is received (or if such day is not a
Business  Day,  on the next Business Day); (ii) if given by mail (return receipt
requested),  on  the  earlier  of  receipt or three (3) Business Days after such
communication  is  deposited  in  the  mail  with  first  class postage prepaid,
addressed  as aforesaid; or (iii) if given by any other means, when delivered at
the  address  specified  in  this  Section;  provided  that  notices  to  the
                                             --------
Administrative  Agent  under  Article  II shall not be effective until received.
                              -----------
SECTION  4.02.     Waivers;  Amendments.  (a)  No  failure  or  delay  by  the
                   ---------------------
Administrative  Agent, the Issuing Bank or any Lender in exercising any right or
power  hereunder  or  under  any  other  Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
     any  abandonment  or  discontinuance  of  steps  to enforce such a right or
power,  preclude  any  other  or further exercise thereof or the exercise of any
other  right or power.  The rights and remedies of the Administrative Agent, the
Issuing  Bank  and  the  Lenders hereunder and under any other Loan Document are
cumulative  and  are  not  exclusive  of  any rights or remedies that they would
otherwise have.  No waiver of any provision of this Agree-ment or consent to any
departure  by  the Borrower therefrom shall in any event be effective unless the
same  shall  be permitted by paragraph (b) of this Section, and then such waiver
or consent shall be effec-tive only in the specific instance and for the purpose
for  which  given.  Without limiting the generality of the foregoing, the making
of  a  Loan or issuance of a Letter of Credit shall not be construed as a waiver
of  any  Default,  regardless of whether the Administrative Agent, any Lender or
the  Issuing  Bank may have had notice or knowledge of such Default at the time.

     (b)     Neither  this  Agreement  nor  any  provision hereof may be waived,
amended  or  modified  except  pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and the
Administrative  Agent with the consent of the Required Lenders; provided that no
                                                                --------
such  agreement  shall  (i)  increase  the  Commitment of any Lender without the
written  consent of such Lender, (ii) reduce the principal amount of any Loan or
LC  Disbursement  or  reduce  the  rate  of interest thereon, or reduce any fees
payable  hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Loan
or  LC  Disbursement, or any interest thereon, or any fees payable hereunder, or
reduce  the  amount  of,  waive  or  excuse  any  such  payment, or postpone the
scheduled  date  of expiration of any Commitment, without the written consent of
each  Lender  affected  thereby,  (iv) change Section 2.17(b) or (c) in a manner
                                              ---------------    ---
that  would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this Section
or the definition of "Required Lenders" or any other provision hereof specifying
the  number  or  percentage  of  Lenders  required to waive, amend or modify any
rights  hereunder  or  make  any  determination  or grant any consent hereunder,
without  the  written  consent  of each Lender, (vi) except for a release by the
Administrative  Agent  of  a  Guarantor  whose  Guaranty  is  no longer required
pursuant to Section 5.12 or 5.13,  release any Credit Party from its obligations
            ------------    ----
under  the  Loan Documents, without the written consent of each Lender, or (vii)
increase  the  maximum  percentage  in  Section 5.02(f) above fifty-five percent
                                        ---------------
(55%), without the written consent of each Lender; provided further that no such
                                                   ----------------
agreement  shall  amend,  modify or otherwise affect the rights or duties of the
Administrative  Agent  or  the  Issuing Bank hereunder without the prior written
consent  of  the  Administrative  Agent or the Issuing Bank, as the case may be.
SECTION  4.03.     Expenses;  Indemnity; Damage Waiver.  (a)  The Borrower shall
                   ------------------------------------
pay  (i)  all  reasonable  out-of-pocket expenses incurred by the Administrative
Agent  and  its  Affiliates,  including  the  reasonable  fees,  charges  and
disbursements  of  counsel  for the Administrative Agent, in connection with the
syndication  of  the  credit facilities provided for herein, the preparation and
administration  of this Agreement or any amendments, modifications or waivers of
the  provi-sions  hereof (whether or not the transactions contemplated hereby or
thereby  shall  be  consummated),  (ii)  all  reasonable  out-of-pocket expenses
incurred by the Issuing Bank in connection with the issuance, amendment, renewal
     or  extension  of any Letter of Credit or any demand for payment thereunder
and  (iii)  all out-of-pocket expenses incurred by the Administrative Agent, the
Issuing Bank or any Lender, including the fees, charges and disbursements of any
counsel  for  the  Administrative  Agent,  the  Issuing  Bank  or any Lender, in
connection  with  the enforcement or protection of its rights in connection with
this  Agreement,  including its rights under this Section, or in connection with
the  Loans  made  or  Letters  of  Credit  issued  hereunder, including all such
out-of-pocket  expenses  incurred  during  any  workout,  restructuring  or
negotiations  in  respect  of  such  Loans  or  Letters  of  Credit.

     (b)     The  Borrower shall indemnify the Administrative Agent, the Issuing
Bank  and  each  Lender,  and each Related Party of any of the foregoing Persons
(each  such  Person  being  called  an  "Indemnitee")  against,  and  hold  each
                                         ----------
Indemnitee  harmless  from, any and all losses, claims, damages, liabilities and
related  expenses,  including the fees, charges and disbursements of any counsel
for  any  Indemnitee, incurred by or asserted against any Indemnitee arising out
of,  in connection with, or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby, the performance by
the parties hereto of their respective obligations hereunder or the consummation
of the Transactions or any other transactions contemplated hereby, (ii) any Loan
or  Letter of Credit or the use of the proceeds therefrom (including any refusal
by  the  Issuing  Bank to honor a demand for payment under a Letter of Credit if
the  documents  presented  in connection with such demand do not strictly comply
with  the  terms of such Letter of Credit), (iii) any actual or alleged presence
or  release  of Hazardous Materials on or from any property owned or operated by
the  Borrower or any of its Subsidiaries, or any Environmental Liability related
in  any  way  to  the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective  claim,  litigation,  investigation or proceeding relating to any of
the  foregoing,  whether  based  on  contract,  tort  or  any  other  theory and
regardless  of  whether  any  Indemnitee  is a party thereto; provided that such
                                                              --------
indemnity  shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses resulted from the gross
negligence  or  willful  misconduct of such Indemnitee.  THE FOREGOING INDEMNITY
INDEMNIFIES  EACH  INDEMNITEE  FROM  ITS  OWN  NEGLIGENCE.

     (c)     To the extent that the Borrower fails to pay any amount required to
be  paid  by  it to the Administrative Agent or the Issuing Bank under paragraph
                                                                       ---------
(a)  or  (b)  of  this  Section,  each  Lender  severally  agrees  to pay to the
  -      ---
Administrative  Agent  or  the  Issuing  Bank, as the case may be, such Lender's
  -    --
Applicable  Percentage  (determined  as  of  the  time  that  the  applicable
  -
unreimbursed  expense  or  indemnity  payment  is sought) of such unpaid amount;
  -
provided  that  the  unreimbursed  expense  or  indemnified loss, claim, damage,
  -
liability  or  related  expense, as the case may be, was incurred by or asserted
  -
against  the  Administrative  Agent or the Issuing Bank in its capacity as such.

     (d)     To  the  extent permitted by applicable law, the Borrower shall not
assert,  and  hereby  waives, any claim against any Indemnitee, on any theory of
liability,  for special, indirect, consequential or punitive damages (as opposed
to  direct or actual damages) arising out of, in connection with, or as a result
of,  this  Agreement  or  any  agreement  or instrument contemplated hereby, the
Transactions,  any  Loan or Letter of Credit or the use of the proceeds thereof.

     (e)     All  amounts due under this Section shall be payable not later than
ten  days  after  written  demand  therefor.
SECTION 4.04.     Successors and Assigns.  (a)  The provisions of this Agreement
                  -----------------------
     shall  be  binding  upon and inure to the benefit of the parties hereto and
their  respective  successors  and  assigns  permitted  hereby  (including  any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that the
Borrower  may  not assign or otherwise transfer any of its rights or obligations
hereunder  without  the  prior written consent of each Lender (and any attempted
assignment  or  transfer  by the Borrower without such consent shall be null and
void).  Nothing  in  this Agreement, expressed or implied, shall be construed to
confer  upon  any  Person  (other  than  the  parties  hereto,  their respective
successors  and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit) and, to the extent expressly contemplated
hereby,  the  Related  Parties  of each of the Administrative Agent, the Issuing
Bank  and the Lenders) any legal or equitable right, remedy or claim under or by
reason  of  this  Agreement.

     (b)     Any  Lender  may  assign to one or more Eligible Assignees all or a
portion  of  its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided  that
                                                                  --------
(i)  except in the case of an assignment to a Lender or an Affiliate of a Lender
or  an  Approved Fund with respect to a Lender, each of the Borrower (so long as
no Default has occurred and is continuing) and the Administrative Agent (and, in
the  case  of  an  assignment of all or a portion of any Lender's obligations in
respect  of  its  LC  Exposure,  the Issuing Bank) must give their prior written
consent  to  such assignment (which consent shall not be unreasonably withheld),
(ii)  except  in the case of an assignment to a Lender, an Affiliate of a Lender
or  to an Approved Fund with respect to a Lender, or an assignment of the entire
remaining  amount  of  the  assigning  Lender's  Commitment,  the  amount of the
Commitment  of  the assigning Lender subject to each such assignment (determined
as  of the date the Assignment and Acceptance with respect to such assignment is
delivered  to the Administrative Agent) shall not be less than $5,000,000 unless
each  of the Borrower (so long as no Default has occurred and is continuing) and
the  Administrative Agent otherwise consent, (iii) each partial assignment shall
be  made  as an assignment of a proportionate part of all the assigning Lender's
rights and obligations under this Agreement, except that this clause (iii) shall
                                                              ------------
not  apply  to  rights  in  respect  of  outstanding Competitive Loans, (iv) the
parties to each assignment shall execute and deliver to the Administrative Agent
an  Assignment and Acceptance, together with a processing and recordation fee of
$3,500,  and (v) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.  Subject to acceptance and
recording  thereof pursuant to paragraph (d) of this Section, from and after the
                               -------------
effective  date  specified  in  each  Assignment  and  Acceptance,  the assignee
thereunder  shall  be a party hereto and, to the extent of the interest assigned
by  such Assignment and Accep-tance, have the rights and obligations of a Lender
under  this  Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from its
obliga-tions  under  this  Agreement  (and,  in  the  case  of an Assignment and
Acceptance  covering  all of the assigning Lender's rights and obligations under
this  Agreement, such Lender shall cease to be a party hereto but shall continue
to  be  entitled  to  the  benefits of Sections 2.14, 2.15, 2.16 and 9.03).  Any
                                       -------------  ----  ----     ----
assignment or transfer by a Lender of rights or obligations under this Agreement
that  does  not comply with this paragraph shall be treated for purposes of this
Agreement  as  a  sale  by  such  Lender  of  a participation in such rights and
obligations  in  accordance  with  paragraph  (e)  of  this  Section.
                                   --------------

     (c)     The  Administrative  Agent,  acting for this purpose as an agent of
the  Borrower,  shall maintain at one of its offices in Houston, Texas a copy of
each  Assignment  and  Acceptance  delivered  to  it  and  a  register  for  the
recordation  of  the  names and addresses of the Lenders, and the Commitment of,
and  principal  amount  of  the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the "Register").  The entries in
                                                     --------
the  Register  shall  be conclusive, and the Borrower, the Administrative Agent,
the Issuing Bank and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes
of  this  Agreement, notwithstanding notice to the contrary.  The Register shall
be available for inspection by the Borrower, the Issuing Bank and any Lender, at
any  reasonable  time  and  from  time  to  time  upon  reasonable prior notice.

     (d)     Upon  its  receipt  of  a  duly completed Assignment and Acceptance
executed  by  an  assigning  Lender  and  an  assignee, the assignee's completed
Administrative  Questionnaire  (unless  the  assignee  shall already be a Lender
hereunder),  the  processing and recordation fee referred to in paragraph (b) of
                                                                -------------
this  Section  and  any written consent to such assignment required by paragraph
                                                                       ---------
(b)  of  this Section, the Administrative Agent shall accept such Assignment and
  -
Acceptance  and  record  the  information contained therein in the Register.  No
assignment  shall be effective for purposes of this Agreement unless it has been
recorded  in  the  Register  as  provided  in  this  paragraph.

     (e)     Any  Lender  may,  without  the  consent  of  the  Borrower,  the
Administrative  Agent  or  the  Issuing Bank, sell participations to one or more
banks  or  other entities (a "Participant") in all or a portion of such Lender's
                              -----------
rights  and  obligations under this Agreement (including all or a portion of its
Commitment  and  the  Loans  owing  to  it);  provided  that  (i)  such Lender's
                                              --------
obligations  under this Agreement shall remain unchanged, (ii) such Lender shall
remain  solely  responsible  to  the other parties hereto for the performance of
such  obligations  and (iii) the Borrower, the Administrative Agent, the Issuing
Bank  and the other Lenders shall continue to deal solely and directly with such
Lender  in  connection  with  such  Lender's  rights  and obligations under this
Agreement.  Any  agreement or instrument pursuant to which a Lender sells such a
participation  shall  provide  that  such  Lender shall retain the sole right to
enforce  this  Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided that such agreement or instrument may
                                  --------
provide that such Lender will not, without the consent of the Participant, agree
to  any  amendment,  modification  or  waiver  described in the first proviso to
Section 9.02(b) that affects such Participant.  Subject to paragraph (f) of this
     ----------                                            -------------
Section,  the  Borrower  agrees  that  each Participant shall be entitled to the
benefits  of  Sections  2.14,  2.15  and 2.16 to the same extent as if it were a
              --------------   ----      ----
Lender  and had acquired its interest by assignment pursuant to paragraph (b) of
                                                                -------------
this  Section.  To  the  extent permitted by law, each Participant also shall be
entitled  to  the  benefits of Section 9.08 as though it were a Lender, provided
                               ------------
such  Participant  agrees  to  be subject to Section 2.17(c) as though it were a
                                             ---------------
Lender.

     (f)     A  Participant shall not be entitled to receive any greater payment
under  Section  2.14 or 2.16 than the applicable Lender would have been entitled
       -------------    ----
to  receive  with  respect to the participation sold to such Participant, unless
the  sale  of  the participation to such Participant is made with the Borrower's
prior  written consent.  A Participant that would be a Foreign Lender if it were
a  Lender  shall  not  be  entitled  to  the benefits of Section 2.16 unless the
                                                         ------------
Borrower  is  notified  of  the  participation sold to such Participant and such
Participant  agrees,  for  the  benefit  of the Borrower, to comply with Section
                                                                         -------
2.16(e)  as  though  it  were  a  Lender.
    ---

     (g)     Any  Lender may at any time pledge or assign a security interest in
all  or  any portion of its rights under this Agreement to secure obligations of
such  Lender,  including  any  pledge  or  assignment to secure obligations to a
Federal  Reserve  Bank,  and  this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
                                   --------
a security interest shall release a Lender from any of its obligations hereunder
or  substitute  any  such pledgee or assignee for such Lender as a party hereto.
SECTION  4.05.     Survival.  All  covenants,  agreements,  representations  and
                   ---------
warranties  made  by  the  Borrower  herein  and  in  the  certificates or other
instru-ments  delivered  in  connection with or pursuant to this Agreement shall
be  considered  to  have  been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Loans
     and issuance of any Letters of Credit, regardless of any investigation made
by  any  such  other  party  or  on  its  behalf  and  notwithstanding  that the
Administrative  Agent,  the  Issuing  Bank  or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit  is  extended  hereunder,  and shall continue in full force and effect as
long  as  the principal of or any accrued interest on any Loan or any fee or any
other  amount  payable  under  this  Agreement is outstand-ing and unpaid or any
Letter  of Credit is outstanding and so long as the Commitments have not expired
or  terminated.  The provisions of Sections 2.14, 2.15, 2.16and 9.03 and Article
VIII  shall  survive  and  remain  in  full  force  and effect regardless of the
consummation  of  the  transactions  contemplated  hereby,  the repayment of the
Loans,  the  expiration  or  termination  of  the  Letters  of  Credit  and  the
Commitments  or  the  termination  of  this  Agreement  or any provision hereof.
SECTION  4.06.     Counterparts; Integration; Effectiveness.  This Agreement may
be  executed  in  counterparts  (and  by  different  parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken  together  shall  constitute  a  single  contract.  This Agreement and any
separate  letter  agreements  with respect to fees payable to the Administrative
Agent  constitute  the entire contract among the parties relating to the subject
matter  hereof and supersede any and all previous agreements and understandings,
oral  or  written, relating to the subject matter hereof.  Except as provided in
Section  4.01,  this  Agreement  shall  become effective when it shall have been
executed  by  the  Administrative  Agent and when the Administrative Agent shall
have  received  counterparts  hereof  which,  when  taken  together,  bear  the
signatures  of each of the other parties hereto, and thereafter shall be binding
upon  and  inure  to  the  benefit  of  the  parties hereto and their respective
successors and assigns.  Delivery of an executed counterpart of a signature page
of  this  Agreement  by  telecopy  shall  be effective as delivery of a manually
executed  counterpart  of  this  Agreement.
SECTION  4.07.     Severability.  Any  provision  of  this  Agreement held to be
invalid,  illegal  or  unenforceable  in  any  jurisdiction  shall,  as  to such
jurisdiction,  be  ineffective  to  the extent of such invalidity, illegality or
unenforceability  without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
     a  particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
SECTION  4.08.     Right  of Setoff.  If an Event of Default shall have occurred
and  be  continuing, each Lender and each of its Affiliates is hereby authorized
at  any  time  and from time to time, to the fullest extent permitted by law, to
set  off  and  apply  any  and all deposits (general or special, time or demand,
provisional  or  final) at any time held and other obligations at any time owing
by  such Lender or Affiliate to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter existing
under  this  Agreement  held by such Lender, irrespective of whether or not such
Lender  shall  have  made  any  demand  under  this  Agreement and although such
obligations  may  be  unmatured.  Each  Lender  agrees  promptly  to  notify the
Borrower  after  any  such  setoff and application made by such Lender, provided
that  the  failure  to  give  such  notice shall not affect the validity of such
setoff  and  application.  The  rights  of each Lender under this Section are in
addition  to  other rights and remedies (including other rights of setoff) which
such  Lender  may  have.
SECTION  4.09.     Governing  Law;  Jurisdiction; Consent to Service of Process.
(a)  This  Agreement  shall  be construed in accordance with and governed by the
law  of  the  State  of  Texas.

     (b)     The  Borrower  hereby  irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the district courts
of  Harris County, Texas and of the United States District Court of the Southern
District  of Texas (Houston Division), and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement, or for
recognition  or  enforcement  of  any  judgment,  and each of the parties hereto
hereby  irrevocably and unconditionally agrees that all claims in respect of any
such  action  or proceeding may be heard and determined in such State or, to the
extent  permitted  by  law,  in  such Federal court.  Each of the parties hereto
agrees  that  a  final  judgment  in  any  such  action  or  proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.  Nothing in this Agreement shall affect any
right  that  the  Administrative  Agent,  the  Issuing  Bank  or  any Lender may
otherwise  have  to  bring  any  action or proceeding relating to this Agreement
against  the  Borrower  or  its  proper-ties  in the courts of any jurisdiction.

     (c)     The  Borrower hereby irrevocably and unconditionally waives, to the
fullest  extent it may legally and effectively do so, any objection which it may
now  or here-after have to the laying of venue of any suit, action or proceeding
arising  out  of  or  relating  to  this  Agreement  in any court referred to in
paragraph  (b)  of  this Section.  Each of the parties hereto hereby irrevocably
waives,  to  the fullest extent permitted by law, the defense of an inconvenient
forum  to  the  maintenance  of  such  action  or  proceeding in any such court.

     (d)     Each  party  to  this  Agreement irrevocably consents to service of
process  in  the  manner  provided for notices in Section 9.01.  Nothing in this
                                                  ------------
Agreement  will affect the right of any party to this Agreement to serve process
in  any  other  manner  permitted  by  law.
SECTION 4.10.     WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
                  ---------------------
     FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL  BY  JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING  TO  THIS  AGREEMENT  OR  THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED  ON  CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES
THAT  NO  REPRESENTATIVE,  AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER  PARTY  WOULD  NOT, IN THE EVENT OF
LITIGATION,  SEEK  TO  ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREE-MENT BY,
AMONG  OTHER  THINGS,  THE  MUTUAL  WAIVERS  AND CERTIFICATIONS IN THIS SECTION.
SECTION  4.11.     Headings.  Article  and  Section  headings  and  the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement  and  shall  not  affect  the  construction  of,  or  be  taken  into
consideration  in  interpreting,  this  Agreement.
SECTION  4.12.     Confidentiality.  Each  of  the  Administrative  Agent,  the
Issuing  Bank  and  the  Lenders  agrees  to maintain the confidentiality of the
Information  (as defined below), except that Information may be disclosed (a) to
its  and  its  Affiliates'  directors, officers, employees and agents, including
accountants,  legal  counsel  and  other  advisors (it being understood that the
Persons  to  whom  such  disclosure is made will be informed of the confidential
nature  of  such  Information  and  instructed  to  keep  such  Information
confidential),  (b)  to the extent requested by any regulatory authority, (c) to
the  extent  required  by  applicable  laws or regulations or by any subpoena or
similar  legal  process,  (d)  to  any  other  party  to  this Agreement, (e) in
connection  with  the  exercise of any remedies hereunder or any suit, action or
proceeding  relating  to  this Agreement or the enforcement of rights hereunder,
(f)  subject  to  an  agreement  containing provisions substantially the same as
those  of this Section, to any assignee of or Participant in, or any prospective
assignee  of  or  Participant  in,  any  of its rights or obligations under this
Agreement,  (g)  with  the  consent  of  the  Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this  Section or (ii) becomes available to the Administrative Agent, the Issuing
Bank  or  any  Lender  on  a  nonconfidential basis from a source other than the
Borrower.  For the purposes of this Section, "Information" means all information
received  from  any  Credit  Party relating to the Credit Party or its business,
other  than  any such information that is available to the Administrative Agent,
the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by
any  Credit  Party;  provided that, in the case of information received from any
Credit  Party  after  the date hereof, such information is clearly identified at
the  time  of  delivery  as  confidential.  Any  Person required to maintain the
confidentiality  of  Information as provided in this Section shall be considered
to  have  complied with its obligation to do so if such Person has exercised the
same  degree of care to maintain the confidentiality of such Information as such
Person  would  accord  to  its  own  confidential  information.
SECTION  4.13.     Interest Rate Limitation.  Notwithstanding anything herein to
the  contrary, if at any time the interest applicable to any Loan, together with
all  fees,  charges and other amounts which are treated as interest on such Loan
under  applicable  law  (collectively,  the "Charges"), shall exceed the maximum
which  may be contracted for, charged, taken, received or reserved by the Lender
holding  such  Loan  in accordance with applicable law (the "Maximum Rate"), the
rate  of  interest  payable in respect of such Loan hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been paid in respect
of  such  Loan  but  were not payable as result of the operation of this Section
shall  be  cumulated  and  the  interest  and  Charges payable to such Lender in
respect  of other Loans or periods shall be increased (but not above the Maximum
Rate  therefor)  until  such cumulated amount, together with interest thereon at
the  Federal  Funds  Effective  Rate  to  the date of repayment, shall have been
received  by  such  Lender.  If,  for any reason whatsoever, the Charges paid or
received  on  the  Loans  produces  a  rate  which exceeds the Maximum Rate, the
Lenders  shall  credit  against  the  principal  of  the  Loans  (or,  if  such
indebtedness  shall  have  been  paid in full, shall refund to the payor of such
Charges)  such  portion  of  said  Charges  as  shall  be necessary to cause the
interest  paid  on  the  Loans to produce a rate equal to the Maximum Rate.  All
sums  paid  or  agreed  to  be  paid  to  the  holders of the Loans for the use,
forbearance  or  detention  of  the  Loans  shall,  to  the  extent permitted by
applicable  law,  be  amortized,  prorated,  allocated and spread in equal parts
throughout the full term of this Agreement, so that the interest rate is uniform
throughout  the  full  term  of  this Agreement.  The provisions of this Section
shall  control  all  agreements,  whether  now or hereafter existing and whether
written  or  oral,  between the parties hereto.  On each day, if any, that Texas
law establishes the Maximum Rate, the Maximum Rate shall be the "weekly ceiling"
(as  defined in Chapter 303 of the Texas Finance Code (the "Texas Finance Code")
as amended) for that day.  The Administrative Agent may from time to time, as to
current and future balances, implement any other ceiling under the Texas Finance
Code  by  notice  to  the  Borrower, if and to the extent permitted by the Texas
Finance Code.  Without notice to the Borrower or any other person or entity, the
Maximum  Rate  shall  automatically  fluctuate upward and downward as and in the
amount  by  which  such  maximum  nonusurious  rate  of  interest  permitted  by
applicable  law  fluctuates.
SECTION  4.14.     Liability  of  Holders.  With  respect  to  the incurrence of
certain  liabilities  hereunder  and  the  making  of  certain agreements by the
Borrower  as  herein  stated, such incurrence of liabilities and such agreements
shall  be  binding upon the Borrower only as a trust formed under the Texas Real
Estate  Investment  Trust  Act  pursuant to that certain Restated Declaration of
Trust  dated  March  23,  1988 (as amended from time to time), and only upon the
assets  of  such  Borrower.  No  Trust  Manager  or  officer  or  holder  of any
beneficial  interest  in  the Borrower shall have any personal liability for the
payment  of  any  indebtedness  or  other  liabilities  incurred by the Borrower
hereunder  or  for  the  performance  of  any  agreements  made  by the Borrower
hereunder,  nor  for  any  other  act,  omission  or  obligation incurred by the
Borrower  or  the  Trust  Managers  except,  in the case of a Trust Manager, any
liability  arising  from  his  own  willful  misfeasance or malfeasance or gross
negligence.

<PAGE>

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

WEINGARTEN  REALTY  INVESTORS

By:
Name:
Title:

THE  CHASE  MANHATTAN  BANK,  individually  and  as  Administrative  Agent,

By:
Name:
Title:

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

BANK  OF  AMERICA,  N.A.

By:
Name:
Title:

     Address:
     700  Louisiana,  5th  Floor
Houston,  Texas  77002
Attention:  Ms.  Cynthia  Sanford
Telephone  No.:  (713)  247-7093
Telecopy  No.:  (713)  247-6124

<PAGE>
 Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

COMMERZBANK  AG,  NEW  YORK  AND
GRAND  CAYMAN  BRANCHES

By:
Name:
Title:

By:
Name:
Title:

     Address:
     2  World  Financial  Center
New  York,  New  York  10281-1050
Attention:  David  Schwarz/Bill  Knickerbocker
Telephone  No.:  (212)  266-7632/7583
Telecopy  No.:  (212)  266-7565

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

BANK  ONE,  NA

By:
Name:
Title:

     Address:
     1  Bank  One
Mail  Code  IL1-0315
Chicago,  Illinois  60670-0315
Attention:  Jim  Krcmarik
Telephone  No.:  (312)  732-4122
Telecopy  No.:  (312)  732-1117

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

COMPASS  BANK

By:
Name:
Title:

     Address:
     24  Greenway  Plaza,  Suite  1403
Houston,  Texas  77046
Attention:  Jan  Danvers
Telephone  No.:  (713)  968-8267
Telecopy  No.:  (713)  968-8211

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

FIRST  UNION  NATIONAL  BANK

By:
Name:
Title:

     Address:
     One  First  Union  Center,  DC6
Charlotte,  North  Carolina  28288-6205
Attention:  John  Schissel
Telephone  No.:  (704)  383-1967
Telecopy  No.:  (704)  383-6205

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

PNC  BANK,  NATIONAL  ASSOCIATION

By:
Name:
Title:

     Address:
     One  PNC  Plaza
249  Fifth  Avenue,  MS:  P1-POPP-19-2
Pittsburgh,  Pennsylvania  15222-2707
Attention:  Wayne  Robertson
Telephone  No.:  (412)  762-8452
Telecopy  No.:  (412)  762-6500

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

SOUTHTRUST  BANK

By:
Name:
Title:

     Address:
     420  North  20th  Street
Birmingham,  Alabama  35203
Attention:  Sam  Boroughs
Telephone  No.:  (205)  254-5039
Telecopy  No.:  (205)  254-8270

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

THE  SUMITOMO  BANK,  LIMITED

By:
Name:
Title:

     Address:
     277  Park  Avenue,  6th  Floor
New  York,  New  York  10172
Attention:  Charles  Sullivan
Telephone  No.:  (212)  224-4178
     Telecopy  No.:  (212)  224-4887

<PAGE>
Signature  page  to  Credit  Agreement  with  Weingarten  Realty  Investors

WELLS  FARGO  BANK,  NATIONAL
ASSOCIATION

By:
Name:
Title:

     Address:
     1000  Louisiana  Street,  3rd  Floor
Houston,  Texas  77002
Attention:  Steve  May
Telephone  No.:  (713)  319-1415
     Telecopy  No.:  (713)  739-1077

<PAGE>
                                  SCHEDULE 2.01

LENDER                    REVOLVING  LOAN  COMMITMENT
                                          (Percentage)

The  Chase  Manhattan  Bank                              $50,000,000.00
                                    (14.285714286%)

Bank  of  America,  N.A.                              $50,000,000.00
                                    (14.285714286%)

Commerzbank  AG,  New  York
and  Grand  Cayman  Branches                              $50,000,000.00
                                    (14.285714286%)

Bank  One,  NA                                   $35,000,000.00
                                   (10.000000000%)

First  Union  National  Bank                              $35,000,000.00
                                   (10.000000000%)

PNC  Bank,  National  Association                         $35,000,000.00
                                   (10.000000000%)

Compass  Bank                                   $25,000,000.00
                                   (07.142857143%)

SouthTrust  Bank                                   $25,000,000.00
                                   (07.142857143%)

Wells  Fargo  Bank,  National  Association                    $25,000,000.00
                                   (07.142857143%)

The  Sumitomo  Bank,  Limited                         $20,000,000.00
                                   (05.714285714%)

<PAGE>

     2
HOUSTON:007002/04097:564617v15
                                SCHEDULE 2.05(D)

                                LETTERS OF CREDIT
                                -----------------

               LETTER OF CREDIT NUMBER     LETTER OF CREDIT AMOUNT
               -----------------------     -----------------------
                           I-451606     $2,184,911.00
                           --------     -------------
                           I-454505     $3,863,934.25
                           --------     -------------
                           I-454507     $2,058,695.89
                           --------     -------------
                           I-461289     $6,821,882.19
                           --------     -------------
                            D-295021     $114,233.00
                            --------     -----------
                           D-207654     $4,226,518.00
                           --------     -------------

<PAGE>

                                SCHEDULE 3.05(F)

Earthquake  or  Seismic  Area

                                      NONE

                                  SCHEDULE 3.07
                                DISCLOSED MATTERS

Below  is  a  list  of major outstanding lawsuits, none of which we believe will
have  a  Material  Adverse  Effect:

Location  0120  (Houston) Kathryn Newman incident 8/6/97 This is a slip and fall
case  where  the  plaintiff allegedly tripped in a depression in the asphalt and
has  had  surgery  on  her  knee,  her back and her elbow. We are being sued for
$5,000,000.00  and  we  have  adequate  Insurance  Coverage. We are aggressively
defending  and  expect  success  in  court.

Location 0038 (Lake Charles) Aletta McFatter incident 11/9/97 this is an assault
case  where  an elderly lady allegedly had her purse snatched and held on to the
purse  and fell down. She had swelling of the brain, which required surgery.  We
have  adequate  Insurance  Coverage  and  are  aggressively defending. We expect
success  in  court.

Location  0035  (Lake  Charles)  Mary  Jessica  Savoy incident 3/8/99 this is an
alleged  rape,  which  happened  to one of our tenants. She was leaving work and
assaulted  and stabbed in the parking lot, she drove herself to the hospital. We
are  being  sued  and  we  have adequate Insurance Coverage and are aggressively
defending  and  expect  success  in  court.

<PAGE>
                                  SCHEDULE 3.15
                              LIST OF SUBSIDIARIES

Alabama-Shepherd  Shopping  Center
----------------------------------
AN/WRI  Partnership,  Ltd.
--------------------------
ATDNL,  Inc.
------------
East  Town,  Lake  Charles  Co.
-------------------------------
Eastex  Venture
---------------
GJR/Weingarten  Little  York  Venture
-------------------------------------
GJR/Weingarten  River  Point  Venture
-------------------------------------
Jacinto  City,  Ltd.
--------------------
Lisbon  Street  Shopping  Trust
-------------------------------
Main/O.S.T.,  Ltd.
------------------
Markham  West  Shopping  Center,  L.P.
--------------------------------------
Miller  Weingarten  Realty,  LLC
--------------------------------
Nanocorp,  Inc.
---------------
NEC  Dalrock  and  SH  66,  Ltd.
--------------------------------
Northwest  Hollister  Venture
-----------------------------
Phelan  Boulevard  Venture
--------------------------
Rosenberg,  Ltd.
----------------
S/W  Albuquerque,  L.P.
-----------------------
Sheldon  Center,  Ltd.
----------------------
South  Loop  -  Long  Wayside  Company
--------------------------------------
SPM/WRI  College  Station,  L.P.
--------------------------------
SPM/WRI  Rockwall,  L.P.
------------------------
Weingarten  Properties  Trust
-----------------------------
Weingarten/Bridges  at  Smoky  Hills
------------------------------------
Weingarten/Colorado,  Inc.
--------------------------
Weingarten/Finger  Venture
--------------------------
Weingarten/Investments,  Inc.
-----------------------------
Weingarten/Miller  Elizabeth
----------------------------
Weingarten/Miller/Englewood
---------------------------
Weingarten/Miller/Fiest  Joint  Venture
---------------------------------------
Weingarten/Miller/ThornCreek  Joint  Venture
--------------------------------------------
Weingarten-Murphy,  Ltd.
------------------------
WRI  Interests,  Inc.
---------------------
WRI/Bell  Plaza,  Inc.
----------------------
WRI/Central  Plaza,  Inc.
-------------------------
WRI/Crosby  Venture
-------------------
WRI/Custer  Park,  Inc.
-----------------------
WRI/Dickinson  Venture
----------------------
WRI/Lone  Star,  Inc.
---------------------
WRI/Pavilion,  Inc.
-------------------
WRI/Regency  Park,  Inc.
------------------------
WRI/Rockwall,  Inc.
-------------------
WRI/Shopping  Centers  I,  Inc.
-------------------------------
SPM/WRI  Overland  Park,  L.P.
------------------------------
Weingarten  Nostat,  Inc.
-------------------------
Weingarten  Realty  Management  Company
---------------------------------------
WRI/Post  Oak,  Inc.
--------------------
WRI/7080  Express  Lane,  Inc.
------------------------------
Weingarten/Lufkin,  Inc.
------------------------
WRI/Pembroke,  Ltd.
-------------------
Market  at  Town  Center-Sugar  Land  Partnership
-------------------------------------------------
South  Padre  Drive,  L.P.
--------------------------

<PAGE>

     3
HOUSTON:007002/04097:564617v15

                                SCHEDULE 5.12 (C)
                POOL PROPERTIES WITHOUT ENVIRONMENTAL ASSESSMENT

                     LOC. #     DESCRIPTION     CITY     ST
0004-700     Village  Shopping  Center     Port  Arthur     TX
--------     -------------------------     ------------     --
0008-001     Heights  Plaza  Shopping  Center     Houston     TX
--------     --------------------------------     -------     --
0011-001     Sheldon  Forest  Shopping  Center     Channelview     TX
--------     ---------------------------------     -----------     --
0012-001     Westwood  Village  Shopping  Ctr.     Lafayette     LA
--------     ---------------------------------     ---------     --
0014-001     Fiesta  Market  Place     Houston     TX
--------     ---------------------     -------     --
0016-001     Harrisburg  Plaza     Houston     TX
--------     -----------------     -------     --
0017-001     Stella  Link  Shopping  Center     Houston     TX
--------     ------------------------------     -------     --
0018-700     Long  Point  Shopping  Center     Houston     TX
--------     -----------------------------     -------     --
0023-001     Lyons  Avenue  Shopping  Center     Houston     TX
--------     -------------------------------     -------     --
0024-001     Gillham  Circle     Port  Arthur     TX
--------     ---------------     ------------     --
0029-269     Market  Street  Shopping  Center     Jacinto  City     TX
--------     --------------------------------     -------------     --
0030-001     Southgate  Shopping  Center     Beaumont     TX
--------     ---------------------------     --------     --
0032-001     Texas  City  Plaza     Texas  City     TX
--------     ------------------     -----------     --
0033-001     Miracle  Corners  Shopping  Ctr.     Pasadena     TX
--------     --------------------------------     --------     --
0034-001     Bryan  Center     Bryan     TX
--------     -------------     -----     --
0035-001     Southgate  Shopping  Center     Lake  Charles     LA
--------     ---------------------------     -------------     --
0036-001     University  Plaza     Houston     TX
--------     -----------------     -------     --
0038-251     East  Town  Shopping  Center     Lake  Charles     LA
--------     ----------------------------     -------------     --
0040-001     Westwood  Shopping  Center     Shreveport     LA
--------     --------------------------     ----------     --
0041-001     New  Boston  Rd.  Shopping  Center     Texarkana     TX
--------     ----------------------------------     ---------     --
0042-001     Bellfort  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0043-001     Bellaire  Blvd  Shopping  Center     Bellaire     TX
--------     --------------------------------     --------     --
0044-001     Southgate  Shopping  Center     Shreveport     LA
--------     ---------------------------     ----------     --
0050-001     Westbury  Triangle     Houston     TX
--------     ------------------     -------     --
0055-001     Lawndale  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0056-001     Southgate  Shopping  Center     Houston     TX
--------     ---------------------------     -------     --
0057-001     Eastpark  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0059-120     Broadway  Plaza  Shopping  Ctr.     Little  Rock     AR
--------     -------------------------------     ------------     --
0061-001     Bellwood  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0062-001     Spring  Plaza  Shopping  Center     Houston     TX
--------     -------------------------------     -------     --
0064-001     Edgebrook  Shopping  Center     Houston     TX
--------     ---------------------------     -------     --
0065-001     Westchase  Mall     Houston     TX
--------     ---------------     -------     --
0066-001     Fondren  Southwest  Village     Houston     TX
--------     ---------------------------     -------     --
0069-001     Calder  Shopping  Center     Beaumont     TX
--------     ------------------------     --------     --
0070-001     Westhill  Village  Shopping  Ctr.     Houston     TX
--------     ---------------------------------     -------     --
0071-001     Park  Plaza  Shopping  Center     Lake  Charles     LA
--------     -----------------------------     -------------     --
0073-001     Food  King  Place     Galveston     TX
--------     -----------------     ---------     --
0081-001     Northbrook  Shopping  Center     Houston     TX
--------     ----------------------------     -------     --
0082-120     Geyer  Springs  Shopping  Center     Little  Rock     AR
--------     --------------------------------     ------------     --
0083-001     Crossroads  Shopping  Center     Vidor     TX
--------     ----------------------------     -----     --
0085-001     Mainland  Mall     Texas  City     TX
--------     --------------     -----------     --
0086-276     Plaza  Shopping  Ctr.  Rosenberg     Rosenberg     TX
--------     --------------------------------     ---------     --
0087-001     Park  Terrace  Shopping  Center     DeRidder     LA
--------     -------------------------------     --------     --
0088-001     Cullen  Plaza  Shopping  Center     Houston     TX
--------     -------------------------------     -------     --
0089-001     Little  York  Plaza  Shopping  Ctr     Houston     TX
--------     ----------------------------------     -------     --
0095-001     45  York  Plaza  Shopping  Center     Houston     TX
--------     ---------------------------------     -------     --
0099-001     Braeswood  Square  Shopping  Ctr.     Houston     TX
--------     ---------------------------------     -------     --
0101-001     Inwood  Village  Shopping  Center     Houston     TX
--------     ---------------------------------     -------     --
0103-001     Studemont  Shopping  Center     Houston     TX
--------     ---------------------------     -------     --
0104-001     Westmont  Shopping  Center     Beaumont     TX
--------     --------------------------     --------     --
0105-001     North  Oaks  Shopping  Center     Houston     TX
--------     -----------------------------     -------     --
0106-001     Humblewood  Shopping  Center     Houston     TX
--------     ----------------------------     -------     --
0107-120     Markham  Square  Shopping  Center     Little  Rock     AR
--------     ---------------------------------     ------------     --
0108-001     Orchard  Green  Shopping  Center     Houston     TX
--------     --------------------------------     -------     --
0110-001     10-Federal  Shopping  Center     Houston     TX
--------     ----------------------------     -------     --
0120-001     Randall's/Norchester  Village     Houston     TX
--------     -----------------------------     -------     --
0121-001     Randall's/El  Dorado     Webster     TX
--------     --------------------     -------     --
0123-001     Kroger/Fondren  Square     Houston     TX
--------     ----------------------     -------     --
0125-001     De  Vargas  Shopping  Center     Sante  Fe     NM
--------     ----------------------------     ---------     --
0126-001     Town  &  Country  Shopping  Center     Lubbock     TX
--------     ----------------------------------     -------     --
0127-001     Fiesta  Center     Houston     TX
--------     --------------     -------     --
0128-001     Portairs  Shopping  Center     Corpus  Christi     TX
--------     --------------------------     ---------------     --
0130-001     Rose-Rich  Shopping  Center     Rosenberg     TX
--------     ---------------------------     ---------     --
0131-001     Northway  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0132-120     Town  &  Country  Shopping  Center     Midwest  City     OK
--------     ----------------------------------     -------------     --
0133-001     North  Towne  Plaza     Albuquerque     NM
--------     -------------------     -----------     --
0135-120     Boulevard  Market  Place     Midwest  City     OK
--------     ------------------------     -------------     --
0136-001     Parkway  Square  Shopping  Center     College  Station     TX
--------     ---------------------------------     ----------------     --
0138-120     Evelyn  Hills  Shopping  Center     Fayetteville     AR
--------     -------------------------------     ------------     --
0139-001     Market  at  Westchase  SC     Houston     TX
--------     -------------------------     -------     --
0148-001     Randalls  Center/Kings  Crossing     Kingwood     TX
--------     --------------------------------     --------     --
0162-240     Northwest  Crossing  Centre     Houston     TX
--------     ---------------------------     -------     --
0172-120     Pueblo  Anozira  Shopping  Center     Tempe     AZ
--------     ---------------------------------     -----     --
0180-001     Valle  del  Sol  Shopping  Center     Albuquerque     NM
--------     ---------------------------------     -----------     --
0460-001     610  and  11th  Street  Warehouses     Houston     TX
--------     ----------------------------------     -------     --
0466-001     Bayshore  Plaza     Pasadena     TX
--------     ---------------     --------     --
0471-001     Southwest  Park  III     Houston     TX
--------     --------------------     -------     --
0472-001     Central  Park  North     Houston     TX
--------     --------------------     -------     --
0473-001     Cedar  Bayou  Shopping  Center     La  Marque     TX
--------     ------------------------------     ----------     --
0480-001     North  West  Park  Plaza     Houston     TX
--------     ------------------------     -------     --
0513-001     Bingle  Shopping  Center     Houston     TX
--------     ------------------------     -------     --
0520-001     Cullen  Place     Houston     TX
--------     -------------     -------     --
0523-001     Crestview     Houston     TX
--------     ---------     -------     --
0529-001     North  Triangle  Shops     Houston     TX
--------     ----------------------     -------     --
0531-001     Cypress  Station  Square     Houston     TX
--------     ------------------------     -------     --
0537-001     San  Pedro  Building     San  Antonio     TX
--------     --------------------     ------------     --
0538-001     Bandera  Village     San  Antonio     TX
--------     ----------------     ------------     --
0543-001     Steeplechase     Houston     TX
--------     ------------     -------     --
0582-001     Bellfort  SW  Shopping  Center     Houston     TX
--------     ------------------------------     -------     --
0583-001     Landmark  Shopping  Center     Houston     TX
--------     --------------------------     -------     --
0584-001     Wilcrest  SW  Shopping  Center     Houston     TX
--------     ------------------------------     -------     --
0591-001     River  Oaks  Shopping  Center     Houston     TX
--------     -----------------------------     -------     --
0605-277     North  Park  Plaza     Beaumont     TX
--------     ------------------     --------     --
0608-001     Baywood  Shopping  Center     Bay  City     TX
--------     -------------------------     ---------     --
0618-001     River  Pointe     Conroe     TX
--------     -------------     ------     --
0632-001     Porterwood  Shopping  Center     Porter     TX
--------     ----------------------------     ------     --
0634-001     Palmer  Plaza     Texas  City     TX
--------     -------------     -----------     --
0697-001     Highland  Square     Memphis     TN
--------     ----------------     -------     --
0703-700     Broadway  Shopping  Center     Galveston     TX
--------     --------------------------     ---------     --
0711-001     North  Main  Place     Houston     TX
--------     ------------------     -------     --
0738-700     Tyler  Shopping  Center     Tyler     TX
--------     -----------------------     -----     --
0742-001     Danville  Plaza  Shopping  Center     Monroe     LA
--------     ---------------------------------     ------     --
0767-120     Westgate  Shopping  Center     Little  Rock     AR
--------     --------------------------     ------------     --

<PAGE>
                                  SCHEDULE 6.02
                                 Existing Liens

Holder     Description
------     -----------

American  General  Life  Texas     WRI
Variable  Annuity  Life  Ins.     WRI
Industrial  Revenue  Bonds     Westwood  Village  Shopping  Center
Capital  Lease  -  Phase  2     Westwood  Village  Shopping  Center
City  of  Houston     Harrisburg  Plaza
Hawn,  William  R.     South  Gate  Shopping  Center
Industrial  Revenue  Bonds     Park  Plaza  Shopping  Center
Industrial  Revenue  Bonds     Galveston  Place
Industrial  Revenue  Bonds     Shawnee  Village
American  Family  Ins.  Group     Kohl's  Shopping  Center
Southern  Farm  Bureau     Northaven
Southern  Farm  Bureau     Walnut  Hills
Windsor  Hills  Center  Ltd  Partnership     Windsor  Hills
Lincoln  National  Life  Ins     Rancho  Town  &  Country
Calpers     Rainbow  Plaza
La  Salle  Nat'l  Bank  (GMAC)     Rainbow  Plaza
John  Hancock     Ballwin  Plaza
AMRESCO     Central  Plaza
AMRESCO     Bell  Plaza
Lehman  Bros.  Holding     Custer  Park
Chase     San  Mateo
Chase     College  Station
New  York  Life  Insurance  Co.     ANICO
Banger  Savings  Bank     Lisbon  Street

Mortgages  and  IRB's  and  AG

Capital  Leases:
Francisco  Center     Included  in  Secured  in  Q
College  Park  Shopping  Center     Included  in  Secured  in  Q
Banger  Savings  Bank     Excluded  from  Secured  in  Q

Bear,  Stearns  Funding,  Inc.     Rockwall  Market  Place

<PAGE>
                                  SCHEDULE 6.04
                               CERTAIN INVESTMENTS

WEINGARTEN  REALTY  INVESTORS  50/50
JOINT  VENTURES

Project  Name     %  O/S

                                             Admin.Proj.-Alabama-Shepherd     50
                                           Admin.Proj.-Wein/Finger Ventur     50
                                               Admin.Proj.-Eastex Venture     50
                                     Sheldon Forest Shopping Center           50
                                      Market Street Shopping Center           50
                                          East Town Shopping Center           50
                                      Plaza Shopping Ctr. Rosenberg           50
                                                       K-Mart Plaza           50
                                          River Pointe Mini-Storage           50
                                           Little York Mini-Storage           50
                                           South Loop Business Park           50
                                     Alabama Shepherd Shopping Ctr.           50
                                                   North Park Plaza           50
                                      The Promenade Shopping Center           50
                                                   Bridges at Smoky Hills     50
                                                    Elizabeth Marketplace     50
                                                    City Center englewood     50

Existing  50/50  JV's

<PAGE>

                                  SCHEDULE 6.08
                              Existing Restrictions

Covenants  and  restrictions  as  contained in Weingarten Realty Investors shelf
registration of securities for future issuances and all previously issued Medium
Term  Notes.

<PAGE>

                                CREDIT AGREEMENT

                                    EXHIBIT A
                                    ---------

                            ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Credit Agreement dated as of __________, 2000
(as  amended  and  in  effect on the date hereof, the "Credit Agreement"), among
Weingarten  Realty  Investors, the Lenders named therein and The Chase Manhattan
Bank,  as  Administrative  Agent  for  the Lenders.  Terms defined in the Credit
Agreement  are  used  herein  with  the  same  meanings.

          The  Assignor  named  on  the reverse hereof hereby sells and assigns,
without  recourse, to the Assignee named on the reverse hereof, and the Assignee
hereby  purchases and assumes, without recourse, from the Assignor, effective as
of  the Assignment Date set forth on the reverse hereof, the interests set forth
on  the  reverse  hereof  (the "Assigned Interest") in the Assignor's rights and
obligations  under  the  Credit  Agreement,  including,  without limitation, the
interests  set  forth on the reverse hereof in the Commitment of the Assignor on
the  Assignment  Date  and  Competitive  Loans  and Revolving Loans owing to the
Assignor  which  are  outstanding  on  the  Assignment  Date,  together with the
participations in Letters of Credit and LC Disbursements held by the Assignor on
the  Assignment  Date,  but excluding accrued interest and fees to and excluding
the  Assignment Date.  The Assignee hereby acknowledges receipt of a copy of the
Credit  Agreement.  From and after the Assignment Date (i) the Assignee shall be
a  party to and be bound by the provisions of the Credit Agreement and the other
Loan  Documents and, to the extent of the Assigned Interest, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent of
the  Assigned  Interest,  relinquish  its  rights  and  be  released  from  its
obligations  under  the  Credit  Agreement.

          This  Assignment  and  Acceptance  is  being  delivered  to  the
Administrative  Agent together with (i) if the Assignee is a Foreign Lender, any
documentation  required  to  be  delivered  by  the Assignee pursuant to Section
                                                                         -------
2.16(e)  of  the  Credit Agreement, duly completed and executed by the Assignee,
     --
and  (ii) if the Assignee is not already a Lender under the Credit Agreement, an
Administrative  Questionnaire  in the form supplied by the Administrative Agent,
duly  completed  by  the  Assignee.  The  [Assignee/Assignor]  shall pay the fee
payable  to  the  Administrative Agent pursuant to Section 9.04(b) of the Credit
                                                   ---------------
Agreement.

          This  Assignment  and Acceptance shall be governed by and construed in
accordance  with  the  laws  of  the  State  of  Texas.

Date  of  Assignment:
Legal  Name  of  Assignor:

Legal  Name  of  Assignee:

Assignee's  Address  for  Notices:

Effective  Date  of  Assignment
("Assignment  Date"):

Facility     Principal  Amount  Assigned  (and  identifying  information  as  to
--------
individual  Competitive  Loans)     Percentage  Assigned  of Facility/Commitment
------      -------------------
(set  forth,  to  at  least  8 decimals, as a percentage of the Facility and the
---
aggregate  Commitments  of  all  Lenders  thereunder)
---
Commitment  Assigned:     $      %
Revolving  Loans:
Competitive  Loans:

The  terms  set forth above and on the reverse side hereof are hereby agreed to:

                         [Name  of  Assignor],  as  Assignor
                         --------------------

                         By:______________________________
                          Name:
                                       Title:

                         [Name  of  Assignee],  as  Assignee
                         --------------------

                         By:  ______________________________
                                        Name:
                           Title:

<PAGE>

The  undersigned  hereby consent to the within assignment: 1/ foot1/ Consents to
                                                           -
be  included  to the extent required by Section 9.04(b) of the Credit Agreement.

[Name  of  Borrower],                    The  Chase  Manhattan  Bank,
          as  Administrative  Agent,

By:  ______________________                    By:  __________________________
      Name:                                     Name:
      Title:                                Title:

                                   The  Chase  Manhattan  Bank,
                                   as  Issuing  Bank

                                   By:  _______________________________
                                          Name:
                                          Title:

<PAGE>

     B-8
HOUSTON:007002/04097:564617v15

                                CREDIT AGREEMENT

                                    EXHIBIT B
                                    ---------

                         FORM OF COMPLIANCE CERTIFICATE
                         ------------------------------

                                     [Date]

The  Chase  Manhattan  Bank,
as  Administrative  Agent
712  Main  Street
Houston,  Texas  77002

Attn:  Manager,  Real  Estate  Group

Re:     Weingarten  Realty  Investors
Compliance  Certificate  for  _______  through  __________

Dear  Ladies  and  Gentlemen:

     This  Compliance  Certificate is made with reference to that certain Credit
Agreement  dated  as  of  ________________,  2000  (as  amended, supplemented or
otherwise  modified from time to time, the "Credit Agreement"), among Weingarten
Realty  Investors (the "Borrower"), the financial institutions party thereto, as
lenders, and The Chase Manhattan Bank, as Administrative Agent.  All capitalized
terms used in this Compliance Certificate (including any attachments hereto) and
not otherwise defined in this Compliance Certificate shall have the meanings set
forth  for  such  terms  in the Credit Agreement.  All Section references herein
shall  refer  to  the  Credit  Agreement.

     I  hereby  certify that I am the [Vice President of Capital Markets] [chief
financial  officer]  [principal  accounting officer] [treasurer] [controller] of
Weingarten  Realty  Investors, and that I make this Certificate on behalf of the
Borrower.  I  further represent and certify on behalf of the Borrower as follows
as  of  the  date  of  this  Compliance  Certificate:

I have reviewed the terms of the Loan Documents and have made, or have caused to
be  made under my supervision, a review in reasonable detail of the transactions
and  consolidated  and consolidating financial condition of the Borrower and its
Subsidiaries,  during  the accounting period (the "Reporting Period") covered by
the  financial  reports  delivered  simultaneous  herewith  pursuant  to Section
5.01[(a)][(b)],  and  that such review has not disclosed the existence during or
at  the  end  of  such Reporting Period (and that I do not have knowledge of the
existence  as  at the date hereof) of any condition or event which constitutes a
Default  or  Event  of  Default.Alternatively,  if a Default or Event of Default
existed  or  exists, specify the nature and period of existence thereof and what
action the Borrower or any of its Subsidiaries has taken, is taking and proposes
to  take  with  respect  thereto.

     Attached  hereto  as  (x)  Schedule A-1 is a list of the Real Property that
comprises  the  Pool  as  of  the  last  day  of the Reporting Period, including
identification  of  Partial  Subsidiary Real Property, Value and Occupancy Level
and (y) Schedule A-2 is a list of the Real Property assests that were identified
as  being  in the Pool in the last Compliance Certificate and that are no longer
qualified  to  be  in  the  Pool  as  of  the  last day of the Reporting Period.

     Attached  hereto  as  Schedule  B  is  a  schedule of the amount, maturity,
interest  rate and amortization requirements for the outstanding Indebtedness of
Borrower  and its Subsidiaries.  As of the last day of the Reporting Period, the
amount  of  Indebtedness  was  $_____________,  the  amount  of Secured Debt was
$_____________,  and  the  amount  of  Indebtedness  other than Secured Debt was
$_____________.

     Attached  hereto  as (x) Schedule C-1 is a detailed calculation of Interest
Expense for the Reporting Period, which amount was $__________, (y) Schedule C-2
is a detailed calculation of Interest Expense on Indebtedness other than Secured
Debt  for  the  Reporting Period, which amount was $__________, and (z) Schedule
C-3  is  a  detailed calculation of the Interest Expense, principal paid and due
and  payable  on  Indebtedness,  and  cash  dividends  payable on the Borrower's
preferred  stock  for  the  Reporting  Period,  which  aggregated  $__________.

     Attached  hereto  as Schedule D is a detailed calculation of EBITDA for the
Reporting  Period,  which  amount  was  $___________.

As  of  the  last  day  of  the  Reporting  Period:

1.     Secured  Debt  to  Total  Asset  Value  Ratio

     (a)     Indebtedness  secured  by  a  Lien,
     Subsidiary  Indebtedness  owed  to  non-Affiliate  and  any
Indebtedness  of  any  non-Guarantor  Subsidiary     $___________
     (b)     Net  Operating  Income  for  properties  that  have  reached
     the  Stabilization  Date  and  owned  during  the  most  recent
6  months  full  period     $___________
     (c)     Capital  Expenditure  Reserve     $___________
(d)     (b)  -  (c)   .0975     $___________
     (e)     Historical  Value  of  properties  acquired  during  the  most
     recent  6  months  period  or  that  are  completed  but
     have  not  reached  the  Stabilization Date                    $___________
     (f)     Historical  Value  of  properties  under  construction  or
     development  (limited  to  20%  of  Total  Asset  Value)     $___________
     (g)     Historical  Value  of  undeveloped  land     $___________
          (limited  to  10%  of  Total  Asset  Value)
     (h)     Value  ((d)  +  (e)  +  (f)  +  (g))     $___________
     (i)     Cash  and  cash  equivalents  excluding  tenant
     security  and  other  restricted  deposits     $___________
     (j)     Investments  in  real  estate  related  Unconsolidated
     Affiliates  (limited  to  10%  of  Total  Asset  Value)     $___________
     (k)     Investments  in  mortgages  and  notes  receivable
     (limited  to  10%  of  Total  Asset  Value  and  5%  of  Total
     Asset  Value  if  Borrower  has  no  ownership  interest)     $___________
(l)     Total  Asset  Value  ((h)  +  (i)  +  (j)  +  (k))     $___________
(m)     Secured  Debt  to  Total  Asset  Value  Ratio     _________%
     (as  a  percentage,  (a)   (l))

2.     Interest  Coverage  Ratio

     (a)     Borrower's  EBITDA     $___________
(b)     Interest  Expense     $___________
(c)     Interest  Coverage  RatioPursuant  to  Section 5.02(b), must not be less
than  2.25  to  1.00.     ______  :  1.00

3.     Fixed  Charge  Coverage  Ratio  Calculation:

     (a)     Borrower's  EBITDA     $___________
(b)     Capital  Expenditure  Reserve     $___________
(attach  quarterly  average  calculation)
     (c)     (a)  -  (b)     $___________
(d)     Principal  paid  and  due  and  payable  plus  Interest  Expense
$___________
     plus  cash  dividends  on  preferred  stock
(e)     Fixed  Charge  Coverage  Ratio  ((c) to (d))Pursuant to Section 5.02(c),
must  not  be  less  than  1.75  to  1.00.     _______  :  1.00

4.     Net  Worth  Calculation:

     (a)     Total  Asset  Value     $___________
(b)     Indebtedness     $___________
(c)     Net  Worth     Pursuant  to  Section  5.02(d),  must  not  be  less than
$950,000,000, plus 50% of the net proceeds of equity offerings after the date of
the  Credit  Agreement.     $___________

5.     Unencumbered  Interest  Coverage  Ratio

     (a)     Net  Operating  Income  for  property  in  the  Pool,
          less  Capital  Expenditure  Reserve  for  each  such  property
$___________
     (b)     Interest  Expense  on  unsecured  debt
$___________
     (c)     Unencumbered  Interest  Coverage Ratio ((a) to (b))     Pursuant to
Section  5.02(e),  must  not  be  less  than  2.25  to  1.00.     ______  : 1.00

6.     Debt  to  Total  Asset  Value  Ratio  Calculation:

     (a)     Indebtedness     $___________
(b)     Total  Asset  Value     $___________
(c)     Debt  to Total Asset Value Ratio     Pursuant to Section 5.02(f), cannot
exceed  fifty-five  percent  (55%).     _______%

7.     Asset  Maintenance  Calculation

     (a)     (i)     Value  of  Pool
     (attach  list  of  each  Property)                         $___________
          (ii)     Outstanding  unsecured  Indebtedness     $___________
                                                                          x 1.85
                                                                        --------
          (iii)     Minimum  Value  of  Pool     $___________

(b)     Occupancy  Level of the Pool     Pursuant to Section 5.12.A(e), must not
be  less  than  eighty-five  percent  (85%).       ________%

(c)     (i)     Value  of  Pool          $__________
     (ii)     Value  of  the  Pool  consisting  of ground leases     $__________
     (iii)     (ii)   (i),  expressed  as  a  percentage     Pursuant to Section
5.12.B,  must  not  exceed  ten  percent  (10%).       ________%

(d)     (i)     Value  of  Pool          $__________
     (ii)     Value  of  Partial  Subsidiary  Real  Property     $__________
     (iii)     (ii)   (i),  expressed  as  a  percentage     Pursuant to Section
5.12.C(a),  must  not  exceed  ten  percent  (10%).       ________%

8.     Debt  Limitation
     Secured Debt, not including Non-recourse Debt     Pursuant to Section 6.01,
must  not  exceed  $125,000,000.     $___________

9.     Investment  Limitations
     (a)     (i)     Investments  in  Unconsolidated  Affiliates
          and  other  REITS     $___________
     (ii)     Total  Asset  Value     $___________
     (iii)     (i)  (ii),  expressed  as  a  percentage     Pursuant  to Section
6.04(c),  cannot  exceed  ten  percent  (10%)  of  the  Total  Asset  Value.
________%

     (b)     (i)     Investments  in  mortgages  and  notes  receivable
$__________
     (ii)     Total  Asset  Value     $__________
     (iii)     (i)   (ii),  expressed  as  a  percentage     Pursuant to Section
6.04(d)  (i),  cannot  exceed  ten  percent  (10%)  of  Total  Asset  Value.
________%

     (c)     (i)     Investments  in  mortgages  and  notes  receivable
          if  Borrower  has  no  ownership  interest     $__________
     (ii)     Total  Asset  Value     $__________
          (iii)     (i)   (ii),  expressed  as  a  percentagePursuant to Section
6.04(d)(ii),  cannot  exceed  five  percent  (5%)  of  Total  Asset  Value.
________%

     (d)     (i)     Investments  in  undeveloped  land     $__________
     (ii)     Total  Asset  Value     $__________
          (iii)     (i)   (ii),  expressed  as  a  percentage       ________%

<PAGE>

     (e)     (i)     Investments  in  property  under  construction  or
          development          $__________
     (ii)     Total  Asset  Value     $__________
          (iii)     (i)   (ii),  expressed  as  a  percentage       ________%

(f)     (i)     Investments  in  Real  Property  not  constituting
          Retail  Property  or  undeveloped  land     $__________
     (ii)     Total  Asset  Value     $__________
     (iii)     (i)   (ii),  expressed  as  a  percentage       ________%

(g)     (i)     Investments  in  undeveloped  land,  Unconsolidated
          Affiliates  and  other  REITS,  property  under  construction
               or  development,  mortgages  and  notes  receivable
          and  certain  securities     $__________
          (ii)     Total  Asset  Value     $__________
     (iii)     (i)   (ii),  expressed  as  a  percentage       ________%

10.     Restricted  Payments

     (a)     Restricted  Payments  for  Reporting  Period  and  preceding
$__________
          3  quarters  (cannot  exceed  95%  of  (b))
     (b)     Funds  from  Operations  plus  capital  gains     $__________

<PAGE>

     This  Compliance Certificate has been executed and delivered as of the date
set  forth  above.

     WEINGARTEN  REALTY  INVESTORS

By:
Name:
Title:

<PAGE>

     C-9
HOUSTON:007002/04097:564617v15
     CREDIT  AGREEMENT

     EXHIBIT  C
     ----------

     FORM  OF  GUARANTY
     ------------------

     THIS  GUARANTY  dated as of _______________, 2000 executed and delivered by
each  of  the  undersigned,  whether  one  or more, (all each a "Guarantor" and,
collectively,  the  "Guarantors"),  in favor of (a) THE CHASE MANHATTAN BANK, in
its  capacity  as  Administrative Agent (the "Agent") for the Lenders under that
certain  Credit  Agreement  dated  as  of  _______________,  2000,  by and among
WEINGARTEN  REALTY  INVESTORS (the "Borrower"), the financial institutions party
thereto  and  their  assignees  in accordance therewith (the "Lenders"), and the
Agent  (as the same may be amended, restated, supplemented or otherwise modified
from  time to time in accordance with its terms, the "Credit Agreement") and (b)
the  Lenders.

     WHEREAS,  pursuant to the Credit Agreement, the Lenders have made available
to the Borrower certain financial accommodations on the terms and conditions set
forth  in  the  Credit  Agreement;

     WHEREAS,  each  Guarantor  is  a [wholly owned Subsidiary] of the Borrower;
                                       -----------------------

     WHEREAS,  the  Borrower,  each  Guarantor and the other Subsidiaries of the
Borrower,  though  separate legal entities, are mutually dependent on each other
in  the  conduct  of  their respective businesses as an integrated operation and
have determined it to be in their mutual best interests to obtain financing from
the  Agent  and  the  Lenders  through  their  collective  efforts;

     WHEREAS,  each  Guarantor  acknowledges  that  it  will  receive direct and
indirect  benefits  from  the  Agent  and  the  Lenders  making  such  financial
accommodations  available  to  the  Borrower  under  the  Credit  Agreement and,
accordingly,  each  Guarantor is willing to guarantee the Borrower's obligations
to  the  Agent and the Lenders on the terms and conditions contained herein; and

     WHEREAS, each Guarantor's execution and delivery of this Guaranty is one of
the  conditions  precedent to the Agent and the Lenders making, or continuing to
make,  such  financial  accommodations  to  the  Borrower.

     NOW,  THEREFORE,  for  good  and  valuable  consideration,  the receipt and
sufficiency  of  which are hereby acknowledged by each Guarantor, each Guarantor
agrees  as  follows:

     Section  1.  Guaranty.   Each  Guarantor  hereby  absolutely  and
                  --------
unconditionally  guaranties  the due and punctual payment and performance of all
of  the  following when due (collectively referred to as the "Obligations"): (a)
all  indebtedness and obligations owing by the Borrower to any of the Lenders or
the  Agent  under  or in connection with the Credit Agreement and any other Loan
Document,  including  without  limitation, the repayment of all principal of the
Loans  made  by  the  Lenders to the Borrower under the Credit Agreement and the
payment  of  all  interest,  fees,  charges, reasonable attorneys fees and other
amounts  payable  to  any  Lender  or  the  Agent  thereunder  or  in connection
therewith;  (b)  any  and all extensions, renewals, modifications, amendments or
substitutions  of  the  foregoing;  and  (c)  all  expenses,  including, without
limitation,  reasonable  attorneys' fees and disbursements, that are incurred by
the  Lenders  or  the  Agent  in  the enforcement of any of the foregoing or any
obligation  of  such  Guarantor  hereunder.

     Section  2.  Guaranty of Payment and Not of Collection.  This Guaranty is a
                  -----------------------------------------
guaranty of payment, and not of collection, and a debt of each Guarantor for its
own  account.  Accordingly,  the Lenders and the Agent shall not be obligated or
required before enforcing this Guaranty against any Guarantor: (a) to pursue any
right  or  remedy  the  Lenders  or the Agent may have against the Borrower, any
other  Guarantor  or  any  other Person or commence any suit or other proceeding
against  the  Borrower,  any other Guarantor or any other Person in any court or
other  tribunal;  (b)  to  make  any claim in a liquidation or bankruptcy of the
Borrower,  any other Guarantor or any other Person; or (c) to make demand of the
Borrower,  any  other  Guarantor  or  any  other Person or to enforce or seek to
enforce or realize upon any collateral security held by the Lenders or the Agent
which  may  secure  any  of  the Obligations. In this connection, each Guarantor
hereby  waives  the  right  of  such  Guarantor  to  require  any  holder of the
Obligations  to  take  action  against  the  Borrower  as  provided by any legal
requirement  of  any  Governmental  Authority.

     Section  3.  Guaranty  Absolute.  Each  Guarantor  guarantees  that  the
                  ------------------
Obligations  will be paid strictly in accordance with the terms of the documents
evidencing  the  same,  regardless  of any legal requirement now or hereafter in
effect  in  any  jurisdiction  affecting  any of such terms or the rights of the
Agent or the Lenders with respect thereto. The liability of each Guarantor under
this  Guaranty  shall be absolute and unconditional in accordance with its terms
and  shall  remain  in full force and effect without regard to, and shall not be
released,  suspended,  discharged,  terminated  or  otherwise  affected  by, any
circumstance or occurrence whatsoever (other than the full and final payment and
performance  of  the  Obligations), including, without limitation, the following
(whether  or  not  such  Guarantor  consents  thereto  or  has  notice thereof):

     (a)     (i)  any  change  in the amount, interest rate or due date or other
term  of any of the Obligations; (ii) any change in the time, place or manner of
payment  of all or any portion of the Obligations; (iii) any amendment or waiver
of,  or  consent  to the departure from or other indulgence with respect to, the
Credit  Agreement,  any other Loan Document, or any other document or instrument
evidencing  or  relating  to  any  Obligations;  or  (iv)  any  waiver, renewal,
extension,  addition, or supplement to, or deletion from, or any other action or
inaction  under  or  in  respect of, the Credit Agreement, any of the other Loan
Documents,  or  any  other  documents, instruments or agreements relating to the
Obligations  or  any  other  instrument  or  agreement  referred  to  therein or
evidencing  any  Obligations  or  any  assignment  or  transfer  of  any  of the
foregoing;

     (b)     any lack of validity or enforceability of the Credit Agreement, any
of  the  other  Loan  Documents,  or any other document, instrument or agreement
referred to therein or evidencing any  Obligations or any assignment or transfer
of  any  of  the  foregoing;

     (c)     any  furnishing to the Agent or the Lenders of any security for the
Obligations,  or any sale, exchange, release or surrender of, or realization on,
any  collateral  security  for  the  Obligations;

     (d)     any  settlement  or  compromise  of  any  of  the  Obligations, any
security  therefor,  or  any  liability  of  any other party with respect to the
Obligations,  or  any  subordination  of  the  payment of the Obligations to the
payment  of  any  other  liability  of  the  Borrower;

     (e)     any  bankruptcy,  insolvency,  reorganization,  composition,
adjustment,  dissolution,  liquidation  or other like proceeding relating to any
other  Guarantor,  the  Borrower  or  any other Person, or any action taken with
respect  to  this  Guaranty  by any trustee or receiver, or by any court, in any
such  proceeding;

     (f)     any  nonperfection of any security interest or other Lien on any of
the  collateral  securing  any  of  the  Obligations;

     (g)     any act or failure to act by the Borrower or any other Person which
may  adversely  affect  such Guarantor's subrogation rights, if any, against the
Borrower  to  recover  payments  made  under  this  Guaranty;

     (h)     any  application  of  sums paid by the Borrower or any other Person
with  respect  to  the  liabilities of the Borrower to the Agent or the Lenders,
regardless  of  what  liabilities  of  the  Borrower  remain  unpaid;

     (i)     any  defect, limitation or insufficiency in the borrowing powers of
the  Borrower  or  in  the  exercise  thereof;  or

     (j)     any  other  circumstance which might otherwise constitute a defense
available  to,  or  a  discharge  of,  any  Guarantor  hereunder.

     Section  4.  Action  with Respect to Obligations. The Lenders and the Agent
                  -----------------------------------
may  in accordance with the Credit Agreement, at any time and from time to time,
without the consent of, or notice to, any Guarantor, and without discharging any
Guarantor  from  its obligations hereunder take any and all actions described in
Section  3  and  may otherwise: (a) amend, modify, alter or supplement the terms
 ---------
of  any  of  the  Obligations,  including,  but  not  limited  to,  extending or
shortening  the  time  of payment of any of the Obligations or the interest rate
that  may  accrue  on  any  of  the  Obligations;  (b)  amend,  modify, alter or
supplement  the Credit Agreement or any other Loan Document; (c) sell, exchange,
release  or otherwise deal with all, or any part, of any collateral securing any
of  the Obligations; (d) release any Person liable in any manner for the payment
or  collection of the Obligations; (e) exercise, or refrain from exercising, any
rights  against the Borrower or any other Person (including, without limitation,
any  other  Guarantor);  and  (f)  apply  any sum, by whomsoever paid or however
realized,  to  the  Obligations  in such order as the Lenders or the Agent shall
elect  in  accordance  with  the  Credit  Agreement.

     Section 5.  Representations and Warranties.  Each Guarantor hereby makes to
                 ------------------------------
the  Agent and the Lenders all of the representations and warranties made by the
Borrower  with respect to or in any way relating to such Guarantor in the Credit
Agreement  and the other Loan Documents, as if the same were set forth herein in
full.

     Section  6. Covenants.  Each Guarantor will comply with all covenants which
                 ---------
the  Borrower  is  to cause such Guarantor to comply with under the terms of the
Credit  Agreement  or  any  other  Loan  Documents.

     Section  7.  Waiver.  Each  Guarantor,  to  the fullest extent permitted by
                  ------
applicable  law,  hereby  waives notice of acceptance hereof or any presentment,
demand,  protest  or notice of any kind, and any other act or thing, or omission
or  delay  to  do  any  other act or thing, which in any manner or to any extent
might  vary  the  risk  of  such  Guarantor  or which otherwise might operate to
discharge  such  Guarantor  from  its  obligations  hereunder.

     Section  8.  Inability to Accelerate Loan.  If the Agent and/or the Lenders
                  ----------------------------
are  prevented  from  demanding or accelerating payment thereof by reason of any
automatic  stay  or otherwise, the Agent and/or the Lenders shall be entitled to
receive  from  each  Guarantor,  upon  demand therefor, the sums which otherwise
would  have  been  due  had  such  demand  or  acceleration  occurred.

     Section  9.  Reinstatement of Obligations.  Each Guarantor agrees that this
                  ----------------------------
Guaranty  shall  continue  to be effective or be reinstated, as the case may be,
with  respect  to any Obligations if at any time payment of any such Obligations
is  rescinded or otherwise must be restored by the Agent and/or the Lenders upon
the  bankruptcy or reorganization of the Borrower or any Guarantor or otherwise.

     Section  10.  Subrogation.  Until  all  of  the Obligations shall have been
                   -----------
indefeasibly  paid  in full, any right of subrogation a Guarantor may have shall
be  subordinate to the rights of Agent and the Lenders and each Guarantor hereby
waives  any  right  to enforce any remedy which the Agent and/or the Lenders now
have  or  may  hereafter  have  against  the Borrower, and each Guarantor hereby
waives  any  benefit  of,  and  any  right  to  participate  in, any security or
collateral  given  to the Agent and the Lenders to secure payment or performance
of  any  of  the  Obligations.

     Section  11.  Payments  Free and Clear.  All sums payable by each Guarantor
                   ------------------------
hereunder  shall  be  made  free  and  clear  of  and  without deduction for any
Indemnified  Taxes  (as  defined  in  the  Credit  Agreement) or Other Taxes (as
defined  in  the  Credit  Agreement);  provided  that  if any Guarantor shall be
                                       --------
required to deduct any Indemnified Taxes or Other Taxes from such payments, then
(i)  the  sum  payable  shall be increased as necessary so that after making all
required  deductions (including deductions applicable to additional sums payable
under this Section), the Agent, Lender or Issuing Bank (as defined in the Credit
Agreement)  (as  the  case  may be) receives an amount equal to the sum it would
have  received  had no such deductions been made; (ii) such Guarantor shall make
such  deductions; and (iii) such Guarantor shall pay the full amount deducted to
the  relevant  Governmental  Authority  (as  defined in the Credit Agreement) in
accordance  with  applicable  law.

     Section  12.  Set-off.  In  addition to any rights now or hereafter granted
                   -------
under  applicable  law  and  not  by  way of limitation of any such rights, each
Lender  is  hereby  authorized at any time and from time to time, to the fullest
extent  permitted  by law, to set off and apply any and all deposits (general or
special,  time  or  demand,  provisional  or  final)  at any time held and other
obligations at any time owing by such Lender to or for the credit or the account
of any Guarantor against any of and all the obligations of such Guarantor now or
hereafter existing under this Guaranty held by such Lender then due and payable.
Each  Guarantor  agrees,  to  the  fullest extent it may effectively do so under
applicable  law,  that  any  holder of a participation in a Note, whether or not
acquired  pursuant  to  the  applicable  provisions of the Credit Agreement, may
exercise  rights of setoff or counterclaim and other rights with respect to such
participation  as  fully  as  if  such  holder  of a participation were a direct
creditor  of  such  Guarantor  in  the  amount  of  such  participation.

     Section 13.  Subordination.   Each Guarantor hereby expressly covenants and
                  -------------
agrees  for  the  benefit  of the Agent and the Lenders that all obligations and
liabilities of the Borrower or any other Guarantor to such Guarantor of whatever
description,  including without limitation, all intercompany receivables of such
Guarantor  from  the  Borrower or any other Guarantor (collectively, the "Junior
Claims") shall be subordinate and junior in right of payment to all Obligations;
provided,  however,  that  payment  thereof  may  be made so long as no Event of
Default shall have occurred and be continuing. If an Event of Default shall have
occurred  and  be  continuing,  then  no  Guarantor  shall  accept any direct or
indirect payment (in cash, property, securities by setoff or otherwise) from the
Borrower or any other Guarantor on account of or in any manner in respect of any
Junior  Claim  until all of the Obligations have been indefeasibly paid in full.

     Section  14. Avoidance Provisions.  It is the intent of each Guarantor, the
                  --------------------
Agent  and  the  Lenders  that  in  any  Proceeding,  such  Guarantor's  maximum
obligation hereunder shall equal, but not exceed, the maximum amount which would
not  otherwise  cause  the obligations of such Guarantor hereunder (or any other
obligations  of  such Guarantor to the Agent and the Lenders) to be avoidable or
unenforceable  against  such  Guarantor  in  such  Proceeding  as  a  result  of
applicable  law, including without limitation, (a) Section 548 of the Bankruptcy
Code  of  1978,  as amended (the "Bankruptcy Code") and (b) any state fraudulent
transfer  or  fraudulent  conveyance  act or statute applied in such Proceeding,
whether  by  virtue  of  Section  544  of  the Bankruptcy Code or otherwise. The
applicable  laws  under  which the possible avoidance or unenforceability of the
obligations  of  such  Guarantor  hereunder  (or  any  other obligations of such
Guarantor  to  the  Agent  and  the  Lenders)  shall  be  determined in any such
Proceeding  are  referred  to as the "Avoidance Provisions." Accordingly, to the
extent  that  the  obligations  of  any  Guarantor  hereunder would otherwise be
subject to avoidance under the Avoidance Provisions, the maximum Obligations for
which  such  Guarantor shall be liable hereunder shall be reduced to that amount
which,  as  of  the time any of the Obligations are deemed to have been incurred
under the Avoidance Provisions, would not cause the obligations of any Guarantor
hereunder  (or  any  other  obligations  of  such Guarantor to the Agent and the
Lenders),  to  be  subject  to  avoidance  under  the Avoidance Provisions. This
Section  is  intended solely to preserve the rights of the Agent and the Lenders
hereunder  to  the  maximum  extent  that would not cause the obligations of any
Guarantor  hereunder  to be subject to avoidance under the Avoidance Provisions,
and  no  Guarantor nor any other Person shall have any right or claim under this
Section  as  against  the  Agent  and  the  Lenders  that would not otherwise be
available  to  such  Person  under  the  Avoidance  Provisions.

     Section  15.  Information.   Each  Guarantor assumes all responsibility for
                   -----------
being and keeping itself informed of the financial condition of the Borrower, of
the  other  Guarantors  and  of all other circumstances bearing upon the risk of
nonpayment  of  any  of  the Obligations and the nature, scope and extent of the
risks  that such Guarantor assumes and incurs hereunder, and agrees that none of
the  Agent  or any Lender shall have any duty whatsoever to advise any Guarantor
of  information  regarding  such  circumstances  or  risks.

     Section  16.  Governing  Law.  THIS  GUARANTY  SHALL  BE  GOVERNED  BY, AND
                   --------------
CONSTRUED  IN  ACCORDANCE  WITH,  THE  LAWS  OF  THE  STATE  OF  TEXAS.

     SECTION  17.   JURISDICTION,  VENUE.
                    --------------------

     (a)     EACH  GUARANTOR  AGREES  THAT  THE  FEDERAL  DISTRICT  COURT OF THE
SOUTHERN  DISTRICT  OF  TEXAS, HOUSTON DIVISION, OR, AT THE OPTION OF THE AGENT,
ANY  STATE  COURT  LOCATED  IN  HARRIS  COUNTY,  TEXAS  SHALL  HAVE NONEXCLUSIVE
JURISDICTION  TO  HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY
GUARANTOR, THE AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO
THIS  GUARANTY  OR  ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR
THEREFROM  OR  ANY  COLLATERAL. EACH GUARANTOR EXPRESSLY SUBMITS AND CONSENTS IN
ADVANCE  TO  SUCH  JURISDICTION  IN  ANY  ACTION OR PROCEEDING COMMENCED IN SUCH
COURTS.  THE  CHOICE  OF  FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO
PRECLUDE  THE  BRINGING  OF  ANY  ACTION  BY  THE  AGENT  OR  ANY  LENDER OR THE
ENFORCEMENT  BY  THE  AGENT OR ANY LENDER IN ANY OTHER APPROPRIATE JURISDICTION.
FURTHER,  EACH  GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE  LAW,  ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF  THE  VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT
ANY  SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

     (b)     THE FOREGOING WAIVERS HAVE BEEN MADE WITH THE ADVICE OF COUNSEL AND
WITH  A  FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE
THE  PAYMENT OF THE OBLIGATIONS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER
THE  OTHER  LOAN  DOCUMENTS  AND  THE  TERMINATION  OF  THIS  GUARANTY.

     Section  18.  Loan  Accounts.  The  Agent  may  maintain books and accounts
                   --------------
setting forth the amounts of principal, interest and other sums paid and payable
with  respect to the Obligations, and in the case of any dispute relating to any
of  the  outstanding  amount, payment or receipt of Obligation or otherwise, the
entries  in  such  account  shall  be  binding  upon  each  Guarantor  as to the
outstanding  amount  of  such  Obligations and the amounts paid and payable with
respect thereto absent manifest error. The failure of the Agent to maintain such
books  and  accounts  shall not in any way relieve or discharge any Guarantor of
any  of  its  obligations  hereunder.

Section  19.  Waiver  of Remedies.  No delay or failure on the part of the Agent
              -------------------
or  the  Lenders  in the exercise of any right or remedy it may have against any
Guarantor  hereunder  or  otherwise  shall  operate  as a waiver thereof, and no
single  or  partial  exercise  by  the Agent or the Lenders of any such right or
remedy  shall  preclude other or further exercise thereof or the exercise of any
other  such  right  or  remedy.

     Section 20.  Successors and Assigns.  Each reference herein to the Agent or
                  ----------------------
the  Lenders  shall be deemed to include such Person's respective successors and
assigns  (including, but not limited to, any holder of the Obligations) in whose
favor  the  provisions  of  this  Guaranty  also shall inure, and each reference
herein  to  any  Guarantor shall be deemed to include the Guarantor's successors
and  assigns, upon whom this Guaranty also shall be binding. The Lenders and the
Agent may, in accordance with the applicable provisions of the Credit Agreement,
assign,  transfer  or sell any Obligation, or grant or sell participation in any
Obligations,  to  any Person or entity without the consent of, or notice to, any
Guarantor  and  without  releasing,  discharging  or  modifying such Guarantor's
obligations  hereunder.  Each  Guarantor  hereby consents to the delivery by the
Agent  or any Lender to any assignee, transferee or participant of any financial
or other information regarding the Borrower or any Guarantor. Each Guarantor may
not  assign  or  transfer  its  obligations  hereunder  to  any  Person.

     Section  21.  Amendments.  This  Guaranty  may  not  be  amended  except as
                   ----------
provided  in  the  Credit  Agreement.

     Section 22.  Payments.  All payments made by any Guarantor pursuant to this
                  --------
Guaranty  shall be made in Dollars, in immediately  available funds to the Agent
at  the  place and time provided for in the Credit Agreement on the date one (1)
Business  Day  after  written  demand  therefor  to such Guarantor by the Agent.

     SECTION  23.  JOINT  AND  SEVERAL  OBLIGATIONS.   THE  OBLIGATIONS  OF  THE
                   --------------------------------
GUARANTORS  HEREUNDER AND UNDER OTHER LOAN DOCUMENTS SHALL BE JOINT AND SEVERAL,
AND  ACCORDINGLY,  EACH GUARANTOR (BUT NOT ITS LIMITED PARTNERS, SHAREHOLDERS OR
MEMBERS)  CONFIRMS  THAT  IT  (BUT  NOT  ITS  LIMITED  PARTNERS, SHAREHOLDERS OR
MEMBERS)  IS  LIABLE  FOR  THE  FULL  AMOUNT  OF  THE OBLIGATIONS AND ALL OF THE
OBLIGATIONS  AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER AND UNDER
OTHER  LOAN  DOCUMENTS.

     Section  24.  Notices.   All  notices,  requests  and  other communications
                   -------
hereunder  shall  be  in  writing  and  shall  be  given as provided in the Loan
Agreement.  Each Guarantor's address for notice is set forth below its signature
hereto.

     Section 25.  Severability.  In case any provision of this Guaranty shall be
                  ------------
invalid,  illegal  or  unenforceable in any jurisdiction, the validity, legality
and  enforceability of the remaining provisions shall not in any way be affected
or  impaired  thereby.

     Section  26.  Headings.  Section  headings  used  in  this Guaranty are for
                   --------
convenience  only  and  shall  not  affect  the  construction  of this Guaranty.

     Section  27.  Definitions.  (a)  For  the  purposes  of  this  Guaranty:
                   -----------

     "Proceeding"  means  any  of  the following: (i) a voluntary or involuntary
     -----------
case  concerning  any  Guarantor shall be commenced under the Bankruptcy Code or
any  other  applicable  bankruptcy  laws;  (ii)  a  custodian (as defined in the
Bankruptcy  Code  or  any other applicable bankruptcy laws) is appointed for, or
takes  charge  of, all or any substantial part of the property of any Guarantor;
(iii)  any  other  proceeding  under  any  applicable  law, domestic or foreign,
relating  to  bankruptcy,  insolvency, reorganization, winding-up or composition
for  adjustment  of  debts,  whether  now  or  hereafter in effect, is commenced
relating  to  any  Guarantor;  (iv)  any  Guarantor  is adjudicated insolvent or
bankrupt;  (v)  any  order  of  relief or other order approving any such case or
proceeding  is  entered by a court of competent jurisdiction; (vi) any Guarantor
makes  a  general  assignment  for the benefit of creditors; (vii) any Guarantor
shall  fail  to pay, or shall state that it is unable to pay, or shall be unable
to  pay, its debts generally as they become due; (viii) any Guarantor shall call
a  meeting of its creditors with a view to arranging a composition or adjustment
of its debts; (ix) any Guarantor shall by any act or failure to act indicate its
consent  to,  approval  of  or  acquiescence in any of the foregoing; or (x) any
corporate  action  shall  be taken by any Guarantor for the purpose of effecting
any  of  the  foregoing.

     (b)     Terms  not  otherwise  defined  herein  are  used  herein  with the
respective  meanings  given  them  in  the  Credit  Agreement.

     IN  WITNESS  WHEREOF,  each  Guarantor has duly executed and delivered this
Guaranty  as  of  the  date  and  year  first  written  above.

     (GUARANTOR)

     By:
Name:
Title:

     Address  for  Notices:

     c/o  Weingarten  Realty  Investors

Attention:

<PAGE>

     D-2
HOUSTON:007002/04097:564617v15
                                CREDIT AGREEMENT

                                    EXHIBIT D
                                    ---------

                                  FORM OF NOTE
                                  ------------
                               [Competitive Note]
                                [Revolving Note]

$_________________          __________,  2000

     FOR  VALUE  RECEIVED,  WEINGARTEN  REALTY  INVESTORS,  a  Texas real estate
investment trust ("Maker") promises to pay without offset or counterclaim to the
order  of  [insert name of Lender], ("Payee"), the principal amount equal to the
lesser of (x) __________________________ ($_____________) or (y) the outstanding
amount  advanced  by  Payee as a Loan under the Credit Agreement (as hereinafter
defined),  payable  in  accordance  with  the  terms  of  the  Credit Agreement.

     Maker  also promises to pay interest on the unpaid principal amount of this
Note  (this  "Note")  at the rates and at the times which shall be determined in
accordance  with  the  provisions of that certain Credit Agreement dated of even
date  herewith,  among Maker, the Lenders named therein, and The Chase Manhattan
Bank,  as Administrative Agent for itself and the Lenders (as hereafter amended,
supplemented  or  otherwise modified from time to time, the "Credit Agreement").
                                                             ----------------
Capitalized  terms  used  herein  without definition shall have the meanings set
forth  in  the  Credit  Agreement.

     Amounts  borrowed  may  be  repaid  and reborrowed at any time prior to the
termination  of  the  Availability  Period.  Except as otherwise provided in the
Credit  Agreement,  no  Lender  shall have any obligation to make a Loan  to the
extent  such  Loan  would  cause the sum of the total Revolving Credit Exposures
plus  the aggregate principal amount outstanding of Competitive Loans  to exceed
the  total  Commitments.

     This  Note  is subject to mandatory prepayment and prepayment at the option
of  the  Maker,  as  provided  in  the  Credit  Agreement.

     This Note is issued pursuant to the Credit Agreement and is entitled to the
benefits  of  the Credit Agreement, reference to which is hereby made for a more
complete  statement  of  the terms and conditions under which the Loan evidenced
hereby  is  made  and  is  to  be  repaid.

     THE  CREDIT  AGREEMENT  AND  THIS  NOTE  SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED  AND  ENFORCED  IN  ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
TEXAS,  WITHOUT  REGARD  TO  CONFLICTS  OF  LAWS  PRINCIPLES.

     Upon  the  occurrence  of  an  Event  of Default, the unpaid balance of the
principal  amount  of  this  Note  may become, or may be declared to be, due and
payable  in  the manner, upon the conditions and with the effect provided in the
Credit  Agreement.

     Maker  promises  to  pay  all  fees,  costs  and  expenses  incurred in the
collection  and  enforcement  of  this  Note in accordance with the terms of the
Credit  Agreement.  Maker  and  any  endorser  of  this  Note hereby consents to
renewals and extensions of time at or after the maturity hereof, without notice,
and  hereby  waive  diligence,  presentment, protest, demand and notice of every
kind  (except  such  notices  as  may  be  expressly  required  under the Credit
Agreement or the other Loan Documents) and, to the full extent permitted by law,
the  right  to  plead  any  statute  of  limitations  as a defense to any demand
hereunder.

     Whenever possible, each provision of this Note shall be interpreted in such
manner  as  to be effective and valid under applicable law, but if any provision
of  this  Note  shall  be  prohibited  by  or invalid under applicable law, such
provision  shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of  this  Note.

With  respect  to the incurrence of certain liabilities hereunder and the making
of  certain agreements by Maker as herein stated, such incurrence of liabilities
and such agreements shall be binding upon Maker only as a trust formed under the
Texas  Real  Estate  Investment  Trust  Act  pursuant  to  that certain Restated
Declaration  of  Trust  dated March 23, 1988 (as amended from time to time), and
only  upon  the  assets of such Maker.  No Trust Manager or officer or holder of
any  beneficial  interest  in  Maker  shall  have any personal liability for the
payment  of any indebtedness or other liabilities incurred by Maker hereunder or
for the performance of any agreements made by Maker hereunder, nor for any other
act,  omission  or obligation incurred by Maker or the Trust Managers except, in
the  case  of  a  Trust  Manager,  any  liability  arising  from his own willful
misfeasance  or  malfeasance  or  gross  negligence.

     IN WITNESS WHEREOF, Maker has caused this Note to be executed and delivered
by  its  duly  authorized  officer,  as of the day and year first written above.

     WEINGARTEN  REALTY  INVESTORS

By:
Name:
Title:

<PAGE>

                                       E-3

HOUSTON:007002/04097:564617v15

                                CREDIT AGREEMENT

                                    EXHIBIT E
                                    ---------

              [FORM OF] BORROWING REQUEST/INTEREST ELECTION REQUEST
              -----------------------------------------------------

                                     [Date]

The  Chase  Manhattan  Bank,
as  Administrative  Agent
712  Main  Street
Houston,  Texas  77002

Attn:  Manager,  Real  Estate  Group

Re:     Weingarten  Realty  Investors
Borrowing  Request

Dear  Ladies  and  Gentlemen:

     This  Borrowing  Request  is  made  with  reference  to that certain Credit
Agreement  dated  as  of  ________________,  2000  (as  amended, supplemented or
otherwise  modified from time to time, the "Credit Agreement"), among Weingarten
Realty  Investors (the "Borrower"), the financial institutions party thereto, as
lenders, and The Chase Manhattan Bank, as Administrative Agent.  All capitalized
terms  used in this Borrowing Request (including any attachments hereto) and not
otherwise  defined  in  this Borrowing Request shall have the meanings set forth
for  such  terms  in  the Credit Agreement.  All Section references herein shall
refer  to  the  Credit  Agreement.

     The  Borrower  hereby  requests  [check  as applicable]  a conversion of an
existing  Loan  as provided below and/or  an advance under the Credit Agreement,
in  the  amount  of  $____________ [minimum of $5,000,000.00 and in multiples of
$1,000,000.00].

     1.     Aggregate  Commitment     $350,000,000.00

     2.     The  amount  outstanding  under  the
Revolving  Loans     $_____________

     3.     The  amount  outstanding  under  Competitive
Loans     $_____________

     4.     LC  Exposure     $_____________

     5.     Available  amount  (1-  2-  3-  4)     $_____________

     6.     Less  amount  requested     ($____________)

     7.     Amount  remaining  to  be  advanced     $____________

8.     Account  for  funding:

     The  advance  or  conversion  is  to  be  made  as  follows:

     A.     ABR  Borrowing.
            --------------

1.     Amount  of  ABR  Borrowing:     $_____________

2.     Date  of  ABR  Borrowing                    _____________

     B.     Eurodollar  Borrowing:
            ---------------------

1.     Amount  of  Eurodollar  Borrowing:     $_____________

2.     Amount  of  conversion  of  existing
     Loan  to  Eurodollar  Borrowing:     $_____________

3.     Number  of  Eurodollar
     Borrowing(s)  now  in  effect:      _____________
     [cannot  exceed  eight  (8)  including
Competitive  Borrowings]

4.     Date  of  Eurodollar  Rate  Borrowing
     or  conversion:     _____________

5.     Interest  Period:     _____________

6.     Expiration  date  of  current  Interest
     Period  as  to  this  conversion:     _____________

<PAGE>

     The  Borrower  hereby  represents  and  warrants that the amounts set forth
above  are  true  and correct, that the amount above requested has actually been
incurred,  that  the  representations  and  warranties  contained  in the Credit
Agreement  are true and correct as if made as of this date (except to the extent
relating  to  a  specific  date),  and  that  the  Borrower  has kept, observed,
performed  and  fulfilled each and every one of its obligations under the Credit
Agreement  as  of  the  date  hereof  [except  as  follows:  _______________]

     Very  truly  yours,

                         WEINGARTEN  REALTY  INVESTORS

By:
     Name:
Title:

<PAGE>

     F-2

                                CREDIT AGREEMENT

                                    EXHIBIT F
                                    ---------

                        [FORM OF] COMPETITIVE BID REQUEST
                        ---------------------------------

                                     [Date]

The  Chase  Manhattan  Bank,
as  Administrative  Agent
712  Main  Street
Houston,  Texas  77002

Attn:  Manager,  Real  Estate  Group

Re:     Weingarten  Realty  Investors
Competitive  Bid  Request

Dear  Ladies  and  Gentlemen:

     This  Competitive Bid Request is made with reference to that certain Credit
Agreement  dated  as  of  ________________,  2000  (as  amended, supplemented or
otherwise  modified from time to time, the "Credit Agreement"), among Weingarten
Realty  Investors (the "Borrower"), the financial institutions party thereto, as
lenders, and The Chase Manhattan Bank, as Administrative Agent.  All capitalized
terms  used  in  this Competitive Bid Request (including any attachments hereto)
and  not  otherwise  defined  in  this  Competitive  Bid  Request shall have the
meanings  set  forth  for  such  terms  in  the  Credit  Agreement.  All Section
references  herein  shall  refer  to  the  Credit  Agreement.

     The  Borrower  hereby requests Competitive Bids pursuant to Section 2.04 of
the  Credit  Agreement, in the amount of $____________ [minimum of $5,000,000.00
and  in  multiples  of  $1,000,000.00].

     1.     Aggregate  Commitment     $350,000,000.00

     2.     The  amount  outstanding  under  the
Revolving  Loans     $_____________

     3.     The  amount  outstanding  under  Competitive  Loans*
$_____________

     4.     LC  Exposure     $_____________

     5.     Available  amount  (1-2-3-4)     $_____________

     6.     Less  amount  requested*     ($____________)

     7.     Amount  remaining  to  be  advanced     $____________

8.     Account  for  funding:

     The  Competitive  Bids  should offer a [Fixed Rate] [Margin on a LIBO Rate]

     Amount  of  Borrowing:                         $
     Date  of  Borrowing:                                        ,  2000
     Interest  Period**

     The  Borrower  hereby  represents and warrants that the representations and
warranties  contained in the Credit Agreement are true and correct as if made as
of  this  date  (except to the extent relating to a specific date), and that the
Borrower  has  kept, observed, performed and fulfilled each and every one of its
obligations under the Credit Agreement as of the date hereof [except as follows:
_______________]

     Very  truly  yours,

                         WEINGARTEN  REALTY  INVESTORS

By:
     Name:
Title:

*     The  sum  of  items  3  and  6  cannot  exceed  50%  of  item  1.

**     No  more  than eight (8) Eurodollar Borrowings (including Revolving Loans
and  Competitive  Loans)  can  be  in  effect  at  one  time.

Pursuant  to  Section  5.02(a),  cannot  exceed  thirty-five  percent  (35%)

     Pursuant to Section 6.04(e), cannot exceed ten percent (10%) of Total Asset
Value.
     Pursuant  to  Section  6.04(g), cannot exceed twenty percent (20%) of Total
Asset  Value.
     Pursuant  to  Section  6.04(h),  cannot exceed twenty-five percent (25%) of
Total  Asset  Value.
     Pursuant  to Section 6.04, cannot exceed forty percent (40%) of Total Asset
Value.Exhibit 4.1

<PAGE>

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

                     FINANCIAL ASSET SECURITIES CORPORATION,
                                    Depositor

                        OPTION ONE MORTGAGE CORPORATION,
                                 Master Servicer

                                       and

                        WELLS FARGO BANK MINNESOTA, N.A.,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                          Dated as of February 1, 2001

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

                   First Franklin Mortgage Loan Trust 2001-FF1

                   Asset-Backed Certificates, Series 2001-FF1

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

<PAGE>

<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS

                                                                                                               Page

                                                     ARTICLE I

                                                    DEFINITIONS
<S>                                                                                                            <C>
Section 1.01.     Defined Terms...................................................................................3
Section 1.02.     Accounting.....................................................................................43
Section 1.03.     Allocation of Certain Interest Shortfalls......................................................43

                                                    ARTICLE II

                                           CONVEYANCE OF MORTGAGE LOANS;
                                         ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01.     Conveyance of Mortgage Loans...................................................................44
Section 2.02.     Acceptance by Trustee..........................................................................46
Section 2.03.     Repurchase or Substitution of Mortgage Loans by Option One.....................................47
Section 2.04.     Intentionally Omitted..........................................................................50
Section 2.05.     Representations, Warranties and Covenants of the Master Servicer...............................50
Section 2.06.     Representations and Warranties of the Depositor................................................52
Section 2.07.     Issuance of Certificates.......................................................................54
Section 2.08.     [Reserved].....................................................................................54
Section 2.09.     Conveyance of  REMIC Regular Interests and Acceptance of REMIC 1
                  by the Trustee; Issuance of Certificates.......................................................54

                                                    ARTICLE III

                                           ADMINISTRATION AND SERVICING
                                               OF THE MORTGAGE LOANS

Section 3.01.     Master Servicer to Act as Master Servicer......................................................55
Section 3.02.     Sub-Servicing Agreements Between Master Servicer and Sub-Servicers.............................57
Section 3.03.     Successor Sub-Servicers........................................................................58
Section 3.04.     Liability of the Master Servicer...............................................................58
Section 3.05.     No Contractual Relationship Between Sub-Servicers and
                  the Trustee or Certificateholders..............................................................59
Section 3.06.     Assumption or Termination of Sub-Servicing Agreements by Trustee...............................59
Section 3.07.     Collection of Certain Mortgage Loan Payments...................................................59
Section 3.08.     Sub-Servicing Accounts.........................................................................60
Section 3.09.     Collection of Taxes, Assessments and Similar Items; Servicing Accounts.........................60
Section 3.10.     Collection Account and Distribution Account....................................................61
Section 3.11.     Withdrawals from the Collection Account and Distribution Account...............................64
Section 3.12.     Investment of Funds in the Collection Account, the Distribution Account

                                                         i

<PAGE>

                  and the Dividend Account.......................................................................66
Section 3.13.     [Reserved].....................................................................................67
Section 3.14.     Maintenance of Hazard Insurance and Errors and Omissions and Fidelity
                  Coverage.......................................................................................67
Section 3.15.     Enforcement of Due-On-Sale Clauses; Assumption Agreements......................................69
Section 3.16.     Realization Upon Defaulted Mortgage Loans......................................................70
Section 3.17.     Trustee to Cooperate; Release of Mortgage Files................................................72
Section 3.18.     Servicing Compensation.........................................................................73
Section 3.19.     Reports to the Trustee; Collection Account Statements..........................................74
Section 3.20.     Statement as to Compliance.....................................................................74
Section 3.21.     Independent Public Accountants' Servicing Report...............................................74
Section 3.22.     Access to Certain Documentation; Filing of Reports by Trustee..................................75
Section 3.23.     Title, Management and Disposition of REO Property..............................................75
Section 3.24.     Obligations of the Master Servicer in Respect of Prepayment Interest
                  Shortfalls.....................................................................................78
Section 3.25.     [Reserved].....................................................................................79
Section 3.26.     Obligations of the Master Servicer in Respect of Mortgage Rates and
                  Monthly Payments...............................................................................79
Section 3.27.     Solicitations..................................................................................79
Section 3.28.     Reserve Fund...................................................................................79
Section 3.29.     Advance Facility...............................................................................81
Section 3.30.     PMI Policy; Claims Under the PMI Policy........................................................81
Section 3.31.     Dividend Account...............................................................................82

                                                    ARTICLE IV

                                                   FLOW OF FUNDS

Section 4.01.     Distributions..................................................................................84
Section 4.02.     Reserved.......................................................................................88
Section 4.03.     Statements.....................................................................................88
Section 4.04.     Remittance Reports; Advances...................................................................92
Section 4.06.     [Reserved].....................................................................................93
Section 4.07.     Distributions on the REMIC Regular Interests...................................................93
Section 4.08.     Allocation of Realized Losses..................................................................95

                                                     ARTICLE V

                                                 THE CERTIFICATES

Section 5.01.     The Certificates...............................................................................97
Section 5.02.     Registration of Transfer and Exchange of Certificates..........................................97
Section 5.03.     Mutilated, Destroyed, Lost or Stolen Certificates.............................................102
Section 5.04.     Persons Deemed Owners.........................................................................102
Section 5.05.     Appointment of Paying Agent...................................................................102

                                                        ii

<PAGE>

                                                    ARTICLE VI

                                       THE MASTER SERVICER AND THE DEPOSITOR

Section 6.01.     Liability of the Master Servicer and the Depositor............................................104
Section 6.02.     Merger or Consolidation of, or Assumption of the Obligations of, the Master
                  Servicer or the Depositor.....................................................................104
Section 6.03.     Limitation on Liability of the Master Servicer and Others.....................................104
Section 6.04.     Master Servicer Not to Resign.................................................................105
Section 6.05.     Delegation of Duties..........................................................................105
Section 6.06.     Reserved......................................................................................106
Section 6.07.     Inspection....................................................................................106
Section 6.08.     Duties of the Loss Mitigation Advisor.........................................................106
Section 6.09.     Limitation Upon Liability of the Loss Mitigation Advisor......................................106
Section 6.10.     Ownership of Intellectual Property............................................................107
Section 6.11      Protection of Trade Secrets, Know-How and/or Other Confidential
                  Information of the Loss Mitigation Advisor....................................................107
Section 6.12      Assignment of Intellectual Property, Copyrightable Material,
                  Confidential Information, Know-How, and Trade Secrets.........................................108

                                                    ARTICLE VII

                                                      DEFAULT

Section 7.01.     Master Servicer Events of Termination.........................................................109
Section 7.02.     Trustee to Act; Appointment of Successor......................................................110
Section 7.03.     Waiver of Defaults............................................................................112
Section 7.04.     Notification to Certificateholders............................................................112
Section 7.05.     Survivability of Master Servicer Liabilities..................................................112

                                                   ARTICLE VIII

                                                    THE TRUSTEE

Section 8.01.     Duties of Trustee.............................................................................113
Section 8.02.     Certain Matters Affecting the Trustee.........................................................114
Section 8.03.     Trustee Not Liable for Certificates or Mortgage Loans.........................................115
Section 8.04.     Trustee May Own Certificates..................................................................116
Section 8.05.     Trustee Fee and Expenses......................................................................116
Section 8.06.     Eligibility Requirements for Trustee..........................................................117
Section 8.07.     Resignation or Removal of Trustee.............................................................117
Section 8.08.     Successor Trustee.............................................................................118
Section 8.09.     Merger or Consolidation of Trustee............................................................118
Section 8.10.     Appointment of Co-Trustee or Separate Trustee.................................................118
Section 8.11.     Limitation of Liability.......................................................................120
Section 8.12.     Trustee May Enforce Claims Without Possession of Certificates.................................120

                                                        iii

<PAGE>

Section 8.13.     Suits for Enforcement.........................................................................120
Section 8.14.     Waiver of Bond Requirement....................................................................121
Section 8.15.     Waiver of Inventory, Accounting and Appraisal Requirement.....................................121

                                                    ARTICLE IX

                                               REMIC ADMINISTRATION

Section 9.01.     REMIC Administration..........................................................................122
Section 9.02.     Prohibited Transactions and Activities........................................................123
Section 9.03.     Indemnification with Respect to Certain Taxes and Loss of REMIC Status........................124
Section 9.04.     [Reserved]....................................................................................125

                                                     ARTICLE X

                                                    TERMINATION

Section 10.01.    Termination...................................................................................126
Section 10.02.    Additional Termination Requirements...........................................................127

                                                    ARTICLE XI

                                             MISCELLANEOUS PROVISIONS

Section 11.01.    Amendment.....................................................................................129
Section 11.02.    Recordation of Agreement; Counterparts........................................................130
Section 11.03.    Limitation on Rights of Certificateholders....................................................130
Section 11.04.    Governing Law; Jurisdiction...................................................................131
Section 11.05.    Notices.......................................................................................131
Section 11.06.    Severability of Provisions....................................................................132
Section 11.07.    Article and Section References................................................................132
Section 11.08.    Notice to the Rating Agencies.................................................................132
Section 11.09.    Further Assurances............................................................................133
Section 11.10.    Benefits of Agreement.........................................................................133
Section 11.11     Acts of Certificateholders....................................................................133
</TABLE>

                                                        iv

<PAGE>

EXHIBITS:

Exhibit A-1       Form of Class A-1 Certificates
Exhibit A-2       Form of Class A-2 Certificates
Exhibit A-3       Form of Class M-1 Certificates
Exhibit A-4       Form of Class M-2 Certificates
Exhibit A-5       Form of Class C Certificates
Exhibit A-6       Form of Class P Certificates
Exhibit A-7       Form of Class R Certificates
Exhibit A-8       Form of Dividend Account Certificate
Exhibit B         [Reserved]
Exhibit C         Form of Mortgage Loan Purchase Agreement
Exhibit D         Mortgage Loan Schedule
Exhibit E         Request for Release
Exhibit F-1       Form of Trustee's Initial Certification
Exhibit F-2       Form of Trustee's Final Certification
Exhibit F-3       Form of Receipt of Mortgage Note
Exhibit G         [Reserved]
Exhibit H         Form of Lost Note Affidavit
Exhibit I         [Reserved]
Exhibit J         Form of Investment Letter
Exhibit K         Form of Class R Certificate Transfer Affidavit
Exhibit L         Form of Transferor Certificate
Exhibit M         Form of Liquidation Report
Exhibit N         Form of Loss Mitigation Advisory Agreement

Schedule I        Prepayment Charge Schedule
Schedule II       PMI Mortgage Loans

                                        v

<PAGE>

         This Pooling and Servicing Agreement is dated as of February 1, 2001
(the "Agreement"), among FINANCIAL ASSET SECURITIES CORPORATION, as depositor
(the "Depositor"), OPTION ONE MORTGAGE CORPORATION, as master servicer (the
"Master Servicer") and WELLS FARGO BANK MINNESOTA, N.A., as trustee (the
"Trustee").

                             PRELIMINARY STATEMENT:

         The Depositor intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in the Trust
Fund created hereunder. The Certificates will consist of seven classes of
certificates, designated as (i) the Class A-1 Certificates, (ii) the Class A-2
Certificates, (iii) the Class M-1 Certificates, (iv) the Class M-2 Certificates,
(v) the Class P Certificates, (vi) the Class C Certificates and (vii) the Class
R Certificates.

                                     REMIC 1
                                     -------

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

<TABLE>
<CAPTION>
                         Uncertificated REMIC 1         Initial Uncertificated                 Assumed Final
    Designation             Pass-Through Rate              Principal Balance                 Maturity Date (1)
    -----------     -------------------------------- -----------------------------           -----------------
<S>                 <C>                              <C>                                     <C>
       LT1A                   Variable(2)                   $211,667,626.39                   January 25, 2031
       LT1B                   Variable(2)                   $  2,019,480.00                   January 25, 2031
       LT1C                   Variable(2)                   $     97,194.44                   January 25, 2031
       LT1D                   Variable(2)                   $     32,401.06                   January 25, 2031
       LT1E                   Variable(2)                   $  2,170,671.98                   January 25, 2031
       LT1F                   Variable(2)                   $ 30,762,293.54                   January 25, 2031
       LT1G                   Variable(2)                   $    293,500.00                   January 25, 2031
       LT1H                   Variable(2)                   $     14,125.56                   January 25, 2031
       LT1I                   Variable(2)                   $      4,708.94                   January 25, 2031
       LT1J                   Variable(2)                   $    315,467.41                   January 25, 2031
       LT1PI                  Variable(2)                   $         87.31                   January 25, 2031
      LT1PII                  Variable(2)                   $         12.69                   January 25, 2031
</TABLE>

-------------------
(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the month of
         the maturity date for the Mortgage Loan with the latest maturity date
         has been designated as the "latest possible maturity date" for each
         REMIC 1 Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC 1
         Pass-Through Rate" herein.

<PAGE>

                                     REMIC 2
                                     -------

         As provided herein, the Trustee shall make an election to treat the
segregated pool of assets consisting of the REMIC 1 Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 2." The Class R-2 Interest represents the sole class of
"residual interests" in REMIC 2 for purposes of the REMIC Provisions.

         The following table sets forth (or describes) the Class designation,
Pass-Through Rate and Original Class Certificate Principal Balance for each
Class of Certificates that represents one or more of the "regular interests" in
REMIC 2 created hereunder:

<TABLE>
<CAPTION>
                                      Original Class
                                  Certificate Principal              Pass-Through                 Assumed Final
      Class Designation                  Balance                         Rate                    Maturity Date(1)
      -----------------                  -------                         ----                    ----------------
<S>                               <C>                                <C>                         <C>
Class A-1....................       $  201,948,000.00                 Variable(2)                January 25, 2031
Class A-2....................       $   29,350,000.00                 Variable(2)                January 25, 2031
Class M-1....................       $   11,132,000.00                 Variable(2)                January 25, 2031
Class M-2....................       $    3,711,000.00                 Variable(2)                January 25, 2031
Class C......................       $    1,236,469.32(3)              Variable(2)                January 25, 2031
Class P......................       $          100.00                   N/A(4)                   January 25, 2031
</TABLE>

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the month of
         the maturity date for the Mortgage Loan with the latest maturity date
         has been designated as the "latest possible maturity date" for each
         Class of Certificates that represents one or more of the "regular
         interests" in REMIC 2.
(2)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein.
(3)      The Class C Certificates will accrue interest at their variable
         Pass-Through Rate on the Notional Amount of the Class C Certificates
         outstanding from time to time which shall equal the aggregate of the
         Uncertificated Principal Balances of the REMIC 1 Regular Interests. The
         Class C Certificates will not accrue interest on their Class
         Certificate Principal Balance.
(4)      The Class P Certificates will not accrue interest.

                                        2

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01.     Defined Terms.

         Whenever used in this Agreement or in the Preliminary Statement, the
following words and phrases, unless the context otherwise requires, shall have
the meanings specified in this Article. Unless otherwise specified, all
calculations in respect of interest on the Class A Certificates and the
Mezzanine Certificates shall be made on the basis of the actual number of days
elapsed and a 360- day year and all other calculations of interest described
herein shall be made on the basis of a 360- day year consisting of twelve 30-day
months. The Class P Certificates and the Class R Certificates are not entitled
to distributions in respect of interest and, accordingly, will not accrue
interest.

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

         "Account":  Either of the Collection Account and Distribution Account.

         "Accrual Period": With respect to the Class A Certificates and the
Mezzanine Certificates and each Distribution Date, the period commencing on the
preceding Distribution Date (or in the case of the first such Accrual Period,
commencing on the Closing Date) and ending on the day preceding the current
Distribution Date. With respect to the Class C Certificates and each
Distribution Date, the calendar month prior to the month of such Distribution
Date.

         "Adjusted Net Maximum Mortgage Rate": With respect to any Mortgage Loan
(or the related REO Property), as of any date of determination, a per annum rate
of interest equal to the applicable Maximum Mortgage Rate for such Mortgage Loan
as of the first day of the month preceding the month in which the related
Distribution Date occurs minus the sum of (i) the Trustee Fee Rate, (ii) the
Servicing Fee Rate, (iii) the PMI Insurer Fee Rate, if applicable, (iv) the
Advisor's Fee Rate, if applicable and (v) the Dividend Rate, if applicable.

         "Adjusted Net Mortgage Rate": With respect to any Mortgage Loan (or the
related REO Property), as of any date of determination, a per annum rate of
interest equal to the applicable Mortgage Rate for such Mortgage Loan as of the
first day of the month preceding the month in which the related Distribution
Date occurs minus the sum of (i) the Trustee Fee Rate, (ii) the Servicing Fee
Rate, (iii) the PMI Insurer Fee Rate, if applicable, (iv) the Advisor's Fee
Rate, if applicable and (v) the Dividend Rate, if applicable.

         "Adjustment Date": With respect to each Mortgage Loan, each adjustment
date, on which the Mortgage Rate of such Mortgage Loan changes pursuant to the
related Mortgage Note. The first Adjustment Date following the Cut-off Date as
to each Mortgage Loan is set forth in the Mortgage Loan Schedule.

         "Advance": As to any Mortgage Loan or REO Property, any advance made by
the Master Servicer in respect of any Distribution Date pursuant to Section
4.04.

                                        3

<PAGE>

         "Advancing Person":  As defined in Section 3.29 hereof.

         "Adverse REMIC Event": As defined in Section 9.01(f) hereof.

         "Advisor's Fee": The amount payable to the Loss Mitigation Advisor on
each Distribution Date as compensation for all services rendered by it in the
exercise and performance of any of the powers and duties of the Loss Mitigation
Advisor under the Loss Mitigation Advisory Agreement, which amount shall equal
one twelfth of the product of (i) the Advisor's Fee Rate, multiplied by (ii) the
aggregate Stated Principal Balance of the PMI Mortgage Loans and any related REO
Properties as of the first day of the related Due Period.

         "Advisor's Fee Rate":  0.015% per annum.

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

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

         "Allocated Realized Loss Amount": With respect to any Distribution Date
and any Class of Mezzanine Certificates, the sum of (i) any Realized Losses
allocated to such Class of Certificates on such Distribution Date and (ii) the
amount of any Allocated Realized Loss Amount for such Class of Certificates
remaining unpaid from the previous Distribution Date.

         "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect or
record the sale of the Mortgage.

         "Assumed Final Maturity Date": As to each Class of Certificates, the
date set forth as such in the Preliminary Statement.

         "Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11 of the
United States Code), as amended.

         "Basic Principal Distribution Amount": With respect to any Distribution
Date, the excess of (i) the Principal Remittance Amount for both Loan Groups for
such Distribution Date over (ii) the Overcollateralization Release Amount, if
any, for such Distribution Date.

         "Book-Entry Certificates": Any of the Certificates that shall be
registered in the name of the Depository or its nominee, the ownership of which
is reflected on the books of the Depository or on the books of a Person
maintaining an account with the Depository (directly, as a "Depository
Participant", or indirectly, as an indirect participant in accordance with the
rules of the Depository

                                        4

<PAGE>

and as described in Section 5.02 hereof). On the Closing Date, the Class A
Certificates and the Mezzanine Certificates shall be Book-Entry Certificates.

         "Business Day": Any day other than a Saturday, a Sunday or a day on
which banking or savings institutions in the State of Delaware, the State of New
York, the State of Maryland, the State of California, the State of Minnesota,
the State of Pennsylvania, or in the city in which the Corporate Trust Office of
the Trustee is located are authorized or obligated by law or executive order to
be closed.

         "Certificate":  Any Regular Certificate or Class R Certificate.

         "Certificate Group": Either the Group I Certificates or the Group II
Certificates.

         "Certificate Group I":  The Group I Certificates.

         "Certificate Group II":  The Group II Certificates.

         "Certificateholder" or "Holder": The Person in whose name a Certificate
is registered in the Certificate Register, except that a Disqualified
Organization or non-U.S. Person shall not be a Holder of a Class R Certificate
for any purpose hereof and, solely for the purposes of giving any consent
pursuant to this Agreement, any Certificate registered in the name of the
Depositor or the Master Servicer or any Affiliate thereof shall be deemed not to
be outstanding and the Voting Rights to which it is entitled shall not be taken
into account in determining whether the requisite percentage of Voting Rights
necessary to effect any such consent has been obtained, except as otherwise
provided in Section 11.01. The Trustee may conclusively rely upon a certificate
of the Depositor or the Master Servicer in determining whether a Certificate is
held by an Affiliate thereof. All references herein to "Holders" or
"Certificateholders" shall reflect the rights of Certificate Owners as they may
indirectly exercise such rights through the Depository and participating members
thereof, except as otherwise specified herein; provided, however, that the
Trustee shall be required to recognize as a "Holder" or "Certificateholder" only
the Person in whose name a Certificate is registered in the Certificate
Register.

         "Certificate Margin": With respect to the Class A-1 Certificates on
each Distribution Date (A) on or prior to the Optional Termination Date, 0.21%
per annum and (B) after the Optional Termination Date, 0.42% per annum. With
respect to the Class A-2 Certificates on each Distribution Date (A) on or prior
to the Optional Termination Date, 0.225% per annum and (B) after the Optional
Termination Date, 0.45% per annum. With respect to the Class M-1 Certificates on
each Distribution Date (A) on or prior to the Optional Termination Date, 0.60%
per annum and (B) after the Optional Termination Date, 0.90% per annum. With
respect to the Class M-2 Certificates on each Distribution Date (A) on or prior
to the Optional Termination Date, 1.00% per annum and (B) after the Optional
Termination Date, 1.50% per annum.

         "Certificate Owner": With respect to each Book-Entry Certificate, any
beneficial owner thereof.

                                        5

<PAGE>

         "Certificate Principal Balance": With respect to any Class of Regular
Certificates (other than the Class C Certificates) immediately prior to any
Distribution Date, will be equal to the Initial Certificate Principal Balance
thereof reduced by the sum of all amounts actually distributed in respect of
principal of such Class and, in the case of a Mezzanine Certificate, Realized
Losses allocated thereto on all prior Distribution Dates. With respect to the
Class C Certificates as of any date of determination, an amount equal to the
excess, if any, of (A) the then aggregate Uncertificated Principal Balances of
the REMIC 1 Regular Interests over (B) the then aggregate Certificate Principal
Balances of the Class A Certificates, the Mezzanine Certificates and the Class P
Certificates then outstanding.

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

         "Class": Collectively, Certificates which have the same priority of
payment and bear the same class designation and the form of which is identical
except for variation in the Percentage Interest evidenced thereby.

         "Class A Certificates": Any Class A-1 Certificate or Class A-2
Certificate.

         "Class A-1 Certificate": Any one of the Class A-1 Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-1, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

         "Class A-2 Certificate": Any one of the Class A-2 Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-2, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

         "Class A Certificateholder":  Any Holder of a Class A Certificate.

         "Class A Principal Distribution Amount": The excess of (x) the
Certificate Principal Balance of the Class A Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 87.00% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus the Overcollateralization Floor.

         "Class C Certificate": Any one of the Class C Certificates executed by
the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-5, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

                                        6

<PAGE>

         "Class M-1 Certificate": Any one of the Class M-1 Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-3, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

         "Class M-1 Principal Distribution Amount": The excess of (x) the sum of
(i) the Certificate Principal Balance of the Class A Certificates (after taking
into account the payment of the Class A Principal Distribution Amount on such
Distribution Date) and (ii) the Certificate Principal Balance of the Class M-1
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 96.00% and (ii) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) and (B) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
the Overcollateralization Floor.

         "Class M-2 Certificate": Any one of the Class M-2 Certificates executed
by the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-4, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

         "Class M-2 Principal Distribution Amount": The excess of (x) the sum of
(i) the Certificate Principal Balance of the Class A Certificates (after taking
into account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date) and (iii) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 99.00% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus the Overcollateralization Floor.

         "Class P Certificate": Any one of the Class P Certificates executed by
the Trustee, and authenticated and delivered by the Certificate Registrar,
substantially in the form annexed hereto as Exhibit A-6, representing the right
to distributions as set forth herein and therein and evidencing a regular
interest in REMIC 2.

         "Class R Certificate": The Class R Certificate executed by the Trustee,
and authenticated and delivered by the Certificate Registrar, substantially in
the form annexed hereto as Exhibit A-7 and evidencing the ownership of the Class
R-1 Interest and the Class R-2 Interest.

                                        7

<PAGE>

         "Class R-1 Interest":  The uncertificated Residual Interest in REMIC 1.

         "Class R-2 Interest":  The uncertificated Residual Interest in REMIC 2.

         "Close of Business": As used herein, with respect to any Business Day,
5:00 p.m. (New York time).

         "Closing Date":  February 28, 2001.

         "Code":  The Internal Revenue Code of 1986.

         "Collection Account": The account or accounts created and maintained by
the Master Servicer pursuant to Section 3.10(a), which shall be entitled "Wells
Fargo Bank Minnesota, N.A., as Trustee, in trust for registered Holders of First
Franklin Mortgage Loan Trust 2001-FF1, Asset- Backed Certificates, Series
2001-FF1," which must be an Eligible Account.

         "Compensating Interest":  As defined in Section 3.24 hereof.

         "Corporate Trust Office": The principal corporate trust office of the
Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at Sixth and Marquette,
Minneapolis, Minnesota 55479-0113, Attention: First Franklin Series 2001-FF1, or
at such other address as the Trustee may designate from time to time by notice
to the Certificateholders, the Depositor, the Master Servicer and the Seller.

         "Corresponding Certificate": With respect to (i) REMIC 1 Regular
Interest LT1B, (ii) REMIC 1 Regular Interest LT1G, (iii) REMIC 1 Regular
Interest LT1C and REMIC 1 Regular Interest LT1H, (iv) REMIC 1 Regular Interest
LT1D and REMIC 1 Regular Interest LT1I and (v) REMIC 1 Regular Interest LT1PI
and REMIC 1 Regular Interest LT1PII, (i) the Class A-1 Certificates, (ii) Class
A-2 Certificates, (iii) Class M-1 Certificates, (iv) Class M-2 Certificates and
(v) Class P Certificates, respectively.

         "Credit Enhancement Percentage": For any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the sum of the
aggregate Certificate Principal Balances of the Mezzanine Certificates and the
Class C Certificates, and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans, calculated prior to taking into account
payments of principal on the Mortgage Loans and distribution of the Group I
Principal Distribution Amount and the Group II Principal Distribution Amount to
the Holders of the Certificates then entitled to distributions of principal on
such Distribution Date.

         "Custodian": Wells Fargo Bank Minnesota, N.A., as custodian of the
Mortgage Files, and any successor thereto.

         "Cut-off Date": With respect to each Mortgage Loan, the later of (i)
the date of origination of such Mortgage Loan or (ii) February 1, 2001.

                                        8

<PAGE>

         "Cut-off Date Aggregate Principal Balance": With respect to each Loan
Group, the aggregate of the Cut-off Date Principal Balances of the Mortgage
Loans in such Loan Group.

         "Cut-off Date Principal Balance": With respect to any Mortgage Loan,
the unpaid principal balance thereof as of the Cut-off Date of such Mortgage
Loan (or as of the applicable date of substitution with respect to a Qualified
Substitute Mortgage Loan), after giving effect to scheduled payments due on or
before the Cut-off Date, whether or not received.

         "Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a
reduction resulting from a Deficient Valuation.

         "Deficient Valuation": With respect to any Mortgage Loan, a valuation
of the related Mortgaged Property by a court of competent jurisdiction in an
amount less than the then outstanding principal balance of the Mortgage Loan,
which valuation results from a proceeding initiated under the Bankruptcy Code.

         "Definitive Certificates":  As defined in Section 5.02(c) hereof.

         "Deleted Mortgage Loan": A Mortgage Loan replaced or to be replaced by
one or more Qualified Substitute Mortgage Loans.

         "Delinquency Percentage": For any Distribution Date, the percentage
obtained by dividing (x) the aggregate Principal Balance of Mortgage Loans
Delinquent 60 days or more by (y) the aggregate Principal Balance of the
Mortgage Loans, in each case, as of the last day of the previous calendar month.

         "Delinquent": With respect to any Mortgage Loan and related Monthly
Payment, the Monthly Payment due on a Due Date which is not made by the Close of
Business on the next scheduled Due Date for such Mortgage Loan. For example, a
Mortgage Loan is 60 or more days Delinquent if the Monthly Payment due on a Due
Date is not made by the Close of Business on the second scheduled Due Date after
such Due Date.

         "Depositor": Financial Asset Securities Corporation, a Delaware
corporation, or any successor in interest.

         "Depository": The initial Depository shall be The Depository Trust
Company, whose nominee is Cede & Co., or any other organization registered as a
"clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended. The Depository shall initially be the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

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

                                        9

<PAGE>

         "Determination Date": With respect to any Distribution Date, the 15th
day of the calendar month in which such Distribution Date occurs or, if such
15th day is not a Business Day, the Business Day immediately preceding such 15th
day.

         "Directly Operate": With respect to any REO Property, the furnishing or
rendering of services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for sale to
customers, the performance of any construction work thereon or any use of such
REO Property in a trade or business conducted by the REMIC other than through an
Independent Contractor; provided, however, that the Trustee (or the Master
Servicer on behalf of the Trustee) shall not be considered to Directly Operate
an REO Property solely because the Trustee (or the Master Servicer on behalf of
the Trustee) establishes rental terms, chooses tenants, enters into or renews
leases, deals with taxes and insurance, or makes decisions as to repairs or
capital expenditures with respect to such REO Property.

         "Disqualified Organization": A "disqualified organization" under
Section 860E of the Code, which as of the Closing Date is any of: (i) the United
States, any state or political subdivision thereof, any foreign government, any
international organization, or any agency or instrumentality of any of the
foregoing, (ii) any organization (other than a cooperative described in Section
521 of the Code) which is exempt from the tax imposed by Chapter 1 of the Code
unless such organization is subject to the tax imposed by Section 511 of the
Code, (iii) any organization described in Section 1381(a)(2)(C) of the Code,
(iv) an "electing large partnership" within the meaning of Section 775 of the
Code or (v) any other Person so designated by the Trustee based upon an Opinion
of Counsel provided by nationally recognized counsel to the Trustee that the
holding of an ownership interest in a Class R Certificate by such Person may
cause the Trust Fund or any Person having an ownership interest in any Class of
Certificates (other than such Person) to incur liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the transfer
of an ownership interest in the Class R Certificate to such Person. A
corporation will not be treated as an instrumentality of the United States or of
any state or political subdivision thereof, if all of its activities are subject
to tax and, a majority of its board of directors is not selected by a
governmental unit. The term "United States", "state" and "international
organizations" shall have the meanings set forth in Section 7701 of the Code.

         "Distribution Account": The trust account or accounts created and
maintained by the Trustee pursuant to Section 3.10(b) which shall be entitled
"Distribution Account, Wells Fargo Bank Minnesota, N.A., as Trustee, in trust
for the registered Certificateholders of First Franklin Mortgage Loan Trust
2001-FF1, Asset-Backed Certificates, Series 2001-FF1" and which must be an
Eligible Account.

         "Distribution Date": The 25th day of any calendar month, or if such
25th day is not a Business Day, the Business Day immediately following such 25th
day, commencing in March 2001.

         "Dividend Account": The trust account or accounts created and
maintained by the Master Servicer pursuant to Section 3.31 which shall be
entitled "Dividend Account, Wells Fargo Bank Minnesota, N.A., as Trustee, in
trust for the registered holder of the First Franklin Mortgage Loan Trust
2001-FF1, Dividend Account Certificate" and which must be an Eligible Account.

                                       10

<PAGE>

         "Dividend Account Certificate": A definitive physical certificate
issued pursuant to Section 3.31 and evidencing all of the right, title and
interest in and to any amounts that may be released from the Dividend Account
pursuant to Section 3.31, other than any amounts released from the Dividend
Account for payment to Mortgagors under Dividend Mortgage Loans.

         "Dividend Mortgage Loan": Each Mortgage Loan identified as such on the
Mortgage Loan Schedule and which contains a provision entitling the Mortgagor
thereunder to annual refunds, at the end of each of the first four years of the
life of such Mortgage Loan, of a portion of the interest paid by such mortgagor
during the preceding twelve months, if the conditions precedent to the
entitlement to such refund as specified in the related Mortgage Note have been
met.

         "Dividend Portion": With respect to each Dividend Mortgage Loan and
each Monthly Payment due thereunder during the first four years of the life of
such Mortgage Loan, an amount equal to interest at the Dividend Rate on the same
principal balance and for the same accrual period as is applicable to the
calculation of the interest portion of such Monthly Payment.

         "Dividend Rate": With respect to each Dividend Mortgage Loan and each
Monthly Payment due thereunder during the first four years of the life of such
Mortgage Loan, the dividend rate specified in the related Mortgage Note
applicable to the calculation of the Dividend Portion of such Monthly Payment to
be refunded to the related Mortgagor if the conditions precedent to the
entitlement to such refund as specified in the related Mortgage Note have been
met.

         "Due Date": With respect to each Mortgage Loan and any Distribution
Date, the first day of the calendar month in which such Distribution Date occurs
on which the Monthly Payment for such Mortgage Loan was due (or, in the case of
any Mortgage Loan under the terms of which the Monthly Payment for such Mortgage
Loan was due on a day other than the first day of the calendar month in which
such Distribution Date occurs, the day during the related Due Period on which
such Monthly Payment was due), exclusive of any days of grace.

         "Due Period": With respect to any Distribution Date, the period
commencing on the second day of the month preceding the month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

         "Eligible Account": Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the short-term unsecured debt obligations of such holding company) are
rated A-1+ by S&P or F1 by Fitch (or comparable ratings if S&P and Fitch are not
the Rating Agencies) at the time any amounts are held on deposit therein, (ii)
an account or accounts the deposits in which are fully insured by the FDIC (to
the limits established by such corporation), the uninsured deposits in which
account are otherwise secured such that, as evidenced by an Opinion of Counsel
delivered to the Trustee and to each Rating Agency, the Certificateholders will
have a claim with respect to the funds in such account or a perfected first
priority security interest against such collateral (which shall be limited to
Permitted Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, (iii) a trust account or accounts maintained with the
trust department of a federal or state chartered

                                       11

<PAGE>

depository institution, national banking association or trust company acting in
its fiduciary capacity or (iv) an account otherwise acceptable to each Rating
Agency without reduction or withdrawal of their then current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trustee.
Eligible Accounts may bear interest.

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

         "Escrow Payments": The amounts constituting ground rents, taxes,
assessments, water rates, fire and hazard insurance premiums and other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to any
Mortgage Loan.

         "Excess Overcollateralized Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and any Distribution Date, the
excess, if any, of (i) the Overcollateralized Amount for such Distribution Date,
assuming that 100% of the Principal Remittance Amount for both Loan Groups is
applied as a principal payment on such Distribution Date over (ii) the
Overcollateralization Target Amount for such Distribution Date.

         "Extra Principal Distribution Amount": With respect to any Distribution
Date, the lesser of (x) the Monthly Interest Distributable Amount payable on the
Class C Certificates on such Distribution Date as reduced by Realized Losses
allocated thereto with respect to such Distribution Date pursuant to Section
4.08 and (y) the Overcollateralization Deficiency Amount for such Distribution
Date.

         "Fannie Mae": Federal National Mortgage Association or any successor
thereto.

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

         "Final Recovery Determination": With respect to any defaulted Mortgage
Loan or any REO Property (other than a Mortgage Loan or REO Property purchased
by the Seller or the Master Servicer pursuant to or as contemplated by Section
2.03 or 10.01), a determination made by the Master Servicer that all Insurance
Proceeds, Liquidation Proceeds and other payments or recoveries which the Master
Servicer, in its reasonable good faith judgment, expects to be finally
recoverable in respect thereof have been so recovered. The Master Servicer shall
maintain records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.

         "Fitch": Fitch, Inc., or its successor in interest.

         "Formula Rate": For any Distribution Date and the Class A Certificates
and the Mezzanine Certificates, the lesser of (i) LIBOR plus the related
Certificate Margin and (ii) the related Maximum Cap Rate.

         Freddie Mac": The Federal Home Loan Mortgage Corporation, or any
successor thereto.

         "Gross Margin": With respect to each Mortgage Loan, the fixed
percentage set forth in the related Mortgage Note that is added to the Index on
each Adjustment Date in accordance with the terms of the related Mortgage Note
used to determine the Mortgage Rate for such Mortgage Loan.

                                       12

<PAGE>

         "Group I Available Funds": With respect to any Distribution Date, an
amount equal to the excess of (i) the sum of (a) the aggregate of the related
Monthly Payments received on the Group I Mortgage Loans on or prior to the
related Determination Date (net of the Dividend Portion of such Monthly Payment
in the case of each Dividend Mortgage Loan), (b) Liquidation Proceeds, Insurance
Proceeds, Principal Prepayments and other unscheduled recoveries of principal
and interest in respect of the Group I Mortgage Loans received during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of a related REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) the aggregate of any amounts
deposited in the Collection Account by the Master Servicer in respect of related
Prepayment Interest Shortfalls for such Distribution Date, (e) the aggregate of
any Advances made by the Master Servicer for such Distribution Date in respect
of the Group I Mortgage Loans, (f) the aggregate of any related advances made by
the Trustee in respect of the Group I Mortgage Loans for such Distribution Date
pursuant to Section 7.02 and (g) the amount of any Prepayment Charges collected
by the Master Servicer in connection with the full or partial prepayment of any
of the Group I Mortgage Loans and any Master Servicer Prepayment Charge Payment
Amount over (ii) the sum of (a) amounts reimbursable or payable to the Master
Servicer pursuant to Section 3.11(a) or the Trustee pursuant to Section 3.11(b),
(b) amounts deposited in the Collection Account or the Distribution Account
pursuant to clauses (a) through (g) above, as the case may be, in error, (c) the
amount of any Prepayment Charges collected by the Master Servicer in connection
with the full or partial prepayment of any of the Group I Mortgage Loans and any
Master Servicer Prepayment Charge Payment Amount, (d) the Trustee Fee payable
from the Distribution Account pursuant to Section 8.05, (e) the PMI Insurer Fee
and the Advisor's Fee payable from the Distribution Account and (f) any
indemnification payments or expense reimbursements made by the Trust Fund
pursuant to Section 8.05.

         "Group I Basic Principal Distribution Amount": With respect to the
Group I Certificates and any Distribution Date, the Basic Principal Distribution
Amount multiplied by a fraction, the numerator of which is the Principal
Remittance Amount for the Group I Mortgage Loans and the denominator of which is
the Principal Remittance Amount for both Loan Groups for such Distribution Date.

         "Group I Certificates":  The Class A-1 Certificates.

         "Group I Class A Principal Distribution Amount": With respect to the
Group I Certificates and any Distribution Date, the Class A Principal
Distribution Amount multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for the Group I Mortgage Loans and the denominator
of which is the Principal Remittance Amount for both Loan Groups for such
Distribution Date.

         "Group I Extra Principal Distribution Amount": With respect to the
Group I Certificates and any Distribution Date, the Extra Principal Distribution
Amount multiplied by a fraction, the numerator of which is the Principal
Remittance Amount for the Group I Mortgage Loans and the denominator of which is
the Principal Remittance Amount for both Loan Groups for such Distribution Date.

                                       13

<PAGE>

         "Group I Interest Remittance Amount": With respect to any Distribution
Date and Certificate Group I, that portion of the Group I Available Funds for
such Distribution Date attributable to interest received or advanced on the
related Mortgage Loans.

         "Group I Marker Rate": With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC 1 Pass-Through Rates for REMIC 1 Regular Interest
LT1B, REMIC 1 Regular Interest LT1C, REMIC 1 Regular Interest LT1D and REMIC 1
Regular Interest LT1E, with the rate on REMIC 1 Regular Interest LT1B subject to
a cap equal to the lesser of (i) LIBOR plus the Certificate Margin of the Class
A-1 Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation, with the rate on REMIC 1 Regular Interest LT1C subject to a cap
equal to the lesser of (i) LIBOR plus the Certificate Margin of the Class M-1
Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation, with the rate on REMIC 1 Regular Interest LT1D subject to a cap
equal to the lesser of (i) LIBOR plus the Certificate Margin of the Class M-2
Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation and with the rate on REMIC 1 Regular Interest LT1E subject to a cap
of zero for the purpose of this calculation.

         "Group I Mortgage Loan": A Mortgage Loan with a principal balance that
conforms to Fannie Mae and Freddie Mac guidelines.

         "Group I Principal Distribution Amount": With respect to any
Distribution Date and the Group I Certificates, the related Basic Principal
Distribution Amount plus the related Extra Principal Distribution Amount.

         "Group II Available Funds": With respect to any Distribution Date, an
amount equal to the excess of (i) the sum of (a) the aggregate of the related
Monthly Payments received on the Group II Mortgage Loans on or prior to the
related Determination Date (net of the Dividend Portion of such Monthly Payment
in the case of each Dividend Mortgage Loan), (b) Liquidation Proceeds, Insurance
Proceeds, Principal Prepayments and other unscheduled recoveries of principal
and interest in respect of the Group II Mortgage Loans received during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of a related REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) the aggregate of any amounts
deposited in the Collection Account by the Master Servicer in respect of related
Prepayment Interest Shortfalls for such Distribution Date, (e) the aggregate of
any Advances made by the Master Servicer for such Distribution Date in respect
of the Group II Mortgage Loans, (f) the aggregate of any related advances made
by the Trustee in respect of the Group II Mortgage Loans for such Distribution
Date pursuant to Section 7.02 and (g) the amount of any Prepayment Charges
collected by the Master Servicer in connection with the full or partial
prepayment of any of the Group II Mortgage Loans and any Master Servicer
Prepayment Charge Payment Amount over (ii) the sum of (a) amounts reimbursable
or payable to the Master Servicer pursuant to Section 3.11(a) or the Trustee
pursuant to Section 3.11(b), (b) amounts deposited in the Collection Account or
the Distribution Account pursuant to clauses (a) through (g) above, as the case
may be, in error, (c) the amount of any Prepayment Charges collected by the
Master Servicer in connection with the full or partial prepayment of any of the
Group II Mortgage Loans and any Master Servicer Prepayment Charge Payment
Amount, (d) the Trustee Fee payable from the Distribution Account pursuant to
Section 8.05, (e) the PMI Insurer Fee and the Advisor's Fee payable from the
Distribution Account and (f)

                                       14

<PAGE>

any indemnification payments or expense reimbursements made by the Trust Fund
pursuant to Section 8.05.

         "Group II Basic Principal Distribution Amount": With respect to the
Group II Certificates and any Distribution Date, the Basic Principal
Distribution Amount multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for the Group II Mortgage Loans and the denominator
of which is the Principal Remittance Amount for both Loan Groups for such
Distribution Date.

         "Group II Certificates":  The Class A-2 Certificates.

         "Group II Class A Principal Distribution Amount": With respect to the
Group II Certificates and any Distribution Date, the Class A Principal
Distribution Amount multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for the Group II Mortgage Loans and the denominator
of which is the Principal Remittance Amount for both Loan Groups for such
Distribution Date.

         "Group II Extra Principal Distribution Amount": With respect to the
Group II Certificates and any Distribution Date, the Extra Principal
Distribution Amount multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for the Group II Mortgage Loans and the denominator
of which is the Principal Remittance Amount for both Loan Groups for such
Distribution Date.

         "Group II Interest Remittance Amount": With respect to any Distribution
Date and Certificate Group II, that portion of the Group II Available Funds for
such Distribution Date attributable to interest received or advanced on the
related Mortgage Loans.

         "Group II Marker Rate": With respect to the Class C Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC 1 Pass-Through Rates for REMIC 1 Regular
Interest LT1G, REMIC 1 Regular Interest LT1H, REMIC 1 Regular Interest LT1I and
REMIC 1 Regular Interest LT1J, with the rate on REMIC 1 Regular Interest LT1G
subject to a cap equal to the lesser of (i) LIBOR plus the Certificate Margin of
the Class A-2 Certificates and (ii) the related Maximum Cap Rate for the purpose
of this calculation, with the rate on REMIC 1 Regular Interest LT1H subject to a
cap equal to the lesser of (i) LIBOR plus the Certificate Margin of the Class
M-1 Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation, with the rate on REMIC 1 Regular Interest LT1I subject to a cap
equal to the lesser of (i) LIBOR plus the Certificate Margin of the Class M-2
Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation and with the rate on REMIC 1 Regular Interest LT1J subject to a cap
of zero for the purpose of this calculation.

         "Group II Mortgage Loan": A Mortgage Loan with a principal balance that
does not conform to Fannie Mae and Freddie Mac guidelines.

         "Group II Principal Distribution Amount": With respect to any
Distribution Date and the Group II Certificates, the related Basic Principal
Distribution Amount plus the related Extra Principal Distribution Amount.

                                       15

<PAGE>

         "Independent": When used with respect to any specified Person, any such
Person who (a) is in fact independent of the Depositor, the Master Servicer and
their respective Affiliates, (b) does not have any direct financial interest in
or any material indirect financial interest in the Depositor or the Master
Servicer or any Affiliate thereof, and (c) is not connected with the Depositor
or the Master Servicer or any Affiliate thereof as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar
functions; provided, however, that a Person shall not fail to be Independent of
the Depositor or the Master Servicer or any Affiliate thereof merely because
such Person is the beneficial owner of 1% or less of any class of securities
issued by the Depositor or the Master Servicer or any Affiliate thereof, as the
case may be.

         "Independent Contractor": Either (i) any Person (other than the Master
Servicer) that would be an "independent contractor" with respect to any of the
REMICs created hereunder within the meaning of Section 856(d)(3) of the Code if
such REMIC were a real estate investment trust (except that the ownership tests
set forth in that section shall be considered to be met by any Person that owns,
directly or indirectly, 35% or more of any Class of Certificates), so long as
each such REMIC does not receive or derive any income from such Person and
provided that the relationship between such Person and such REMIC is at arm's
length, all within the meaning of Treasury Regulation Section 1.856-4(b)(5), or
(ii) any other Person (including the Master Servicer) if the Trustee has
received an Opinion of Counsel to the effect that the taking of any action in
respect of any REO Property by such Person, subject to any conditions therein
specified, that is otherwise herein contemplated to be taken by an Independent
Contractor will not cause such REO Property to cease to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code (determined
without regard to the exception applicable for purposes of Section 860D(a) of
the Code), or cause any income realized in respect of such REO Property to fail
to qualify as Rents from Real Property.

         "Index": With respect to each Mortgage Loan and with respect to each
related Adjustment Date, the index as specified in the related Mortgage Note.

         "Initial Certificate Principal Balance": With respect to any Regular
Certificate, the amount designated "Initial Certificate Principal Balance" on
the face thereof.

         "Insurance Proceeds": Proceeds of any title policy, hazard policy or
other insurance policy covering a Mortgage Loan (including any related PMI
Policy), to the extent such proceeds are not to be applied to the restoration of
the related Mortgaged Property or released to the Mortgagor in accordance with
the procedures that the Master Servicer would follow in servicing mortgage loans
held for its own account, subject to the terms and conditions of the related
Mortgage Note and Mortgage.

         "Interest Determination Date": With respect to the Class A Certificates
and the Mezzanine Certificates and each Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period.

         "Late Collections": With respect to any Mortgage Loan, all amounts
received subsequent to the Determination Date immediately following any related
Due Period, whether as late payments of Monthly Payments or as Insurance
Proceeds, Liquidation Proceeds or otherwise, which represent

                                       16

<PAGE>

late payments or collections of principal and/or interest due (without regard to
any acceleration of payments under the related Mortgage and Mortgage Note) but
delinquent on a contractual basis for such Due Period and not previously
recovered.

         "LIBOR": With respect to each Accrual Period, the rate determined by
the Trustee on the related Interest Determination Date on the basis of the
London interbank offered rate for one-month United States dollar deposits, as
such rate appears on the Telerate Page 3750, as of 11:00 a.m. (London time) on
such Interest Determination Date. If such rate does not appear on Telerate Page
3750, the rate for such Interest Determination Date will be determined on the
basis of the offered rates of the Reference Banks for one-month United States
dollar deposits, as of 11:00 a.m. (London time) on such Interest Determination
Date. The Trustee will request the principal London office of each of the
Reference Banks to provide a quotation of its rate. On such Interest
Determination Date, LIBOR for the related Accrual Period will be established by
the Trustee as follows:

                  (i) If on such Interest Determination Date two or more
         Reference Banks provide such offered quotations, LIBOR for the related
         Accrual Period shall be the arithmetic mean of such offered quotations
         (rounded upwards if necessary to the nearest whole multiple of 1/16 of
         1%); and

                  (ii) If on such Interest Determination Date fewer than two
         Reference Banks provide such offered quotations, LIBOR for the related
         Accrual Period shall be the higher of (i) LIBOR as determined on the
         previous Interest Determination Date and (ii) the Reserve Interest
         Rate.

         "LIBOR Business Day": Any day on which banks in London, England and The
City of New York are open and conducting transactions in foreign currency and
exchange.

         "Liquidated Mortgage Loan": As to any Distribution Date, any Mortgage
Loan in respect of which the Master Servicer has determined, in accordance with
the servicing procedures specified herein, as of the end of the related
Prepayment Period, that all Liquidation Proceeds which it expects to recover
with respect to the liquidation of the Mortgage Loan or disposition of the
related REO Property have been recovered.

         "Liquidation Event": With respect to any Mortgage Loan, any of the
following events: (i) such Mortgage Loan is paid in full, (ii) a Final Recovery
Determination is made as to such Mortgage Loan or (iii) such Mortgage Loan is
removed from the Trust Fund by reason of its being purchased, sold or replaced
pursuant to or as contemplated by Section 2.03 or Section 10.01. With respect to
any REO Property, either of the following events: (i) a Final Recovery
Determination is made as to such REO Property or (ii) such REO Property is
removed from the Trust Fund by reason of its being sold or purchased pursuant to
Section 3.23 or Section 10.01.

         "Liquidation Proceeds": The amount (other than amounts received in
respect of the rental of any REO Property prior to REO Disposition) received by
the Master Servicer in connection with (i) the taking of all or a part of a
Mortgaged Property by exercise of the power of eminent domain or condemnation,
(ii) the liquidation of a defaulted Mortgage Loan by means of a trustee's sale,

                                       17

<PAGE>

foreclosure sale or otherwise or (iii) the repurchase, substitution or sale of a
Mortgage Loan or an REO Property pursuant to or as contemplated by Section 2.03,
Section 3.23 or Section 10.01.

         "Loan-to-Value Ratio": As of any date and as to any Mortgage Loan, the
fraction, expressed as a percentage, the numerator of which is the Principal
Balance of the Mortgage Loan and the denominator of which is the Value of the
related Mortgaged Property.

         "Loan Group": Either Loan Group I or Loan Group II, as the context
requires.

         "Loan Group I": The group of Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Loan Group I.

         "Loan Group II": The group of Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Loan Group II.

         "Losses":  As defined in Section 9.03.

         "Loss Mitigation Advisor": The Murrayhill Company, a Colorado
corporation, and its successors and assigns.

         "Loss Mitigation Advisory Agreement": The agreement between the Master
Servicer and the Loss Mitigation Advisor, regarding the loss mitigation and
advisory services to be provided by the Loss Mitigation Advisor, substantially
in the form attached hereto as Exhibit N.

         "Lost Note Affidavit": With respect to any Mortgage Loan as to which
the original Mortgage Note has been permanently lost or destroyed and has not
been replaced, an affidavit from Option One certifying that the original
Mortgage Note has been lost, misplaced or destroyed (together with a copy of the
related Mortgage Note and indemnifying the Trust against any loss, cost or
liability resulting from the failure to deliver the original Mortgage Note) in
the form of Exhibit H hereto.

         "Majority Certificateholders": The Holders of Certificates evidencing
at least 51% of the Voting Rights.

         "Master Servicer": Option One Mortgage Corporation, a California
corporation, or any successor servicer appointed as herein provided, in its
capacity as Master Servicer hereunder.

         "Master Servicer Event of Termination": One or more of the events
described in Section 7.01.

         "Master Servicer Prepayment Charge Payment Amount": The amounts payable
by the Master Servicer in respect of any waived Prepayment Charges pursuant to
Section 2.05 or Section 3.01.

         "Master Servicer Remittance Date": With respect to any Distribution
Date, the Business Day prior to such Distribution Date.

                                       18

<PAGE>

         "Maximum Cap Rate": For any Distribution Date a per annum rate equal to
the product of (x) (i) with respect to the Group I Certificates, the weighted
average of the Adjusted Net Maximum Mortgage Rates of the Group I Mortgage Loans
as of the first day of the calendar month preceding the Distribution Date,
weighted on the basis of the Stated Principal Balances of the Group I Mortgage
Loans as of the Close of Business on the preceding Distribution Date, (ii) with
respect to the Group II Certificates, the weighted average of the Adjusted Net
Maximum Mortgage Rates of the Group II Mortgage Loans as of the first day of the
calendar month preceding the Distribution Date, weighted on the basis of the
Stated Principal Balances of the Group II Mortgage Loans as of the Close of
Business on the preceding Distribution Date, (iii) with respect to the Mezzanine
Certificates, the lesser of (i) or (ii) above and (iv) with respect to the Group
I Certificates, the Group II Certificates and the Mezzanine Certificates, if the
aggregate Principal Balance of the Mortgage Loans in one Loan Group has been
reduced to zero, the weighted average of the Adjusted Net Maximum Mortgage Rates
of the Mortgage Loans in the other Loan Group as of the first day of the
calendar month preceding the Distribution Date, weighted on the basis of the
Stated Principal Balances of the Mortgage Loans in the other Loan Group as of
the Close of Business on the preceding Distribution Date and (y) a fraction, the
numerator of which is 30 and the denominator of which is the actual number of
days elapsed in the related Accrual Period.

         "Maximum Uncertificated Accrued Interest Deferral Amount": With respect
to any Distribution Date, the excess of (a) accrued interest at the
Uncertificated REMIC 1 Pass-Through Rate applicable to REMIC 1 Regular Interest
LT1E for such Distribution Date on a balance equal to the Uncertificated
Principal Balance of REMIC 1 Regular Interest LT1E and accrued interest at the
Uncertificated REMIC 1 Pass-Through Rate applicable to REMIC 1 Regular Interest
LT1J for such Distribution Date on a balance equal to the Uncertificated
Principal Balance of REMIC 1 Regular Interest LT1J minus the REMIC 1
Overcollateralization Amount, in each case for such Distribution Date, over (b)
Uncertificated Accrued Interest on REMIC 1 Regular Interest LT1B with the rate
on REMIC 1 Regular Interest LT1B subject to a cap equal to the lesser of (i)
LIBOR plus the Certificate Margin of the Class A-1 Certificates and (ii) the
related Maximum Cap Rate for the purpose of this calculation, Uncertificated
Accrued Interest on REMIC 1 Regular Interest LT1C with the rate on REMIC 1
Regular Interest LT1C subject to a cap equal to the lesser of (i) LIBOR plus the
Certificate Margin of the Class M-1 Certificates and (ii) the related Maximum
Cap Rate for the purpose of this calculation, Uncertificated Accrued Interest on
REMIC 1 Regular Interest LT1D with the rate on REMIC 1 Regular Interest LT1D
subject to a cap equal to the lesser of (i) LIBOR plus the Certificate Margin of
the Class M-2 Certificates and (ii) the related Maximum Cap Rate for the purpose
of this calculation, Uncertificated Accrued Interest on REMIC 1 Regular Interest
LT1G with the rate on REMIC 1 Regular Interest LT1G subject to a cap equal to
the lesser of (i) LIBOR plus the Certificate Margin of the Class A-2
Certificates and (ii) the related Maximum Cap Rate for the purpose of this
calculation, Uncertificated Accrued Interest on REMIC 1 Regular Interest LT1H
with the rate on REMIC 1 Regular Interest LT1H subject to a cap equal to the
lesser of (i) LIBOR plus the Certificate Margin of the Class M-1 Certificates
and (ii) the related Maximum Cap Rate for the purpose of this calculation and
Uncertificated Accrued Interest on REMIC 1 Regular Interest LT1I with the rate
on REMIC 1 Regular Interest LT1I subject to a cap equal to the lesser of (i)
LIBOR plus the Certificate Margin of the Class M-2 Certificates and (ii) the
related Maximum Cap Rate for the purpose of this calculation for such
Distribution Date.

                                       19

<PAGE>

         "Maximum Mortgage Rate": With respect to each Mortgage Loan, the
percentage set forth in the related Mortgage Note as the maximum Mortgage Rate
thereunder.

         "Mezzanine Certificate": Any Class M-1 Certificate or Class M-2
Certificate.

         "Minimum Mortgage Rate": With respect to each Mortgage Loan, the
percentage set forth in the related Mortgage Note as the minimum Mortgage Rate
thereunder.

         "Monthly Interest Distributable Amount": With respect to the Class A
Certificates, Mezzanine Certificates and the Class C Certificates and any
Distribution Date, the amount of interest accrued during the related Accrual
Period at the related Pass-Through Rate on the Certificate Principal Balance (or
Notional Amount in the case of the Class C Certificates) of such Class
immediately prior to such Distribution Date, in each case, reduced by any Net
Prepayment Interest Shortfalls, Relief Act Interest Shortfalls and in the case
of the Class C Certificates, amounts payable to the PMI Insurer pursuant to
Section 4.01(d)(vii) (allocated to such Certificate based on the priorities set
forth in Section 1.03).

         "Monthly Payment": With respect to any Mortgage Loan, the scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the related Mortgagor from time to time under the related Mortgage Note,
determined: (a) after giving effect to (i) any Deficient Valuation and/or Debt
Service Reduction with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Master Servicer pursuant to Section 3.01; and (c) on the assumption that all
other amounts, if any, due under such Mortgage Loan are paid when due.

         "Mortgage": The mortgage, deed of trust or other instrument creating a
first lien on, or first priority security interest in, a Mortgaged Property
securing a Mortgage Note.

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

         "Mortgage Loan": Each mortgage loan transferred and assigned to the
Trustee pursuant to Section 2.01 or Section 2.03(d) as from time to time held as
a part of the Trust Fund, the Mortgage Loans so held being identified in the
Mortgage Loan Schedule.

         "Mortgage Loan Purchase Agreement": The agreement among Option One, the
Seller and the Depositor, regarding the transfer of the Mortgage Loans by the
Seller to or at the direction of the Depositor, substantially in the form
attached hereto as Exhibit C.

         "Mortgage Loan Schedule": As of any date, the list of Mortgage Loans
included in REMIC 1 on such date, separately identifying the Group I Mortgage
Loans and the Group II Mortgage Loans, attached hereto as Exhibit D. The
Mortgage Loan Schedule shall be prepared by the Seller and shall set forth the
following information with respect to each Mortgage Loan, as applicable:

                                       20

<PAGE>

                  (1) the Mortgage Loan identifying number;

                  (2) the Mortgagor's name;

                  (3) the street address of the Mortgaged Property including the
         state and zip code;

                  (4) a code indicating whether the Mortgaged Property was
         represented by the borrower, at the time of origination, as being
         owner-occupied;

                  (5) the type of Residential Dwelling constituting the
         Mortgaged Property;

                  (6) the original months to maturity;

                  (7) the stated remaining months to maturity from the Cut-off
         Date based on the original amortization schedule;

                  (8) the Loan-to-Value Ratio at origination;

                  (9) the Mortgage Rate in effect immediately following the
         Cut-off Date;

                  (10) the date on which the first Monthly Payment was due on
         the Mortgage Loan;

                  (11) the stated maturity date;

                  (12) the amount of the Monthly Payment at origination;

                  (13) the amount of the Monthly Payment due on the first Due
         Date after the Cut- off Date;

                  (14) the last Due Date on which a Monthly Payment was actually
         applied to the unpaid Stated Principal Balance;

                  (15) the original principal amount of the Mortgage Loan;

                  (16) the Stated Principal Balance of the Mortgage Loan as of
         the Close of Business on the Cut-off Date;

                  (17) a code indicating the purpose of the Mortgage Loan (I.E.,
         purchase financing, rate/term refinancing, cash-out refinancing);

                  (18) the Mortgage Rate at origination;

                  (19) a code indicating the documentation program (I.E., full
         documentation, limited income verification, no income verification,
         alternative income verification);

                  (20) the risk grade;

                                       21

<PAGE>

                  (21) the Value of the Mortgaged Property;

                  (22) the sale price of the Mortgaged Property, if applicable;

                  (23) the actual unpaid principal balance of the Mortgage Loan
         as of the Cut-off Date;

                  (24) the type and term of the related Prepayment Charge;

                  (25) the rounding code;

                  (26) the program code;

                  (27) a code indicating the lien priority for Mortgage Loans;

                  (28) the minimum Mortgage Rate;

                  (29) the maximum Mortgage Rate;

                  (30) the Gross Margin;

                  (31) the next Adjustment Date;

                  (32) the Periodic Rate Cap;

                  (33) whether such Mortgage Loan is a Dividend Mortgage Loan;
         and

                  (34) whether such Mortgage Loan is covered under the PMI
         Policy, and, if so, the PMI Insurer Fee Rate applicable for such
         Mortgage Loan.

         The Mortgage Loan Schedule shall set forth the following information,
with respect to the Mortgage Loans in the aggregate and for each Loan Group as
of the Cut-off Date: (1) the number of Mortgage Loans; (2) the current Principal
Balance of the Mortgage Loans; (3) the weighted average Mortgage Rate of the
Mortgage Loans and (4) the weighted average remaining term to maturity of the
Mortgage Loans. The Mortgage Loan Schedule shall be amended from time to time by
the Master Servicer in accordance with the provisions of this Agreement. With
respect to any Qualified Substitute Mortgage Loan, Cut-off Date shall refer to
the related Cut-off Date for such Mortgage Loan, determined in accordance with
the definition of Cut-off Date herein.

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

         "Mortgage Pool": The pool of Mortgage Loans, identified on Exhibit D
from time to time, and any REO Properties acquired in respect thereof.

                                       22

<PAGE>

         "Mortgage Rate": With respect to each Mortgage Loan, the annual rate at
which interest accrues on such Mortgage Loan from time to time in accordance
with the provisions of the related Mortgage Note, which rate (A) as of any date
of determination until the first Adjustment Date following the Cut-off Date
shall be the rate set forth in the Mortgage Loan Schedule as the Mortgage Rate
in effect immediately following the Cut-off Date and (B) as of any date of
determination thereafter shall be the rate as adjusted on the most recent
Adjustment Date, to equal the sum, rounded to the next highest or nearest 0.125%
(as provided in the Mortgage Note), of the Index, determined as set forth in the
related Mortgage Note, plus the related Gross Margin subject to the limitations
set forth in the related Mortgage Note. With respect to each Mortgage Loan that
becomes an REO Property, as of any date of determination, the annual rate
determined in accordance with the immediately preceding sentence as of the date
such Mortgage Loan became an REO Property.

         "Mortgaged Property": The underlying property securing a Mortgage Loan,
including any REO Property, consisting of a fee simple estate in a parcel of
real property improved by a Residential Dwelling.

         "Mortgagor":  The obligor on a Mortgage Note.

         "Net Liquidation Proceeds": With respect to any Liquidated Mortgage
Loan or any other disposition of related Mortgaged Property (including REO
Property) the related Liquidation Proceeds net of Advances, Servicing Advances,
Servicing Fees and any other accrued and unpaid servicing fees received and
retained in connection with the liquidation of such Mortgage Loan or Mortgaged
Property.

         "Net Monthly Excess Cashflow": With respect to each Distribution Date,
the sum of (a) any Overcollateralization Release Amount for such Distribution
Date and (b) the excess of (x) Group I Available Funds plus Group II Available
Funds for such Distribution Date over (y) the sum for such Distribution Date of
(A) the Monthly Interest Distributable Amounts for the Class A Certificates and
the Mezzanine Certificates, (B) the Unpaid Interest Shortfall Amounts for the
Class A Certificates and (C) the Principal Remittance Amount.

         "Net Mortgage Rate": With respect to any Mortgage Loan (or the related
REO Property), as of any date of determination, a per annum rate of interest
equal to the then applicable Mortgage Rate for such Mortgage Loan minus the
Servicing Fee Rate.

         "Net Prepayment Interest Shortfall": With respect to any Distribution
Date, the excess, if any, of any Prepayment Interest Shortfalls for such date
over the related Compensating Interest.

         "Net WAC Rate": With respect to each Distribution Date, a per annum
rate equal to the product of (x) (i) with respect to the Group I Certificates,
the weighted average of the Adjusted Net Mortgage Rates of the Group I Mortgage
Loans as of the first day of the calendar month preceding the Distribution Date,
weighted on the basis of the Stated Principal Balances of the Group I Mortgage
Loans as of the Close of Business on the preceding Distribution Date, (ii) with
respect to the Group II Certificates, the weighted average of the Adjusted Net
Mortgage Rates of the Group II Mortgage Loans as of the first day of the
calendar month preceding the Distribution Date, weighted on the basis of the
Stated Principal Balances of the Group II Mortgage Loans as of the Close of

                                       23

<PAGE>

Business on the preceding Distribution Date, (iii) with respect to the Mezzanine
Certificates, the lesser of (i) or (ii) above and (iv) with respect to the Group
I Certificates, the Group II Certificates and the Mezzanine Certificates, if the
aggregate Principal Balance of the Mortgage Loans in one Loan Group has been
reduced to zero, the weighted average of the Adjusted Net Mortgage Rates of the
Mortgage Loans in the other Loan Group as of the first day of the calendar month
preceding the Distribution Date, weighted on the basis of the Stated Principal
Balances of the Mortgage Loans in the other Loan Group as of the Close of
Business on the preceding Distribution Date and (y) a fraction, the numerator of
which is 30 and the denominator of which is the actual number of days elapsed in
the related Accrual Period.

         "Net WAC Rate Carryover Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and any Distribution Date, the sum
of (A) the positive excess of (i) the amount of interest payable to such Class
of Certificates on such Distribution Date calculated at the related Formula
Rate, over (ii) the amount of interest payable on such Class of Certificates at
the related Net WAC Rate for such Distribution Date and (B) the related Net WAC
Rate Carryover Amount for the previous Distribution Date not previously paid,
together with interest thereon at a rate equal to the related Formula Rate for
such Class of Certificates for such Distribution Date.

         "New Lease": Any lease of REO Property entered into on behalf of the
Trust, including any lease renewed or extended on behalf of the Trust if the
Trust has the right to renegotiate the terms of such lease.

         "Nonrecoverable Advance": Any Advance or Servicing Advance previously
made in respect of a Mortgage Loan or REO Property that, in the good faith
business judgment of the Master Servicer, will not be ultimately recoverable
from Late Collections, Insurance Proceeds or Liquidation Proceeds on such
Mortgage Loan or REO Property as provided herein.

         "Notional Amount": Immediately prior to any Distribution Date, with
respect to the Class C Certificates, the aggregate of the Uncertificated
Principal Balances of REMIC 1 Regular Interests.

         "Officers' Certificate": A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), and by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Master Servicer, the Seller
or the Depositor, as applicable.

         "Opinion of Counsel": A written opinion of counsel, who may, without
limitation, be a salaried counsel for the Depositor or the Master Servicer,
acceptable to the Trustee, except that any opinion of counsel relating to (a)
the qualification of any REMIC as a REMIC or (b) compliance with the REMIC
Provisions which must be an opinion of Independent counsel.

         "Option One": Option One Mortgage Corporation, in its capacity as a
party to the Mortgage Loan Purchase Agreement.

         "Optional Termination Date": The first Distribution Date on which the
Master Servicer may opt to terminate the Trust Fund pursuant to Section 10.01.

                                       24

<PAGE>

         "Original Class Certificate Principal Balance": With respect to the
Class A Certificates, the Mezzanine Certificates, the Class C Certificates and
the Class P Certificates, the corresponding amounts set forth opposite such
Class above in the Preliminary Statement.

         "Original Mortgage Loan": Any of the Mortgage Loans included in the
Trust Fund as of the Closing Date. The aggregate principal balance of the
Original Mortgage Loans as of the Closing Date is equal to $247,377,569.32.

         "Original Notional Amount": With respect to the Class C Certificates,
$247,377,569.32.

         "Originator": First Franklin Financial Corporation, a Delaware
corporation, or its successor in interest.

         "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (after
giving effect to distributions in respect of the Basic Principal Distribution
Amount on such Distribution Date).

         "Overcollateralization Floor": $1,236,469.32.

         "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for both
Loan Groups for such Distribution Date and (y) the Excess Overcollateralized
Amount.

         "Overcollateralization Target Amount": With respect to any Distribution
Date, $1,236,469.32.

         "Overcollateralized Amount": For any Distribution Date, the amount, if
any, by which (i) the Pool Balance (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) as of the related Determination Date exceeds (ii) the sum of the
aggregate Certificate Principal Balances of the Class A Certificates, the
Mezzanine Certificates and the Class P Certificates as of such Distribution Date
after giving effect to distributions to be made on such Distribution Date.

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

         "Pass-Through Rate": With respect to the Class A Certificates and the
Mezzanine Certificates and any Distribution Date, the lesser of (x) the related
Formula Rate for such Distribution Date and (y) the related Net WAC Rate for
such Distribution Date. With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to the percentage equivalent of a
fraction, the numerator of which is the sum of the amounts calculated pursuant
to clauses (A) through (L) below, and the denominator of which is the aggregate
of the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC
1 Regular Interest LT1B, REMIC 1 Regular

                                       25

<PAGE>

Interest LT1C, REMIC 1 Regular Interest LT1D, REMIC 1 Regular Interest LT1E,
REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest LT1G, REMIC 1 Regular
Interest LT1H, REMIC 1 Regular Interest LT1I, REMIC 1 Regular Interest LT1J,
REMIC 1 Regular Interest LT1PI and REMIC 1 Regular Interest LT1PII. For purposes
of calculating the Pass-Through Rate for the Class C Certificates, the numerator
is equal to the sum of the following components:

                  (A)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1A minus the Group I
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1A;

                  (B)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1B minus the Group I
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1B;

                  (C)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1C minus the Group I
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1C;

                  (D)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1D minus the Group I
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1D;

                  (E)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1E minus the Group I
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1E;

                  (F)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1F minus the Group II
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest
                           LT1F;

                  (G)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1G minus the Group II
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest
                           LT1G;

                  (H)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1H minus the Group II
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest
                           LT1H;

                  (I)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1I minus the Group II
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1I;

                  (J)      the Uncertificated REMIC 1 Pass-Through Rate for
                           REMIC 1 Regular Interest LT1J minus the Group II
                           Marker Rate, applied to an amount equal to the
                           Uncertificated Principal Balance of REMIC 1 Regular
                           Interest LT1J;

                                       26

<PAGE>

                  (K)      100% of the interest on REMIC 1 Regular Interest
                           LT1PI; and

                  (L)      100% of the interest on REMIC 1 Regular Interest
                           LT1PII.

         "Paying Agent":  Any paying agent appointed pursuant to Section 5.05.

         "Percentage Interest": With respect to any Certificate (other than a
Class R Certificate), a fraction, expressed as a percentage, the numerator of
which is the Initial Certificate Principal Balance represented by such
Certificate and the denominator of which is the Original Class Certificate
Principal Balance of the related Class. With respect to a Class R Certificate,
the portion of the Class evidenced thereby, expressed as a percentage, as stated
on the face of such Certificate; provided, however, that the sum of all such
percentages for each such Class totals 100%.

         "Periodic Rate Cap": With respect to each Mortgage Loan and any
Adjustment Date therefor, the fixed percentage set forth in the related Mortgage
Note, which is the maximum amount by which the Mortgage Rate for such Mortgage
Loan may increase or decrease (without regard to the Maximum Mortgage Rate or
the Minimum Mortgage Rate) on such Adjustment Date from the Mortgage Rate in
effect immediately prior to such Adjustment Date.

         "Permitted Investments": Any one or more of the following obligations
or securities acquired at a purchase price of not greater than par, regardless
of whether issued or managed by the Depositor, the Master Servicer, the Trustee
or any of their respective Affiliates or for which an Affiliate of the Trustee
serves as an advisor:

                  (i) direct obligations of, or obligations fully guaranteed as
         to timely payment of principal and interest by, the United States or
         any agency or instrumentality thereof, provided such obligations are
         backed by the full faith and credit of the United States;

                  (ii) (A) demand and time deposits in, certificates of deposit
         of, bankers' acceptances issued by or federal funds sold by any
         depository institution or trust company (including the Trustee or its
         agent acting in their respective commercial capacities) incorporated
         under the laws of the United States of America or any state thereof and
         subject to supervision and examination by federal and/or state
         authorities, so long as, at the time of such investment or contractual
         commitment providing for such investment, such depository institution
         or trust company (or, if the only Rating Agency is S&P, in the case of
         the principal depository institution in a depository institution
         holding company, debt obligations of the depository institution holding
         company) or its ultimate parent has a short-term uninsured debt rating
         in one of the two highest available ratings of Fitch and the highest
         available rating category of S&P and provided that each such investment
         has an original maturity of no more than 365 days; and provided further
         that, if the only Rating Agency is S&P and if the depository or trust
         company is a principal subsidiary of a bank holding company and the
         debt obligations of such subsidiary are not separately rated, the
         applicable rating shall be that of the bank holding company; and,
         provided further that, if the original maturity of such short- term
         obligations of a domestic branch of a foreign depository institution or
         trust company shall exceed 30 days, the short-term rating of such
         institution shall be A-1+ in the case of

                                       27

<PAGE>

         S&P if S&P is the Rating Agency; and (B) any other demand or time
         deposit or deposit which is fully insured by the FDIC;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated F1+ or higher by Fitch and rated A-1+ or higher by
         S&P, provided, however, that collateral transferred pursuant to such
         repurchase obligation must be of the type described in clause (i) above
         and must (A) be valued daily at current market prices plus accrued
         interest, (B) pursuant to such valuation, be equal, at all times, to
         105% of the cash transferred by the Trustee in exchange for such
         collateral and (C) be delivered to the Trustee or, if the Trustee is
         supplying the collateral, an agent for the Trustee, in such a manner as
         to accomplish perfection of a security interest in the collateral by
         possession of certificated securities;

                  (iv) securities bearing interest or sold at a discount that
         are issued by any corporation incorporated under the laws of the United
         States of America or any State thereof and that are rated by a Rating
         Agency in its highest long-term unsecured rating category at the time
         of such investment or contractual commitment providing for such
         investment;

                  (v) commercial paper (including both non-interest-bearing
         discount obligations and interest-bearing obligations payable on demand
         or on a specified date not more than 30 days after the date of
         acquisition thereof) that is rated by a Rating Agency in its highest
         short-term unsecured debt rating available at the time of such
         investment;

                  (vi) units of money market funds, including money market funds
         managed or advised by the Trustee or an Affiliate thereof, that have
         been rated "AAA" by Fitch (if rated by Fitch) and "AAA" by S&P; and

                  (vii) if previously confirmed in writing to the Trustee, any
         other demand, money market or time deposit, or any other obligation,
         security or investment, as may be acceptable to the Rating Agencies in
         writing as a permitted investment of funds backing securities having
         ratings equivalent to its highest initial rating of the Class A
         Certificates;

provided, that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provide a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations.

         "Permitted Transferee": Any transferee of a Residual Certificate other
than a Disqualified Organization or a non-U.S. Person.

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

                                       28

<PAGE>

         "Plan": Any employee benefit plan or certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Keogh
plans and bank collective investment funds and insurance company general or
separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA and Section 4975 of the Code.

         "PMI Insurer": PMI Mortgage Insurance Co., an Arizona corporation, or
its successors in interest.

         "PMI Insurer Fee": The amount payable to the PMI Insurer on each
Distribution Date, which amount shall equal one twelfth of the product of (i)
the PMI Insurer Fee Rate, multiplied by (ii) the aggregate Stated Principal
Balance of the PMI Mortgage Loans and any related REO Properties as of the first
day of the related Due Period.

         "PMI Insurer Fee Rate": The PMI Insurer Fee Rate ranges from 0.11% to
0.86% for Loan-to- Value Ratios between 60.01% and 90.00%.

         "PMI Mortgage Loans": The list of Mortgage Loans insured by the PMI
Insurer attached hereto as Schedule II.

         "PMI Policy": The Primary Mortgage Insurance Policy No. 20663-0001-0
with respect to the PMI Mortgage Loans and all endorsements thereto dated the
Closing Date, issued by the PMI Insurer.

         "Pool Balance": As of any date of determination, the aggregate
principal balance of the Mortgage Loans in both Loan Groups as of such date.

         "Prepayment Assumption":  As defined in the Prospectus Supplement.

         "Prepayment Charge": With respect to any Mortgage Loan, the charges or
premiums, if any, due in connection with a full or partial prepayment of such
Mortgage Loan in accordance with the terms thereof (other than any Master
Servicer Prepayment Charge Payment Amount).

         "Prepayment Charge Schedule": As of any date, the list of Prepayment
Charges on the Mortgage Loans included in the Trust Fund on such date, attached
hereto as Schedule I (including the Prepayment Charge Summary attached thereto).
The Prepayment Charge Schedule shall set forth the following information with
respect to each Prepayment Charge:

                (i)        the Mortgage Loan identifying number;

               (ii)        a code indicating the type of Prepayment Charge;

              (iii)        the state of origination of the related Mortgage
                           Loan;

               (iv)        the date on which the first monthly payment was due
                           on the related Mortgage Loan;

                                       29

<PAGE>

                (v)        the term of the related Prepayment Charge; and

               (vi)        the principal balance of the related Mortgage Loan as
                           of the Cut-off Date.

         The Prepayment Charge Schedule shall be amended from time to time by
the Master Servicer in accordance with the provisions of this Agreement.

         "Prepayment Interest Excess": With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day and the Determination Date of the calendar month in which such Distribution
Date occurs, an amount equal to interest at the applicable Net Mortgage Rate on
the amount of such Principal Prepayment for the number of days commencing on the
first day of the calendar month in which such Distribution Date occurs and
ending on the date on which such prepayment is so applied.

         "Prepayment Interest Shortfall": With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the related Prepayment Period and the last day of the calendar month
preceding the month in which such Distribution Date occurs, an amount equal to
interest at the applicable Net Mortgage Rate on the amount of such Principal
Prepayment for the number of days commencing on the date on which the prepayment
is applied and ending on the last day of the calendar month preceding the month
in which such Distribution Date occurs. The obligations of the Master Servicer
in respect of any Prepayment Interest Shortfall are set forth in Section 3.24.

         "Prepayment Period": With respect to any Distribution Date, the period
commencing on the day after the Determination Date in the calendar month
preceding the calendar month in which such Distribution Date occurs (or, in the
case of the first Distribution Date, commencing on the Cut-Off Date) and ending
on the Determination Date of the calendar month in which such Distribution Date
occurs.

         "Principal Balance": As to any Mortgage Loan other than a Liquidated
Mortgage Loan, and any day, the related Cut-off Date Principal Balance, MINUS
all collections credited against the Cut-off Date Principal Balance of any such
Mortgage Loan. For purposes of this definition, a Liquidated Mortgage Loan shall
be deemed to have a Principal Balance equal to the Principal Balance of the
related Mortgage Loan as of the final recovery of related Liquidation Proceeds
and a Principal Balance of zero thereafter. As to any REO Property and any day,
the Principal Balance of the related Mortgage Loan immediately prior to such
Mortgage Loan becoming REO Property minus any REO Principal Amortization
received with respect thereto on or prior to such day.

         "Principal Prepayment": Any payment of principal made by the Mortgagor
on a Mortgage Loan which is received in advance of its scheduled Due Date and
which is not accompanied by an amount of interest representing the full amount
of scheduled interest due on any Due Date in any month or months subsequent to
the month of prepayment.

                                       30

<PAGE>

         "Principal Remittance Amount": With respect to each Loan Group and any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Mortgage Loans by the Master Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
principal prepayments of the Mortgage Loans applied by the Master Servicer
during the related Prepayment Period, (iii) the principal portion of all related
Net Liquidation Proceeds and Insurance Proceeds received during such Prepayment
Period, (iv) that portion of the Purchase Price, representing principal of any
repurchased Mortgage Loan in such Loan Group, deposited to the Collection
Account during such Prepayment Period, (v) the principal portion of any related
Substitution Adjustments deposited in the Collection Account during such
Prepayment Period and (vi) on the Distribution Date on which the Trust Fund is
to be terminated pursuant to Section 10.01, that portion of the Termination
Price, in respect of principal.

         "Prospectus Supplement": That certain Prospectus Supplement dated
February 21, 2001 relating to the public offering of the Class A Certificates
and the Mezzanine Certificates.

         "Purchase Price": With respect to any Mortgage Loan or REO Property to
be purchased pursuant to or as contemplated by Section 2.03 or 10.01, and as
confirmed by an Officers' Certificate from the Master Servicer to the Trustee,
an amount equal to the sum of (i) 100% of the Principal Balance thereof as of
the date of purchase (or such other price as provided in Section 10.01), (ii) in
the case of (x) a Mortgage Loan, accrued interest on such Principal Balance at
the applicable Mortgage Rate in effect from time to time from the Due Date as to
which interest was last covered by a payment by the Mortgagor or an advance by
the Master Servicer, which payment or advance had as of the date of purchase
been distributed pursuant to Section 4.01, through the end of the calendar month
in which the purchase is to be effected, and (y) an REO Property, the sum of (1)
accrued interest on such Principal Balance at the applicable Mortgage Rate in
effect from time to time from the Due Date as to which interest was last covered
by a payment by the Mortgagor or an advance by the Master Servicer through the
end of the calendar month immediately preceding the calendar month in which such
REO Property was acquired, plus (2) REO Imputed Interest for such REO Property
for each calendar month commencing with the calendar month in which such REO
Property was acquired and ending with the calendar month in which such purchase
is to be effected, net of the total of all net rental income, Insurance
Proceeds, Liquidation Proceeds and Advances that as of the date of purchase had
been distributed as or to cover REO Imputed Interest pursuant to Section 4.04,
(iii) any unreimbursed Servicing Advances and Advances and any unpaid Servicing
Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts
previously withdrawn from the Collection Account in respect of such Mortgage
Loan or REO Property pursuant to Section 3.23 and (v) in the case of a Mortgage
Loan required to be purchased pursuant to Section 2.03, expenses reasonably
incurred or to be incurred by the Master Servicer or the Trustee in respect of
the breach or defect giving rise to the purchase obligation.

         "Qualified Insurer": Any insurance company acceptable to Fannie Mae.

         "Qualified Substitute Mortgage Loan": A mortgage loan substituted for a
Deleted Mortgage Loan pursuant to the terms of this Agreement or the Mortgage
Loan Purchase Agreement which must, on the date of such substitution, (i) have
an outstanding principal balance (or in the case of a substitution of more than
one mortgage loan for a Deleted Mortgage Loan, an aggregate principal balance),
after application of all scheduled payments of principal and interest due during
or prior to

                                       31

<PAGE>

the month of substitution, not in excess of, and not more than 5% less than, the
outstanding principal balance of the Deleted Mortgage Loan as of the Due Date in
the calendar month during which the substitution occurs, (ii) have a Mortgage
Rate not less than (and not more than one percentage point in excess of) the
Mortgage Rate of the Deleted Mortgage Loan, (iii) have a Maximum Mortgage Rate
not less than the Maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) have
a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted
Mortgage Loan, (v) have a Gross Margin equal to or greater than the Gross Margin
of the Deleted Mortgage Loan, (vi) have a next Adjustment Date not more than two
months later than the next Adjustment Date on the Deleted Mortgage Loan, (vii)
have a Dividend Rate, if applicable, equal to or less than that of the Deleted
Mortgage Loan, (viii) have a remaining term to maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage Loan, (ix) be
current as of the date of substitution, (x) have a Loan-to-Value Ratio as of the
date of substitution equal to or lower than the Loan-to-Value Ratio of the
Deleted Mortgage Loan as of such date, (xi) have a risk grading determined by
the Originator at least equal to the risk grading assigned on the Deleted
Mortgage Loan, (xii) have been underwritten or reunderwritten by the Originator
in accordance with the same underwriting criteria and guidelines as the Deleted
Mortgage Loan, (xiii) be covered by the PMI Policy if the Deleted Mortgage Loan
was covered by the PMI Policy and (xiv) conform to each representation and
warranty set forth in Section 3.01 of the Mortgage Loan Purchase Agreement
applicable to the Deleted Mortgage Loan. In the event that one or more mortgage
loans are substituted for one or more Deleted Mortgage Loans, the amounts
described in clause (i) hereof shall be determined on the basis of aggregate
principal balances, the Mortgage Rates described in clauses (ii) through (vi)
hereof shall be satisfied for each such mortgage loan, the risk gradings
described in clause (x) hereof shall be satisfied as to each such mortgage loan,
the terms described in clause (viii) hereof shall be determined on the basis of
weighted average remaining term to maturity (provided that no such mortgage loan
may have a remaining term to maturity longer than the Deleted Mortgage Loan),
the Loan-to-Value Ratios described in clause (x) hereof shall be satisfied as to
each such mortgage loan and, except to the extent otherwise provided in this
sentence, the representations and warranties described in clause (xiv) hereof
must be satisfied as to each Qualified Substitute Mortgage Loan or in the
aggregate, as the case may be.

         "Rating Agency or Rating Agencies": Fitch and S&P or their successors.
If such agencies or their successors are no longer in existence, "Rating
Agencies" shall be such nationally recognized statistical rating agencies, or
other comparable Persons, designated by the Depositor, notice of which
designation shall be given to the Trustee and Master Servicer.

         "Realized Loss": With respect to any Liquidated Mortgage Loan, the
amount of loss realized equal to the portion of the Principal Balance remaining
unpaid after application of all Net Liquidation Proceeds in respect of such
Mortgage Loan.

         "Record Date": With respect to (i) the Class A Certificates and the
Mezzanine Certificates, the Close of Business on the Business Day immediately
preceding the related Distribution Date and (ii) the Class P Certificates, the
Class C Certificates and the Class R Certificates, the Close of Business on the
last Business Day of the calendar month preceding the month in which the related
Distribution Date occurs; provided, however, that following the date on which
Definitive Certificates for a Class A Certificate or a Mezzanine Certificate are
available pursuant to Section 5.02, the

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<PAGE>

Record Date for such Certificates shall be the last Business Day of the calendar
month preceding the month in which the related Distribution Date occurs.

         "Reference Banks": Those banks (i) with an established place of
business in London, England, (ii) not controlling, under the control of or under
common control with the Originator or the Master Servicer or any affiliate
thereof and (iii) which have been designated as such by the Trustee; provided,
however, that if fewer than two of such banks provide a LIBOR rate, then any
leading banks selected by the Depositor which are engaged in transactions in
United States dollar deposits in the international Eurocurrency market.

         "Refinanced Mortgage Loan": A Mortgage Loan the proceeds of which were
not used to purchase the related Mortgaged Property.

         "Regular Certificate": Any of the Class A Certificates, Mezzanine
Certificates, Class C Certificates or Class P Certificates.

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

         "Relief Act Interest Shortfall": With respect to any Distribution Date,
for any Mortgage Loan with respect to which there has been a reduction in the
amount of interest collectible thereon for the most recently ended Due Period as
a result of the application of the Relief Act, the amount by which (i) interest
collectible on such Mortgage Loan during such Due Period is less than (ii) one
month's interest on the Principal Balance of such Mortgage Loan at the Mortgage
Rate for such Mortgage Loan before giving effect to the application of the
Relief Act.

         "REMIC": A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

         "REMIC 1": The segregated pool of assets subject hereto, constituting
the primary trust created hereby and to be administered hereunder, with respect
to which a REMIC election is to be made consisting of: (i) such Mortgage Loans
as from time to time are subject to this Agreement (less the Dividend Portion of
each Dividend Mortgage Loan), together with the Mortgage Files relating thereto,
and together with all collections thereon and proceeds thereof, (ii) any REO
Property, together with all collections thereon and proceeds thereof, (iii) the
Trustee's rights with respect to the Mortgage Loans under all insurance
policies, including the PMI Policy, required to be maintained pursuant to this
Agreement and any proceeds thereof, (iv) the Depositor's rights under the
Mortgage Loan Purchase Agreement (including any security interest created
thereby) and (v) the Collection Account, the Distribution Account (subject to
the last sentence of this definition) and any REO Account and such assets that
are deposited therein from time to time and any investments thereof, together
with any and all income, proceeds and payments with respect thereto.
Notwithstanding the foregoing, however, a REMIC election will not be made with
respect to the Reserve Fund or the Dividend Account.

         "REMIC 1 Group I Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Principal Balance of the Group I Mortgage Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC 1

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<PAGE>

Pass-Through Rate for REMIC 1 Regular Interest LT1A minus the Group I Marker
Rate, divided by (b) 12.

         "REMIC 1 Group II Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Principal Balance of the Group II Mortgage Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT1F minus the Group II Marker Rate, divided by (b) 12.

         "REMIC 1 Overcollateralization Target Amount": 1% of the
Overcollateralization Target Amount.

         "REMIC 1 Overcollateralization Amount": With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of the
REMIC 1 Regular Interests minus (ii) the aggregate of the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest
LT1C, REMIC 1 Regular Interest LT1D, REMIC 1 Regular Interest LT1G, REMIC 1
Regular Interest LT1H and REMIC 1 Regular Interest LT1I, in each case as of such
date of determination.

         "REMIC 1 Group I Principal Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to the product of (i) the aggregate Principal
Balance of the Group I Mortgage Loans and related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D and the
denominator of which is the aggregate of the Uncertificated Principal Balances
of REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C, REMIC 1 Regular
Interest LT1D and REMIC 1 Regular Interest LT1E.

         "REMIC 1 Group II Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to the product of (i) the aggregate
Principal Balance of the Group II Mortgage Loans and related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT1G, REMIC 1 Regular Interest LT1H and REMIC 1 Regular Interest LT1I and the
denominator of which is the aggregate of the Uncertificated Principal Balances
of REMIC 1 Regular Interest LT1G, REMIC 1 Regular Interest LT1H, REMIC 1 Regular
Interest LT1I and REMIC 1 Regular Interest LT1J.

         "REMIC 1 Regular Interest LT1A": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1A shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1B": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC

                                       34

<PAGE>

1. REMIC 1 Regular Interest LT1B shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

         "REMIC 1 Regular Interest LT1C": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1C shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1D": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1D shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1E": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1E shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1F": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1F shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1G": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1G shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1H": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1H shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

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<PAGE>

         "REMIC 1 Regular Interest LT1I": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1I shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1J": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1J shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT1PI": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1PI shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to any amounts distributed to REMIC 1
Regular Interest LT1PI.

         "REMIC 1 Regular Interest LT1PII": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT1PII shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to any amounts distributed to REMIC 1
Regular Interest LT1PII.

         "REMIC 1 Regular Interests": REMIC 1 Regular Interest LT1A, REMIC 1
Regular Interest LT1B, REMIC 1 Regular Interest LT1C, REMIC 1 Regular Interest
LT1D, REMIC 1 Regular Interest LT1E, REMIC 1 Regular Interest LT1F, REMIC 1
Regular Interest LT1G, REMIC 1 Regular Interest LT1H, REMIC 1 Regular Interest
LT1I, REMIC 1 Regular Interest LT1J, REMIC 1 Regular Interest LT1PI and REMIC 1
Regular Interest LT1PII.

         "REMIC 2": The segregated pool of assets consisting of all of the REMIC
1 Regular Interests conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Class R Certificates (in respect of
the Class R-2 Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

         "REMIC Provisions": Provisions of the federal income tax law relating
to real estate mortgage investment conduits which appear at Section 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
regulations and rulings promulgated thereunder, as the foregoing may be in
effect from time to time.

         "REMIC Regular Interests": The REMIC 1 Regular Interests.

         "Remittance Report": A report prepared by the Master Servicer and
delivered to the Trustee pursuant to Section 4.04.

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<PAGE>

         "Rents from Real Property": With respect to any REO Property, gross
income of the character described in Section 856(d) of the Code.

         "REO Account": The account or accounts maintained by the Master
Servicer in respect of an REO Property pursuant to Section 3.23.

         "REO Disposition": The sale or other disposition of an REO Property on
behalf of the Trust Fund.

         "REO Imputed Interest": As to any REO Property, for any calendar month
during which such REO Property was at any time part of the Trust Fund, one
month's interest at the applicable Net Mortgage Rate on the Principal Balance of
such REO Property (or, in the case of the first such calendar month, of the
related Mortgage Loan if appropriate) as of the Close of Business on the
Distribution Date in such calendar month.

         "REO Principal Amortization": With respect to any REO Property, for any
calendar month, the excess, if any, of (a) the aggregate of all amounts received
in respect of such REO Property during such calendar month, whether in the form
of rental income, sale proceeds (including, without limitation, that portion of
the Termination Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 10.01 that is allocable to such REO
Property) or otherwise, net of any portion of such amounts (i) payable pursuant
to Section 3.23 in respect of the proper operation, management and maintenance
of such REO Property or (ii) payable or reimbursable to the Master Servicer
pursuant to Section 3.23 for unpaid Servicing Fees in respect of the related
Mortgage Loan and unreimbursed Servicing Advances and Advances in respect of
such REO Property or the related Mortgage Loan, over (b) the REO Imputed
Interest in respect of such REO Property for such calendar month.

         "REO Property": A Mortgaged Property acquired by the Master Servicer on
behalf of the Trust Fund through foreclosure or deed-in-lieu of foreclosure, as
described in Section 3.23.

         "Request for Release": A release signed by a Servicing Officer, in the
form of Exhibit E attached hereto.

         "Reserve Fund": The reserve fund established and maintained pursuant to
Section 3.28.

         "Reserve Interest Rate": With respect to any Interest Determination
Date, the rate per annum that the Trustee determines to be either (i) the
arithmetic mean (rounded upwards if necessary to the nearest whole multiple of
1/16 of 1%) of the one-month United States dollar lending rates which banks in
The City of New York selected by the Depositor are quoting on the relevant
Interest Determination Date to the principal London offices of leading banks in
the London interbank market or (ii) in the event that the Trustee can determine
no such arithmetic mean, in the case of any Interest Determination Date after
the initial Interest Determination Date, the lowest one-month United States
dollar lending rate which such New York banks selected by the Depositor are
quoting on such Interest Determination Date to leading European banks.

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<PAGE>

         "Residential Dwelling": Any one of the following: (i) a detached
one-family dwelling, (ii) a detached two- to four-family dwelling, (iii) a
one-family dwelling unit in a Fannie Mae eligible condominium project, (iv) a
manufactured home, or (v) a detached one-family dwelling in a planned unit
development, none of which is a co-operative or mobile home.

         "Residual Certificate":  The Class R Certificates.

         "Residual Interest": The sole class of "residual interests" in a REMIC
within the meaning of Section 860G(a)(2) of the Code.

         "Responsible Officer": When used with respect to the Trustee, the
Chairman or Vice Chairman of the Board of Directors or Trustees, the Chairman or
Vice Chairman of the Executive or Standing Committee of the Board of Directors
or Trustees, the President, any vice president, any assistant vice president,
the Secretary, any assistant secretary, the Treasurer, any assistant treasurer,
the Cashier, any assistant cashier, any trust officer or assistant trust
officer, the Controller and any assistant controller or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and, with respect to a particular matter, to whom
such matter is referred because of such officer's knowledge of and familiarity
with the particular subject.

         "S&P": Standard & Poor's, a division of The McGraw-Hill Companies,
Inc., or its successor in interest.

         "Seller": Option One Owner Trust 2000-1, a Delaware business trust, in
its capacity as Seller under the Mortgage Loan Purchase Agreement.

         "Servicing Account": The account or accounts created and maintained
pursuant to Section 3.09.

         "Servicing Advances": All customary, reasonable and necessary "out of
pocket" costs and expenses (including reasonable attorneys' fees and expenses)
incurred by the Master Servicer in the performance of its servicing obligations,
including, but not limited to, the cost of (i) the preservation, restoration,
inspection and protection of the Mortgaged Property, (ii) any enforcement or
judicial proceedings, including foreclosures, (iii) the management and
liquidation of the REO Property and (iv) compliance with the obligations under
Sections 3.01, 3.09, 3.14, 3.16, and 3.23.

         "Servicing Fee": With respect to each Mortgage Loan and for any
calendar month, an amount equal to one month's interest (or in the event of any
payment of interest which accompanies a Principal Prepayment in full made by the
Mortgagor during such calendar month, interest for the number of days covered by
such payment of interest) at the Servicing Fee Rate on the same principal amount
on which interest on such Mortgage Loan accrues for such calendar month. A
portion of such Servicing Fee may be retained by any Sub-Servicer as its
servicing compensation.

         "Servicing Fee Rate":  0.50% per annum.

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<PAGE>

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

         "Servicing Transfer Costs": Shall mean all reasonable costs and
expenses incurred by the Trustee in connection with the transfer of servicing
from a predecessor servicer, including, without limitation, any reasonable costs
or expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee to service the Mortgage Loans properly and
effectively.

         "Startup Day": As defined in Section 9.01(b) hereof.

         "Stated Principal Balance": With respect to any Mortgage Loan: (a) as
of any date of determination up to but not including the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
Loan would be distributed, the outstanding principal balance of such Mortgage
Loan as of the Cut-off Date as shown in the Mortgage Loan Schedule, minus the
sum of (i) the principal portion of each Monthly Payment due on a Due Date
subsequent to the Cut-off Date to the extent received from the Mortgagor or
advanced by the Master Servicer and distributed pursuant to Section 4.01 on or
before such date of determination, (ii) all Principal Prepayments received after
the Cut-off Date to the extent distributed pursuant to Section 4.01 on or before
such date of determination, (iii) all Liquidation Proceeds and Insurance
Proceeds to the extent distributed pursuant to Section 4.01 on or before such
date of determination, and (iv) any Realized Loss incurred with respect thereto
as a result of a Deficient Valuation made during or prior to the Due Period for
the most recent Distribution Date coinciding with or preceding such date of
determination; and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such Mortgage Loan would be distributed, zero.
With respect to any REO Property: (a) as of any date of determination up to but
not including the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such REO Property would be distributed, an
amount (not less than zero) equal to the Stated Principal Balance of the related
Mortgage Loan as of the date on which such REO Property was acquired on behalf
of the Trust Fund, minus the aggregate amount of REO Principal Amortization in
respect of such REO Property for all previously ended calendar months, to the
extent distributed pursuant to Section 4.01 on or before such date of
determination; and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such REO Property would be distributed, zero.

         "Stepdown Date": The earlier to occur of (i) the Distribution Date on
which the Certificate Principal Balance of the Class A Certificates has been
reduced to zero and (ii) the later to occur of (x) the Distribution Date
occurring in March 2004 and (y) the first Distribution Date on which the Credit
Enhancement Percentage (calculated for this purpose only after taking into
account payments of principal on the Mortgage Loans and distribution of the
Principal Distribution Amount to the Certificates then entitled to distributions
of principal on such Distribution Date) is equal to or greater than 13.00%.

                                       39

<PAGE>

         "Sub-Servicer": Any Person with which either Master Servicer has
entered into a Sub- Servicing Agreement and which meets the qualifications of a
Sub-Servicer pursuant to Section 3.02.

         "Sub-Servicing Account": An account established by a Sub-Servicer which
meets the requirements set forth in Section 3.08 and is otherwise acceptable to
the applicable Master Servicer.

         "Sub-Servicing Agreement": The written contract between either Master
Servicer and a Sub- Servicer relating to servicing and administration of certain
Mortgage Loans as provided in Section 3.02.

         "Substitution Adjustment":  As defined in Section 2.03(d) hereof.

         "Tax Matters Person": The tax matters person appointed pursuant to
Section 9.01(e) hereof.

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

         "Termination Price":  As defined in Section 10.01(a) hereof.

         "Trigger Event": A Trigger Event has occurred with respect to a
Distribution Date if the Delinquency Percentage exceeds 100% of the Credit
Enhancement Percentage.

         "Trust": First Franklin Mortgage Loan Trust 2001-FF1, the trust created
hereunder.

         "Trust Fund": All of the assets of the Trust, which is the trust
created hereunder consisting of REMIC 1, REMIC 2, the Dividend Account and the
Reserve Fund.

         "Trustee": Wells Fargo Bank Minnesota, N.A., a national banking
association, or any successor trustee appointed as herein provided.

         "Trustee Fee": The amount payable to the Trustee on each Distribution
Date pursuant to Section 8.05 as compensation for all services rendered by it in
the execution of the trust hereby created and in the exercise and performance of
any of the powers and duties of the Trustee hereunder, which amount shall equal
one twelfth of the product of (i) the Trustee Fee Rate, multiplied by (ii) the
aggregate Stated Principal Balance of the Mortgage Loans and any REO Properties
as of the Determination Date in the calendar month prior to the month of such
Distribution Date (or, in the case of the initial Distribution Date, as of the
Cut-off Date).

         "Trustee Fee Rate": 0.009% per annum.

                                       40

<PAGE>

         "Unadjusted Net WAC 30/360 Rate": For any Distribution Date, a per
annum rate equal to the weighted average of the Adjusted Net Mortgage Rates of
the Group I Mortgage Loans or Group II Mortgage Loans, as applicable, for such
Distribution Date.

         "Uncertificated Accrued Interest": With respect to each REMIC Regular
Interest on each Distribution Date, an amount equal to one month's interest at
the related Uncertificated Pass- Through Rate on the Uncertificated Principal
Balance of such REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by any Net Prepayment Interest Shortfalls and Relief
Act Interest Shortfalls (allocated to such REMIC Regular Interests based on the
priorities set forth in Section 1.03).

         "Uncertificated Pass-Through Rate": The Uncertificated REMIC 1
Pass-Through Rate.

         "Uncertificated Principal Balance": With respect to each REMIC Regular
Interest, the amount of such REMIC Regular Interest outstanding as of any date
of determination. As of the Closing Date, the Uncertificated Principal Balance
of each REMIC Regular Interest shall equal the amount set forth in the
Preliminary Statement hereto as its initial Uncertificated Principal Balance.
On each Distribution Date, the Uncertificated Principal Balance of each REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.07 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.08, and the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT1E and REMIC 1
Regular Interest LT1J shall be increased by interest deferrals as provided in
Section 4.07. The Uncertificated Principal Balance of each REMIC Regular
Interest that has an Uncertificated Principal Balance shall never be less than
zero.

         "Uncertificated REMIC 1 Pass-Through Rate": For any Distribution Date,
with respect to REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B,
REMIC 1 Regular Interest LT1C, REMIC 1 Regular Interest LT1D, REMIC 1 Regular
Interest LT1E and REMIC 1 Regular Interest LT1PI, the Unadjusted Net WAC 30/360
Rate of the Group I Mortgage Loans for such Distribution Date and with respect
to REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest LT1G, REMIC 1 Regular
Interest LT1H, REMIC 1 Regular Interest LT1I, REMIC 1 Regular Interest LT1J and
REMIC 1 Regular Interest LT1PII, the Unadjusted Net WAC 30/360 Rate of the Group
II Mortgage Loans for such Distribution Date.

         "Uninsured Cause": Any cause of damage to a Mortgaged Property such
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to Section 3.14.

         "United States Person" or "U.S. Person": A citizen or resident of the
United States, a corporation, partnership (or other entity treated as a
corporation or partnership for United States federal income tax purposes)
created or organized in, or under the laws of, the United States, any state
thereof, or the District of Columbia (except in the case of a partnership, to
the extent provided in Treasury regulations) provided that, for purposes solely
of the restrictions on the transfer of Class R Certificates, no partnership or
other entity treated as a partnership for United States federal income tax
purposes shall be treated as a United States Person unless all persons that own
an interest in such

                                       41

<PAGE>

partnership either directly or through any entity that is not a corporation for
United States federal income tax purposes are required by the applicable
operative agreement to be United States Persons, or an estate the income of
which from sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its connection with the
conduct of a trade or business within the United States, or a trust if a court
within the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have authority
to control all substantial decisions of the trust. The term "United States"
shall have the meaning set forth in Section 7701 of the Code or successor
provisions.

         "Unpaid Interest Shortfall Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and (i) the first Distribution Date,
zero, and (ii) any Distribution Date after the first Distribution Date, the
amount, if any, by which (a) the sum of (1) the Monthly Interest Distributable
Amount for such Class for the immediately preceding Distribution Date and (2)
the outstanding Unpaid Interest Shortfall Amount, if any, for such Class for
such preceding Distribution Date exceeds (b) the aggregate amount distributed on
such Class in respect of interest pursuant to clause (a) of this definition on
such preceding Distribution Date, plus interest on the amount of interest due
but not paid on the Certificates of such Class on such preceding Distribution
Date, to the extent permitted by law, at the Pass-Through Rate for such Class
for the related Accrual Period.

         "Value": With respect to any Mortgaged Property, the lesser of (i) the
lesser of (a) the value thereof as determined by an appraisal made for the
originator of the Mortgage Loan at the time of origination of the Mortgage Loan
by an appraiser who met the minimum requirements of Fannie Mae and Freddie Mac,
and (b) the value thereof as determined by a review appraisal conducted by the
Originator in the event any such review appraisal determines an appraised value
ten percent or more lower than the value thereof as determined by the appraisal
referred to in clause (i)(a) above and (ii) the purchase price paid for the
related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
Loan, provided, however, in the case of a Refinanced Mortgage Loan, such value
of the Mortgaged Property is based solely upon the lesser of (1) the value
determined by an appraisal made for the Originator of such Refinanced Mortgage
Loan at the time of origination of such Refinanced Mortgage Loan by an appraiser
who met the minimum requirements of Fannie Mae and Freddie Mac and (2) the value
thereof as determined by a review appraisal conducted by the Originator in the
event any such review appraisal determines an appraised value ten percent or
more lower than the value thereof as determined by the appraisal referred to in
clause (ii)(1) above.

         "Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. At all times the Class A
Certificates, the Mezzanine Certificates and the Class C Certificates shall have
98% of the Voting Rights (allocated among the Holders of the Class A
Certificates, the Mezzanine Certificates and the Class C Certificates in
proportion to the then outstanding Certificate Principal Balances of their
respective Certificates), the Class P Certificates shall have 1% of the Voting
Rights and the Class R Certificates shall have 1% of the Voting Rights.
The Voting Rights allocated to any Class of Certificates (other than the Class P
Certificates and the Class R Certificates) shall be allocated among all Holders
of each such Class in proportion to the outstanding Certificate Principal
Balance of such Certificates and the Voting Rights allocated to the Class P
Certificates and the Class R Certificates shall be allocated among all Holders
of each such Class in proportion to such Holders' respective Percentage
Interest; provided, however that when none of the Regular Certificates are
outstanding, 100% of the Voting Rights shall be allocated among

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<PAGE>

Holders of the Class R Certificates in accordance with such Holders' respective
Percentage Interests in the Certificates of such Class.

         Section 1.02.     Accounting.

         Unless otherwise specified herein, for the purpose of any definition or
calculation, whenever amounts are required to be netted, subtracted or added or
any distributions are taken into account such definition or calculation and any
related definitions or calculations shall be determined without duplication of
such functions.

         Section 1.03.     Allocation of Certain Interest Shortfalls.

         For purposes of calculating the amount of the Monthly Interest
Distributable Amount for the Class A Certificates, the Mezzanine Certificates
and the Class C Certificates for any Distribution Date, (1) the aggregate amount
of any Net Prepayment Interest Shortfalls, any Relief Act Interest Shortfalls,
incurred in respect of the Mortgage Loans for any Distribution Date shall be
allocated first, among the Class C Certificates on a PRO RATA basis based on,
and to the extent of, one month's interest at the then applicable Pass-Through
Rate on the Notional Amount of each such Certificate and, thereafter, among the
Class A Certificates and the Mezzanine Certificates on a PRO RATA basis based
on, and to the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the respective Certificate Principal Balance of each such
Certificate and (2) the aggregate amount of any Realized Losses and Net WAC Rate
Carryover Amounts, incurred for any Distribution Date shall be allocated among
the Class C Certificates on a PRO RATA basis based on, and to the extent of, one
month's interest at the then applicable Pass-Through Rate on the Notional Amount
of each such Certificate.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the Uncertificated REMIC 1 Regular Interests for any Distribution
Date, the aggregate amount of any Net Prepayment Interest Shortfalls and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated (i) with respect to the Group I Mortgage
Loans, first, to Uncertificated Accrued Interest payable to REMIC 1 Regular
Interest LT1A and REMIC 1 Regular Interest LT1E up to an aggregate amount equal
to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively, and
thereafter among REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B,
REMIC 1 Regular Interest LT1C, REMIC 1 Regular Interest LT1D and REMIC 1 Regular
Interest LT1E PRO RATA based on, and to the extent of, one month's interest at
the then applicable respective Uncertificated REMIC 1 Pass-Through Rate on the
respective Uncertificated Principal Balance of each such Uncertificated REMIC 1
Regular Interest and (ii) with respect to the Group II Mortgage Loans first, to
Uncertificated Accrued Interest payable to REMIC 1 Regular Interest LT1F and
REMIC 1 Regular Interest LT1J up to an aggregate amount equal to the REMIC 1
Group II Interest Loss Allocation Amount, 98% and 2%, respectively, and
thereafter among REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest LT1G,
REMIC 1 Regular Interest LT1H, REMIC 1 Regular Interest LT1I and REMIC 1 Regular
Interest LT1J PRO RATA based on, and to the extent of, one month's interest at
the then applicable respective Uncertificated REMIC 1 Pass-Through Rate on the
respective Uncertificated Principal Balance of each such Uncertificated REMIC 1
Regular Interest.

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<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.01.     Conveyance of Mortgage Loans.

         The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, including any security interest
therein for the benefit of the Depositor, in and to (i) each Mortgage Loan
identified on the Mortgage Loan Schedule, including the related Cut-off Date
Principal Balance, all interest accruing thereon on and after the Cut-off Date
and all collections in respect of interest and principal due after the Cut- off
Date; (ii) property which secured each such Mortgage Loan and which has been
acquired by foreclosure or deed in lieu of foreclosure; (iii) its interest in
any insurance policies (including the PMI Policy) in respect of the Mortgage
Loans; (iv) the rights of the Depositor under the Mortgage Loan Purchase
Agreement, (v) all other assets included or to be included in the Trust Fund and
(vi) all proceeds of any of the foregoing. Such assignment includes all interest
and principal due to the Depositor or the Master Servicer after the Cut-off Date
with respect to the Mortgage Loans.

         In connection with such transfer and assignment, the Depositor, does
hereby deliver to, and deposit with the Trustee, or its designated agent (the
"Custodian"), the following documents or instruments with respect to each
Original Mortgage Loan so transferred and assigned, the following documents or
instruments (with respect to each Mortgage Loan, a "Mortgage File") :

                  (i) the original Mortgage Note, endorsed either (A) in blank,
                  in which case the Trustee shall cause the endorsement to be
                  completed or (B) in the following form: "Pay to the order of
                  Wells Fargo Bank Minnesota, N.A., as Trustee," or with respect
                  to any lost Mortgage Note, an original Lost Note Affidavit
                  stating that the original mortgage note was lost, misplaced or
                  destroyed, together with a copy of the related mortgage note;
                  provided, however, that such substitutions of Lost Note
                  Affidavits for original Mortgage Notes may occur only with
                  respect to Mortgage Loans, the aggregate Cut-off Date
                  Principal Balance of which is less than or equal to 1.00% of
                  the Pool Balance as of the Cut-off Date;

                  (ii) the original Mortgage with evidence of recording thereon,
                  and the original recorded power of attorney, if the Mortgage
                  was executed pursuant to a power of attorney, with evidence of
                  recording thereon or, if such Mortgage or power of attorney
                  has been submitted for recording but has not been returned
                  from the applicable public recording office, has been lost or
                  is not otherwise available, a copy of such Mortgage or power
                  of attorney, as the case may be, certified to be a true and
                  complete copy of the original submitted for recording;

                  (iii) an original Assignment, in form and substance acceptable
                  for recording. The Mortgage shall be assigned either (A) in
                  blank or (B) to "Wells Fargo Bank Minnesota, N.A., as
                  Trustee";

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<PAGE>

                  (iv) an original copy of any intervening assignment of
                  Mortgage showing a complete chain of assignments;

                  (v) the original or a certified copy of lender's title
                  insurance policy; and

                  (vi) the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any.

         The Trustee agrees to execute and deliver (or cause the Custodian to
execute and deliver) to the Depositor on or prior to the Closing Date an
acknowledgment of receipt of the original Mortgage Note (with any exceptions
noted), substantially in the form attached as Exhibit F-3 hereto.

         If any of the documents referred to in Section 2.01(ii), (iii) or (iv)
above has as of the Closing Date been submitted for recording but either (x) has
not been returned from the applicable public recording office or (y) has been
lost or such public recording office has retained the original of such document,
the obligations of the Depositor to deliver such documents shall be deemed to be
satisfied upon (1) delivery to the Trustee or the Custodian no later than the
Closing Date, of a copy of each such document certified by Option One in the
case of (x) above or the applicable public recording office in the case of (y)
above to be a true and complete copy of the original that was submitted for
recording and (2) if such copy is certified by Option One, delivery to the
Trustee or the Custodian, promptly upon receipt thereof of either the original
or a copy of such document certified by the applicable public recording office
to be a true and complete copy of the original. If the original lender's title
insurance policy, or a certified copy thereof, was not delivered pursuant to
Section 2.01(v) above, the Depositor shall deliver or cause to be delivered to
the Trustee or the Custodian, the original or a copy of a written commitment or
interim binder or preliminary report of title issued by the title insurance or
escrow company, with the original or a certified copy thereof to be delivered to
the Trustee or the Custodian, promptly upon receipt thereof. The Master Servicer
or the Depositor shall deliver or cause to be delivered to the Trustee or the
Custodian promptly upon receipt thereof any other documents constituting a part
of a Mortgage File received with respect to any Mortgage Loan, including, but
not limited to, any original documents evidencing an assumption or modification
of any Mortgage Loan.

         Upon discovery or receipt of notice of any materially defective
document in, or that a document is missing from, a Mortgage File, the Trustee
shall enforce the obligations of Option One under the Mortgage Loan Purchase
Agreement to cure such defect or deliver such missing document to the Trustee or
the Custodian within 90 days. If Option One does not cure such defect or deliver
such missing document within such time period, the Trustee shall enforce the
obligations of Option One to either repurchase or substitute for such Mortgage
Loan in accordance with Section 2.03.

         The Trustee shall enforce the obligations of Option One under the
Mortgage Loan Purchase Agreement to cause the Assignments which were delivered
in blank to be completed and to record all Assignments referred to in Section
2.01(iii) hereof and, to the extent necessary, in Section 2.01(iv) hereof. The
Trustee shall enforce the obligations of Option One under the Mortgage Loan
Purchase Agreement to deliver such assignments for recording within 45 days of
the Closing Date. In the event that any such Assignment is lost or returned
unrecorded because of a defect therein, the Trustee shall enforce the
obligations of Option One under the Mortgage Loan Purchase Agreement

                                       45

<PAGE>

to promptly have a substitute Assignment prepared or have such defect cured, as
the case may be, and thereafter cause each such Assignment to be duly recorded.

         In the event that any Mortgage Note is endorsed in blank as of the
Closing Date, promptly following the Closing Date, the Trustee shall cause (at
Option One's expense) to be completed such endorsements "Pay to the order of
Wells Fargo Bank Minnesota, N.A., as Trustee, without
recourse."

         The Depositor herewith delivers to the Trustee an executed copy of the
Mortgage Loan Purchase Agreement and the PMI Policy.

         The Master Servicer shall forward to the Custodian original documents
evidencing an assumption, modification, consolidation or extension of any
Mortgage Loan entered into in accordance with this Agreement within two weeks of
their execution; provided, however, that the Master Servicer shall provide the
Custodian with a certified true copy of any such document submitted for
recordation within two weeks of its execution, and shall provide the original of
any document submitted for recordation or a copy of such document certified by
the appropriate public recording office to be a true and complete copy of the
original within 270 days of its submission for recordation. In the event that
the Master Servicer cannot provide a copy of such document certified by the
public recording office within such 270 day period, the Master Servicer shall
deliver to the Custodian, within such 270 day period, an Officers' Certificate
of the Master Servicer which shall (A) identify the recorded document, (B) state
that the recorded document has not been delivered to the Custodian due solely to
a delay caused by the public recording office, (C) state the amount of time
generally required by the applicable recording office to record and return a
document submitted for recordation, if known and (D) specify the date the
applicable recorded document is expected to be delivered to the Custodian, and,
upon receipt of a copy of such document certified by the public recording
office, the Master Servicer shall immediately deliver such document to the
Custodian. In the event the appropriate public recording office will not certify
as to the accuracy of such document, the Master Servicer shall deliver a copy of
such document certified by an officer of the Master Servicer to be a true and
complete copy of the original to the Custodian.

         Section 2.02.     Acceptance by Trustee.

         Subject to the provisions of Section 2.01 and subject to the review
described below and any exceptions noted on the exception report described in
the next paragraph below, the Trustee acknowledges receipt of the documents
referred to in Section 2.01 above and all other assets included in the
definition of "Trust Fund" and declares that it holds and will hold such
documents and the other documents delivered to it constituting a Mortgage File,
and that it holds or will hold all such assets and such other assets included in
the definition of "Trust Fund" in trust for the exclusive use and benefit of all
present and future Certificateholders.

         The Trustee agrees, for the benefit of the Certificateholders, to
review, or that it has reviewed pursuant to Section 2.01 (or to cause the
Custodian to review or that it has caused the Custodian to have reviewed) each
Mortgage File on or prior to the Closing Date, with respect to each Original
Mortgage Loan (or, with respect to any document delivered after the Startup Day,
within 45 days of receipt and with respect to any Qualified Substitute Mortgage,
within 45 days after the assignment thereof). The Trustee further agrees, for
the benefit of the Certificateholders, to certify to the

                                       46

<PAGE>

Depositor and the Master Servicer in substantially the form attached hereto as
Exhibit F-1, within 45 days after the Closing Date, with respect to each
Original Mortgage Loan (or, with respect to any document delivered after the
Startup Day, within 45 days of receipt and with respect to any Qualified
Substitute Mortgage, within 45 days after the assignment thereof) that, as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or any Mortgage Loan specifically identified in the exception
report annexed thereto as not being covered by such certification), (i) all
documents required to be delivered to it pursuant Section 2.01 of this Agreement
are in its possession, (ii) such documents have been reviewed by it and have not
been mutilated, damaged or torn and relate to such Mortgage Loan and (iii) based
on its examination and only as to the foregoing, the information set forth in
the Mortgage Loan Schedule that corresponds to items (1) and (2) of the Mortgage
Loan Schedule accurately reflects information set forth in the Mortgage File.
It is herein acknowledged that, in conducting such review, the Trustee (or the
Custodian, as applicable) is under no duty or obligation to inspect, review or
examine any such documents, instruments, certificates or other papers to
determine that they are genuine, enforceable, or appropriate for the represented
purpose or that they have actually been recorded or that they are other than
what they purport to be on their face.

         Prior to the first anniversary date of this Agreement the Trustee shall
deliver (or cause the Custodian to deliver) to the Depositor and the Master
Servicer a final certification in the form annexed hereto as Exhibit F-2
evidencing the completeness of the Mortgage Files, with any applicable
exceptions noted thereon.

         If in the process of reviewing the Mortgage Files and making or
preparing, as the case may be, the certifications referred to above, the Trustee
(or the Custodian, as applicable) finds any document or documents constituting a
part of a Mortgage File to be missing or defective in any material respect, at
the conclusion of its review the Trustee shall so notify Option One, the
Depositor and the Master Servicer. In addition, upon the discovery by the
Depositor or the Master Servicer (or upon receipt by the Trustee of written
notification of such breach) of a breach of any of the representations and
warranties made by Option One in the Mortgage Loan Purchase Agreement in respect
of any Mortgage Loan which materially adversely affects such Mortgage Loan or
the interests of the related Certificateholders in such Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties to
this Agreement.

         The Depositor and the Trustee intend that the assignment and transfer
herein contemplated constitute a sale of the Mortgage Loans, the related
Mortgage Notes and the related documents, conveying good title thereto free and
clear of any liens and encumbrances, from the Depositor to the Trustee in trust
for the benefit of the Certificateholders and that such property not be part of
the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee a first
priority perfected security interest in all of the Depositor's right, title and
interest in and to the Mortgage Loans, the related Mortgage Notes and the
related documents, and that this Agreement shall constitute a security agreement
under applicable law.

         Section 2.03.     Repurchase or Substitution of Mortgage Loans by
                           Option One.

                                       47

<PAGE>

         (a) Upon discovery or receipt of written notice of any materially
defective document in, or that a document is missing from, a Mortgage File or of
the breach by Option One of any representation, warranty or covenant under the
Mortgage Loan Purchase Agreement in respect of any Mortgage Loan which
materially adversely affects the value of such Mortgage Loan or the interest
therein of the Certificateholders, the Trustee shall promptly notify the Master
Servicer of such defect, missing document or breach and request that Option One
deliver such missing document or that Option One cure such defect or breach
within 90 days from the date Option One was notified of such missing document,
defect or breach, and if Option One does not deliver such missing document or if
Option One does not cure such defect or breach in all material respects during
such period, the Trustee shall enforce Option One's obligation under the
Mortgage Loan Purchase Agreement and cause Option One to repurchase such
Mortgage Loan from the Trust Fund at the Purchase Price on or prior to the
Determination Date following the expiration of such 90 day period (subject to
Section 2.03(e)); provided that, in connection with any such breach that could
not reasonably have been cured within such 90 day period, if Option One has
commenced to cure such breach within such 90 day period, Option One shall be
permitted to proceed thereafter diligently and expeditiously to cure the same
within the additional period provided under the Mortgage Loan Purchase
Agreement. The Purchase Price for the repurchased Mortgage Loan shall be
deposited in the Collection Account, and the Trustee, upon receipt of written
certification from the Master Servicer of such deposit, shall release to Option
One the related Mortgage File and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as Option One shall
furnish to it and as shall be necessary to vest in Option One any Mortgage Loan
released pursuant hereto and the Trustee shall have no further responsibility
with regard to such Mortgage File (it being understood that the Trustee shall
have no responsibility for determining the sufficiency of such assignment for
its intended purpose). In lieu of repurchasing any such Mortgage Loan as
provided above, Option One may cause such Mortgage Loan to be removed from the
Trust Fund (in which case it shall become a Deleted Mortgage Loan) and
substitute one or more Qualified Substitute Mortgage Loans in the manner and
subject to the limitations set forth in Section 2.03(d). It is understood and
agreed that the obligation of Option One to cure or to repurchase (or to
substitute for) any Mortgage Loan as to which a document is missing, a material
defect in a constituent document exists or as to which such a breach has
occurred and is continuing shall constitute the sole remedy against Option One
respecting such omission, defect or breach available to the Trustee on behalf of
the Certificateholders.

         (b) Subject to Section 2.03(e), within 90 days of the earlier of
discovery by the Depositor or receipt of notice by the Depositor of the breach
of any representation or warranty of the Depositor set forth in Section 2.06
with respect to any Mortgage Loan, which materially adversely affects the value
of such Mortgage Loan or the interest therein of the Certificateholders, the
Depositor shall (i) cure such breach in all material respects, (ii) repurchase
the Mortgage Loan from the Trust at the Purchase Price or (iii) cause such
Mortgage Loan to be removed from the Trust Fund (in which case it shall become a
Deleted Mortgage Loan) and substituted by Option One for by one or more
Qualified Substitute Mortgage Loans in the manner and subject to the limitations
set forth in Section 2.03(d). The Purchase Price for any repurchased Mortgage
Loan shall be delivered to the Master Servicer for deposit in the Collection
Account, and, upon receipt thereof, the Master Servicer shall at the Depositor's
direction release to the Depositor the related Mortgage File and the Trustee
shall execute and deliver such instruments of transfer or assignment furnished
by the Depositor, in each case without recourse, as the Depositor shall furnish
to it and as shall be necessary to vest in the Depositor any Mortgage Loan
released pursuant hereto.

                                       48

<PAGE>

         (c) Within 90 days of the earlier of discovery by the Master Servicer
or receipt of notice by the Master Servicer of the breach of any representation,
warranty or covenant of the Master Servicer set forth in Section 2.05 which
materially and adversely affects the interests of the Certificateholders in any
Mortgage Loan, the Master Servicer shall cure such breach in all material
respects.

         (d) Any substitution of Qualified Substitute Mortgage Loans for Deleted
Mortgage Loans made pursuant to Section 2.03(a) must be effected prior to the
last Business Day that is within two years after the Closing Date. As to any
Deleted Mortgage Loan for which Option One substitutes a Qualified Substitute
Mortgage Loan or Loans, such substitution shall be effected by Option One
delivering to the Trustee, for such Qualified Substitute Mortgage Loan or Loans,
the Mortgage Note, the Mortgage and the Assignment to the Trustee, and such
other documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Qualified Substitute Mortgage Loan satisfies the definition thereof
and specifying the Substitution Adjustment (as described below), if any, in
connection with such substitution. The Trustee shall acknowledge receipt for
such Qualified Substitute Mortgage Loan or Loans and, within ten Business Days
thereafter, shall review such documents as specified in Section 2.02 and deliver
to the Master Servicer, with respect to such Qualified Substitute Mortgage Loan
or Loans, a certification substantially in the form attached hereto as Exhibit
F-1, with any applicable exceptions noted thereon. Within one year of the date
of substitution, the Trustee shall deliver to the Master Servicer a
certification substantially in the form of Exhibit F-2 hereto with respect to
such Qualified Substitute Mortgage Loan or Loans, with any applicable exceptions
noted thereon. Monthly Payments due with respect to Qualified Substitute
Mortgage Loans in the month of substitution are not part of the Trust Fund and
will be retained by Option One. For the month of substitution, distributions to
Certificateholders will reflect the collections and recoveries in respect of
such Deleted Mortgage Loan in the Due Period preceding the month of substitution
and Option One shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Mortgage Loan. Option One shall give or
cause to be given written notice to the Trustee, who shall forward such notice
to the Certificateholders, that such substitution has taken place, shall amend
the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan
from the terms of this Agreement and the substitution of the Qualified
Substitute Mortgage Loan or Loans and shall deliver a copy of such amended
Mortgage Loan Schedule to the Trustee. Upon such substitution by Option One,
such Qualified Substitute Mortgage Loan or Loans shall constitute part of the
Mortgage Pool and shall be subject in all respects to the terms of this
Agreement and the Mortgage Loan Purchase Agreement, including all applicable
representations and warranties thereof included in the Mortgage Loan Purchase
Agreement as of the date of substitution.

         For any month in which Option One substitutes one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (the "Substitution Adjustment"), if any, by
which the aggregate Purchase Price of all such Deleted Mortgage Loans exceeds
the aggregate, as to each such Qualified Substitute Mortgage Loan, of the
principal balance thereof as of the date of substitution, together with one
month's interest on such principal balance at the applicable Mortgage Rate. On
the date of such substitution, Option One will deliver or cause to be delivered
to the Master Servicer for deposit in the Collection Account an amount equal to
the Substitution Adjustment, if any, and the Trustee, upon receipt of the
related Qualified Substitute Mortgage Loan or Loans and certification by the
Master Servicer of such

                                       49

<PAGE>

deposit, shall release to Option One the related Mortgage File or Files and
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, as Option One shall deliver to it and as shall be
necessary to vest therein any Deleted Mortgage Loan released pursuant hereto.

         In addition, Option One shall obtain at its own expense and deliver to
the Trustee an Opinion of Counsel to the effect that such substitution will not
cause (a) any federal tax to be imposed on the Trust Fund, including without
limitation, any federal tax imposed on "prohibited transactions" under Section
860F(a)(l) of the Code or on "contributions after the startup date" under
Section 860G(d)(l) of the Code or (b) any REMIC to fail to qualify as a REMIC at
any time that any Certificate is outstanding. If such Opinion of Counsel can not
be delivered, then such substitution may only be effected at such time as the
required Opinion of Counsel can be given.

         (e) Upon discovery by the Depositor, the Master Servicer or the Trustee
that any Mortgage Loan does not constitute a "qualified mortgage" within the
meaning of Section 860G(a)(3) of the Code, the party discovering such fact shall
within two Business Days give written notice thereof to the other parties
hereto. In connection therewith, Option One or the Depositor, as the case may
be, shall repurchase or, subject to the limitations set forth in Section
2.03(d), substitute one or more Qualified Substitute Mortgage Loans for the
affected Mortgage Loan within 90 days of the earlier of discovery or receipt of
such notice with respect to such affected Mortgage Loan. Such repurchase or
substitution shall be made (i) by Option One if the affected Mortgage Loan's
status as a non-qualified mortgage is or results from a breach of any
representation, warranty or covenant made by Option One under the Mortgage Loan
Purchase Agreement or (ii) the Depositor, if the affected Mortgage Loan's status
as a non-qualified mortgage is a breach of any representation or warranty of the
Depositor set forth in Section 2.06, or if its status as a non-qualified
mortgage is a breach of no representation or warranty. Any such repurchase or
substitution shall be made in the same manner as set forth in Section 2.03(a) or
2.03(d), if made by Option One, or Section 2.03(b), if made by the Depositor.
The Trustee shall reconvey to the Depositor or Option One, as the case may be,
the Mortgage Loan to be released pursuant hereto in the same manner, and on the
same terms and conditions, as it would a Mortgage Loan repurchased for breach of
a representation or warranty.

         Section 2.04.     Intentionally Omitted.

         Section 2.05.     Representations, Warranties and Covenants of the
                           Master Servicer.

         The Master Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee and the Certificateholders and
to the Depositor that as of the Closing Date or as of such date specifically
provided herein:

                  (i) The Master Servicer is duly organized, validly existing,
and in good standing under the laws of the jurisdiction of its formation and has
all licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in the states where the Mortgaged
Property is located if the laws of such state require licensing or qualification
in order to conduct business of the type conducted by the Master Servicer or to
ensure the enforceability or validity of each Mortgage Loan; the Master Servicer
has the power and authority to execute and

                                       50

<PAGE>

deliver this Agreement and to perform in accordance herewith; the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Master Servicer and
the consummation of the transactions contemplated hereby have been duly and
validly authorized; this Agreement evidences the valid, binding and enforceable
obligation of the Master Servicer, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally; and all requisite corporate action has been taken
by the Master Servicer to make this Agreement valid and binding upon the Master
Servicer in accordance with its terms;

                  (ii) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Master Servicer and will
not result in the breach of any term or provision of the charter or by-laws of
the Master Servicer or result in the breach of any term or provision of, or
conflict with or constitute a default under or result in the acceleration of any
obligation under, any agreement, indenture or loan or credit agreement or other
instrument to which the Master Servicer or its property is subject, or result in
the violation of any law, rule, regulation, order, judgment or decree to which
the Master Servicer or its property is subject;

                  (iii) The execution and delivery of this Agreement by the
Master Servicer and the performance and compliance with its obligations and
covenants hereunder do not require the consent or approval of any governmental
authority or, if such consent or approval is required, it has been obtained;

                  (iv) This Agreement, and all documents and instruments
contemplated hereby which are executed and delivered by the Master Servicer,
constitute and will constitute valid, legal and binding obligations of the
Master Servicer, enforceable in accordance with their respective terms, except
as the enforcement thereof may be limited by applicable bankruptcy laws and
general principles of equity;

                  (v) [Reserved];

                  (vi) The Master Servicer does not believe, nor does it have
any reason or cause to believe, that it cannot perform each and every covenant
contained in this Agreement;

                  (vii) There is no action, suit, proceeding or investigation
pending or, to its knowledge, threatened against the Master Servicer that,
either individually or in the aggregate, (A) may result in any change in the
business, operations, financial condition, properties or assets of the Master
Servicer that might prohibit or materially and adversely affect the performance
by such Master Servicer of its obligations under, or validity or enforceability
of, this Agreement, or (B)may result in any material impairment of the right or
ability of the Master Servicer to carry on its business substantially as now
conducted, or (C) may result in any material liability on the part of the Master
Servicer, or (D) would draw into question the validity or enforceability of this
Agreement or of any action taken or to be taken in connection with the
obligations of the Master Servicer contemplated herein, or (E) would otherwise
be likely to impair materially the ability of the Master Servicer to perform
under the terms of this Agreement;

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                  (viii) Neither this Agreement nor any information, certificate
of an officer, statement furnished in writing or report delivered to the Trustee
by the Master Servicer in connection with the transactions contemplated hereby
contains any untrue statement of a material fact;

                  (ix) The Master Servicer covenants that its computer and other
systems used in servicing the Mortgage Loans operate in a manner such that the
Master Servicer can service the Mortgage Loans in accordance with the terms of
this Agreement; and

                  (x) The Master Servicer will not waive any Prepayment Charge
unless it is waived in accordance with the standard set forth in Section 3.01.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.05 shall survive delivery of the Mortgage
Files to the Trustee and shall inure to the benefit of the Trustee, the
Depositor and the Certificateholders. Upon discovery by any of the Depositor,
the Master Servicer or the Trustee of a breach of any of the foregoing
representations, warranties and covenants which materially and adversely affects
the value of any Mortgage Loan, Prepayment Charge or the interests therein of
the Certificateholders, the party discovering such breach shall give prompt
written notice (but in no event later than two Business Days following such
discovery) to the Master Servicer and the Trustee. Notwithstanding the
foregoing, within 90 days of the earlier of discovery by the Master Servicer or
receipt of notice by the Master Servicer of the breach of the representation or
covenant of the Master Servicer set forth in Section 2.05(x) above which
materially and adversely affects the interests of the Holders of the Class P
Certificates in any Prepayment Charge, the Master Servicer must pay the amount
of such waived Prepayment Charge, for the benefit of the holders of the Class P
Certificates, by depositing such amount into the Collection Account.
The foregoing shall not, however, limit any remedies available to the
Certificateholders, the Depositor or the Trustee on behalf of the
Certificateholders, pursuant to the Mortgage Loan Purchase Agreement respecting
a breach of the representations, warranties and covenants of Option One made in
its capacity as a party to the Mortgage Loan Purchase Agreement.

         Section 2.06.     Representations and Warranties of the Depositor.

         The Depositor represents and warrants to the Trust and the Trustee on
behalf of the Certificateholders as follows:

                  (i) This agreement constitutes a legal, valid and binding
obligation of the Depositor, enforceable against the Depositor in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect affecting the enforcement of creditors' rights in general
and except as such enforceability may be limited by general principles of equity
(whether considered in a proceeding at law or in equity);

                  (ii) Immediately prior to the sale and assignment by the
Depositor to the Trustee on behalf of the Trust of each Mortgage Loan, the
Depositor had good and marketable title to each Mortgage Loan (insofar as such
title was conveyed to it by the Seller) subject to no prior lien, claim,
participation interest, mortgage, security interest, pledge, charge or other
encumbrance or other interest of any nature;

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                  (iii) As of the Closing Date, the Depositor has transferred
all right, title and interest in the Mortgage Loans to the Trustee on behalf of
the Trust;

                  (iv) The Depositor has not transferred the Mortgage Loans to
the Trustee on behalf of the Trust with any intent to hinder, delay or defraud
any of its creditors;

                  (v) The Depositor has been duly incorporated and is validly
existing as a corporation in good standing under the laws of Delaware, with full
corporate power and authority to own its assets and conduct its business as
presently being conducted;

                  (vi) The Depositor is not in violation of its articles of
incorporation or by-laws or in default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other instrument to which
the Depositor is a party or by which it or its properties may be bound, which
default might result in any material adverse changes in the financial condition,
earnings, affairs or business of the Depositor or which might materially and
adversely affect the properties or assets, taken as a whole, of the Depositor;

                  (vii) The execution, delivery and performance of this
Agreement by the Depositor, and the consummation of the transactions
contemplated thereby, do not and will not result in a material breach or
violation of any of the terms or provisions of, or, to the knowledge of the
Depositor, constitute a default under, any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Depositor is a
party or by which the Depositor is bound or to which any of the property or
assets of the Depositor is subject, nor will such actions result in any
violation of the provisions of the articles of incorporation or by-laws of the
Depositor or, to the best of the Depositor's knowledge without independent
investigation, any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Depositor or any of its
properties or assets (except for such conflicts, breaches, violations and
defaults as would not have a material adverse effect on the ability of the
Depositor to perform its obligations under this Agreement);

                  (viii) To the best of the Depositor's knowledge without any
independent investigation, no consent, approval, authorization, order,
registration or qualification of or with any court or governmental agency or
body of the United States or any other jurisdiction is required for the issuance
of the Certificates, or the consummation by the Depositor of the other
transactions contemplated by this Agreement, except such consents, approvals,
authorizations, registrations or qualifications as (a) may be required under
State securities or Blue Sky laws, (b) have been previously obtained or (c) the
failure of which to obtain would not have a material adverse effect on the
performance by the Depositor of its obligations under, or the validity or
enforceability of, this Agreement; and

                  (ix) There are no actions, proceedings or investigations
pending before or, to the Depositor's knowledge, threatened by any court,
administrative agency or other tribunal to which the Depositor is a party or of
which any of its properties is the subject: (a) which if determined adversely to
the Depositor would have a material adverse effect on the business, results of
operations or financial condition of the Depositor; (b) asserting the invalidity
of this Agreement or the

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<PAGE>

Certificates; (c) seeking to prevent the issuance of the Certificates or the
consummation by the Depositor of any of the transactions contemplated by this
Agreement, as the case may be; or (d) which might materially and adversely
affect the performance by the Depositor of its obligations under, or the
validity or enforceability of, this Agreement.

         Section 2.07.     Issuance of Certificates.

         The Trustee acknowledges the assignment to it of the Mortgage Loans and
the delivery to it of the Mortgage Files, subject to the provisions of Sections
2.01 and 2.02, together with the assignment to it of all other assets included
in the Trust Fund, receipt of which is hereby acknowledged. Concurrently with
such assignment and delivery and in exchange therefor, the Trustee, pursuant to
the written request of the Depositor executed by an officer of the Depositor,
has executed, authenticated and delivered to or upon the order of the Depositor,
the Certificates in authorized denominations. The interests evidenced by the
Certificates, together with the Dividend Account Certificate, constitute the
entire beneficial ownership interest in the Trust Fund.

         Section 2.08.     [Reserved].

         Section 2.09.     Conveyance of REMIC Regular Interests and
                           Acceptance of REMIC 1 by the Trustee; Issuance of
                           Certificates.

         (a) The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the REMIC 1 Regular Interests for the benefit of the holders of the
Certificates. The Trustee acknowledges receipt of the REMIC 1 Regular Interests
(which are uncertificated) and declares that it holds and will hold the same in
trust for the exclusive use and benefit of the holders of the Certificates. The
interests evidenced by the Class R-2 Interest, together with the Regular
Certificates, constitute the entire beneficial ownership interest in REMIC 2.

         (b) In exchange for the REMIC 1 Regular Interests and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Regular
Certificates in authorized denominations evidencing (together with the Class R-2
Interest) the entire beneficial ownership interest in REMIC 2.

         (c) Concurrently with (i) the assignment and delivery to the Trustee of
REMIC 1 (including the Residual Interest therein represented by the Class R-1
Interest) and the acceptance by the Trustee thereof, pursuant to Section 2.01,
Section 2.02 and Section 2.09(a) and (ii) the assignment and delivery to the
Trustee of REMIC 2 (including the Residual Interest therein represented by the
Class R-2 Interest) and the acceptance by the Trustee thereof, pursuant to
Section 2.09(b), the Trustee, pursuant to the written request of the Depositor
executed by an officer of the Depositor, has executed, authenticated and
delivered to or upon the order of the Depositor, the Class R Certificates in
authorized denominations evidencing the Class R-1 Interest and the Class R-2
Interest.

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                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

         Section 3.01.     Master Servicer to Act as Master Servicer.

         The Master Servicer shall service and administer the Mortgage Loans on
behalf of the Trust and in the best interests of and for the benefit of the
Certificateholders (as determined by the Master Servicer in its reasonable
judgment) in accordance with the terms of this Agreement and the Mortgage Loans
and, to the extent consistent with such terms, in the same manner in which it
services and administers similar mortgage loans for its own portfolio, giving
due consideration to customary and usual standards of practice of mortgage
lenders and loan servicers administering similar mortgage loans but without
regard to:

                  (i) any relationship that the Master Servicer, any
         Sub-Servicer or any Affiliate of the Master Servicer or any
         Sub-Servicer may have with the related Mortgagor;

                  (ii) the ownership or non-ownership of any Certificate by the
         Master Servicer or any Affiliate of the Master Servicer;

                  (iii) the Master Servicer's obligation to make Advances or
         Servicing Advances; or

                  (iv) the Master Servicer's or any Sub-Servicer's right to
         receive compensation for its services hereunder or with respect to any
         particular transaction.

         To the extent consistent with the foregoing, the Master Servicer (a)
shall seek to maximize the timely and complete recovery of principal and
interest on the Mortgage Notes and (b) shall waive (or permit a subservicer to
waive) a Prepayment Charge only under the following circumstances: (i) such
waiver is standard and customary in servicing similar Mortgage Loans and (ii)
either (A) such waiver would, in the reasonable judgement of the Master
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan and, if such waiver is made
in connection with a refinancing of the related Mortgage Loan, such refinancing
is related to a default or a reasonably foreseeable default or (B) such waiver
is made in connection with a refinancing of the related Mortgage Loan unrelated
to a default or a reasonably foreseeable default where (x) the related mortgagor
has stated to the Master Servicer or an applicable subservicer an intention to
refinance the related Mortgage Loan and (y) the Master Servicer has concluded in
its reasonable judgement that the waiver of such Prepayment Charge would induce
such mortgagor to refinance with the Master Servicer; provided, however, that
the Master Servicer shall waive no more than 5.00% of the Prepayment Charges (by
number of Prepayment Charges) set forth on the Prepayment Charge Schedule in
accordance with clause (ii)(B) above. If a Prepayment Charge is waived as
permitted by meeting the standards described in clauses (i) and (ii)(B) above,
then the Master Servicer is required to pay the amount of such waived Prepayment
Charge, for the benefit of the Holders of the Class P Certificates, by
depositing such amount into the Collection Account together with and at the time
that the amount prepaid on the related Mortgage Loan is

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<PAGE>

required to be deposited into the Collection Account. Notwithstanding any other
provisions of this Agreement, any payments made by the Master Servicer in
respect of any waived Prepayment Charges pursuant to clauses (i) and (ii)(B)
above shall be deemed to be paid outside of the Trust Fund. Subject only to the
above-described servicing standards and the terms of this Agreement and of the
Mortgage Loans, the Master Servicer shall have full power and authority, acting
alone or through Sub-Servicers as provided in Section 3.02, to do or cause to be
done any and all things in connection with such servicing and administration
which it may deem necessary or desirable. Without limiting the generality of the
foregoing, the Master Servicer in its own name or in the name of a Sub-Servicer
is hereby authorized and empowered by the Trustee when the Master Servicer
believes it appropriate in its best judgment in accordance with the servicing
standards set forth above, to execute and deliver, on behalf of the
Certificateholders and the Trustee, and upon notice to the Trustee, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge, and all other comparable instruments, with respect to the Mortgage
Loans and the Mortgaged Properties and to institute foreclosure proceedings or
obtain a deed-in-lieu of foreclosure so as to convert the ownership of such
properties, and to hold or cause to be held title to such properties, on behalf
of the Trustee and Certificateholders. The Master Servicer shall service and
administer the Mortgage Loans in accordance with applicable state and federal
law and shall provide to the Mortgagors any reports required to be provided to
them thereby. The Master Servicer shall also comply in the performance of this
Agreement with all reasonable rules and requirements of each insurer under any
standard hazard insurance policy. Subject to Section 3.17, within 15 days of the
Closing Date or upon the written request of the Master Servicer, the Trustee
shall execute and furnish to the Master Servicer and any Sub-Servicer any
special or limited powers of attorney for each county in which a Mortgaged
Property is located (including a power of attorney to execute the Loss
Mitigation Advisory Agreement on behalf of the Trust Fund) and other documents
necessary or appropriate to enable the Master Servicer or any Sub-Servicer to
carry out their servicing and administrative duties hereunder; provided, such
limited powers of attorney or other documents shall be prepared by the Master
Servicer and submitted to the Trustee for execution. The Trustee shall not be
liable for the actions of the Master Servicer or any Sub-Servicers under such
powers of attorney.

         Subject to Section 3.09 hereof, in accordance with the standards of the
preceding paragraph, the Master Servicer shall advance or cause to be advanced
funds as necessary for the purpose of effecting the timely payment of taxes and
assessments on the Mortgaged Properties, which advances shall be Servicing
Advances reimbursable in the first instance from related collections from the
Mortgagors pursuant to Section 3.09, and further as provided in Section 3.11.
Any cost incurred by the Master Servicer or by Sub-Servicers in effecting the
timely payment of taxes and assessments on a Mortgaged Property shall not, for
the purpose of calculating distributions to Certificateholders, be added to the
unpaid Principal Balance of the related Mortgage Loan, notwithstanding that the
terms of such Mortgage Loan so permit.

         Notwithstanding anything in this Agreement to the contrary, the Master
Servicer may not make any future advances with respect to a Mortgage Loan
(except as provided in Section 4.04) and the Master Servicer shall not (i)
permit any modification with respect to any Mortgage Loan that would change the
Mortgage Rate, reduce or increase the Principal Balance (except for reductions
resulting from actual payments of principal) or change the final maturity date
on such Mortgage Loan (unless, as provided in Section 3.07, the Mortgagor is in
default with respect to the Mortgage Loan

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<PAGE>

or such default is, in the judgment of the Master Servicer, reasonably
foreseeable) or (ii) permit any modification, waiver or amendment of any term of
any Mortgage Loan that would both (A) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or Treasury regulations
promulgated thereunder) and (B) cause any REMIC created hereunder to fail to
qualify as a REMIC under the Code or the imposition of any tax on "prohibited
transactions" or "contributions after the startup date" under the REMIC
Provisions.

         Section 3.02.     Sub-Servicing Agreements Between Master Servicer and
                           Sub-Servicers.

         (a) The Master Servicer may enter into Sub-Servicing Agreements with
Sub-Servicers for the servicing and administration of the Mortgage Loans;
provided, however, that such agreements would not result in a withdrawal or a
downgrading by any Rating Agency of the rating on any Class of Certificates. The
Trustee is hereby authorized to acknowledge, at the request of the Master
Servicer, any Sub-Servicing Agreement that meets the requirements applicable to
Sub-Servicing Agreements set forth in this Agreement and that is otherwise
permitted under this Agreement.

         Each Sub-Servicer shall be (i) authorized to transact business in the
state or states where the related Mortgaged Properties it is to service are
situated, if and to the extent required by applicable law to enable the
Sub-Servicer to perform its obligations hereunder and under the Sub-Servicing
Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer. Each
Sub-Servicing Agreement must impose on the Sub-Servicer requirements conforming
to the provisions set forth in Section 3.08 and provide for servicing of the
Mortgage Loans consistent with the terms of this Agreement. The Master Servicer
will examine each Sub-Servicing Agreement and will be familiar with the terms
thereof. The terms of any Sub-Servicing Agreement will not be inconsistent with
any of the provisions of this Agreement. The Master Servicer and the
Sub-Servicers may enter into and make amendments to the Sub-Servicing Agreements
or enter into different forms of Sub-Servicing Agreements; provided, however,
that any such amendments or different forms shall be consistent with and not
violate the provisions of this Agreement, and that no such amendment or
different form shall be made or entered into which could be reasonably expected
to be materially adverse to the interests of the Certificateholders without the
consent of the Holders of Certificates entitled to at least 66% of the Voting
Rights; provided, further, that the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights shall not be required (i) to cure
any ambiguity or defect in a Sub-Servicing Agreement, (ii) to correct, modify or
supplement any provisions of a Sub- Servicing Agreement, or (iii) to make any
other provisions with respect to matters or questions arising under a
Sub-Servicing Agreement, which, in each case, shall not be inconsistent with the
provisions of this Agreement. Any variation without the consent of the Holders
of Certificates entitled to at least 66% of the Voting Rights from the
provisions set forth in Section 3.08 relating to insurance or priority
requirements of Sub-Servicing Accounts, or credits and charges to the Sub-
Servicing Accounts or the timing and amount of remittances by the Sub-Servicers
to the Master Servicer, are conclusively deemed to be inconsistent with this
Agreement and therefore prohibited. The Master Servicer shall deliver to the
Trustee copies of all Sub-Servicing Agreements, and any amendments or
modifications thereof, promptly upon the Master Servicer's execution and
delivery of such instruments.

         (b) As part of its servicing activities hereunder, the Master Servicer,
for the benefit of the Trustee and the Certificateholders, shall enforce the
obligations of each Sub-Servicer under the

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<PAGE>

related Sub-Servicing Agreement and of Option One under the Mortgage Loan
Purchase Agreement, including, without limitation, any obligation to make
advances in respect of delinquent payments as required by a Sub-Servicing
Agreement, or to purchase a Mortgage Loan on account of missing or defective
documentation or on account of a breach of a representation, warranty or
covenant, as described in Section 2.03(a). Such enforcement, including, without
limitation, the legal prosecution of claims, termination of Sub-Servicing
Agreements, and the pursuit of other appropriate remedies, shall be in such form
and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at
its own expense, and shall be reimbursed therefor only (i) from a general
recovery resulting from such enforcement, to the extent, if any, that such
recovery exceeds all amounts due in respect of the related Mortgage Loans, or
(ii) from a specific recovery of costs, expenses or attorneys' fees against the
party against whom such enforcement is directed. Enforcement of the Mortgage
Loan Purchase Agreement against Option One shall be effected by the Master
Servicer to the extent it is not Option One and otherwise by the Trustee in
accordance with the foregoing provisions of this paragraph.

         Section 3.03.     Successor Sub-Servicers.

         The Master Servicer shall be entitled to terminate any Sub-Servicing
Agreement and the rights and obligations of any Sub-Servicer pursuant to any
Sub-Servicing Agreement in accordance with the terms and conditions of such
Sub-Servicing Agreement. In the event of termination of any Sub-Servicer, all
servicing obligations of such Sub-Servicer shall be assumed simultaneously by
the Master Servicer without any act or deed on the part of such Sub-Servicer or
the Master Servicer, and the Master Servicer either shall service directly the
related Mortgage Loans or shall enter into a Sub- Servicing Agreement with a
successor Sub-Servicer which qualifies under Section 3.02.

         Any Sub-Servicing Agreement shall include the provision that such
agreement may be immediately terminated by the Master Servicer or the Trustee
(if the Trustee is acting as Master Servicer) without fee, in accordance with
the terms of this Agreement, in the event that the Master Servicer (or the
Trustee, if such party is then acting as Master Servicer) shall, for any reason,
no longer be the Master Servicer (including termination due to a Master Servicer
Event of Termination).

         Section 3.04.     Liability of the Master Servicer.

         Notwithstanding any Sub-Servicing Agreement or the provisions of this
Agreement relating to agreements or arrangements between the Master Servicer and
a Sub-Servicer or reference to actions taken through a Sub-Servicer or
otherwise, the Master Servicer shall remain obligated and primarily liable to
the Trustee and the Certificateholders for the servicing and administering of
the Mortgage Loans in accordance with the provisions of Section 3.01 without
diminution of such obligation or liability by virtue of such Sub-Servicing
Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
and to the same extent and under the same terms and conditions as if the Master
Servicer alone were servicing and administering the Mortgage Loans. The Master
Servicer shall be entitled to enter into any agreement with a Sub-Servicer for
indemnification of the Master Servicer by such Sub-Servicer and nothing
contained in this Agreement shall be deemed to limit or modify such
indemnification.

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<PAGE>

         Section 3.05.     No Contractual Relationship Between Sub-Servicers and
                           the Trustee or Certificateholders.

         Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Master Servicer alone, and the Trustee or Certificateholders shall not be deemed
parties thereto and shall have no claims, rights, obligations, duties or
liabilities with respect to the Sub-Servicer except as set forth in Section
3.06. The Master Servicer shall be solely liable for all fees owed by it to any
Sub-Servicer, irrespective of whether the Master Servicer's compensation
pursuant to this Agreement is sufficient to pay such fees.

         Section 3.06.     Assumption or Termination of Sub-Servicing Agreements
                           by Trustee.

         In the event the Master Servicer shall for any reason no longer be the
servicer (including by reason of the occurrence of a Master Servicer Event of
Termination), the Trustee shall thereupon assume all of the rights and
obligations of the Master Servicer under each Sub-Servicing Agreement that the
Master Servicer may have entered into, unless the Trustee elects to terminate
any Sub- Servicing Agreement in accordance with its terms as provided in Section
3.03. Upon such assumption, the Trustee (or the successor servicer appointed
pursuant to Section 7.02) shall be deemed, subject to Section 3.03, to have
assumed all of the departing Master Servicer's interest therein and to have
replaced the departing Master Servicer as a party to each Sub-Servicing
Agreement to the same extent as if each Sub-Servicing Agreement had been
assigned to the assuming party, except that (i) the departing Master Servicer
shall not thereby be relieved of any liability or obligations under any
Sub-Servicing Agreement that arose before it ceased to be the Master Servicer
and (ii) neither the Trustee nor any successor Master Servicer shall be deemed
to have assumed any liability or obligation of the Master Servicer that arose
before it ceased to be the Master Servicer.

         The Master Servicer at its expense shall, upon request of the Trustee,
deliver to the assuming party all documents and records relating to each
Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Sub-Servicing Agreements to the assuming party. All Servicing Transfer Costs
shall be paid by the predecessor Master Servicer upon receipt of documentation
of such costs, and if such predecessor Master Servicer defaults in its
obligation to pay such costs, such costs shall be paid by the successor Master
Servicer or the Trustee (in which case the successor Master Servicer or the
Trustee, as applicable, shall be entitled to reimbursement therefor from the
assets of the Trust).

         Section 3.07.     Collection of Certain Mortgage Loan Payments.

         The Master Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Mortgage Loans, and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any applicable insurance policies, follow such
collection procedures as it would follow with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Consistent with
the foregoing, the Master Servicer

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<PAGE>

may in its discretion (i) waive any late payment charge or, if applicable, any
penalty interest, or (ii) extend the due dates for the Monthly Payments due on a
Mortgage Note for a period of not greater than 180 days; provided, however, that
any extension pursuant to clause (ii) above shall not affect the amortization
schedule of any Mortgage Loan for purposes of any computation hereunder, except
as provided below. In the event of any such arrangement pursuant to clause (ii)
above, the Master Servicer shall make timely advances on such Mortgage Loan
during such extension pursuant to Section 4.04 and in accordance with the
amortization schedule of such Mortgage Loan without modification thereof by
reason of such arrangement. Notwithstanding the foregoing, in the event that any
Mortgage Loan is in default or, in the judgment of the Master Servicer, such
default is reasonably foreseeable, the Master Servicer, consistent with the
standards set forth in Section 3.01, may also waive, modify or vary any term of
such Mortgage Loan (including modifications that would change the Mortgage Rate,
forgive the payment of principal or interest or extend the final maturity date
of such Mortgage Loan), accept payment from the related Mortgagor of an amount
less than the Stated Principal Balance in final satisfaction of such Mortgage
Loan, or consent to the postponement of strict compliance with any such term or
otherwise grant indulgence to any Mortgagor (any and all such waivers,
modifications, variances, forgiveness of principal or interest, postponements,
or indulgences collectively referred to herein as "forbearance"), provided,
however, that in no event shall the Master Servicer grant any such forbearance
(other than as permitted by the second sentence of this Section) with respect to
any one Mortgage Loan more than once in any 12 month period or more than three
times over the life of such Mortgage Loan. The Master Servicer's analysis
supporting any forbearance and the conclusion that any forbearance meets the
standards of Section 3.01 (including the standard that such forbearance will
maximize the timely and complete recovery of principal and interest on the
Mortgage Notes) shall be reflected in writing in the Mortgage File.

         Section 3.08.     Sub-Servicing Accounts.

         In those cases where a Sub-Servicer is servicing a Mortgage Loan
pursuant to a Sub- Servicing Agreement, the Sub-Servicer will be required to
establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account and shall
comply with all requirements of this Agreement relating to the Collection
Account. The Sub-Servicer shall deposit in the clearing account in which it
customarily deposits payments and collections on mortgage loans in connection
with its mortgage loan servicing activities on a daily basis, and in no event
more than one Business Day after the Sub-Servicer's receipt thereof, all
proceeds of Mortgage Loans received by the Sub-Servicer less its servicing
compensation to the extent permitted by the Sub-Servicing Agreement, and shall
thereafter deposit such amounts in the Sub-Servicing Account, in no event more
than two Business Days after the receipt of such amounts. The Sub-Servicer shall
thereafter deposit such proceeds in the Collection Account or remit such
proceeds to the Master Servicer for deposit in the Collection Account not later
than two Business Days after the deposit of such amounts in the Sub-Servicing
Account. For purposes of this Agreement, the Master Servicer shall be deemed to
have received payments on the Mortgage Loans when the Sub-Servicer receives such
payments.

         Section 3.09.     Collection of Taxes, Assessments and Similar Items;
                           Servicing Accounts.

         The Master Servicer shall establish and maintain, or cause to be
established and maintained, one or more accounts (the "Servicing Accounts"),
into which all Escrow Payments shall be deposited

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<PAGE>

and retained. Servicing Accounts shall be Eligible Accounts. The Master Servicer
shall deposit in the clearing account in which it customarily deposits payments
and collections on mortgage loans in connection with its mortgage loan servicing
activities on a daily basis, and in no event more than one Business Day after
the Master Servicer's receipt thereof, all Escrow Payments collected on account
of the Mortgage Loans and shall thereafter deposit such Escrow Payments in the
Servicing Accounts, in no event more than two Business Days after the receipt of
such Escrow Payments, all Escrow Payments collected on account of the Mortgage
Loans for the purpose of effecting the timely payment of any such items as
required under the terms of this Agreement. Withdrawals of amounts from a
Servicing Account may be made only to (i) effect payment of taxes, assessments,
hazard insurance premiums, and comparable items in a manner and at a time that
assures that the lien priority of the Mortgage is not jeopardized (or, with
respect to the payment of taxes, in a manner and at a time that avoids the loss
of the Mortgaged Property due to a tax sale or the foreclosure as a result of a
tax lien); (ii) reimburse the Master Servicer (or a Sub-Servicer to the extent
provided in the related Sub-Servicing Agreement) out of related collections for
any Servicing Advances made pursuant to Section 3.01 (with respect to taxes and
assessments) and Section 3.14 (with respect to hazard insurance); (iii) refund
to Mortgagors any sums as may be determined to be overages; (iv) pay interest,
if required and as described below, to Mortgagors on balances in the Servicing
Account; or (v) clear and terminate the Servicing Account at the termination of
the Master Servicer's obligations and responsibilities in respect of the
Mortgage Loans under this Agreement in accordance with Article X. In the event
the Master Servicer shall deposit in a Servicing Account any amount not required
to be deposited therein, it may at any time withdraw such amount from such
Servicing Account, any provision herein to the contrary notwithstanding. The
Master Servicer will be responsible for the administration of the Servicing
Accounts and will be obligated to make Servicing Advances to such accounts when
and as necessary to avoid the lapse of insurance coverage on the Mortgaged
Property, or which the Master Servicer knows, or in the exercise of the required
standard of care of the Master Servicer hereunder should know, is necessary to
avoid the loss of the Mortgaged Property due to a tax sale or the foreclosure as
a result of a tax lien. If any such payment has not been made and the Master
Servicer receives notice of a tax lien with respect to the Mortgage being
imposed, the Master Servicer will, within 10 business days of receipt of such
notice, advance or cause to be advanced funds necessary to discharge such lien
on the Mortgaged Property. As part of its servicing duties, the Master Servicer
or Sub-Servicers shall pay to the Mortgagors interest on funds in the Servicing
Accounts, to the extent required by law and, to the extent that interest earned
on funds in the Servicing Accounts is insufficient, to pay such interest from
its or their own funds, without any reimbursement therefor. The Master Servicer
may pay to itself any excess interest on funds in the Servicing Accounts, to the
extent such action is in conformity with the Servicing Standard, is permitted by
law and such amounts are not required to be paid to Mortgagors or used for any
of the other purposes set forth above.

         Section 3.10.     Collection Account and Distribution Account.

         (a) On behalf of the Trust Fund, the Master Servicer shall establish
and maintain, or cause to be established and maintained, one or more accounts
(such account or accounts, the "Collection Account"), held in trust for the
benefit of the Trustee and the Certificateholders. On behalf of the Trust Fund,
the Master Servicer shall deposit or cause to be deposited in the clearing
account in which it customarily deposits payments and collections on mortgage
loans in connection with its mortgage loan servicing activities on a daily
basis, and in no event more than one Business

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Day after the Master Servicer's receipt thereof, and shall thereafter deposit in
the Collection Account, in no event more than two Business Days after the Master
Servicer's receipt thereof, as and when received or as otherwise required
hereunder, the following payments and collections received or made by it
subsequent to the Cut-off Date (other than in respect of principal or interest
on the Mortgage Loans due on or before the Cut-off Date) or payments (other than
Principal Prepayments) received by it on or prior to the Cut-off Date but
allocable to a Due Period subsequent thereto:

                  (i)      all payments on account of principal, including
                           Principal Prepayments (but not Prepayment Charges),
                           on the Mortgage Loans;

                  (ii)     payments on account of interest (net of the related
                           Servicing Fee) on each Mortgage Loan;

                  (iii)    all Insurance Proceeds and Liquidation Proceeds
                           (other than proceeds collected in respect of any
                           particular REO Property and amounts paid in
                           connection with a purchase of Mortgage Loans and REO
                           Properties pursuant to Section 10.01);

                  (iv)     any amounts required to be deposited pursuant to
                           Section 3.12 in connection with any losses realized
                           on Permitted Investments with respect to funds held
                           in the Collection Account;

                  (v)      any amounts required to be deposited by the Master
                           Servicer pursuant to the second paragraph of Section
                           3.14(a) in respect of any blanket policy deductibles;

                  (vi)     all proceeds of any Mortgage Loan repurchased or
                           purchased in accordance with Section 2.03 or Section
                           10.01;

                  (vii)    all amounts required to be deposited in connection
                           with Substitution Adjustments pursuant to Section
                           2.03;

                  (viii)   all Prepayment Charges collected by the Master
                           Servicer and any Master Servicer Prepayment Charge
                           Payment Amounts in connection with the Principal
                           Prepayment of any of the Mortgage Loans; and

                  (ix)     without duplication, all payments of claims under the
                           PMI Policy.

         The foregoing requirements for deposit in the Collection Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of Servicing Fees, late
payment charges, assumption fees, insufficient funds charges and ancillary
income (other than Prepayment Charges) need not be deposited by the Master
Servicer in the Collection Account and may be retained by the Master Servicer as
additional compensation. In the event the Master Servicer shall deposit in the
Collection Account any amount not required to be deposited therein, it may at
any time withdraw such amount from the Collection Account, any provision herein
to the contrary notwithstanding.

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         (b) On behalf of the Trust Fund, the Trustee shall establish and
maintain one or more accounts (such account or accounts, the "Distribution
Account"), held in trust for the benefit of the Trustee and the
Certificateholders. On behalf of the Trust Fund, the Master Servicer shall
deliver to the Trustee in immediately available funds for deposit in the
Distribution Account on or before 3:00 p.m. New York time (i) on the Master
Servicer Remittance Date, that portion of the Group I Available Funds and the
Group II Available Funds (calculated without regard to the references in the
definition thereof to amounts that may be withdrawn from the Distribution
Account) for the related Distribution Date then on deposit in the Collection
Account, the amount of all Prepayment Charges collected during the applicable
Prepayment Period by the Master Servicer and Master Servicer Prepayment Charge
Payment Amounts in connection with the Principal Prepayment of any of the
Mortgage Loans then on deposit in the Collection Account, the amount of any
funds reimbursable to an Advancing Person pursuant to Section 3.29 and the
amount required to be remitted to the Trustee in respect of Dividend Mortgage
Loans pursuant to Section 3.31(c) and (ii) on each Business Day as of the
commencement of which the balance on deposit in the Collection Account exceeds
$75,000 following any withdrawals pursuant to the next succeeding sentence, the
amount of such excess, but only if the Collection Account constitutes an
Eligible Account solely pursuant to clause (ii) of the definition of "Eligible
Account." If the balance on deposit in the Collection Account exceeds $75,000 as
of the commencement of business on any Business Day and the Collection Account
constitutes an Eligible Account solely pursuant to clause (ii) of the definition
of "Eligible Account," the Master Servicer shall, on or before 3:00 p.m. New
York time on such Business Day, withdraw from the Collection Account any and all
amounts payable or reimbursable to the Master Servicer, the Trustee or any
Sub-Servicer pursuant to Section 3.11 and shall pay such amounts to the Persons
entitled thereto.

         (c) Funds in the Collection Account and the Distribution Account may be
invested in Permitted Investments in accordance with the provisions set forth in
Section 3.12. The Master Servicer shall give notice to the Trustee of the
location of the Collection Account maintained by it when established and prior
to any change thereof. The Trustee shall give notice to the Master Servicer and
the Depositor of the location of the Distribution Account when established and
prior to any change thereof.

         (d) Funds held in the Collection Account at any time may be delivered
by the Master Servicer to the Trustee for deposit in an account (which may be
the Distribution Account and must satisfy the standards for the Distribution
Account as set forth in the definition thereof) and for all purposes of this
Agreement shall be deemed to be a part of the Collection Account; provided,
however, that the Trustee shall have the sole authority to withdraw any funds
held pursuant to this subsection (d). In the event the Master Servicer shall
deliver to the Trustee for deposit in the Distribution Account any amount not
required to be deposited therein, it may at any time request that the Trustee
withdraw such amount from the Distribution Account and remit to it any such
amount, any provision herein to the contrary notwithstanding. In addition, the
Master Servicer, with respect to items (i) through (iv) below, shall deliver to
the Trustee from time to time for deposit, and the Trustee, with respect to
items (i) through (iv) below, shall so deposit, in the Distribution Account:

                  (i)      any Advances, as required pursuant to Section 4.04;

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                  (ii)     any amounts required to be deposited pursuant to
                           Section 3.23(d) or (f) in connection with any REO
                           Property;

                  (iii)    any amounts to be paid in connection with a purchase
                           of Mortgage Loans and REO Properties pursuant to
                           Section 10.01;

                  (iv)     any Compensating Interest to be deposited pursuant to
                           Section 3.24 in connection with any Prepayment
                           Interest Shortfall; and

                  (v)      any amounts required to be paid to the Trustee
                           pursuant to the Agreement, including, but not limited
                           to Section 3.06 and Section 7.02.

         (e) [Reserved].

         Section 3.11.     Withdrawals from the Collection Account and
                           Distribution Account.

         (a) The Master Servicer shall, from time to time, make withdrawals from
the Collection Account for any of the following purposes or as described in
Section 4.04:

                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.10(b) or permitted to be so remitted pursuant to the first sentence
         of Section 3.10(d);

                  (ii) subject to Section 3.16(d), to reimburse the Master
         Servicer for (a) any unreimbursed Advances to the extent of amounts
         received which represent Late Collections (net of the related Servicing
         Fees), Liquidation Proceeds and Insurance Proceeds on Mortgage Loans
         with respect to which such Advances were made in accordance with the
         provisions of Section 4.04; (b) any unreimbursed Advances with respect
         to the final liquidation of a Mortgage Loan that are Nonrecoverable
         Advances, but only to the extent that Late Collections, Liquidation
         Proceeds and Insurance Proceeds received with respect to such Mortgage
         Loan are insufficient to reimburse the Master Servicer for such
         unreimbursed Advances; or (c) subject to Section 4.04(b), any
         unreimbursed Advances to the extent of funds held in the Collection
         Account for future distribution that were not included in Group I
         Available Funds or Group II Available Funds for the preceding
         Distribution Date;

                  (iii) subject to Section 3.16(d), to pay the Master Servicer
         or any Sub-Servicer (a) any unpaid Servicing Fees, (b) any unreimbursed
         Servicing Advances with respect to each Mortgage Loan, but only to the
         extent of any Late Collections, Liquidation Proceeds and Insurance
         Proceeds received with respect to such Mortgage Loan, and (c) any
         Servicing Advances made with respect to a Mortgage Loan that, upon a
         Final Recovery Determination with respect to such Mortgage Loan are
         Nonrecoverable Advances, but only to the extent that Late Collections,
         Liquidation Proceeds and Insurance Proceeds received with respect to
         such Mortgage Loan are insufficient to reimburse the Master Servicer or
         any Sub-Servicer for Servicing Advances;

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                  (iv) to pay to the Master Servicer as servicing compensation
         (in addition to the Servicing Fee) on the Master Servicer Remittance
         Date any interest or investment income earned on funds deposited in the
         Collection Account;

                  (v) to pay Option One with respect to each Mortgage Loan that
         has previously been purchased or replaced pursuant to Section 2.03 or
         Section 3.16(c) all amounts received thereon subsequent to the date of
         purchase or substitution, as the case may be;

                  (vi) to reimburse the Master Servicer for any Advance or
         Servicing Advance previously made which the Master Servicer has
         determined to be a Nonrecoverable Advance in accordance with the
         provisions of Section 4.04;

                  (vii) to pay, or to reimburse the Master Servicer for
         Servicing Advances in respect of, expenses incurred in connection with
         any Mortgage Loan pursuant to Section 3.16(b);

                  (viii) to reimburse the Master Servicer for expenses incurred
         by or reimbursable to the Master Servicer pursuant to Section 6.03;

                  (ix) to pay itself any Prepayment Interest Excess;

                  (x) to reimburse itself for expenses incurred pursuant to
         Section 9.01(c)(i);

                  (xi) to deposit into the Dividend Account the Dividend Portion
         of each Monthly Payment received on each Dividend Mortgage Loan
         pursuant to Section 3.31; and

                  (xii) to clear and terminate the Collection Account pursuant
         to Section 10.01.

         The foregoing requirements for withdrawal from the Collection Account
shall be exclusive. In the event the Master Servicer shall deposit in the
Collection Account any amount not required to be deposited therein, it may at
any time withdraw such amount from the Collection Account, any provision herein
to the contrary notwithstanding.

         The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (ii), (iii), (iv), (v), (vi) and (vii) above.
The Master Servicer shall provide written notification to the Trustee, on or
prior to the next succeeding Master Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vi) above;
provided that an Officers' Certificate in the form described under Section
4.04(d) shall suffice for such written notification to the Trustee in respect
hereof.

         (b) The Trustee shall, from time to time, make withdrawals from the
Distribution Account, for any of the following purposes, without priority:

                  (i) to make distributions in accordance with Section 4.01;

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                  (ii) to pay itself the Trustee Fee pursuant to Section 8.05;

                  (iii) to pay any amounts in respect of taxes pursuant to
         Section 9.01(g);

                  (iv) to clear and terminate the Distribution Account pursuant
         to Section 10.01;

                  (v) to pay any amounts required to be paid to the Trustee
         pursuant to this Agreement, including but not limited to funds required
         to be paid pursuant to Section 3.06, Section 7.02 and Section 8.05;

                  (vi) to pay to the Trustee, any interest or investment income
         earned on funds deposited in the Distribution Account;

                  (vii) to pay to an Advancing Person reimbursements for
         Advances and/or Servicing Advances pursuant to Section 3.29; and

                  (viii) to pay the PMI Insurer the PMI Insurer Fee and to pay
         the Loss Mitigation Advisor the Advisor's Fee.

         Section 3.12.     Investment of Funds in the Collection Account, the
                           Distribution Account and the Dividend Account.

         (a) The Master Servicer may direct any depository institution
maintaining the Collection Account or the Dividend Account and the Trustee shall
direct any depository institution maintaining the Distribution Account (each
such account, for purposes of this Section 3.12, an "Investment Account"), to
invest the funds in such Investment Account in one or more Permitted Investments
bearing interest or sold at a discount, and maturing, unless payable on demand,
(i) no later than the Business Day immediately preceding the date on which such
funds are required to be withdrawn from such account pursuant to this Agreement,
if a Person other than the Trustee is the obligor thereon or if such investment
is managed or advised by a Person other than the Trustee or an Affiliate of the
Trustee, and (ii) no later than the date on which such funds are required to be
withdrawn from such account pursuant to this Agreement, if the Trustee is the
obligor thereon or if such investment is managed or advised by the Trustee or
any Affiliate. All such Permitted Investments shall be held to maturity, unless
payable on demand. Any investment of funds in an Investment Account shall be
made in the name of the Trustee (in its capacity as such), or in the name of a
nominee of the Trustee. The Trustee shall be entitled to sole possession (except
with respect to investment direction of funds held in the Collection Account and
the Dividend Account and any income and gain realized thereon) over each such
investment, and any certificate or other instrument evidencing any such
investment shall be delivered directly to the Trustee or its agent, together
with any document of transfer necessary to transfer title to such investment to
the Trustee or its nominee.
In the event amounts on deposit in an Investment Account are at any time
invested in a Permitted Investment payable on demand, the Trustee shall:

                  (x)      consistent with any notice required to be given
                           thereunder, demand that payment thereon be made on
                           the last day such Permitted Investment may otherwise
                           mature hereunder in an amount equal to the lesser of
                           (1) all

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                           amounts then payable thereunder and (2) the amount
                           required to be withdrawn on such date; and

                  (y)      demand payment of all amounts due thereunder promptly
                           upon determination by a Responsible Officer of the
                           Trustee that such Permitted Investment would not
                           constitute a Permitted Investment in respect of funds
                           thereafter on deposit in the Investment Account.

         (b) All income and gain realized from the investment of funds deposited
in the Collection Account, the Dividend Account and any REO Account held by or
on behalf of the Master Servicer shall be for the benefit of the Master Servicer
and shall be subject to its withdrawal in accordance with Section 3.11, Section
3.31 or Section 3.23, as applicable. The Master Servicer shall deposit in the
Collection Account, the Dividend Account or any REO Account, as applicable, the
amount of any loss of principal incurred in respect of any such Permitted
Investment made with funds in such Account immediately upon realization of such
loss.

         (c) All income and gain realized from the investment of funds deposited
in the Distribution Account shall be for the benefit of the Trustee. The Trustee
shall deposit in the Distribution Account the amount of any loss of principal
incurred in respect of any such Permitted Investment made with funds in such
Account immediately upon realization of such loss.

         (d) Except as otherwise expressly provided in this Agreement, if any
default occurs in the making of a payment due under any Permitted Investment, or
if a default occurs in any other performance required under any Permitted
Investment, the Trustee may and, subject to Section 8.01 and Section 8.02(a)(v),
upon the request of the Holders of Certificates representing more than 50% of
the Voting Rights allocated to any Class of Certificates, shall take such action
as may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate proceedings.

         Section 3.13.     [Reserved].

         Section 3.14.     Maintenance of Hazard Insurance and Errors and
                           Omissions and Fidelity Coverage.

         (a) The Master Servicer shall cause to be maintained for each Mortgage
Loan hazard insurance with extended coverage on the Mortgaged Property in an
amount which is at least equal to the lesser of (i) the current Principal
Balance of such Mortgage Loan and (ii) the amount necessary to fully compensate
for any damage or loss to the improvements that are a part of such property on a
replacement cost basis, in each case in an amount not less than such amount as
is necessary to avoid the application of any coinsurance clause contained in the
related hazard insurance policy. The Master Servicer shall also cause to be
maintained hazard insurance with extended coverage on each REO Property in an
amount which is at least equal to the lesser of (i) the maximum insurable value
of the improvements which are a part of such property and (ii) the outstanding
Principal Balance of the related Mortgage Loan at the time it became an REO
Property. The Master Servicer will comply in the performance of this Agreement
with all reasonable rules and requirements of each insurer under any such hazard
policies. Any amounts to be collected by the Master Servicer under any such

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policies (other than amounts to be applied to the restoration or repair of the
property subject to the related Mortgage or amounts to be released to the
Mortgagor in accordance with the procedures that the Master Servicer would
follow in servicing loans held for its own account, subject to the terms and
conditions of the related Mortgage and Mortgage Note) shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 3.11, if received
in respect of a Mortgage Loan, or in the REO Account, subject to withdrawal
pursuant to Section 3.23, if received in respect of an REO Property. Any cost
incurred by the Master Servicer in maintaining any such insurance shall not, for
the purpose of calculating distributions to Certificateholders, be added to the
unpaid Principal Balance of the related Mortgage Loan, notwithstanding that the
terms of such Mortgage Loan so permit. It is understood and agreed that no
earthquake or other additional insurance is to be required of any Mortgagor
other than pursuant to such applicable laws and regulations as shall at any time
be in force and as shall require such additional insurance. If the Mortgaged
Property or REO Property is at any time in an area identified in the Federal
Register by the Federal Emergency Management Agency as having special flood
hazards and flood insurance has been made available, the Master Servicer will
cause to be maintained a flood insurance policy in respect thereof. Such flood
insurance shall be in an amount equal to the lesser of (i) the unpaid Principal
Balance of the related Mortgage Loan and (ii) the maximum amount of such
insurance available for the related Mortgaged Property under the national flood
insurance program (assuming that the area in which such Mortgaged Property is
located is participating in such program).

         In the event that the Master Servicer shall obtain and maintain a
blanket policy with an insurer having a General Policy Rating of B:III or better
in Best's Key Rating Guide (or such other rating that is comparable to such
rating) insuring against hazard losses on all of the Mortgage Loans, it shall
conclusively be deemed to have satisfied its obligations as set forth in the
first two sentences of this Section 3.14, it being understood and agreed that
such policy may contain a deductible clause, in which case the Master Servicer
shall, in the event that there shall not have been maintained on the related
Mortgaged Property or REO Property a policy complying with the first two
sentences of this Section 3.14, and there shall have been one or more losses
which would have been covered by such policy, deposit to the Collection Account
from its own funds the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as
administrator and servicer of the Mortgage Loans, the Master Servicer agrees to
prepare and present, on behalf of itself, the Trustee and Certificateholders,
claims under any such blanket policy in a timely fashion in accordance with the
terms of such policy.

         (b) The Master Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of the Master Servicer's obligations under this
Agreement, which policy or policies shall be in such form and amount that would
meet the requirements of Fannie Mae or Freddie Mac if it were the purchaser of
the Mortgage Loans, unless the Master Servicer has obtained a waiver of such
requirements from Fannie Mae or Freddie Mac. The Master Servicer shall also
maintain a fidelity bond in the form and amount that would meet the requirements
of Fannie Mae or Freddie Mac, unless the Master Servicer has obtained a waiver
of such requirements from Fannie Mae or Freddie Mac. The Master Servicer shall
be deemed to have complied with this provision if an Affiliate of the Master
Servicer has such errors and omissions and fidelity bond coverage and, by the
terms of such insurance policy or fidelity bond, the coverage afforded
thereunder extends to the Master Servicer. Any such errors and omissions policy
and fidelity bond shall by its terms not be cancelable without thirty days'
prior

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written notice to the Trustee. The Master Servicer shall also cause each
Sub-Servicer to maintain a policy of insurance covering errors and omissions and
a fidelity bond which would meet such requirements.

         Section 3.15.     Enforcement of Due-On-Sale Clauses; Assumption
                           Agreements.

         The Master Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause, if any, applicable thereto; provided, however,
that the Master Servicer shall not be required to take such action if in its
sole business judgment the Master Servicer believes it is not in the best
interests of the Trust Fund and shall not exercise any such rights if prohibited
by law from doing so. If the Master Servicer reasonably believes it is unable
under applicable law to enforce such "due-on-sale" clause, or if any of the
other conditions set forth in the proviso to the preceding sentence apply, the
Master Servicer will enter into an assumption and modification agreement from or
with the person to whom such property has been conveyed or is proposed to be
conveyed, pursuant to which such person becomes liable under the Mortgage Note
and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. The Master Servicer is also authorized to enter into a
substitution of liability agreement with such person, pursuant to which the
original Mortgagor is released from liability and such person is substituted as
the Mortgagor and becomes liable under the Mortgage Note, provided that no such
substitution shall be effective unless such person satisfies the underwriting
criteria of the Master Servicer and has a credit risk rating at least equal to
that of the original Mortgagor. In connection with any assumption or
substitution, the Master Servicer shall apply such underwriting standards and
follow such practices and procedures as shall be normal and usual in its general
mortgage servicing activities and as it applies to other mortgage loans owned
solely by it. The Master Servicer shall not take or enter into any assumption
and modification agreement, however, unless (to the extent practicable in the
circumstances) it shall have received confirmation, in writing, of the continued
effectiveness of any applicable hazard insurance policy. Any fee collected by
the Master Servicer in respect of an assumption, modification or substitution of
liability agreement shall be retained by the Master Servicer as additional
servicing compensation. In connection with any such assumption, no material term
of the Mortgage Note (including but not limited to the related Mortgage Rate and
the amount of the Monthly Payment) may be amended or modified, except as
otherwise required pursuant to the terms thereof. The Master Servicer shall
notify the Trustee that any such substitution, modification or assumption
agreement has been completed by forwarding to the Trustee the executed original
of such substitution, modification or assumption agreement, which document shall
be added to the related Mortgage File and shall, for all purposes, be considered
a part of such Mortgage File to the same extent as all other documents and
instruments constituting a part thereof.

         The Master Servicer shall be entitled to any Prepayment Interest
Excess, which it may withdraw from the Collection Account pursuant to Section
3.11(a).

         Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Master Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or by the terms of

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the Mortgage Note or any assumption which the Master Servicer may be restricted
by law from preventing, for any reason whatsoever. For purposes of this Section
3.15, the term "assumption" is deemed to also include a sale (of the Mortgaged
Property) subject to the Mortgage that is not accompanied by an assumption or
substitution of liability agreement.

         Section 3.16.     Realization Upon Defaulted Mortgage Loans.

         (a) The Master Servicer shall use its best efforts, consistent with the
servicing standards set forth in Section 3.01, to foreclose upon or otherwise
comparably convert the ownership of properties securing such of the Mortgage
Loans (including selling any such Mortgage Loans other than converting the
ownership of the related properties as provided in Section 3.16(e) below) as
come into and continue in default and as to which no satisfactory arrangements
can be made for collection of delinquent payments pursuant to Section 3.07. The
Master Servicer shall be responsible for all costs and expenses incurred by it
in any such proceedings; provided, however, that such costs and expenses will be
recoverable as Servicing Advances by the Master Servicer as contemplated in
Section 3.11(a) and Section 3.23. The foregoing is subject to the provision
that, in any case in which a Mortgaged Property shall have suffered damage from
an Uninsured Cause, the Master Servicer shall not be required to expend its own
funds toward the restoration of such property unless it shall determine in its
discretion that such restoration will increase the proceeds of liquidation of
the related Mortgage Loan after reimbursement to itself for such expenses.

         (b) Notwithstanding the foregoing provisions of this Section 3.16 or
any other provision of this Agreement, with respect to any Mortgage Loan as to
which the Master Servicer has received actual notice of, or has actual knowledge
of, the presence of any toxic or hazardous substance on the related Mortgaged
Property, the Master Servicer shall not, on behalf of the Trustee, either (i)
obtain title to such Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property, if, as a result of any such action,
the Trustee, the Trust Fund or the Certificateholders would be considered to
hold title to, to be a "mortgagee-in-possession" of, or to be an "owner" or
"operator" of such Mortgaged Property within the meaning of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended from
time to time, or any comparable law, unless the Master Servicer has also
previously determined, based on its reasonable judgment and a report prepared by
a Person who regularly conducts environmental audits using customary industry
standards, that:

                  (1)      such Mortgaged Property is in compliance with
                           applicable environmental laws or, if not, that it
                           would be in the best economic interest of the Trust
                           Fund to take such actions as are necessary to bring
                           the Mortgaged Property into compliance therewith; and

                  (2)      there are no circumstances present at such Mortgaged
                           Property relating to the use, management or disposal
                           of any hazardous substances, hazardous materials,
                           hazardous wastes, or petroleum-based materials for
                           which investigation, testing, monitoring,
                           containment, clean-up or remediation could be
                           required under any federal, state or local law or
                           regulation, or that if any such materials are present
                           for which such action could be required, that

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                           it would be in the best economic interest of the
                           Trust Fund to take such actions with respect to the
                           affected Mortgaged Property.

         The cost of the environmental audit report contemplated by this Section
3.16 shall be advanced by the Master Servicer, subject to the Master Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.11(a)(vii), such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Collection Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

         If the Master Servicer determines, as described above, that it is in
the best economic interest of the Trust Fund to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes or petroleum-based materials affecting any such Mortgaged Property, then
the Master Servicer shall take such action as it deems to be in the best
economic interest of the Trust Fund; provided that any amounts disbursed by the
Master Servicer pursuant to this Section 3.16(b) shall constitute Servicing
Advances, subject to Section 4.04(d). The cost of any such compliance,
containment, cleanup or remediation shall be advanced by the Master Servicer,
subject to the Master Servicer's right to be reimbursed therefor from the
Collection Account as provided in Section 3.11(a)(iii) and (a)(vii), such right
of reimbursement being prior to the rights of Certificateholders to receive any
amount in the Collection Account received in respect of the affected Mortgage
Loan or other Mortgage Loans.

         (c) The Master Servicer may at its option purchase from the Mortgage
Pool, any Mortgage Loan or related REO Property that is 90 days or more
delinquent, which the Master Servicer determines in good faith will otherwise
become subject to foreclosure proceedings (evidence of such determination to be
delivered in writing to the Trustee prior to purchase), at a price equal to the
Purchase Price; provided, however, that the Master Servicer shall purchase any
such Mortgage Loans or related REO Properties on the basis of delinquency,
purchasing the most delinquent Mortgage Loans or related REO Properties first.
The Purchase Price for any Mortgage Loan or related REO Property purchased
hereunder shall be deposited in the Distribution Account, and the Trustee, upon
receipt of such deposit, shall release or cause to be released to the Master
Servicer the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as the
Master Servicer shall furnish and as shall be necessary to vest in the Master
Servicer title to any Mortgage Loan or related REO Property released pursuant
hereto.

         (d) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds or Liquidation Proceeds, in respect of any Mortgage Loan,
will be applied in the following order of priority: first, to unpaid Servicing
Fees; second, to reimburse the Master Servicer or any Sub-Servicer for any
related unreimbursed Servicing Advances pursuant to Section 3.11(a)(iii) and
Advances pursuant to Section 3.11(a)(ii); third, to accrued and unpaid interest
on the Mortgage Loan, to the date of the Final Recovery Determination, or to the
Due Date prior to the Distribution Date on which such amounts are to be
distributed if not in connection with a Final Recovery Determination; and
fourth, as a recovery of principal of the Mortgage Loan. The portion of the
recovery so allocated to unpaid

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Servicing Fees shall be reimbursed to the Master Servicer or any Sub-Servicer
pursuant to Section 3.11(a)(iii).

         (e) If the Master Servicer determines that it is in the best economic
interest of the Certificateholders to sell a Mortgage Loan that is over 90 days
Delinquent, rather than foreclosing, the Master Servicer may effect such a sale.
The net proceeds of such sale shall be Liquidation Proceeds.

         Section 3.17.     Trustee to Cooperate; Release of Mortgage Files.

         (a) Upon the payment in full of any Mortgage Loan, or the receipt by
the Master Servicer of a notification that payment in full shall be escrowed in
a manner customary for such purposes, the Master Servicer shall deliver to the
Trustee two executed copies of a Request for Release in the form of Exhibit E
hereto (which certification shall include a statement to the effect that all
amounts received or to be received in connection with such payment which are
required to be deposited in the Collection Account pursuant to Section 3.10 have
been or will be so deposited) signed by a Servicing Officer (or in a mutually
agreeable electronic format that will, in lieu of a signature on its face,
originate from a Servicing Officer) and shall request delivery to it of the
Mortgage File. Upon receipt of such certification and request, the Trustee
shall, within five Business Days, release and send by overnight mail, at the
expense of the Master Servicer, the related Mortgage File to the Master
Servicer. The Trustee agrees to indemnify the Master Servicer, out of its own
funds, for any loss, liability or expense (other than special, indirect,
punitive or consequential damages which will not be paid by the Trustee)
incurred by the Master Servicer as a proximate result of the Trustee's breach of
its obligations pursuant to this Section 3.17. No expenses incurred in
connection with any instrument of satisfaction or deed of reconveyance shall be
chargeable to the Collection Account or the Distribution Account.

         (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Trustee shall, upon any
request made by or on behalf of the Master Servicer and delivery to the Trustee
of two copies of a Request for Release in the form of Exhibit E hereto signed by
a Servicing Officer (or in a mutually agreeable electronic format that will, in
lieu of a signature on its face, originate from a Servicing Officer), release
the related Mortgage File to the Master Servicer, and the Trustee shall, at the
direction of the Master Servicer, execute such documents as shall be necessary
to the prosecution of any such proceedings. Such Request for Release shall
obligate the Master Servicer to return each and every document previously
requested from the Mortgage File to the Trustee when the need therefor by the
Master Servicer no longer exists, unless the Mortgage Loan has been liquidated
and the Liquidation Proceeds relating to the Mortgage Loan have been deposited
in the Collection Account or the Mortgage File or such document has been
delivered to an attorney, or to a public trustee or other public official as
required by law, for purposes of initiating or pursuing legal action or other
proceedings for the foreclosure of the Mortgaged Property either judicially or
non-judicially, and the Master Servicer has delivered, or caused to be
delivered, to the Trustee an additional Request for Release certifying as to
such liquidation or action or proceedings.
Upon the request of the Trustee, the Master Servicer shall provide notice to the
Trustee of the name and address of the Person to which such Mortgage File or
such document was delivered and the purpose or purposes of such delivery. Upon
receipt of two copies of a Request for Release from a

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Servicing Officer stating that such Mortgage Loan was liquidated and that all
amounts received or to be received in connection with such liquidation that are
required to be deposited into the Collection Account have been so deposited, or
that such Mortgage Loan has become an REO Property, one copy of such Request for
Release with respect to such Mortgage Loan shall be released by the Trustee to
the Master Servicer or its designee.

         (c) Upon written certification of a Servicing Officer, the Trustee
shall execute and deliver to the Master Servicer or the Sub-Servicer, as the
case may be, copies of, any court pleadings, requests for trustee's sale or
other documents necessary to the foreclosure or trustee's sale in respect of a
Mortgaged Property or to any legal action brought to obtain judgment against any
Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment,
or to enforce any other remedies or rights provided by the Mortgage Note or
Mortgage or otherwise available at law or in equity. Each such certification
shall include a request that such pleadings or documents be executed by the
Trustee and a statement as to the reason such documents or pleadings are
required and that the execution and delivery thereof by the Trustee will not
invalidate or otherwise affect the lien of the Mortgage, except for the
termination of such a lien upon completion of the foreclosure or trustee's sale.

         Section 3.18.     Servicing Compensation.

         As compensation for the activities of the Master Servicer hereunder,
the Master Servicer shall be entitled to the Servicing Fee with respect to each
Mortgage Loan payable solely from payments of interest in respect of such
Mortgage Loan, subject to Section 3.24. In addition, the Master Servicer shall
be entitled to recover unpaid Servicing Fees out of Insurance Proceeds or
Liquidation Proceeds to the extent permitted by Section 3.11(a)(iii) and out of
amounts derived from the operation and sale of an REO Property to the extent
permitted by Section 3.23. The right to receive the Servicing Fee may not be
transferred in whole or in part except in connection with the transfer of all of
the Master Servicer's responsibilities and obligations under this Agreement;
provided, however, that the Master Servicer may pay from the Servicing Fee any
amounts due to a Sub- Servicer pursuant to a Sub-Servicing Agreement entered
into under Section 3.02.

         Additional servicing compensation in the form of assumption fees, late
payment charges, insufficient funds charges, ancillary income or otherwise
(other than Prepayment Charges) shall be retained by the Master Servicer only to
the extent such fees or charges are received by the Master Servicer. The Master
Servicer shall also be entitled pursuant to Section 3.11(a)(iv) to withdraw from
the Collection Account and pursuant to Section 3.23(b) to withdraw from any REO
Account, as additional servicing compensation, interest or other income earned
on deposits therein, subject to Section 3.12 and Section 3.24. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its servicing activities hereunder (including premiums for the insurance
required by Section 3.14, to the extent such premiums are not paid by the
related Mortgagors or by a Sub-Servicer and servicing compensation of each
Sub-Servicer) and shall not be entitled to reimbursement therefor except as
specifically provided herein.

         The Master Servicer shall be entitled to any Prepayment Interest
Excess, which it may withdraw from the Collection Account pursuant to Section
3.11(a)(ix).

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         Section 3.19.     Reports to the Trustee; Collection Account
                           Statements.

         Not later than twenty days after each Distribution Date, the Master
Servicer shall forward, upon request, to the Trustee and the Depositor the most
current available bank statement for the Collection Account. Copies of such
statement shall be provided by the Trustee to any Certificateholder and to any
Person identified to the Trustee as a prospective transferee of a Certificate,
upon request at the expense of the requesting party, provided such statement is
delivered by the Master Servicer to the Trustee.

         Section 3.20.     Statement as to Compliance.

         The Master Servicer will deliver to the Trustee and the Depositor not
later than 90 days following the end of the fiscal year of the Master Servicer
(which, as of the Closing Date, ends on the last day of April), commencing in
2002, an Officers' Certificate stating, as to each signatory thereof, that (i) a
review of the activities of the Master Servicer during the preceding year and of
performance under this Agreement has been made under such officers' supervision
and (ii) to the best of such officers' knowledge, based on such review, the
Master Servicer has fulfilled all of its obligations under this Agreement
throughout such year, or, if there has been a default in the fulfillment of any
such obligation, specifying each such default known to such officer and the
nature and status thereof. Copies of any such statement shall be provided by the
Trustee to any Certificateholder and to any Person identified to the Trustee as
a prospective transferee of a Certificate, upon request at the expense of the
requesting party, provided such statement is delivered by the Master Servicer to
the Trustee.

         Section 3.21.     Independent Public Accountants' Servicing Report.

         Not later than 90 days following the end of each fiscal year of the
Master Servicer (which, as of the Startup Day, ends on the last day of April),
commencing in 2002, the Master Servicer, at its expense, shall cause a
nationally recognized firm of independent certified public accountants to
furnish to the Master Servicer a report stating that (i) it has obtained a
letter of representation regarding certain matters from the management of the
Master Servicer which includes an assertion that the Master Servicer has
complied with certain minimum residential mortgage loan servicing standards,
identified in the Uniform Single Attestation Program for Mortgage Bankers
established by the Mortgage Bankers Association of America, with respect to the
servicing of residential mortgage loans during the most recently completed
fiscal year and (ii) on the basis of an examination conducted by such firm in
accordance with standards established by the American Institute of Certified
Public Accountants, such representation is fairly stated in all material
respects, subject to such exceptions and other qualifications that may be
appropriate. In rendering its report such firm may rely, as to matters relating
to the direct servicing of residential mortgage loans by Sub-Servicers, upon
comparable reports of firms of independent certified public accountants rendered
on the basis of examinations conducted in accordance with the same standards
(rendered within one year of such report) with respect to those Sub-Servicers.
Immediately upon receipt of such report, the Master Servicer shall furnish a
copy of such report to the Trustee and each Rating Agency. Copies of such
statement shall be provided by the Trustee to any Certificateholder upon request
at the Master Servicer's expense, provided that such statement is delivered by
the Master Servicer to the Trustee.

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         Section 3.22.     Access to Certain Documentation; Filing of Reports by
                           Trustee.

         (a) The Master Servicer shall provide to the Office of Thrift
Supervision, the FDIC, and any other federal or state banking or insurance
regulatory authority that may exercise authority over any Certificateholder,
access to the documentation regarding the Mortgage Loans required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Master Servicer designated by it. In addition, access to the documentation
regarding the Mortgage Loans will be provided to any Certificateholder, the
Trustee and to any Person identified to the Master Servicer as a prospective
transferee of a Certificate, upon reasonable request during normal business
hours at the offices of the Master Servicer designated by it at the expense of
the Person requesting such access.

         (b) Within 15 days after each Distribution Date, the Trustee shall file
with the Securities and Exchange Commission via the Electronic Data Gathering
Analysis and Retrieval System (EDGAR), a Form 8-K with a copy of the statement
to Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30, 2002, the Trustee shall file a Form 15 Suspension Notification with
respect to the Trust Fund, if applicable. Prior to March 30, 2002, the Trustee
shall file a Form 10-K, in substance conforming to industry standards, with
respect to the Trust Fund. The Depositor hereby grants to the Trustee a limited
power of attorney to execute and file each such document on behalf of the
Depositor. Such power of attorney shall continue until the earlier of (i)
receipt by the Trustee from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust Fund. The Depositor agrees to
promptly furnish to the Trustee, from time to time upon request, such further
information, reports and financial statements within its control related to this
Agreement and the Mortgage Loans as the Trustee reasonably deems appropriate to
prepare and file all necessary reports with the Securities and Exchange
Commission. The Trustee shall have no responsibility to file any items with the
Securities and Exchange Commission other than those specified in this Section.

         Section 3.23.     Title, Management and Disposition of REO Property.

         (a) The deed or certificate of sale of any REO Property shall be taken
in the name of the Trustee, or its nominee, in trust for the benefit of the
Certificateholders. The Master Servicer, on behalf of REMIC 1, shall either sell
any REO Property by the end of the third full taxable year after the taxable
year in which such REMIC acquires ownership of such REO Property for purposes of
Section 860G(a)(8) of the Code or request from the Internal Revenue Service, no
later than 60 days before the day on which the three-year grace period would
otherwise expire, an extension of such three-year period, unless the Master
Servicer shall have delivered to the Trustee an Opinion of Counsel, addressed to
the Trustee and the Depositor, to the effect that the holding by the REMIC of
such REO Property subsequent to three years after its acquisition will not
result in the imposition on the REMIC of taxes on "prohibited transactions"
thereof, as defined in Section 860F of the Code, or cause any of the REMICs
created hereunder to fail to qualify as a REMIC under Federal law at any time
that any Certificates are outstanding. The Master Servicer shall manage,
conserve, protect and operate each REO Property for the Certificateholders
solely for the purpose of its prompt disposition and sale in a manner which does
not cause such REO Property to fail to qualify as "foreclosure property" within
the meaning of Section 860G(a)(8) of the Code or result in the receipt by any of
the REMICs created hereunder of any "income from non-permitted assets" within
the

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meaning of Section 860F(a)(2)(B) of the Code, or any "net income from
foreclosure property" which is subject to taxation under the REMIC Provisions.

         (b) The Master Servicer shall separately account for all funds
collected and received in connection with the operation of any REO Property and
shall establish and maintain, or cause to be established and maintained, with
respect to REO Properties an account held in trust for the Trustee for the
benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Master Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Master Servicer shall be entitled to retain or withdraw any
interest income paid on funds deposited in the REO Account.

         (c) The Master Servicer shall have full power and authority, subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with any REO Property as are consistent with the
manner in which the Master Servicer manages and operates similar property owned
by the Master Servicer or any of its Affiliates, all on such terms and for such
period as the Master Servicer deems to be in the best interests of
Certificateholders. In connection therewith, the Master Servicer shall deposit,
or cause to be deposited in the clearing account in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities on a daily basis, and in no event more than
one Business Day after the Master Servicer's receipt thereof, and shall
thereafter deposit in the REO Account, in no event more than two Business Days
after the Master Servicer's receipt thereof, all revenues received by it with
respect to an REO Property and shall withdraw therefrom funds necessary for the
proper operation, management and maintenance of such REO Property including,
without limitation:

                  (i)      all insurance premiums due and payable in respect of
                           such REO Property;

                  (ii)     all real estate taxes and assessments in respect of
                           such REO Property that may result in the imposition
                           of a lien thereon; and

                  (iii)    all costs and expenses necessary to maintain such REO
                           Property.

         To the extent that amounts on deposit in the REO Account with respect
to an REO Property are insufficient for the purposes set forth in clauses (i)
through (iii) above with respect to such REO Property, the Master Servicer shall
advance from its own funds such amount as is necessary for such purposes if, but
only if, the Master Servicer would make such advances if the Master Servicer
owned the REO Property and if in the Master Servicer's judgment, the payment of
such amounts will be recoverable from the rental or sale of the REO Property.

                  Notwithstanding the foregoing, neither the Master Servicer nor
the Trustee shall:

                  (A) authorize the Trust Fund to enter into, renew or extend
         any New Lease with respect to any REO Property, if the New Lease by its
         terms will give rise to any income that does not constitute Rents from
         Real Property;

                  (B) authorize any amount to be received or accrued under any
         New Lease other than amounts that will constitute Rents from Real
         Property;

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                  (C) authorize any construction on any REO Property, other than
         the completion of a building or other improvement thereon, and then
         only if more than ten percent of the construction of such building or
         other improvement was completed before default on the related Mortgage
         Loan became imminent, all within the meaning of Section 856(e)(4)(B) of
         the Code; or

                  (D) authorize any Person to Directly Operate any REO Property
         on any date more than 90 days after its date of acquisition by the
         Trust Fund;

unless, in any such case, the Master Servicer has obtained an Opinion of
Counsel, provided to the Trustee, to the effect that such action will not cause
such REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code at any time that it is held by the
REMIC, in which case the Master Servicer may take such actions as are specified
in such Opinion of Counsel.

         The Master Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:

                  (1) the terms and conditions of any such contract shall not be
         inconsistent herewith;

                  (2) any such contract shall require, or shall be administered
         to require, that the Independent Contractor pay all costs and expenses
         incurred in connection with the operation and management of such REO
         Property, including those listed above and remit all related revenues
         (net of such costs and expenses) to the Master Servicer as soon as
         practicable, but in no event later than thirty days following the
         receipt thereof by such Independent Contractor;

                  (3) none of the provisions of this Section 3.23(c) relating to
         any such contract or to actions taken through any such Independent
         Contractor shall be deemed to relieve the Master Servicer of any of its
         duties and obligations to the Trustee on behalf of the
         Certificateholders with respect to the operation and management of any
         such REO Property; and

                  (4) the Master Servicer shall be obligated with respect
         thereto to the same extent as if it alone were performing all duties
         and obligations in connection with the operation and management of such
         REO Property.

         The Master Servicer shall be entitled to enter into any agreement with
any Independent Contractor performing services for it related to its duties and
obligations hereunder for indemnification of the Master Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Master Servicer shall be solely liable for
all fees owed by it to any such Independent Contractor, irrespective of whether
the Master Servicer's compensation pursuant to Section 3.18 is sufficient to pay
such fees; provided, however, that to the extent that any payments made by such
Independent Contractor would constitute

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Servicing Advances if made by the Master Servicer, such amounts shall be
reimbursable as Servicing Advances made by the Master Servicer.

         (d) In addition to the withdrawals permitted under Section 3.23(c), the
Master Servicer may from time to time make withdrawals from the REO Account for
any REO Property: (i) to pay itself or any Sub-Servicer unpaid Servicing Fees in
respect of the related Mortgage Loan; and (ii) to reimburse itself or any
Sub-Servicer for unreimbursed Servicing Advances and Advances made in respect of
such REO Property or the related Mortgage Loan. On the Master Servicer
Remittance Date, the Master Servicer shall withdraw from each REO Account
maintained by it and deposit into the Distribution Account in accordance with
Section 3.10(d)(ii), for distribution on the related Distribution Date in
accordance with Section 4.01, the income from the related REO Property received
during the prior calendar month, net of any withdrawals made pursuant to Section
3.23(c) or this Section 3.23(d).

         (e) Subject to the time constraints set forth in Section 3.23(a), each
REO Disposition shall be carried out by the Master Servicer at such price and
upon such terms and conditions as the Master Servicer shall deem necessary or
advisable, as shall be normal and usual in its servicing standard set forth in
Section 3.01.

         (f) The proceeds from the REO Disposition, net of any amount required
by law to be remitted to the Mortgagor under the related Mortgage Loan and net
of any payment or reimbursement to the Master Servicer or any Sub-Servicer as
provided above, shall be deposited in the Distribution Account in accordance
with Section 3.10(d)(ii) on the Master Servicer Remittance Date in the month
following the receipt thereof for distribution on the related Distribution Date
in accordance with Section 4.01. Any REO Disposition shall be for cash only
(unless changes in the REMIC Provisions made subsequent to the Startup Day allow
a sale for other consideration).

         (g) The Master Servicer shall file information returns with respect to
the receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property as required by
Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.

         Section 3.24.     Obligations of the Master Servicer in Respect of
                           Prepayment Interest Shortfalls.

         Not later than 3:00 p.m. New York time on each Master Servicer
Remittance Date, the Master Servicer shall remit to the Distribution Account an
amount ("Compensating Interest") equal to the lesser of (A) the aggregate of the
Prepayment Interest Shortfalls for the related Distribution Date and (B) its
aggregate Servicing Fee received in the related Due Period. The Master Servicer
shall not have the right to reimbursement for any amounts remitted to the
Trustee in respect of Compensating Interest. Such amounts so remitted shall be
included in the Group I Available Funds and the Group II Available Funds, as
applicable, and distributed therewith on the next Distribution Date. The Master
Servicer shall not be obligated to pay Compensating Interest with respect to
Relief Act Interest Shortfalls.

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         Section 3.25.     [Reserved].

         Section 3.26.     Obligations of the Master Servicer in Respect of
                           Mortgage Rates and Monthly Payments.

         In the event that a shortfall in any collection on or liability with
respect to the Mortgage Loans in the aggregate results from or is attributable
to adjustments to Mortgage Rates, Monthly Payments or Stated Principal Balances
that were made by the Master Servicer in a manner not consistent with the terms
of the related Mortgage Note and this Agreement, the Master Servicer, upon
discovery or receipt of notice thereof, immediately shall deposit in the
Collection Account from its own funds the amount of any such shortfall and shall
indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and any
successor servicer in respect of any such liability. Such indemnities shall
survive the termination or discharge of this Agreement. Notwithstanding the
foregoing, this Section 3.26 shall not limit the ability of the Master Servicer
to seek recovery of any such amounts from the related Mortgagor under the terms
of the related Mortgage Note, as permitted by law.

         Section 3.27.     Solicitations.

         From and after the Closing Date, the Master Servicer agrees that it
will not take any action or permit or cause any action to be taken by any of its
agents and Affiliates, or by any independent contractors or independent mortgage
brokerage companies on the Master Servicer's behalf, to personally, by telephone
or mail, solicit the Mortgagor under any Mortgage Loan for the purpose of
refinancing such Mortgage Loan; provided, that the Master Servicer may solicit
any Mortgagor for whom the Master Servicer has received a request for
verification of mortgage, a request for demand for payoff, a mortgagor initiated
written or verbal communication indicating a desire to prepay the related
Mortgage Loan, another mortgage company has pulled a credit report on the
mortgagor or the mortgagor initiates a title search; provided further, it is
understood and agreed that promotions undertaken by the Master Servicer or any
of its Affiliates which (i) concern optional insurance products or other
additional products or (ii) are directed to the general public at large,
including, without limitation, mass mailings based on commercially acquired
mailing lists, newspaper, radio and television advertisements shall not
constitute solicitation under this Section, nor is the Master Servicer
prohibited from responding to unsolicited requests or inquiries made by a
Mortgagor or an agent of a Mortgagor. Furthermore, the Master Servicer shall be
permitted to include in its monthly statements to borrowers or otherwise,
statements regarding the availability of the Master Servicer's counseling
services with respect to refinancing mortgage loans.

         Section 3.28.     Reserve Fund.

         No later than the Closing Date, the Trustee shall establish and
maintain with itself a separate, segregated trust account titled, "Reserve Fund,
Wells Fargo Bank Minnesota, N.A., as Trustee, in trust for registered Holders of
First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed Certificates, Series
2001-FF1." On the Closing Date, the Depositor will deposit, or cause to be
deposited, into the Reserve Fund $1,000.

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         On each Distribution Date as to which there is a Net WAC Rate Carryover
Amount payable to the Class A Certificates or the Mezzanine Certificates, the
Trustee has been directed by the Class C Certificateholders to, and therefore
will, deposit into the Reserve Fund the amounts described in Section
4.01(d)(vi), rather than distributing such amounts to the Class C
Certificateholders. On each such Distribution Date, the Trustee shall hold all
such amounts for the benefit of the Holders of the Class A Certificates and the
Mezzanine Certificates, and will distribute such amounts to the Holders of the
Class A Certificates and the Mezzanine Certificates in the amounts and
priorities set forth in Section 4.01(d). If no Net WAC Rate Carryover Amounts
are payable on a Distribution Date, the Trustee shall deposit into the Reserve
Fund on behalf of the Class C Certificateholders, from amounts otherwise
distributable to the Class C Certificateholders, an amount such that when added
to other amounts already on deposit in the Reserve Fund, the aggregate amount on
deposit therein is equal to $1,000.

         For federal and state income tax purposes, the Class C
Certificateholders will be deemed to be the owners of the Reserve Fund and all
amounts deposited into the Reserve Fund (other than the initial deposit therein
of $1,000) shall be treated as amounts distributed by REMIC 2 to the Holders of
the Class C Certificates. Upon the termination of the Trust, or the payment in
full of the Class A Certificates and the Mezzanine Certificates, all amounts
remaining on deposit in the Reserve Fund will be released by the Trust and
distributed to the Class C Certificateholders or their designees. The Reserve
Fund will be part of the Trust but not part of any REMIC and any payments to the
Holders of the Class A Certificates or the Mezzanine Certificates of Net WAC
Rate Carryover Amounts will not be payments with respect to a "regular interest"
in a REMIC within the meaning of Code Section 860(G)(a)(1).

         By accepting a Class C Certificate, each Class C Certificateholder
hereby agrees to direct the Trustee, and the Trustee hereby is directed, to
deposit into the Reserve Fund the amounts described above on each Distribution
Date as to which there is any Net WAC Rate Carryover Amount rather than
distributing such amounts to the Class C Certificateholders. By accepting a
Class C Certificate, each Class C Certificateholder further agrees that such
direction is given for good and valuable consideration, the receipt and
sufficiency of which is acknowledged by such acceptance.

         At the direction of the Holders of a majority in Percentage Interest in
the Class C Certificates, the Trustee shall direct any depository institution
maintaining the Reserve Fund to invest the funds in such account in one or more
Permitted Investments bearing interest or sold at a discount, and maturing,
unless payable on demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if a Person other than the Trustee or an
Affiliate manages or advises such investment, and (ii) no later than the date on
which such funds are required to be withdrawn from such account pursuant to this
Agreement, if the Trustee or an Affiliate manages or advises such investment. If
no investment direction of the Holders of a majority in Percentage Interest in
the Class C Certificates with respect to the Reserve Fund is received by the
Trustee, the Trustee shall invest the funds in such account in Permitted
Investments managed by the Trustee or an Affiliate of the kind described in
clause (vi) of the definition of Permitted Investments.

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         For federal tax return and information reporting, the right of the
Class A Certificateholders and the Mezzanine Certificateholders to receive
payments from the Reserve Fund in respect of any Net WAC Rate Carryover Amount
shall be assigned a value of zero.

         Section 3.29.     Advance Facility.

         (a) The Trustee on behalf of the Trust Fund, with the consent of the
Master Servicer, is hereby authorized to enter into a facility with any Person
which provides that such Person (an "Advancing Person") may make all or a
portion of the Advances and/or Servicing Advances to the Trust Fund under this
Agreement and the Trustee is further authorized, subject to Section 11.01, to
enter into any amendment of this Agreement in connection with such facility. No
such facility shall reduce or otherwise affect the Master Servicer's obligation
to fund such Advances and/or Servicing Advances. To the extent that an Advancing
Person makes all or a portion of any Advance or any Servicing Advance and
provides the Trustee with notice acknowledged by the Servicer that such
Advancing Person is entitled to reimbursement, such Advancing Person shall be
entitled to receive reimbursement pursuant to this Agreement for such amount to
the extent provided in Section 3.29(b).
Such notice from the Advancing Person must specify the amount of the
reimbursement and must specify which Section of this Agreement permits the
applicable Advance or Servicing Advance to be reimbursed. The Trustee shall be
entitled to rely without independent investigation on the Advancing Person's
statement with respect to the amount of any reimbursement pursuant to this
Section 3.29 and with respect to the Advancing Person's statement with respect
to the Section of this Agreement that permits the applicable Advance or
Servicing Advance to be reimbursed. An Advancing Person whose obligations are
limited to the making of Advances and/or Servicing Advances shall not be
required to meet the qualifications of a Master Servicer or a Sub-Servicer
pursuant to Section 6.06 hereof and will not be deemed to be a Sub-Servicer
under this Agreement.

         (b) If an advancing facility is entered into, then the Master Servicer
shall not be permitted to reimburse itself therefor under Section 3.11(ii),
Section 3.11(iii), Section 3.11(v), Section 3.11(vi) Section 3.11(vii) and
Section 4.04(b) prior to the remittance to the Trust Fund, but instead the
Master Servicer shall include such amounts in the applicable remittance to the
Trustee made pursuant to Section 3.10(a). The Trustee is hereby authorized to
pay to the Advancing Person, reimbursements for Advances and Servicing Advances
from the Distribution Account to the same extent the Master Servicer would have
been permitted to reimburse itself for such Advances and/or Servicing Advances
in accordance with Section 3.11(ii), Section 3.11(iii), Section 3.11(v), Section
3.11(vi), Section 3.11(vii) or Section 4.04(b), as the case may be, had the
Master Servicer itself funded such Advance or Servicing Advance. The Trustee is
hereby authorized to pay directly to the Advancing Person such portion of the
Servicing Fee as the parties to any advancing facility agree.

         (c) All Advances and Servicing Advances made pursuant to the terms of
this Agreement shall be deemed made and shall be reimbursed on a "first in-first
out" (FIFO) basis.

         Section 3.30.     PMI Policy; Claims Under the PMI Policy.

         Notwithstanding anything to the contrary elsewhere in this Article III,
the Master Servicer shall not agree to any modification or assumption of a PMI
Mortgage Loan or take any other action with respect to a PMI Mortgage Loan that
could result in denial of coverage under the PMI Policy.

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The Master Servicer shall notify the PMI Insurer that the Trustee, on behalf of
the Certificateholders, is the Owner, as that term is defined in the PMI Policy,
of each PMI Mortgage Loan. The Master Servicer shall, on behalf of the Trustee,
prepare and file on a timely basis with the PMI Insurer, with a copy to the
Trustee, all claims which may be made under the PMI Policy with respect to the
PMI Mortgage Loans. Consistent with all rights and obligations hereunder, the
Master Servicer shall take all actions required under the PMI Policy as a
condition to the payment of any such claim. Any amount received from the PMI
Insurer with respect to any such PMI Mortgage Loan shall be deposited by the
Master Servicer, no later than two Business Days following receipt thereof, into
the Collection Account.

         Section 3.31.     Dividend Account.

         (a) No later than the Closing Date, on behalf of the Trust Fund, the
Master Servicer shall establish and maintain, or cause to be established and
maintained, a separate, segregated account which shall be entitled "Wells Fargo
Bank Minnesota, N.A., as Trustee, in trust for the registered holder of the
Dividend Account Certificate issued by First Franklin Mortgage Loan Trust
2001-FF1" and which shall be an Eligible Account. The investment of funds in the
Dividend Account shall be as provided in Section 3.12.

         (b) On each Master Servicer Remittance Date, the Master Servicer shall
deposit into the Dividend Account an amount equal to the applicable Dividend
Portion of each Monthly Payment on each Dividend Mortgage Loan that was due
during the related Due Period, to the extent received by the Master Servicer on
or prior to the related Determination Date. On each Master Servicer Remittance
Date, the Trustee shall deposit or cause to be deposited into the Dividend
Account an amount equal to the applicable Dividend Portion of each Monthly
Payment on each Dividend Mortgage Loan, to the extent advanced by the Master
Servicer to the Trustee as part of the Advances remitted to the Trustee by the
Master Servicer pursuant to Section 4.04(b); provided, however, that the Master
Servicer may net such amount from the amount otherwise required to be advanced
by the Master Servicer to the Trustee as part of the Advances remitted to the
Trustee by the Master Servicer pursuant to Section 4.04(b), and instead deposit
such amount directly into the Dividend Account on the Master Servicer Remittance
Date, such deposit to be deemed an Advance for all purposes hereunder. If any
portion of the amount otherwise required to be advanced by the Master Servicer
to the Trustee as part of the Advances remitted to the Trustee by the Master
Servicer pursuant to Section 4.04(b) is instead to be deposited by the Master
Servicer directly into the Dividend Account, then the Remittance Report of the
Master Servicer to the Trustee required to be delivered pursuant to Section
4.04(a) shall so indicate.

         (c) The Master Servicer shall make withdrawals from the Dividend
Account, with respect to each Dividend Mortgage Loan, to refund to the related
Mortgagor the Dividend Portions of Monthly Payments made by such Mortgagor, at
the times and subject to the conditions set forth in the related Mortgage Note,
but only from amounts previously deposited into the Dividend Account in respect
of such Dividend Mortgage Loan. In addition, the Master Servicer shall make
withdrawals from the Dividend Account, with respect to each Dividend Mortgage
Loan, to remit on each Master Servicer Remittance Date to the Trustee for
deposit into the Distribution Account, the Dividend Portions of Monthly Payments
made by the related Mortgagor as to which such Mortgagor will not

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(as determined as of the related Determination Date) be entitled to be refunded
in accordance with the terms of the related Mortgage Note.

         (d) The Trustee acknowledges the establishment of the Dividend Account.
Concurrently with the establishment of the Trust pursuant to this Agreement and
in exchange for the Dividend Account, the Trustee, pursuant to the written
request of the Depositor executed by an officer of the Depositor, has executed,
authenticated and delivered to or upon the order of the Depositor, the Dividend
Account Certificate. The provisions of Section 4.01(e) and of Article V (as to
payment, authentication, execution, registration, denomination, transfer,
exchange and otherwise) that are applicable to the Class C Certificates and the
Class P Certificates, shall be applicable also to the Dividend Account
Certificate.

         (e) For federal and state income tax purposes, the holder of the
Dividend Account Certificate will be deemed to be the owner of the Dividend
Account and all amounts deposited into the Dividend Account (subject to the
rights of Mortgagors under Dividend Mortgage Loans to refunds as provided in the
related Mortgage Notes and subject to the rights of the Master Servicer to all
income or gain from the investment of amounts on deposit in the Dividend
Account). Upon the termination of the Trust, the Master Servicer and the Trustee
shall cause all amounts remaining on deposit in the Dividend Account to be
released by the Trust and distributed to the holder of the Dividend Account
Certificate or its designee. The Dividend Account will be part of the Trust but
not part of any REMIC and any payments to the holder of the Dividend Account
Certificate of any amounts therefrom will not be payments with respect to a
"regular interest" in a REMIC within the meaning of Code Section 860(G)(a)(1).

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                                   ARTICLE IV

                                  FLOW OF FUNDS

         Section 4.01.     Distributions.

         (a)(I) On each Distribution Date, the Trustee shall withdraw from the
Distribution Account that portion of Group I Available Funds for such
Distribution Date consisting of the Group I Interest Remittance Amount for such
Distribution Date, and make the following disbursements and transfers in the
order of priority described below, in each case to the extent of the Group I
Interest Remittance Amount remaining for such Distribution Date:

                  (i) to the holders of the Group I Certificates, the related
         Monthly Interest Distributable Amount for such Certificates and the
         Unpaid Interest Shortfall Amount, if any, for such Certificates; and

                  (ii) to the holders of the Group II Certificates, an amount
         equal to the excess, if any, of (x) the amount required to be
         distributed pursuant to Section 4.01(a)(II)(i) below for such
         Distribution Date over (y) the amount actually distributed pursuant to
         such clause from the Group II Interest Remittance Amount.

         (II) On each Distribution Date the Trustee shall withdraw from the
Distribution Account that portion of Group II Available Funds for such
Distribution Date consisting of the Group II Interest Remittance Amount for such
Distribution Date, and make the following disbursements and transfers in the
order of priority described below, in each case to the extent of the Group II
Interest Remittance Amount remaining for such Distribution Date.

                  (i) to the holders of the Group II Certificates, the related
         Monthly Interest Distributable Amount for such Certificates and the
         Unpaid Interest Shortfall Amount, if any, for such Certificates; and

                  (ii) to the holders of the Group I Certificates, an amount
         equal to the excess, if any, of (x) the amount required to be
         distributed pursuant to Section 4.01(a)(I)(i) above for such
         Distribution Date over (y) the amount actually distributed pursuant to
         such clause from the Group I Interest Remittance Amount.

         (III) On each Distribution Date, following the distributions made
pursuant to Section 4.01(a)(I) and (II) above, the Trustee shall make the
following disbursements and transfers in the order of priority described below,
in each case to the extent of the sum of the Group I Interest Remittance Amount
and the Group II Interest Remittance Amount remaining undistributed for such
Distribution Date.

                  (i) to the Holders of the Class M-1 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates; and

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                  (ii) to the Holders of the Class M-2 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates.

         (b)(I) On each Distribution Date (a) prior to the Stepdown Date or (b)
on which a Trigger Event is in effect, the holders of the Class A Certificates
shall be entitled to receive distributions in respect of principal to the extent
of the Group I Principal Distribution Amount in the following amounts and order
of priority:

                  (i) first, to the holders of the Group I Certificates, until
         the Certificate Principal Balances thereof have been reduced to zero;

                  (ii) second, after taking into account the amount distributed
         to the holders of the Group II Certificates pursuant to clause
         (b)(II)(i) below on such Distribution Date, to the holders of the Group
         II Certificates, until the Certificate Principal Balances thereof have
         been reduced to zero.

         (II) On each Distribution Date (a) prior to the Stepdown Date or (b) on
which a Trigger Event is in effect, the holders of the Class A Certificates
shall be entitled to receive distributions in respect of principal to the extent
of the Group II Principal Distribution Amount in the following amounts and order
of priority:

                  (i) first, to the holders of the Group II Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero;

                  (ii) second, after taking into account the amount distributed
         to the holders of the Group I Certificates pursuant to clause (b)(I)(i)
         above on such Distribution Date, to the holders of the Group I
         Certificates, until the Certificate Principal Balances thereof have
         been reduced to zero.

         (III) On each Distribution Date (a) prior to the Stepdown Date or (b)
on which a Trigger Event is in effect, the holders of each class of Mezzanine
Certificates shall be entitled to receive distributions in respect of principal
to the extent of the sum of the Group I Principal Distribution Amount and the
Group II Principal Distribution Amount remaining undistributed for such
Distribution Date in the following amounts and order of priority:

                  (i) first, to the holders of the Class M-1 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero; and

                  (ii) second, to the holders of the Class M-2 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero.

         (c)(I) On each Distribution Date (a) on or after the Stepdown Date and
(b) on which a Trigger Event is not in effect, the holders of the Class A
Certificates shall be entitled to receive distributions in respect of principal
to the extent of the Group I Principal Distribution Amount in the following
amounts and order of priority:

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                  (i) first, to the holders of the Group I Certificates, the
         Group I Class A Principal Distribution Amount until the Certificate
         Principal Balances thereof have been reduced to zero;

                  (ii) second, to the extent of the portion, if any, of the
         Group I Class A Principal Distribution Amount remaining undistributed
         pursuant to clause (c)(I)(i) above on such Distribution Date, and after
         taking into account the amount distributed to the holders of the Group
         II Certificates pursuant to clause (c)(II)(i) below on such
         Distribution Date, to the holders of the Group II Certificates, until
         the Certificate Principal Balances thereof have been reduced to zero;
         and

                  (iii) third, to the holders of the Group II Certificates, an
         amount equal to the excess, if any, of (x) the amount required to be
         distributed pursuant to clause (c)(II)(i) below for such Distribution
         Date over (y) the sum of (A) the amount actually distributed pursuant
         to clause (c)(II)(i) below from the Group II Principal Distribution
         Amount on such Distribution Date and (B) the amount, if any,
         distributed to the holders of the Group II Certificates pursuant to
         clause (c)(I)(ii) above on such Distribution Date.

         (II) On each Distribution Date (a) on or after the Stepdown Date and
(b) on which a Trigger Event is not in effect, the holders of the Class A
Certificates shall be entitled to receive distributions in respect of principal
to the extent of the Group II Principal Distribution Amount in the following
amounts and order of priority:

                  (i) first, to the holders of the Group II Certificates, the
         Group II Class A Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero;

                  (ii) second, to the extent of the portion, if any, of the
         Group II Class A Principal Distribution Amount remaining undistributed
         pursuant to clause (c)(II)(i) above on such Distribution Date, and
         after taking into account the amount distributed to the holders of the
         Group I Certificates pursuant to clause (c)(I)(i) above on such
         Distribution Date, to the holders of the Group I Certificates, until
         the Certificate Principal Balances thereof have been reduced to zero;
         and

                  (iii) third, to the holders of the Group I Certificates, an
         amount equal to the excess, if any, of (x) the amount required to be
         distributed pursuant to clause (c)(I)(i) above for such Distribution
         Date over (y) the sum of (A) the amount actually distributed pursuant
         to clause (c)(I)(i) above from the Group I Principal Distribution
         Amount on such Distribution Date and (B) the amount, if any,
         distributed to the holders of the Group I Certificates pursuant to
         clause (c)(II)(ii) above on such Distribution Date.

         (III) On each Distribution Date (a) on or after the Stepdown Date and
(b) on which a Trigger Event is not in effect, the holders of each class of
Mezzanine Certificates shall be entitled to receive distributions in respect of
principal to the extent of the sum of the Group I Principal Distribution Amount
and the Group II Principal Distribution Amount remaining undistributed for such
Distribution Date in the following amounts and order of priority:

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                  (i) first, to the holders of the Class M-1 Certificates, the
         Class M-1 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero; and

                  (ii) second, to the holders of the Class M-2 Certificates, the
         Class M-2 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero.

         (d) On each Distribution Date, the Net Monthly Excess Cashflow shall be
distributed as follows:

                  (i) to the Holders of the Class or Classes of Certificates
         then entitled to receive distributions in respect of principal, in an
         amount equal to any Extra Principal Distribution Amount, payable to
         such Holders as part of the Group I Principal Distribution Amount
         and/or the Group II Principal Distribution Amount as described under
         Section 4.01(b) and Section 4.01(c) above;

                  (ii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (iii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (iv) to the Holders of the Class M-2 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (v) to the Holders of the Class M-2 Certificates, in an amount
         equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (vi) to make payments to the Reserve Fund, to the extent
         required to pay the holders of the Offered Certificates any Net WAC
         Rate Carryover Amounts for such classes;

                  (vii) to the PMI Insurer, any payments made under the PMI
         Policy, to the extent such payments were the result of incorrect data
         supplied to the PMI Insurer by Option One;

                  (viii) to the Holders of the Class C Certificates, the Monthly
         Interest Distributable Amount after amounts payable pursuant to (vi)
         and (vii) above for such Class and any remaining Overcollateralization
         Release Amount for such Distribution Date;

                  (ix) if such Distribution Date follows the Prepayment Period
         during which occurs the latest date on which a Prepayment Charge may be
         required to be paid in respect of any Mortgage Loans, to the Holders of
         the Class P Certificates, in reduction of the Certificate Principal
         Balance thereof, until the Certificate Principal Balance thereof is
         reduced to zero; and

                  (x) any remaining amounts to the Holders of the Residual
         Certificates (in respect of the appropriate Class R Interest).

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         On each Distribution Date, after making the distributions of the Group
I Available Funds and the Group II Available Funds as described above, the
Trustee will FIRST, withdraw from the Reserve Fund all income from the
investment of funds in the Reserve Fund and distribute such amount to the
Holders of the Class C Certificates, and SECOND, withdraw from the Reserve Fund,
to the extent of amounts remaining on deposit therein, the amount of any Net WAC
Rate Carryover Amount for such Distribution Date and distribute such amount
first, concurrently to the Class A-1 Certificates and the Class A-2
Certificates; second, to the Class M-1 Certificates and third, to the Class M-2
Certificates, in each case to the extent of the Net WAC Rate Carryover Amount
allocable to each such Class.

         On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
and any Master Servicer Prepayment Charge Amounts paid by the Master Servicer
during the related Prepayment Period will be withdrawn from the Distribution
Account and distributed by the Trustee to the Holders of the Class P
Certificates and shall not be available for distribution to the Holders of any
other Class of Certificates. The payment of the foregoing amounts to the Holders
of the Class P Certificates shall not reduce the Certificate Principal Balances
thereof.

         On each Distribution Date, all amounts remitted to the Trustee for
deposit in the Distribution Account by the Master Servicer in respect of
Dividend Mortgage Loans pursuant to Section 3.31(c) will be withdrawn from the
Distribution Account and distributed by the Trustee to the holder of the
Dividend Account Certificate and shall not be available for distribution to the
Holders of any Class of Certificates.

         (e) The Trustee shall make distributions in respect of a Distribution
Date to each Certificateholder of record on the related Record Date (other than
as provided in Section 10.01 respecting the final distribution), in the case of
Certificateholders of the Regular Certificates, by check or money order mailed
to such Certificateholder at the address appearing in the Certificate Register,
or by wire transfer. Distributions among Certificateholders shall be made in
proportion to the Percentage Interests evidenced by the Certificates held by
such Certificateholders.

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

         Section 4.02.     Reserved.

         Section 4.03.     Statements.

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         (a) On each Distribution Date, based, as applicable, on information
provided to it by the Master Servicer, the Trustee shall prepare and make
available to each Holder of the Regular Certificates, the Master Servicer and
the Rating Agencies, a statement as to the distributions made on such
Distribution Date:

                  (i) the amount of the distribution made on such Distribution
         Date to the Holders of each Class of Regular Certificates, separately
         identified, allocable to principal and the amount of the distribution
         made to the Holders of the Class P Certificates allocable to Prepayment
         Charges and Master Servicer Prepayment Charge Payment Amounts;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of each Class of Regular Certificates (other than
         the Class P Certificates) allocable to interest, separately identified;

                  (iii) the Overcollateralized Amount, the Overcollateralization
         Release Amount, the Overcollateralization Deficiency Amount and the
         Overcollateralization Target Amount as of such Distribution Date and
         the Excess Overcollateralized Amount for the Mortgage Pool for such
         Distribution Date;

                  (iv) the aggregate amount of servicing compensation received
         by the Master Servicer with respect to the related Due Period and such
         other customary information as the Trustee deems necessary or
         desirable, or which a Certificateholder reasonably requests, to enable
         Certificateholders to prepare their tax returns;

                  (v) the aggregate amount of Advances for the related Due
         Period;

                  (vi) the Pool Balance at the Close of Business at the end of
         the related Due Period;

                  (vii) the number, aggregate principal balance, weighted
         average remaining term to maturity and weighted average Mortgage Rate
         of the Mortgage Loans as of the related Determination Date;

                  (viii) the number and aggregate unpaid principal balance of
         Mortgage Loans that were (A) Delinquent (exclusive of Mortgage Loans in
         bankruptcy or foreclosure and REO Properties) (1) 30 to 59 days, (2) 60
         to 89 days and (3) 90 or more days, (B) as to which foreclosure
         proceedings have been commenced and Delinquent (1) 30 to 59 days, (2)
         60 to 89 days and (3) 90 or more days, (C) in bankruptcy and Delinquent
         (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, in each
         case as of the Close of Business on the last day of the calendar month
         preceding such Distribution Date and (D) REO Properties;

                  (ix) [reserved];

                  (x) the total number and cumulative principal balance of all
         REO Properties as of the Close of Business of the last day of the
         preceding Prepayment Period;

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                  (xi) the aggregate amount of Principal Prepayments made during
         the related Prepayment Period;

                  (xii) the aggregate amount of Realized Losses incurred during
         the related Prepayment Period and the cumulative amount of Realized
         Losses;

                  (xiii) the aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Collection Account for such Distribution
         Date;

                  (xiv) the Certificate Principal Balance of the Class A
         Certificates, the Mezzanine Certificates and the Class C Certificates,
         after giving effect to the distributions made on such Distribution
         Date;

                  (xv) the Monthly Interest Distributable Amount in respect of
         the Class A Certificates, the Mezzanine Certificates and the Class C
         Certificates for such Distribution Date and the Unpaid Interest
         Shortfall Amount, if any, with respect to the Class A Certificates, the
         Mezzanine Certificates and the Class C Certificates for such
         Distribution Date;

                  (xvi) the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Master Servicer pursuant to Section 3.26;

                  (xvii) the Credit Enhancement Percentage for such Distribution
         Date;

                  (xviii) the Net WAC Rate Carryover Amount for the Class A
         Certificates and the Mezzanine Certificates, if any, for such
         Distribution Date and the amount remaining unpaid after reimbursements
         therefor on such Distribution Date;

                  (xix) any Overcollateralization Target Amount,
         Overcollateralized Amount and Overcollateralization Deficiency Amount
         after giving effect to the distribution of principal on such
         Distribution Date;

                  (xx) when the Stepdown Date or a Trigger Event has occurred;

                  (xxi) the Group I Available Funds and the Group II Available
         Funds;

                  (xxii) the respective Pass-Through Rates applicable to the
         Class A Certificates, the Mezzanine Certificates and the Class C
         Certificates for such Distribution Date and the Pass- Through Rate
         applicable to the Class A Certificates and the Mezzanine Certificates
         for the immediately succeeding Distribution Date;

                  (xxiii) (A) the amount of payments received related to claims
         under the PMI Policy during the related Prepayment Period (and the
         number of Mortgage Loans to which such payments related) and (B) the
         cumulative amount of payments received related to claims

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         under the PMI Policy since the Closing Date (and the number of Mortgage
         Loans to which such payments related);

                  (xxiv) (A) the dollar amount of claims made under the PMI
         Policy that were denied during the Prepayment Period (and the number of
         Mortgage Loans to which such denials related) and (B) the dollar amount
         of the cumulative claims made under the PMI Policy that were denied
         since the Closing Date (and the number of Mortgage Loans to which such
         denials related); and

                  (xxv) the amount on deposit in the Dividend Account
         immediately prior to the related Master Servicer Remittance Date, the
         amount deposited into the Dividend Account on the related Master
         Servicer Remittance Date (separately identifying the amount received
         from Mortgagors and the amount advanced) and the amount withdrawn from
         the Dividend Account on the related Master Servicer Remittance Date
         (separately identifying the amount refunded to Mortgagors and the
         amount distributed to the holder of the Dividend Account Certificate on
         such Distribution Date).

         The Trustee will make such statement (and, at its option, any
additional files containing the same information in an alternative format)
available each month to Certificateholders and the Rating Agencies via the
Trustee's internet website. The Trustee's internet website shall initially be
located at "www.ctslink.com". Assistance in using the website can be obtained by
calling the Trustee's customer service desk at (301) 815-6600. Parties that are
unable to use website are entitled to have a paper copy mailed to them via first
class mail by calling the customer service desk and indicating such. The Trustee
shall have the right to change the way such statements are distributed in order
to make such distribution more convenient and/or more accessible to the above
parties and the Trustee shall provide timely and adequate notification to all
above parties regarding any such changes.

         In the case of information furnished pursuant to subclauses (i) through
(iii) above, the amounts shall be expressed in a separate section of the report
as a dollar amount for each Class for each $1,000 original dollar amount as of
the Cut-off Date.

         (b) Within a reasonable period of time after the end of each calendar
year, the Trustee shall, upon written request, furnish to each Person who at any
time during the calendar year was a Certificateholder of a Regular Certificate,
if requested in writing by such Person, such information as is reasonably
necessary to provide to such Person a statement containing the information set
forth in subclauses (i) through (iii) above, aggregated for such calendar year
or applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be prepared and furnished
by the Trustee to Certificateholders pursuant to any requirements of the Code as
are in force from time to time.

         (c) On each Distribution Date, the Trustee shall make available to the
Class R Certificateholders a copy of the reports forwarded to the Regular
Certificateholders in respect of such Distribution Date with such other
information as the Trustee deems necessary or appropriate.

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         (d) Within a reasonable period of time after the end of each calendar
year, the Trustee shall deliver to each Person who at any time during the
calendar year was a Class R Certificateholder, if requested in writing by such
Person, such information as is reasonably necessary to provide to such Person a
statement containing the information provided pursuant to the previous paragraph
aggregated for such calendar year or applicable portion thereof during which
such Person was a Class R Certificateholder. Such obligation of the Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be prepared and furnished to Certificateholders by
the Trustee pursuant to any requirements of the Code as from time to time in
force.

         Section 4.04.     Remittance Reports; Advances.

         (a) On the second Business Day following each Determination Date but in
no event later than the 22nd day of the each month (or if such 22nd day is not a
Business Day, the preceding Business Day), the Master Servicer shall deliver to
the Trustee by telecopy or electronic mail (or by such other means as the Master
Servicer and the Trustee may agree from time to time) a Remittance Report with
respect to the related Distribution Date. Not later than the 22nd day of each
month (or if such 22nd day is not a Business Day, the preceding Business Day),
the Master Servicer shall deliver or cause to be delivered to the Trustee in
addition to the information provided on the Remittance Report, such other
information reasonably available to it with respect to the Mortgage Loans as the
Trustee may reasonably require to perform the calculations necessary to make the
distributions contemplated by Section 4.01 and to prepare the statements to
Certificateholders contemplated by Section 4.03. The Trustee shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Master Servicer.

         (b) The amount of Advances to be made by the Master Servicer for any
Distribution Date shall equal, subject to Section 4.04(d), the sum of (i) the
aggregate amount of Monthly Payments (net of the related Servicing Fee), due
during the related Due Period in respect of the Mortgage Loans, which Monthly
Payments were delinquent on a contractual basis as of the Close of Business on
the related Determination Date and (ii) with respect to each REO Property, which
REO Property was acquired during or prior to the related Due Period and as to
which REO Property an REO Disposition did not occur during the related Due
Period, an amount equal to the excess, if any, of the REO Imputed Interest on
such REO Property for the most recently ended calendar month, over the net
income from such REO Property transferred to the Distribution Account pursuant
to Section 3.23 for distribution on such Distribution Date.

         On or before 3:00 p.m. New York time on the Master Servicer Remittance
Date, the Master Servicer shall remit in immediately available funds to the
Trustee for deposit in the Distribution Account (or, in the case of Advances of
the Dividend Portions of Monthly Payments on Dividend Mortgage Loans, deposit
immediately available funds into the Dividend Account) an amount equal to the
aggregate amount of Advances, if any, to be made in respect of the Mortgage
Loans and REO Properties for the related Distribution Date either (i) from its
own funds or (ii) from the Collection Account, to the extent of funds held
therein for future distribution (in which case it will cause to be made an
appropriate entry in the records of Collection Account that amounts held for
future distribution have been, as permitted by this Section 4.04, used by the
Master Servicer in discharge of any such Advance) or (iii) in the form of any
combination of (i) and (ii) aggregating the total

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amount of Advances to be made by the Master Servicer with respect to the
Mortgage Loans and REO Properties. Any amounts held for future distribution used
by the Master Servicer to make an Advance as permitted in the preceding sentence
or withdrawn by the Master Servicer as permitted in Section 3.11(a)(ii) in
reimbursement of Advances previously made shall be appropriately reflected in
the Master Servicer's records and replaced by the Master Servicer by deposit in
the Collection Account on or before any future Master Servicer Remittance Date
to the extent that the Group I Available Funds and the Group II Available Funds
for the related Distribution Date (determined without regard to Advances to be
made on the Master Servicer Remittance Date) shall be less than the total amount
that would be distributed to the Classes of Certificateholders pursuant to
Section 4.01 on such Distribution Date if such amounts held for future
distributions had not been so used to make Advances or reimburse for previously
made Advances. The Trustee will provide notice to the Master Servicer by
telecopy by the Close of Business on any Master Servicer Remittance Date in the
event that the amount remitted by the Master Servicer to the Trustee on such
date is less than the Advances required to be made by the Master Servicer for
the related Distribution Date, as set forth in the related Remittance Report.

         (c) The obligation of the Master Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan, shall continue until the
Mortgage Loan is paid in full or until the recovery of all Liquidation Proceeds
thereon.

         (d) Notwithstanding anything herein to the contrary, no Advance or
Servicing Advance shall be required to be made hereunder by the Master Servicer
if such Advance or Servicing Advance would, if made, constitute a Nonrecoverable
Advance. The determination by the Master Servicer that it has made a
Nonrecoverable Advance or that any proposed Advance or Servicing Advance, if
made, would constitute a Nonrecoverable Advance, shall be evidenced by an
Officers' Certificate of the Master Servicer delivered to the Depositor and the
Trustee.

         Section 4.05.     [Reserved]

         Section 4.06.     [Reserved]

         Section 4.07.     Distributions on the REMIC Regular Interests.

         (a) On each Distribution Date, the Trustee shall cause in the following
order of priority, the following amounts to be distributed by REMIC 1 to REMIC 2
on account of the REMIC 1 Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class R Certificates (in respect
of the Class R-1 Interest), as the case may be:

                  (i) first, to the extent of Group I Available Funds and the
         Group II Available Funds, to Holders of REMIC 1 Regular Interest LT1A,
         REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C, REMIC 1
         Regular Interest LT1D, REMIC 1 Regular Interest LT1E, REMIC 1 Regular
         Interest LT1F, REMIC 1 Regular Interest LT1G, REMIC 1 Regular Interest
         LT1H, REMIC 1 Regular Interest LT1I, REMIC 1 Regular Interest LT1J,
         REMIC 1 Regular Interest LT1PI and REMIC 1 Regular Interest LT1PII, PRO
         RATA, in an amount equal to (A) the Uncertificated Accrued Interest for
         such Distribution Date, plus (B)

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         any amounts in respect thereof remaining unpaid from previous
         Distribution Dates. Amounts payable as Uncertificated Accrued Interest
         in respect of REMIC 1 Regular Interest LT1F shall be reduced when the
         REMIC 1 Overcollateralization Amount is less than the REMIC 1
         Overcollateralization Target Amount, by the lesser of (x) the amount of
         such difference and (y) the Maximum Uncertificated Accrued Interest
         Deferral Amount and such amount will be payable to the Holders of REMIC
         1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C, REMIC 1 Regular
         Interest LT1D, REMIC 1 Regular Interest LT1E, REMIC 1 Regular Interest
         LT1H, REMIC 1 Regular Interest LT1I and REMIC 1 Regular Interest LT1J
         in the same proportion as the Extra Principal Distribution Amount is
         allocated to the Corresponding Certificates; and

                  (ii) second, to the Holders of REMIC 1 Regular Interests, in
         an amount equal to the remainder of the Group I Available Funds and the
         Group II Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

                           (a) with respect to the Group I Mortgage Loans, to
                  the Holders of REMIC 1 Regular Interest LT1A, 98.00% of such
                  remainder, until the Uncertificated Principal Balance of such
                  Uncertificated REMIC 1 Regular Interest is reduced to zero and
                  with respect to the Group II Mortgage Loans, to the Holders of
                  REMIC 1 Regular Interest LT1F, 98.00% of such remainder, until
                  the Uncertificated Principal Balance of such Uncertificated
                  REMIC 1 Regular Interest is reduced to zero;

                           (b) with respect to the Group I Mortgage Loans, to
                  the Holders of REMIC 1 Regular Interest LT1B, REMIC 1 Regular
                  Interest LT1C and REMIC 1 Regular Interest LT1D, 1.00% of such
                  remainder, in the same proportion as principal payments are
                  allocated to the Corresponding Certificates, until the
                  Uncertificated Principal Balances of such REMIC 1 Regular
                  Interests are reduced to zero and with respect to the Group II
                  Mortgage Loans, to the Holders of REMIC 1 Regular Interest
                  LT1G, REMIC 1 Regular Interest LT1H, REMIC 1 Regular Interest
                  LT1I and REMIC 1 Regular Interest LT1J, 1.00% of such
                  remainder, in the same proportion as principal payments are
                  allocated to the Corresponding Certificates, until the
                  Uncertificated Principal Balances of such REMIC 1 Regular
                  Interests are reduced to zero;

                           (c) with respect to the Group I Mortgage Loans, to
                  the Holders of REMIC 1 Regular Interest LT1E, 1.00% of such
                  remainder, until the Uncertificated Principal Balance of such
                  REMIC 1 Regular Interest is reduced to zero and with respect
                  to the Group II Mortgage Loans, to the Holders of REMIC 1
                  Regular Interest LT1J, 1.00% of such remainder, until the
                  Uncertificated Principal Balance of such REMIC 1 Regular
                  Interest is reduced to zero;

                           (d) with respect to the Group I Mortgage Loans, to
                  the Holders of REMIC 1 Regular Interest LT1PI, on the
                  Distribution Date immediately following the expiration of the
                  latest Prepayment Charge as identified on the Prepayment
                  Charge Schedule or any Distribution Date thereafter until the
                  Uncertificated Principal

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                  Balance thereof has been distributed pursuant to this clause
                  and with respect to the Group II Mortgage Loans, to the
                  Holders of REMIC 1 Regular Interest LT1PII, on the
                  Distribution Date immediately following the expiration of the
                  latest Prepayment Charge as identified on the Prepayment
                  Charge Schedule or any Distribution Date thereafter until the
                  Uncertificated Principal Balance thereof has been distributed
                  pursuant to this clause; then

                           (e) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-1 Interest);

provided, however, that with respect to the Group I Mortgage Loans, 98.00% and
2.00% of any principal payments that are attributable to an
Overcollateralization Release Amount shall be allocated to Holders of REMIC 1
Regular Interest LT1A and REMIC 1 Regular Interest LT1E, respectively and with
respect to the Group II Mortgage Loans, 98.00% and 2.00% of any principal
payments that are attributable to an Overcollateralization Release Amount shall
be allocated to Holders of REMIC 1 Regular Interest LT1F and REMIC 1 Regular
Interest LT1J, respectively.

         Section 4.08.     Allocation of Realized Losses.

         (a) All Realized Losses on the Mortgage Loans allocated to any Regular
Certificate shall be allocated by the Trustee on each Distribution Date as
follows: first, to Net Monthly Excess Cashflow; second, to the Class C
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; third, to the Class M-2 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; and fourth, to the Class M-1
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero. All Realized Losses to be allocated to the Certificate Principal
Balances of all Classes on any Distribution Date shall be so allocated after the
actual distributions to be made on such date as provided above. All references
above to the Certificate Principal Balance of any Class of Certificates shall be
to the Certificate Principal Balance of such Class immediately prior to the
relevant Distribution Date, before reduction thereof by any Realized Losses, in
each case to be allocated to such Class of Certificates, on such Distribution
Date.

         Any allocation of Realized Losses to a Mezzanine Certificate on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated; any allocation of Realized Losses to a Class
C Certificate shall be made by reducing the amount otherwise payable in respect
thereof pursuant to Section 4.01(d)(viii). No allocations of any Realized Losses
shall be made to the Certificate Principal Balances of the Class A Certificates
or the Class P Certificates.

         (b) All Realized Losses on the Mortgage Loans shall be deemed to have
been allocated in the specified percentages, as follows: with respect to
Realized Losses on the Group I Mortgage Loans, first, to Uncertificated Accrued
Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular
Interest LT1E up to an aggregate amount equal to the REMIC 1 Group I Interest
Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest
LT1E up to an aggregate amount equal to the REMIC 1 Group I Principal Loss
Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular

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Interest LT1D and REMIC 1 Regular Interest LT1E, 98%, 1% and 1%, respectively,
until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has
been reduced to zero; and fourth, to the Uncertificated Principal Balances of
REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular
Interest LT1E, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LT1C has been reduced to zero and with
respect to Realized Losses on the Group II Mortgage Loans, first, to
Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1F and
REMIC 1 Regular Interest LT1J up to an aggregate amount equal to the REMIC 1
Group II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F and REMIC
1 Regular Interest LT1J up to an aggregate amount equal to the REMIC 1 Group II
Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F, REMIC 1
Regular Interest LT1I and REMIC 1 Regular Interest LT1J, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT1I has been reduced to zero; and fourth, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest
LT1H and REMIC 1 Regular Interest LT1J, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT1H has been
reduced to zero.

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                                    ARTICLE V

                                THE CERTIFICATES

         Section 5.01.     The Certificates.

         Each of the Class A Certificates, the Mezzanine Certificates, the Class
P Certificates, the Class C Certificates and the Class R Certificates shall be
substantially in the forms annexed hereto as exhibits, and shall, on original
issue, be executed, authenticated and delivered by the Trustee to or upon the
order of the Depositor concurrently with the sale and assignment to the Trustee
of the Trust Fund. The Class A Certificates and the Mezzanine Certificates shall
be initially evidenced by one or more Certificates representing a Percentage
Interest with a minimum dollar denomination of $50,000 and integral dollar
multiples of $1.00 in excess thereof, except that one Certificate of each such
Class of Certificates may be in a different denomination so that the sum of the
denominations of all outstanding Certificates of such Class shall equal the
Certificate Principal Balance of such Class on the Closing Date. The Class P
Certificates, the Class C Certificates and the Class R Certificates are issuable
in any Percentage Interests; provided, however, that the sum of all such
percentages for each such Class totals 100% and no more than ten Certificates of
each Class may be issued.

         The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature on behalf of the Trustee by a Responsible Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures were affixed, authorized to sign on behalf of
the Trustee shall bind the Trust, notwithstanding that such individuals or any
of them have ceased to be so authorized prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificate. No Certificate shall be entitled to any benefit under this
Agreement or be valid for any purpose, unless such Certificate shall have been
manually authenticated by the Trustee substantially in the form provided for
herein, and such authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. Subject to Section 5.02(c), the Class A Certificates
and the Mezzanine Certificates shall be Book-Entry Certificates. The other
Classes of Certificates shall not be Book-Entry Certificates.

         Section 5.02.     Registration of Transfer and Exchange of
                           Certificates.

         (a) The Certificate Registrar shall cause to be kept at the Corporate
Trust Office a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided. The Trustee shall initially serve as Certificate Registrar for
the purpose of registering Certificates and transfers and exchanges of
Certificates as herein provided.

         Upon surrender for registration of transfer of any Certificate at any
office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Class R Certificate,
upon satisfaction of the conditions set forth below, the Trustee on

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behalf of the Trust shall execute, authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
aggregate Percentage Interest.

         At the option of the Certificateholders, Certificates may be exchanged
for other Certificates in authorized denominations and the same aggregate
Percentage Interests, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for
exchange, the Trustee shall execute on behalf of the Trust and authenticate and
deliver the Certificates which the Certificateholder making the exchange is
entitled to receive. Every Certificate presented or surrendered for registration
of transfer or exchange shall (if so required by the Trustee or the Certificate
Registrar) be duly endorsed by, or be accompanied by a written instrument of
transfer satisfactory to the Trustee and the Certificate Registrar duly executed
by, the Holder thereof or his attorney duly authorized in writing. In addition,
with respect to each Class R Certificate, the holder thereof may exchange, in
the manner described above, such Class R Certificate for two separate
certificates, each representing such holder's respective Percentage Interest in
the Class R-1 Interest and the Class R-2 Interest, respectively, in each case
that was evidenced by the Class R Certificate being exchanged.

         (b) Except as provided in paragraph (c) below, the Book-Entry
Certificates shall at all times remain registered in the name of the Depository
or its nominee and at all times: (i) registration of such Certificates may not
be transferred by the Trustee except to another Depository; (ii) the Depository
shall maintain book-entry records with respect to the Certificate Owners and
with respect to ownership and transfers of such Certificates; (iii) ownership
and transfers of registration of such Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall for all
purposes deal with the Depository as representative of the Certificate Owners of
the Certificates for purposes of exercising the rights of Holders under this
Agreement, and requests and directions for and votes of such representative
shall not be deemed to be inconsistent if they are made with respect to
different Certificate Owners; (vi) the Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its Depository Participants and furnished by the Depository Participants with
respect to indirect participating firms and Persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners; and (vii)
the direct participants of the Depository shall have no rights under this
Agreement under or with respect to any of the Certificates held on their behalf
by the Depository, and the Depository may be treated by the Trustee and its
agents, employees, officers and directors as the absolute owner of the
Certificates for all purposes whatsoever.

         All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owners. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners
that it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The parties hereto are
hereby authorized to execute a Letter of Representations with the Depository or
take such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository. In the event of any conflict between the terms of
any such Letter of Representation and this Agreement, the terms of this
Agreement shall control.

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         (c) If (i)(x) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to discharge properly
its responsibilities as Depository and (y) the Trustee or the Depositor is
unable to locate a qualified successor, (ii) the Depositor, at its sole option,
with the consent of the Trustee, elects to terminate the book-entry system
through the Depository or (iii) after the occurrence of a Master Servicer Event
of Termination, the Certificate Owners of the Book-Entry Certificates
representing Percentage Interests of such Classes aggregating not less than 51%
advise the Trustee and Depository through the Financial Intermediaries and the
Depository Participants in writing that the continuation of a book-entry system
through the Depository to the exclusion of definitive, fully registered
certificates (the "Definitive Certificates") to Certificate Owners is no longer
in the best interests of the Certificate Owners. Upon surrender to the
Certificate Registrar of the Book-Entry Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall, at the Depositor's expense, in the case of (ii) above, or the
Master Servicer's expense, in the case of (i) and (iii) above, execute on behalf
of the Trust and authenticate the Definitive Certificates. Neither the Depositor
nor the Trustee shall be liable for any delay in delivery of such instructions
and may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Certificates, the Trustee, the
Certificate Registrar, the Master Servicer, any Paying Agent and the Depositor
shall recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

         (d) No transfer, sale, pledge or other disposition of any Class C
Certificate, Class P Certificate or Class R Certificate shall be made unless
such disposition is exempt from the registration requirements of the Securities
Act of 1933, as amended (the "1933 Act"), and any applicable state securities
laws or is made in accordance with the 1933 Act and laws. In the event of any
such transfer, except with respect to the initial transfer of any Class C
Certificate, Class P Certificate or Class R Certificates by the Depositor (i)
unless such transfer is made in reliance upon Rule 144A (as evidenced by the
investment letter delivered to the Trustee, in substantially the form attached
hereto as Exhibit J) under the 1933 Act, the Trustee and the Depositor shall
require a written Opinion of Counsel (which may be in-house counsel) acceptable
to and in form and substance reasonably satisfactory to the Trustee and the
Depositor that such transfer may be made pursuant to an exemption, describing
the applicable exemption and the basis therefor, from the 1933 Act or is being
made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
of the Trustee or the Depositor or (ii) the Trustee shall require the transferor
to execute a transferor certificate (in substantially the form attached hereto
as Exhibit L) and the transferee to execute an investment letter (in
substantially the form attached hereto as Exhibit J) acceptable to and in form
and substance reasonably satisfactory to the Depositor and the Trustee
certifying to the Depositor and the Trustee the facts surrounding such transfer,
which investment letter shall not be an expense of the Trustee or the Depositor.
The Holder of a Class C Certificate, Class P Certificate or Class R Certificate
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of a Class C Certificate, Class P Certificate or Class R
Certificate or any interest therein shall be made to any Plan subject to ERISA
or Section 4975 of the Code, any Person acting, directly or indirectly, on
behalf of any such Plan or any Person acquiring such Certificates with "Plan
Assets" of a Plan within the meaning of the Department of Labor regulation
promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets") unless the Depositor,
the Trustee and the Master Servicer are

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provided with an Opinion of Counsel which establishes to the satisfaction of the
Depositor, the Trustee and the Master Servicer that the purchase of such
Certificates is permissible under applicable law, will not constitute or result
in any prohibited transaction under ERISA or Section 4975 of the Code and will
not subject the Depositor, the Master Servicer, the Trustee or the Trust Fund to
any obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in this Agreement,
which Opinion of Counsel shall not be an expense of the Depositor, the Master
Servicer, the Trustee or the Trust Fund. An Opinion of Counsel will not be
required in connection with the initial transfer of any such Certificate by the
Depositor to an affiliate of the Depositor (in which case, the Depositor or any
affiliate thereof shall have deemed to have represented that such affiliate is
not a Plan or a Person investing Plan Assets) and the Trustee shall be entitled
to conclusively rely upon a representation (which, upon the request of the
Trustee, shall be a written representation) from the Depositor of the status of
such transferee as an affiliate of the Depositor.

         If any Class C Certificate, Class P Certificate or Class R Certificate
or any interest therein is acquired or held in violation of the provisions of
the second preceding paragraph, the next preceding permitted beneficial owner
will be treated as the beneficial owner of that Certificate retroactive to the
date of transfer to the purported beneficial owner. Any purported beneficial
owner whose acquisition or holding of any such Certificate or interest therein
was effected in violation of the provisions of the preceding paragraph shall
indemnify and hold harmless the Depositor, the Master Servicer, the Trustee and
the Trust from and against any and all liabilities, claims, costs or expenses
incurred by those parties as a result of that acquisition or holding.

         Each Person who has or who acquires any Ownership Interest in a Class R
Certificate shall be deemed by the acceptance or acquisition of such Ownership
Interest to have agreed to be bound by the following provisions and to have
irrevocably appointed the Depositor or its designee as its attorney-in-fact to
negotiate the terms of any mandatory sale under clause (v) below and to execute
all instruments of transfer and to do all other things necessary in connection
with any such sale, and the rights of each Person acquiring any Ownership
Interest in a Class R Certificate are expressly subject to the following
provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         a Class R Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee of any change or impending change in its
         status as a Permitted Transferee.

                  (ii) No Person shall acquire an Ownership Interest in a Class
         R Certificate unless such Ownership Interest is a PRO RATA undivided
         interest.

                  (iii) In connection with any proposed transfer of any
         Ownership Interest in a Class R Certificate, the Trustee shall as a
         condition to registration of the transfer, require delivery to it, in
         form and substance satisfactory to it, of each of the following:

                           A. an affidavit in the form of Exhibit K hereto from
                  the proposed transferee to the effect that such transferee is
                  a Permitted Transferee and that it is not acquiring its
                  Ownership Interest in the Class R Certificate that is the
                  subject of the

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                  proposed transfer as a nominee, trustee or agent for any
                  Person who is not a Permitted Transferee; and

                           B. a covenant of the proposed transferee to the
                  effect that the proposed transferee agrees to be bound by and
                  to abide by the transfer restrictions applicable to the Class
                  R Certificates.

                  (iv) Any attempted or purported transfer of any Ownership
         Interest in a Class R Certificate in violation of the provisions of
         this Section shall be absolutely null and void and shall vest no rights
         in the purported transferee. If any purported transferee shall, in
         violation of the provisions of this Section, become a Holder of a Class
         R Certificate, then the prior Holder of such Class R Certificate that
         is a Permitted Transferee shall, upon discovery that the registration
         of transfer of such Class R Certificate was not in fact permitted by
         this Section, be restored to all rights as Holder thereof retroactive
         to the date of registration of transfer of such Class R Certificate.
         The Trustee shall be under no liability to any Person for any
         registration of transfer of a Class R Certificate that is in fact not
         permitted by this Section or for making any distributions due on such
         Class R Certificate to the Holder thereof or taking any other action
         with respect to such Holder under the provisions of this Agreement so
         long as the Trustee received the documents specified in clause (iii).
         The Trustee shall be entitled to recover from any Holder of a Class R
         Certificate that was in fact not a Permitted Transferee at the time
         such distributions were made all distributions made on such Class R
         Certificate. Any such distributions so recovered by the Trustee shall
         be distributed and delivered by the Trustee to the prior Holder of such
         Class R Certificate that is a Permitted Transferee.

                  (v) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Trustee shall have the right but
         not the obligation, without notice to the Holder of such Class R
         Certificate or any other Person having an Ownership Interest therein,
         to notify the Depositor to arrange for the sale of such Class R
         Certificate. The proceeds of such sale, net of commissions (which may
         include commissions payable to the Depositor or its affiliates in
         connection with such sale), expenses and taxes due, if any, will be
         remitted by the Trustee to the previous Holder of such Class R
         Certificate that is a Permitted Transferee, except that in the event
         that the Trustee determines that the Holder of such Class R Certificate
         may be liable for any amount due under this Section or any other
         provisions of this Agreement, the Trustee may withhold a corresponding
         amount from such remittance as security for such claim. The terms and
         conditions of any sale under this clause (v) shall be determined in the
         sole discretion of the Trustee and it shall not be liable to any Person
         having an Ownership Interest in a Class R Certificate as a result of
         its exercise of such discretion.

                  (vi) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Trustee upon receipt of
         reasonable compensation will provide to the Internal Revenue Service,
         and to the persons specified in Sections 860E(e)(3) and (6) of the
         Code, information needed to compute the tax imposed under Section
         860E(e)(5) of the Code on transfers of residual interests to
         disqualified organizations.

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         The foregoing provisions of this Section shall cease to apply to
transfers occurring on or after the date on which there shall have been
delivered to the Trustee, in form and substance satisfactory to the Trustee, (i)
written notification from each Rating Agency that the removal of the
restrictions on transfer set forth in this Section will not cause such Rating
Agency to downgrade its rating of the Certificates and (ii) an Opinion of
Counsel to the effect that such removal will not cause any REMIC created
hereunder to fail to qualify as a REMIC.

         (e) No service charge shall be made for any registration of transfer or
exchange of Certificates of any Class, but the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

         All Certificates surrendered for registration of transfer or exchange
shall be cancelled by the Certificate Registrar and disposed of pursuant to its
standard procedures.

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

         If (i) any mutilated Certificate is surrendered to the Certificate
Registrar or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate and (ii) there is delivered to
the Trustee, the Depositor and the Certificate Registrar such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or the Certificate Registrar that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute on behalf of the Trust, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor and Percentage Interest. Upon the issuance of any new
Certificate under this Section, the Trustee or the Certificate Registrar may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee and the Certificate Registrar) in
connection therewith. Any duplicate Certificate issued pursuant to this Section,
shall constitute complete and indefeasible evidence of ownership in the Trust,
as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

         Section 5.04.     Persons Deemed Owners.

         The Master Servicer, the Depositor, the Trustee, the Certificate
Registrar, any Paying Agent and any agent of the Master Servicer, the Depositor,
the Trustee, the Certificate Registrar or any Paying Agent may treat the Person,
including a Depository, in whose name any Certificate is registered as the owner
of such Certificate for the purpose of receiving distributions pursuant to
Section 4.01 and for all other purposes whatsoever, and none of the Master
Servicer, the Trust, the Trustee nor any agent of any of them shall be affected
by notice to the contrary.

         Section 5.05.     Appointment of Paying Agent.

         (a) The Paying Agent shall make distributions to Certificateholders
from the Distribution Account pursuant to Section 4.01 and shall report the
amounts of such distributions to the Trustee. The duties of the Paying Agent may
include the obligation (i) to withdraw funds from the Collection

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Account pursuant to Section 3.11(a) and for the purpose of making the
distributions referred to above and (ii) to distribute statements and provide
information to Certificateholders as required hereunder. The Paying Agent
hereunder shall at all times be an entity duly incorporated and validly existing
under the laws of the United States of America or any state thereof, authorized
under such laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authorities. The Paying Agent shall initially be
the Trustee. The Trustee may appoint a successor to act as Paying Agent, which
appointment shall be reasonably satisfactory to the Depositor.

         (b) The Trustee shall cause the Paying Agent (if other than the
Trustee) to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee that such Paying Agent shall hold all
sums, if any, held by it for payment to the Certificateholders in trust for the
benefit of the Certificateholders entitled thereto until such sums shall be paid
to such Certificateholders and shall agree that it shall comply with all
requirements of the Code regarding the withholding of payments in respect of
Federal income taxes due from Certificate Owners and otherwise comply with the
provisions of this Agreement applicable to it.

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                                   ARTICLE VI

                      THE MASTER SERVICER AND THE DEPOSITOR

         Section 6.01.     Liability of the Master Servicer and the Depositor.

         The Master Servicer shall be liable in accordance herewith only to the
extent of the obligations specifically imposed upon and undertaken by Master
Servicer herein. The Depositor shall be liable in accordance herewith only to
the extent of the obligations specifically imposed upon and undertaken by the
Depositor.

         Section 6.02.     Merger or Consolidation of, or Assumption of the
                           Obligations of, the Master Servicer or the Depositor.

         Any entity into which the Master Servicer or Depositor may be merged or
consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Master Servicer or the Depositor shall be a party, or
any corporation succeeding to the business of the Master Servicer or the
Depositor, shall be the successor of the Master Servicer or the Depositor, as
the case may be, hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, however, that the successor Master Servicer
shall satisfy all the requirements of Section 7.02 with respect to the
qualifications of a successor Master Servicer.

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

         Neither the Master Servicer or the Depositor nor any of the directors
or officers or employees or agents of the Master Servicer or the Depositor shall
be under any liability to the Trust or the Certificateholders for any action
taken or for refraining from the taking of any action by the Master Servicer or
the Depositor in good faith pursuant to this Agreement, or for errors in
judgment; provided, however, that this provision shall not protect the Master
Servicer, the Depositor or any such Person against any liability which would
otherwise be imposed by reason of its willful misfeasance, bad faith or
negligence in the performance of duties of the Master Servicer or the Depositor,
as the case may be, or by reason of its reckless disregard of its obligations
and duties of the Master Servicer or the Depositor, as the case may be,
hereunder; provided, further, that this provision shall not be construed to
entitle the Master Servicer to indemnity in the event that amounts advanced by
the Master Servicer to retire any senior lien exceed Liquidation Proceeds (in
excess of related liquidation expenses) realized with respect to the related
Mortgage Loan. The Master Servicer and any director or officer or employee or
agent of the Master Servicer may rely in good faith on any document of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Master Servicer and the Depositor, and any director or
officer or employee or agent of the Master Servicer or the Depositor, shall be
indemnified by the Trust and held harmless against any loss, liability or
expense incurred in connection with any legal action relating to this Agreement
or the Certificates, other than any loss, liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or
expense shall be otherwise reimbursable pursuant to this Agreement) and any
loss, liability or expense incurred by reason of its willful misfeasance, bad
faith or negligence in the performance of duties hereunder

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or by reason of its reckless disregard of obligations and duties hereunder. The
Master Servicer or the Depositor may undertake any such action which it may deem
necessary or desirable in respect of this Agreement, and the rights and duties
of the parties hereto and the interests of the Certificateholders hereunder. In
such event, unless the Depositor or the Master Servicer acts without the consent
of the Holders of Certificates entitled to at least 51% of the Voting Rights,
the reasonable legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Trust and
the Master Servicer shall be entitled to be reimbursed therefor from the
Collection Account as and to the extent provided in Section 3.11, any such right
of reimbursement being prior to the rights of the Certificateholders to receive
any amount in the Collection Account. The Master Servicer's right to indemnity
or reimbursement pursuant to this Section shall survive any resignation or
termination of the Master Servicer pursuant to Section 6.04 or 7.01 with respect
to any losses, expenses, costs or liabilities arising prior to such resignation
or termination (or arising from events that occurred prior to such resignation
or termination). This paragraph shall apply to the Master Servicer solely in its
capacity as Master Servicer hereunder and in no other capacities.

         Section 6.04.     Master Servicer Not to Resign.

         Subject to the provisions of Section 7.01 and Section 6.02, the Master
Servicer shall not resign from the obligations and duties hereby imposed on it
except (i) upon determination that the performance of its obligations or duties
hereunder are no longer permissible under applicable law or are in material
conflict by reason of applicable law with any other activities carried on by it
or its subsidiaries or Affiliates, the other activities of the Master Servicer
so causing such a conflict being of a type and nature carried on by the Master
Servicer or its subsidiaries or Affiliates at the date of this Agreement or (ii)
upon satisfaction of the following conditions: (a) the Master Servicer has
proposed a successor servicer to the Trustee in writing and such proposed
successor servicer is reasonably acceptable to the Trustee and (b) each Rating
Agency shall have delivered a letter to the Trustee prior to the appointment of
the successor servicer stating that the proposed appointment of such successor
servicer as Master Servicer hereunder will not result in the reduction or
withdrawal of the then current rating of the Certificates; provided, however,
that no such resignation by the Master Servicer shall become effective until
such successor servicer or, in the case of (i) above, the Trustee shall have
assumed the Master Servicer's responsibilities and obligations hereunder or the
Trustee shall have designated a successor servicer in accordance with Section
7.02. Any such resignation shall not relieve the Master Servicer of
responsibility for any of the obligations specified in Sections 7.01 and 7.02 as
obligations that survive the resignation or termination of the Master Servicer.
Any such determination permitting the resignation of the Master Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee.
Any such determination permitting the resignation of the Master Servicer shall
be evidenced by an Opinion of Counsel to such effect delivered to the Trustee.

         Section 6.05.     Delegation of Duties.

         In the ordinary course of business, the Master Servicer at any time may
delegate any of its duties hereunder to any Person, including any of its
Affiliates, who agrees to conduct such duties in accordance with standards
comparable to those set forth in Section 3.01. Such delegation shall not relieve
the Master Servicer of its liabilities and responsibilities with respect to such
duties and shall

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not constitute a resignation within the meaning of Section 6.04. Except as
provided in Section 3.02, no such delegation is permitted that results in the
delegee subservicing any Mortgage Loans. The Master Servicer shall provide the
Trustee with 60 days prior written notice prior to the delegation of any of its
duties to any Person other than any of the Master Servicer's Affiliates or their
respective successors and assigns.

         Section 6.06.     Reserved.

         Section 6.07.     Inspection.

         The Master Servicer, in its capacity as Master Servicer, shall afford
the Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer in respect of its rights and
obligations hereunder and access to officers of the Master Servicer responsible
for such obligations. Upon request, the Master Servicer shall furnish to the
Trustee its most recent publicly available financial statements and such other
information relating to its capacity to perform its obligations under this
Agreement.

         Section 6.08.     Duties of the Loss Mitigation Advisor.

         The Certificateholders, by their purchase and acceptance of the
Certificates, appoint the Loss Mitigation Advisor. For and on behalf of the
Depositor, the Trustee, the Master Servicer and the Certificateholders, the Loss
Mitigation Advisor will provide reports and recommendations as to loss
mitigation activities concerning Mortgage Loans that are past due, as to which
there has been commencement of foreclosure, as to which there has been
forbearance in exercise of remedies which are in default, as to which any
obligor is the subject of bankruptcy, receivership, or an arrangement of
creditors, or which have become REO Properties, and that such reports and
recommendations will be based upon information provided to the Loss Mitigation
Advisor by the Master Servicer pursuant to the Loss Mitigation Advisory
Agreement. The Loss Mitigation Advisor shall look solely to the Master Servicer
for all information and data (including loss and delinquency information and
data) and loan level information and data relating to the servicing of the
Mortgage Loans.

         Section 6.09.     Limitation Upon Liability of the Loss Mitigation
                           Advisor.

         Under the Loss Mitigation Advisory Agreement, neither the Loss
Mitigation Advisor, nor any of the directors, officers, employees or agents of
the Loss Mitigation Advisor, shall be under any liability to the Trustee, the
Certificateholders or the Depositor for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement, in reliance
upon information provided by Master Servicer under the Loss Mitigation Advisory
Agreement or for errors in judgment; provided, however, the parties hereto
acknowledge that this provision does not protect the Loss Mitigation Advisor or
any such person against liability that would otherwise be imposed by reason of
willful malfeasance, bad faith or gross negligence in its performance of its
duties or by reason of reckless disregard for its obligations and duties under
this Agreement or the Loss Mitigation Advisory Agreement. The Loss Mitigation
Advisor and any director, officer, employee or agent of the Loss Mitigation
Advisor may, in accordance with the terms of the Loss Mitigation Advisory
Agreement, rely in good faith on any document of any kind prima facie properly
executed and submitted by any Person respecting matters arising hereunder and
may rely in good faith upon

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the accuracy of information furnished by the Master Servicer pursuant to the
Loss Mitigation Advisory Agreement in the performance of its duties thereunder.

         Section 6.10.     Ownership of Intellectual Property.

         (a) The Loss Mitigation Advisor is and shall remain the exclusive owner
of all intellectual property rights including without limitation all rights in
patents, copyrights, and trade secrets in existing proprietary methods and
technology intended for use in performing the services pursuant to the Loss
Mitigation Advisory Agreement including any existing proprietary methods and
technology for projecting loss estimates, projecting default probability, risk
filtering, and mitigating losses in mortgage-backed securities.

         (b) All right, title, and interest in any designs, practices, software,
methods of doing business, processes, apparatus, improvements, improvements in
existing proprietary methods and technology and inventions (all of which are
hereinafter referred to as "Inventions") that the Loss Mitigation Advisor
conceives, develops, or makes solely or jointly with any third party during its
services as Loss Mitigation Advisor or within six months thereafter shall be the
sole property of the Loss Mitigation Advisor which Inventions are protectable by
federal patent law or have the ability to become trade secrets of the Loss
Mitigation Advisor.

         (c) All right, title, and interest in all copyrightable material
including computer programs which the Loss Mitigation Advisor shall fix in a
tangible medium solely or jointly with any third party including derivative
works and which arise out of its performance as Loss Mitigation Advisor is not
to be considered a work for hire, and shall be the property of the Loss
Mitigation Advisor.

         Section 6.11.     Protection of Trade Secrets, Know-How and/or Other
                           Confidential Information of the Loss Mitigation
                           Advisor.

         (a) Except as permitted or directed by the President of the Loss
Mitigation Advisor, the parties hereto shall not divulge, furnish or make
accessible to anyone or use in any way (other than in the ordinary course of
business as to allow for the performance of duties under this Agreement or as
required by law) any knowledge or information including confidential
information, trade secrets, confidential or secret designs, processes, formulae,
methods of doing business, products or future products, plans, devices or
material (whether or not patented or patentable) directly or indirectly useful
in any aspect of the business of the Loss Mitigation Advisor that such party has
acquired or become acquainted with or will acquire or become acquainted with
during the engagement of the Loss Mitigation Advisor, but shall not include
factual information regarding individual mortgage loans. The parties hereto
acknowledge that the above-described knowledge or information constitutes a
unique and valuable asset of the Loss Mitigation Advisor acquired at great time
and expense by the Loss Mitigation Advisor, and that any disclosure or other use
of such knowledge or information other than for the sole benefit of the Loss
Mitigation Advisor would be wrongful and would cause irreparable harm to the
Loss Mitigation Advisor. The parties hereto will refrain from any acts or
omissions that would reduce the value of such knowledge or information to the
Loss Mitigation Advisor. The foregoing obligations of confidentiality, however,
shall not apply to (i) any knowledge or information which is now published or
which already is, or subsequently becomes, generally publicly known in the form
in which it was obtained from the Loss Mitigation

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Advisor or (ii) knowledge or information which has been obtained from a source
other than the Loss Mitigation Advisor, other than as a direct or indirect
result of the breach of the above provisions.

         (b) All know-how and trade secret information conceived or developed by
the Loss Mitigation Advisor that arises out of the performance of the services
hereunder or any related material or information shall be the property of the
Loss Mitigation Advisor.

         Section 6.12.     Assignment of Intellectual Property, Copyrightable
                           Material, Confidential Information, Know-How, and
                           Trade Secrets.

         All right, title, and interest in any Inventions, copyrightable
material, Confidential Information, trade secrets, and know-how under sections
6.10 and 6.11 shall be assigned in its entirety to the Loss Mitigation Advisor
without consideration separate from or additional to the services performed by
the Loss Mitigation Advisor pursuant to the Loss Mitigation Advisory Agreement.
Such assignment shall be made in a reasonable time upon request from the Loss
Mitigation Advisor.

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                                   ARTICLE VII

                                     DEFAULT

         Section 7.01.     Master Servicer Events of Termination.

         (a) If any one of the following events ("Master Servicer Events of
Termination") shall occur and be continuing:

                  (i) (A) The failure by the Master Servicer to make any
         Advance; or (B) any other failure by the Master Servicer to deposit in
         the Collection Account or Distribution Account any deposit required to
         be made under the terms of this Agreement which continues unremedied
         for a period of one Business Day after the date upon which written
         notice of such failure shall have been given to the Master Servicer by
         the Trustee or to the Trustee by any Holders of a Regular Certificate
         evidencing at least 25% of the Voting Rights; or

                  (ii) The failure by the Master Servicer to make any required
         Servicing Advance which failure continues unremedied for a period of 30
         days, or the failure by the Master Servicer duly to observe or perform,
         in any material respect, any other covenants, obligations or agreements
         of the Master Servicer as set forth in this Agreement, which failure
         continues unremedied for a period of 30 days, after the date (A) on
         which written notice of such failure, requiring the same to be
         remedied, shall have been given to the Master Servicer by the Trustee
         or to the Trustee by any Holders of a Regular Certificate evidencing at
         least 25% of the Voting Rights or (B) actual knowledge of such failure
         by a Servicing Officer of the Master Servicer; or

                  (iii) The entry against the Master Servicer of a decree or
         order by a court or agency or supervisory authority having jurisdiction
         in the premises for the appointment of a trustee, conservator, receiver
         or liquidator in any insolvency, conservatorship, receivership,
         readjustment of debt, marshalling of assets and liabilities or similar
         proceedings, or for the winding up or liquidation of its affairs, and
         the continuance of any such decree or order unstayed and in effect for
         a period of 60 days; or

                  (iv) The Master Servicer shall voluntarily go into
         liquidation, consent to the appointment of a conservator or receiver or
         liquidator or similar person in any insolvency, readjustment of debt,
         marshalling of assets and liabilities or similar proceedings of or
         relating to the Master Servicer or of or relating to all or
         substantially all of its property; or a decree or order of a court or
         agency or supervisory authority having jurisdiction in the premises for
         the appointment of a conservator, receiver, liquidator or similar
         person in any insolvency, readjustment of debt, marshalling of assets
         and liabilities or similar proceedings, or for the winding-up or
         liquidation of its affairs, shall have been entered against the Master
         Servicer and such decree or order shall have remained in force
         undischarged, unbonded or unstayed for a period of 60 days; or the
         Master Servicer shall admit in writing its inability to pay its debts
         generally as they become due, file a petition to take advantage of any
         applicable

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

         (b) then, and in each and every such case, so long as a Master Servicer
Event of Termination shall not have been remedied within the applicable grace
period, (x) with respect solely to clause (i)(A) above, if such Advance is not
made by 5:00 P.M., New York time, on the Business Day immediately following the
Master Servicer Remittance Date (provided the Trustee shall give the Master
Servicer notice of such failure to advance by 5:00 P.M. New York time on the
Master Servicer Remittance Date), the Trustee shall terminate all of the rights
and obligations of the Master Servicer under this Agreement and the Trustee, or
a successor servicer appointed in accordance with Section 7.02, shall
immediately make such Advance and assume, pursuant to Section 7.02, the duties
of a successor Master Servicer and (y) in the case of (i)(B), (ii), (iii), (iv)
and (v) above, the Trustee shall, at the direction of the Holders of each Class
of Regular Certificates evidencing Percentage Interests aggregating not less
than 51%, by notice then given in writing to the Master Servicer (and to the
Trustee if given by Holders of Certificates), terminate all of the rights and
obligations of the Master Servicer as servicer under this Agreement. Any such
notice to the Master Servicer shall also be given to each Rating Agency, the
Depositor and the Master Servicer. On or after the receipt by the Master
Servicer (and by the Trustee if such notice is given by the Holders) of such
written notice, all authority and power of the Master Servicer under this
Agreement, whether with respect to the Certificates or the Mortgage Loans or
otherwise, shall pass to and be vested in the Trustee pursuant to and under this
Section; and, without limitation, and the Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of each Mortgage Loan and related documents or otherwise. The Master
Servicer agrees to cooperate with the Trustee (or the applicable successor
Master Servicer) in effecting the termination of the responsibilities and rights
of the Master Servicer hereunder, including, without limitation, the delivery to
the Trustee of all documents and records requested by it to enable it to assume
the Master Servicer's functions under this Agreement within ten Business Days
subsequent to such notice, the transfer within one Business Day subsequent to
such notice to the Trustee (or the applicable successor Master Servicer) for the
administration by it of all cash amounts that shall at the time be held by the
Master Servicer and to be deposited by it in the Collection Account, the
Distribution Account, any REO Account or any Servicing Account or that have been
deposited by the Master Servicer in such accounts or thereafter received by the
Master Servicer with respect to the Mortgage Loans or any REO Property received
by the Master Servicer. All reasonable costs and expenses (including attorneys'
fees) incurred in connection with transferring the Mortgage Files to the
successor Master Servicer and amending this Agreement to reflect such succession
as Master Servicer pursuant to this Section shall be paid by the predecessor
Master Servicer (or if the predecessor Master Servicer is the Trustee, the
initial Master Servicer) upon presentation of reasonable documentation of such
costs and expenses and to the extent not paid by the Master Servicer, by the
Trust.

         Section 7.02.     Trustee to Act; Appointment of Successor.

         (a) Within 90 days of the time the Master Servicer (and the Trustee, if
notice is sent by the Holders) receives a notice of termination pursuant to
Section 7.01 or 6.04, the Trustee (or such

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other successor Master Servicer as is approved in accordance with this
Agreement) shall be the successor in all respects to the Master Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Master Servicer by the terms and
provisions hereof arising on and after its succession. Notwithstanding the
foregoing, the parties hereto agree that the Trustee, in its capacity as
successor Master Servicer, immediately will assume all of the obligations of the
Master Servicer to make advances. Notwithstanding the foregoing, the Trustee, in
its capacity as successor Master Servicer, shall not be responsible for the lack
of information and/or documents that it cannot obtain through reasonable
efforts. As compensation therefor, the Trustee (or such other successor Master
Servicer) shall be entitled to such compensation as the Master Servicer would
have been entitled to hereunder if no such notice of termination had been given.
Notwithstanding the above, (i) if the Trustee is unwilling to act as successor
Master Servicer or (ii) if the Trustee is legally unable so to act, the Trustee
shall appoint or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution, bank or other mortgage loan or
home equity loan servicer having a net worth of not less than $50,000,000 as the
successor to the Master Servicer hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the Master Servicer hereunder;
provided, that the appointment of any such successor Master Servicer will not
result in the qualification, reduction or withdrawal of the ratings assigned to
the Certificates by the Rating Agencies as evidenced by a letter to such effect
from the Rating Agencies. Pending appointment of a successor to the Master
Servicer hereunder, unless the Trustee is prohibited by law from so acting, the
Trustee shall act in such capacity as hereinabove provided. In connection with
such appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Mortgage Loans in an amount equal to the
compensation which the Master Servicer would otherwise have received pursuant to
Section 3.18 (or such other compensation as the Trustee and such successor shall
agree, not to exceed the Servicing Fee). The appointment of a successor Master
Servicer shall not affect any liability of the predecessor Master Servicer which
may have arisen under this Agreement prior to its termination as Master Servicer
to pay any deductible under an insurance policy pursuant to Section 3.14 or to
reimburse the Trustee pursuant to Section 3.06), nor shall any successor Master
Servicer be liable for any acts or omissions of the predecessor Master Servicer
or for any breach by such Master Servicer of any of its representations or
warranties contained herein or in any related document or agreement. The Trustee
and such successor shall take such action, consistent with this Agreement, as
shall be necessary to effectuate any such succession.
All Servicing Transfer Costs shall be paid by the predecessor Master Servicer
upon presentation of reasonable documentation of such costs, and if such
predecessor Master Servicer defaults in its obligation to pay such costs, such
costs shall be paid by the successor Master Servicer or the Trustee (in which
case the successor Master Servicer or the Trustee, as applicable, shall be
entitled to reimbursement therefor from the assets of the Trust).

         (b) Any successor to the Master Servicer, including the Trustee, shall
during the term of its service as servicer continue to service and administer
the Mortgage Loans for the benefit of Certificateholders, and maintain in force
a policy or policies of insurance covering errors and omissions in the
performance of its obligations as Master Servicer hereunder and a fidelity bond
in respect of its officers, employees and agents to the same extent as the
Master Servicer is so required pursuant to Section 3.14.

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         Section 7.03.     Waiver of Defaults.

         The Majority Certificateholders may, on behalf of all
Certificateholders, waive any events permitting removal of the Master Servicer
as servicer pursuant to this Article VII, provided, however, that the Majority
Certificateholders may not waive a default in making a required distribution on
a Certificate without the consent of the Holder of such Certificate. Upon any
waiver of a past default, such default shall cease to exist and any Master
Servicer Event of Termination arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto except to the
extent expressly so waived. Notice of any such waiver shall be given by the
Trustee to the Rating Agencies.

         Section 7.04.     Notification to Certificateholders.

         (a) Upon any termination or appointment of a successor to the Master
Servicer pursuant to this Article VII or Section 6.04, the Trustee shall give
prompt written notice thereof to the Certificateholders at their respective
addresses appearing in the Certificate Register and each Rating Agency.

         (b) No later than 60 days after the occurrence of any event which
constitutes or which, with notice or a lapse of time or both, would constitute a
Master Servicer Event of Termination for five Business Days after a Responsible
Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to all Certificateholders notice of such
occurrence unless such default or Master Servicer Event of Termination shall
have been waived or cured.

         Section 7.05.     Survivability of Master Servicer Liabilities.

         Notwithstanding anything herein to the contrary, upon termination of
the Master Servicer hereunder, any liabilities of the Master Servicer which
accrued prior to such termination shall survive such termination.

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                                  ARTICLE VIII

                                  THE TRUSTEE

         Section 8.01.     Duties of Trustee.

         The Trustee, prior to the occurrence of a Master Servicer Event of
Termination and after the curing of all Master Servicer Events of Termination
which may have occurred, undertakes to perform such duties and only such duties
as are specifically set forth in this Agreement. If a Master Servicer Event of
Termination has occurred (which has not been cured) of which a Responsible
Officer has knowledge, the Trustee shall exercise such of the rights and powers
vested in it by this Agreement, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances
in the conduct of his own affairs.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement; provided, however, that the
Trustee will not be responsible for the accuracy or content of any such
resolutions, certificates, statements, opinions, reports, documents or other
instruments. If any such instrument is found not to conform to the requirements
of this Agreement in a material manner the Trustee shall take such action as it
deems appropriate to have the instrument corrected, and if the instrument is not
corrected to the Trustee's satisfaction, the Trustee will provide notice thereof
to the Certificateholders.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; provided, however, that:

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

                  (ii) the Trustee shall not be personally liable for an error
         of judgment made in good faith by a Responsible Officer of the Trustee,
         unless it shall be proved that the Trustee was negligent in
         ascertaining or investigating the facts related thereto;

                  (iii) the Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of the Majority
         Certificateholders relating to the time, method and place of conducting
         any

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         proceeding for any remedy available to the Trustee, or exercising or
         omitting to exercise any trust or power conferred upon the Trustee,
         under this Agreement; and

                  (iv) the Trustee shall not be charged with knowledge of any
         failure by the Master Servicer to comply with the obligations of the
         Master Servicer referred to in clauses (i) and (ii) of Section 7.01(a)
         unless a Responsible Officer of the Trustee at the Corporate Trust
         Office obtains actual knowledge of such failure or the Trustee receives
         written notice of such failure from the Master Servicer or the Majority
         Certificateholders.

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

         Section 8.02.     Certain Matters Affecting the Trustee.

         (a)      Except as otherwise provided in Section 8.01:

                  (i) the Trustee may request and rely upon, and shall be
         protected in acting or refraining from acting upon, any resolution,
         Officers' Certificate, certificate of auditors or any other
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, appraisal, bond or other paper or document reasonably
         believed by it to be genuine and to have been signed or presented by
         the proper party or parties, and the manner of obtaining consents and
         of evidencing the authorization of the execution thereof by
         Certificateholders shall be subject to such reasonable regulations as
         the Trustee may prescribe;

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

                  (iii) the Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Agreement, or to
         institute, conduct or defend any litigation hereunder or in relation
         hereto, at the request, order or direction of any of the
         Certificateholders, pursuant to the provisions of this Agreement,
         unless such Certificateholders shall have offered to the Trustee
         reasonable security or indemnity against the costs, expenses and
         liabilities which may be incurred therein or thereby; the right of the
         Trustee to perform any discretionary act enumerated in this Agreement
         shall not be construed as a duty, and the Trustee shall not be
         answerable for other than its negligence or willful misconduct in the
         performance of any such act;

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

                  (v) prior to the occurrence of a Master Servicer Event of
         Termination and after the curing of all Master Servicer Events of
         Termination which may have occurred, the Trustee shall not be bound to
         make any investigation into the facts or matters stated in any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, consent, order, approval, bond or other paper or
         documents, unless requested in writing to do so by the Majority
         Certificateholder; provided, however, that if the payment within a
         reasonable time to the Trustee of the costs, expenses or liabilities
         likely to be incurred by it in the making of such investigation is, in
         the opinion of the Trustee, not reasonably assured to the Trustee by
         the security afforded to it by the terms of this Agreement, the Trustee
         may require reasonable indemnity against such cost, expense or
         liability as a condition to such proceeding. The reasonable expense of
         every such examination shall be paid by the Master Servicer or, if paid
         by the Trustee, shall be reimbursed by the Master Servicer upon demand
         and, if not reimbursed by the Master Servicer, shall be reimbursed by
         the Trust. Nothing in this clause (v) shall derogate from the
         obligation of the Master Servicer to observe any applicable law
         prohibiting disclosure of information regarding the Mortgagors;

                  (vi) the Trustee shall not be accountable, shall have no
         liability and makes no representation as to any acts or omissions
         hereunder of the Master Servicer until such time as the Trustee may be
         required to act as Master Servicer pursuant to Section 7.02 and
         thereupon only for the acts or omissions of the Trustee as successor
         Master Servicer;

                  (vii) the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys or a custodian; and

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

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

         The recitals contained herein and in the Certificates (other than the
authentication of the Trustee on the Certificates) shall be taken as the
statements of the Depositor, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity
or sufficiency of this Agreement or of the Certificates (other than the
signature and authentication of the Trustee on the Certificates) or of any
Mortgage Loan or related document. The Trustee shall not be accountable for the
use or application by the Master Servicer, or for the use or application of any
funds paid to the Master Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from the Collection Account by the Master Servicer. The Trustee
shall at no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Mortgage or any Mortgage Loan, or
the perfection and priority of any Mortgage or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Trust
or its ability to generate the payments to be distributed to Certificateholders
under this Agreement,

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including, without limitation: the existence, condition and ownership of any
Mortgaged Property; the existence and enforceability of any hazard insurance
thereon (other than if the Trustee shall assume the duties of the Master
Servicer pursuant to Section 7.02); the validity of the assignment of any
Mortgage Loan to the Trustee or of any intervening assignment; the completeness
of any Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
than if the Trustee shall assume the duties of the Master Servicer pursuant to
Section 7.02); the compliance by the Depositor, Option One, the Seller or the
Master Servicer with any warranty or representation made under this Agreement or
in any related document or the accuracy of any such warranty or representation
prior to the Trustee's receipt of notice or other discovery of any
non-compliance therewith or any breach thereof; any investment of monies by or
at the direction of the Master Servicer or any loss resulting therefrom, it
being understood that the Trustee shall remain responsible for any Trust
property that it may hold in its individual capacity; the acts or omissions of
any of the Master Servicer (other than if the Trustee shall assume the duties of
the Master Servicer pursuant to Section 7.02), any Sub-Servicer or any
Mortgagor; any action of the Master Servicer (other than if the Trustee shall
assume the duties of the Master Servicer pursuant to Section 7.02), or any Sub-
Servicer taken in the name of the Trustee; the failure of the Master Servicer or
any Sub-Servicer to act or perform any duties required of it as agent of the
Trustee hereunder; or any action by the Trustee taken at the instruction of the
Master Servicer (other than if the Trustee shall assume the duties of the Master
Servicer pursuant to Section 7.02); provided, however, that the foregoing shall
not relieve the Trustee of its obligation to perform its duties under this
Agreement, including, without limitation, the Trustee's duty to review the
Mortgage Files pursuant to Section 2.01. The Trustee shall have no
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder (unless the Trustee shall have
become the successor Master Servicer).

         Section 8.04.     Trustee May Own Certificates.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not Trustee and may transact any banking and trust business with the
Originator, the Master Servicer, the Depositor or their Affiliates.

         Section 8.05.     Trustee Fee and Expenses.

         (a) The Trustee shall withdraw from the Distribution Account on each
Distribution Date and pay to itself the Trustee Fee. The Trustee, or any
director, officer, employee or agent of the Trustee, shall be indemnified by
REMIC 1 and held harmless against any loss, liability or expense (not including
expenses and disbursements incurred or made by the Trustee, including the
compensation and the expenses and disbursements of its agents and counsel, in
the ordinary course of the Trustee's performance in accordance with the
provisions of this Agreement) incurred by the Trustee arising out of or in
connection with the acceptance or administration of its obligations and duties
under this Agreement, other than any loss, liability or expense (i) resulting
from the Master Servicer's actions or omissions in connection with this
Agreement and the Mortgage Loans, (ii) that constitutes a specific liability of
the Trustee under this Agreement or (iii) any loss, liability or expense
incurred by reason of willful misfeasance, bad faith or negligence of the
Trustee in the performance of its duties hereunder or by reason of the Trustee's
reckless disregard of obligations and duties hereunder or as a result of a
breach of the Trustee's obligations under Article X hereof.

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Any amounts payable to the Trustee, or any director, officer, employee or agent
of the Trustee, in respect of the indemnification provided by this Section
8.05(a), or pursuant to any other right of reimbursement from the Trust Fund
that the Trustee, or any director, officer, employee or agent of the Trustee,
may have hereunder in its capacity as such, may be withdrawn by the Trustee from
the Distribution Account at any time.

         (b) The Master Servicer agrees to indemnify the Trustee from, and hold
it harmless against, any loss, liability or expense resulting from a breach of
the Master Servicer's obligations and duties under this Agreement. Such
indemnity shall survive the termination or discharge of this Agreement and the
resignation or removal of the Trustee. Any payment hereunder made by the Master
Servicer to the Trustee shall be from the Master Servicer's own funds, without
reimbursement from the Trust Fund therefor.

         Section 8.06.     Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times be an entity duly organized
and validly existing under the laws of the United States of America or any state
thereof, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by federal or state authority. If such entity publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 8.06, the combined capital and surplus of such entity shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. The principal office of the Trustee (other than the
initial Trustee) shall be in a state with respect to which an Opinion of Counsel
has been delivered to such Trustee at the time such Trustee is appointed Trustee
to the effect that the Trust will not be a taxable entity under the laws of such
state. In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 8.06, the Trustee shall resign immediately
in the manner and with the effect specified in Section 8.07.

         Section 8.07.     Resignation or Removal of Trustee.

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

         If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Depositor or if at any time the Trustee shall be legally
unable to act, or shall be adjudged a bankrupt or insolvent, or a receiver of
the Trustee or of its property shall be appointed, or any public officer shall
take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Depositor or
the Master Servicer may remove the Trustee. If the Depositor or

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the Master Servicer removes the Trustee under the authority of the immediately
preceding sentence, the Depositor shall promptly appoint a successor Trustee by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee.

         The Majority Certificateholders may at any time remove the Trustee by
written instrument or instruments delivered to the Master Servicer, the
Depositor and the Trustee; the Depositor shall thereupon use its best efforts to
appoint a successor trustee in accordance with this Section.

         Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 8.07 shall
not become effective until acceptance of appointment by the successor Trustee as
provided in Section 8.08.

         Section 8.08.     Successor Trustee.

         Any successor Trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor, the Master Servicer and to
its predecessor Trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee shall become
effective, and such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Trustee. The Depositor, the Master Servicer and the predecessor Trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the
successor Trustee all such rights, powers, duties and obligations.

         No successor Trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor Trustee shall
be eligible under the provisions of Section 8.06 and the appointment of such
successor Trustee shall not result in a downgrading of the Regular Certificates
by either Rating Agency, as evidenced by a letter from each Rating Agency.

         Upon acceptance of appointment by a successor Trustee as provided in
this Section 8.08, the successor Trustee shall mail notice of the appointment of
a successor Trustee hereunder to all Holders of Certificates at their addresses
as shown in the Certificate Register and to each Rating Agency.

         Section 8.09.     Merger or Consolidation of Trustee.

         Any entity into which the Trustee may be merged or converted or with
which it may be consolidated, or any entity resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any entity
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder, provided such entity shall be eligible under the provisions of
Section 8.06 and 8.08, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

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

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         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust or any Mortgaged Property may at the time be located, the
Depositor and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or separate trustees, of all or any part of the Trust, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust, or any part thereof, and, subject
to the other provisions of this Section 8.10, such powers, duties, obligations,
rights and trusts as the Master Servicer and the Trustee may consider necessary
or desirable. Any such co-trustee or separate trustee shall be subject to the
written approval of the Master Servicer. If the Master Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in the case a Master Servicer Event of Termination shall have
occurred and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.06, and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08. The Master Servicer shall be
responsible for the fees of any co-trustee or separate trustee appointed
hereunder.

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

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

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

                  (iii) the Master Servicer and the Trustee, acting jointly, may
         at any time accept the resignation of or remove any separate trustee or
         co-trustee except that following the occurrence of a Master Servicer
         Event of Termination, the Trustee acting alone may accept the
         resignation or remove any separate trustee or co-trustee.

         Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions

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of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Trustee. Every such instrument shall be filed with the Trustee and a
copy thereof given to the Depositor and the Master Servicer.

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

         Section 8.11.     Limitation of Liability.

         The Certificates are executed by the Trustee, not in its individual
capacity but solely as Trustee of the Trust, in the exercise of the powers and
authority conferred and vested in it by the Trust Agreement. Each of the
undertakings and agreements made on the part of the Trustee in the Certificates
is made and intended not as a personal undertaking or agreement by the Trustee
but is made and intended for the purpose of binding only the Trust.

         Section 8.12.     Trustee May Enforce Claims Without Possession of
                           Certificates.

         (a) All rights of action and claims under this Agreement or the
Certificates may be prosecuted and enforced by the Trustee without the
possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its capacity as Trustee for the benefit of all
Holders of such Certificates, subject to the provisions of this Agreement. Any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Certificateholders in respect of
which such judgment has been recovered.

         (b) The Trustee shall afford the Seller, the Depositor, the Master
Servicer and each Certificateholder upon reasonable notice during normal
business hours, access to all records maintained by the Trustee in respect of
its duties hereunder and access to officers of the Trustee responsible for
performing such duties. Upon request, the Trustee shall furnish the Depositor,
the Master Servicer and any requesting Certificateholder with its most recent
financial statements. The Trustee shall cooperate fully with the Seller, the
Master Servicer, the Depositor and such Certificateholder and shall make
available to the Seller, the Master Servicer, the Depositor and such
Certificateholder for review and copying such books, documents or records as may
be requested with respect to the Trustee's duties hereunder. The Seller, the
Depositor, the Master Servicer and the Certificateholders shall not have any
responsibility or liability for any action or failure to act by the Trustee and
are not obligated to supervise the performance of the Trustee under this
Agreement or otherwise.

         Section 8.13.     Suits for Enforcement.

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         In case a Master Servicer Event of Termination or other default by the
Master Servicer or the Depositor hereunder shall occur and be continuing, the
Trustee, shall, at the direction of the Majority Certificateholders, or may,
proceed to protect and enforce its rights and the rights of the
Certificateholders under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this Agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, and subject
to the foregoing, shall deem most effectual to protect and enforce any of the
rights of the Trustee and the Certificateholders.

         Section 8.14.     Waiver of Bond Requirement.

         The Trustee shall be relieved of, and each Certificateholder hereby
waives, any requirement of any jurisdiction in which the Trust, or any part
thereof, may be located that the Trustee post a bond or other surety with any
court, agency or body whatsoever.

         Section 8.15.     Waiver of Inventory, Accounting and Appraisal
                           Requirement.

         The Trustee shall be relieved of, and each Certificateholder hereby
waives, any requirement of any jurisdiction in which the Trust, or any part
thereof, may be located that the Trustee file any inventory, accounting or
appraisal of the Trust with any court, agency or body at any time or in any
manner whatsoever.

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                                   ARTICLE IX

                              REMIC ADMINISTRATION

         Section 9.01.     REMIC Administration.

         (a) REMIC elections as set forth in the Preliminary Statement shall be
made by the Trustee on Form 1066 or other appropriate federal tax or information
return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement.

         (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC within the meaning of section 860G(a)(9) of the Code.

         (c) The Master Servicer shall pay any and all tax related expenses (not
including taxes) of each REMIC, including but not limited to any professional
fees or expenses related to audits or any administrative or judicial proceedings
with respect to each REMIC that involve the Internal Revenue Service or state
tax authorities, but only to the extent that (i) such expenses are ordinary or
routine expenses, including expenses of a routine audit but not expenses of
litigation (except as described in (ii)); or (ii) such expenses or liabilities
(including taxes and penalties) are attributable to the negligence or willful
misconduct of the Master Servicer in fulfilling its duties hereunder. The Master
Servicer shall be entitled to reimbursement of expenses to the extent provided
in clause (i) above from the Collection Account.

         (d) The Trustee shall prepare, sign and file, all of the REMICs'
federal and state tax and information returns (including Form 8811) as the
direct representative each REMIC created hereunder. The expenses of preparing
and filing such returns shall be borne by the Trustee.

         (e) The Holder of the Class R Certificate at any time holding the
largest Percentage Interest thereof shall be the "tax matters person" as defined
in the REMIC Provisions (the "Tax Matters Person") with respect to each REMIC
and shall act as Tax Matters Person for each REMIC. The Trustee, as agent for
the Tax Matters Person, shall perform on behalf of each REMIC all reporting and
other tax compliance duties that are the responsibility of such REMIC under the
Code, the REMIC Provisions, or other compliance guidance issued by the Internal
Revenue Service or any state or local taxing authority. Among its other duties,
if required by the Code, the REMIC Provisions, or other such guidance, the
Trustee, as agent for the Tax Matters Person, shall provide (i) to the Treasury
or other governmental authority such information as is necessary for the
application of any tax relating to the transfer of a Residual Certificate to any
disqualified person or organization and (ii) to the Certificateholders such
information or reports as are required by the Code or REMIC Provisions.

         (f) The Trustee, the Master Servicer and the Holders of Certificates
shall take any action or cause the REMIC to take any action necessary to create
or maintain the status of each REMIC as a REMIC under the REMIC Provisions and
shall assist each other as necessary to create or maintain such status. Neither
the Trustee, the Master Servicer nor the Holder of any Residual Certificate
shall take any action, cause any REMIC created hereunder to take any action or
fail to take (or fail to cause

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to be taken) any action that, under the REMIC Provisions, if taken or not taken,
as the case may be, could (i) endanger the status of such REMIC as a REMIC or
(ii) result in the imposition of a tax upon such REMIC (including but not
limited to the tax on prohibited transactions as defined in Code Section
860F(a)(2) and the tax on prohibited contributions set forth on Section 860G(d)
of the Code) (either such event, an "Adverse REMIC Event") unless the Trustee
and the Master Servicer have received an Opinion of Counsel (at the expense of
the party seeking to take such action) to the effect that the contemplated
action will not endanger such status or result in the imposition of such a tax.
In addition, prior to taking any action with respect to any REMIC created
hereunder or the assets therein, or causing such REMIC to take any action, which
is not expressly permitted under the terms of this Agreement, any Holder of a
Residual Certificate will consult with the Trustee and the Master Servicer, or
their respective designees, in writing, with respect to whether such action
could cause an Adverse REMIC Event to occur with respect to any REMIC, and no
such Person shall take any such action or cause any REMIC to take any such
action as to which the Trustee or the Master Servicer has advised it in writing
that an Adverse REMIC Event could occur.

         (g) Each Holder of a Residual Certificate shall pay when due any and
all taxes imposed on each REMIC created hereunder by federal or state
governmental authorities. To the extent that such Trust taxes are not paid by a
Residual Certificateholder, the Trustee shall pay any remaining REMIC taxes out
of current or future amounts otherwise distributable to the Holder of the
Residual Certificate in the REMICs or, if no such amounts are available, out of
other amounts held in the Distribution Account, and shall reduce amounts
otherwise payable to Holders of regular interests in the related REMIC.

         (h) The Trustee, as agent for the Tax Matters Person, shall, for
federal income tax purposes, maintain books and records with respect to each
REMIC created hereunder on a calendar year and on an accrual basis.

         (i) No additional contributions of assets shall be made to any REMIC
created hereunder, except as expressly provided in this Agreement with respect
to eligible substitute mortgage loans.

         (j) Neither the Trustee nor the Master Servicer shall enter into any
arrangement by which any REMIC created hereunder will receive a fee or other
compensation for services.

         (k) On or before April 15 of each calendar year beginning in 2002, the
Master Servicer shall deliver to the Trustee and each Rating Agency an Officers'
Certificate stating the Master Servicer's compliance with the provisions of this
Section 9.01.

         (l) The Trustee will apply for an Employee Identification Number from
the Internal Revenue Service via a Form SS-4 or other acceptable method for all
tax entities.

         Section 9.02.     Prohibited Transactions and Activities.

         Neither the Depositor, the Master Servicer nor the Trustee shall sell,
dispose of, or substitute for any of the Mortgage Loans, except in a disposition
pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the
Trust Fund, (iii) the termination of any REMIC created hereunder pursuant to
Article X of this Agreement, (iv) a substitution pursuant to Article II of this
Agreement

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or (v) a repurchase of Mortgage Loans pursuant to Article II of this Agreement,
nor acquire any assets for any REMIC, nor sell or dispose of any investments in
the Distribution Account for gain, nor accept any contributions to either REMIC
after the Closing Date, unless it has received an Opinion of Counsel (at the
expense of the party causing such sale, disposition, or substitution) that such
disposition, acquisition, substitution, or acceptance will not (a) affect
adversely the status of any REMIC created hereunder as a REMIC or of the
interests therein other than the Residual Certificates as the regular interests
therein, (b) affect the distribution of interest or principal on the
Certificates, (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
or (d) cause any REMIC created hereunder to be subject to a tax on prohibited
transactions or prohibited contributions pursuant to the REMIC Provisions.

         Section 9.03.     Indemnification with Respect to Certain Taxes and
                           Loss of REMIC Status.

         (a) In the event that any REMIC fails to qualify as a REMIC, loses its
status as a REMIC, or incurs federal, state or local taxes as a result of a
prohibited transaction or prohibited contribution under the REMIC Provisions due
to the negligent performance by the Master Servicer of its duties and
obligations set forth herein, the Master Servicer shall indemnify the Trustee
and the Trust Fund against any and all losses, claims, damages, liabilities or
expenses ("Losses") resulting from such negligence; provided, however, that the
Master Servicer shall not be liable for any such Losses attributable to the
action or inaction of the Trustee, the Depositor or the Holder of such Class R
Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Class R Certificate on which the
Master Servicer has relied. The foregoing shall not be deemed to limit or
restrict the rights and remedies of the Holder of such Class R Certificate now
or hereafter existing at law or in equity. Notwithstanding the foregoing,
however, in no event shall the Master Servicer have any liability (1) for any
action or omission that is taken in accordance with and in compliance with the
express terms of, or which is expressly permitted by the terms of, this
Agreement, (2) for any Losses other than arising out of a negligent performance
by the Master Servicer of its duties and obligations set forth herein, and (3)
for any special or consequential damages to Certificateholders (in addition to
payment of principal and interest on the Certificates).

         (b) In the event that any REMIC fails to qualify as a REMIC, loses its
status as a REMIC, or incurs federal, state or local taxes as a result of a
prohibited transaction or prohibited contribution under the REMIC Provisions due
to the negligent performance by the Trustee of its duties and obligations set
forth herein, the Trustee shall indemnify the Trust Fund against any and all
Losses resulting from such negligence; provided, however, that the Trustee shall
not be liable for any such Losses attributable to the action or inaction of the
Master Servicer, the Depositor or the Holder of such Class R Certificate, as
applicable, nor for any such Losses resulting from misinformation provided by
the Holder of such Class R Certificate on which the Trustee has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of such Class R Certificate now or hereafter existing at law or in
equity. Notwithstanding the foregoing, however, in no event shall the Trustee
have any liability (1) for any action or omission that is taken in accordance
with and in compliance with the express terms of, or which is expressly
permitted by the terms of, this Agreement, (2) for any Losses other than arising
out of a negligent performance by the Trustee of its duties and obligations set
forth herein, and (3) for any special or consequential damages to
Certificateholders (in addition to payment of principal and interest on the
Certificates).

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         Section 9.04.     [Reserved].

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<PAGE>

                                    ARTICLE X

                                   TERMINATION

         Section 10.01.             Termination.

         (a) The respective obligations and responsibilities of the Master
Servicer, the Depositor and the Trustee created hereby (other than the
obligation of the Trustee to make certain payments to Certificateholders after
the final Distribution Date and the obligation of the Master Servicer to send
certain notices as hereinafter set forth) shall terminate upon notice to the
Trustee upon the earliest of (i) the Distribution Date on which the Certificate
Principal Balances of the Regular Certificates have been reduced to zero, (ii)
the final payment or other liquidation of the last Mortgage Loan in the Trust,
(iii) the optional purchase by the Master Servicer of the Mortgage Loans as
described below and (iv) the Distribution Date in January 2031. Notwithstanding
the foregoing, in no event shall the trust created hereby continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James's, living on the date hereof.

         The Master Servicer may, at its option, terminate this Agreement on any
date on which the aggregate of the Principal Balances of the Mortgage Loans on
such date is equal to or less than 10% of the aggregate Principal Balances of
the Original Mortgage Loans on the Cut-off Date, by purchasing, on the next
succeeding Distribution Date, all of the outstanding Mortgage Loans and REO
Properties at a price equal to the greater of the Stated Principal Balance of
the Mortgage Loans and REO Properties or the market value of the Mortgage Loans
and REO Properties, in each case plus accrued and unpaid interest thereon at the
weighted average of the Mortgage Rates through the end of the Due Period
preceding the final Distribution Date plus unreimbursed Servicing Advances,
Advances, any unpaid Servicing Fees allocable to such Mortgage Loans and REO
Properties, any accrued and unpaid Net WAC Rate Carryover Amount, plus any
additional amounts necessary to pay all interest accrued on, as well as amounts
necessary to retire the principal balance of, the notes issued pursuant to the
Indenture, dated March __, 2001, between First Franklin NIM Trust 2001-FF1 as
issuer and the Trustee as indenture trustee (the "Termination Price").

         In connection with any such purchase pursuant to the preceding
paragraph, the Master Servicer shall deposit in the Distribution Account all
amounts then on deposit in the Collection Account, which deposit shall be deemed
to have occurred immediately preceding such purchase.

         Any such purchase shall be accomplished by deposit into the
Distribution Account on the Determination Date before such Distribution Date of
the Termination Price.

         (b) Notice of any termination, specifying the Distribution Date (which
shall be a date that would otherwise be a Distribution Date) upon which the
Certificateholders may surrender their Certificates to the Trustee for payment
of the final distribution and cancellation, shall be given promptly by the
Trustee upon the Trustee receiving notice of such date from the Master Servicer,
by letter to the Certificateholders mailed not earlier than the 15th day and not
later than the 25th day of the month next preceding the month of such final
distribution specifying (1) the Distribution Date

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<PAGE>

upon which final distribution of the Certificates will be made upon presentation
and surrender of such Certificates at the office or agency of the Trustee
therein designated, (2) the amount of any such final distribution and (3) that
the Record Date otherwise applicable to such Distribution Date is not
applicable, distributions being made only upon presentation and surrender of the
Certificates at the office or agency of the Trustee therein specified.

         (c) Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to the Holders of the Certificates on the
Distribution Date for such final distribution, in proportion to the Percentage
Interests of their respective Class and to the extent that funds are available
for such purpose, an amount equal to the amount required to be distributed to
such Holders in accordance with the provisions of Section 4.01 for such
Distribution Date. By acceptance of the Class R Certificates, the Holders of the
Class R Certificates agree, in connection with any termination hereunder, to
assign and transfer any amounts in excess of the par value of the Mortgage
Loans, and to the extent received in respect of such termination, to pay any
such amounts to the Holders of the Class C Certificates.

         (d) In the event that all Certificateholders shall not surrender their
Certificates for final payment and cancellation on or before such final
Distribution Date, the Trustee shall promptly following such date cause all
funds in the Distribution Account not distributed in final distribution to
Certificateholders to be withdrawn therefrom and credited to the remaining
Certificateholders by depositing such funds in a separate Servicing Account for
the benefit of such Certificateholders, and the Master Servicer (if the Master
Servicer has exercised its right to purchase the Mortgage Loans) or the Trustee
(in any other case) shall give a second written notice to the remaining
Certificateholders, to surrender their Certificates for cancellation and receive
the final distribution with respect thereto. If within nine months after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholder shall be entitled to all unclaimed
funds and other assets which remain subject hereto, and the Trustee upon
transfer of such funds shall be discharged of any responsibility for such funds,
and the Certificateholders shall look to the Class R Certificateholder for
payment.

         Section 10.02.             Additional Termination Requirements.

         (a) In the event that the Master Servicer exercises its purchase option
as provided in Section 10.01, each REMIC shall be terminated in accordance with
the following additional requirements, unless the Trustee shall have been
furnished with an Opinion of Counsel to the effect that the failure of the Trust
to comply with the requirements of this Section will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust as defined in
Section 860F of the Code or (ii) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

                  (i) Within 90 days prior to the final Distribution Date, the
         Master Servicer shall adopt and the Trustee shall sign a plan of
         complete liquidation of each REMIC created hereunder meeting the
         requirements of a "Qualified Liquidation" under Section 860F of the
         Code and any regulations thereunder; and

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<PAGE>

                  (ii) At or after the time of adoption of such a plan of
         complete liquidation and at or prior to the final Distribution Date,
         the Trustee shall sell all of the assets of the Trust Fund to the
         Master Servicer for cash pursuant to the terms of the plan of complete
         liquidation.

         (b) By their acceptance of Certificates, the Holders thereof hereby
agree to appoint the Trustee as their attorney in fact to: (i) adopt such a plan
of complete liquidation (and the Certificateholders hereby appoint the Trustee
as their attorney in fact to sign such plan) as appropriate and (ii) to take
such other action in connection therewith as may be reasonably required to carry
out such plan of complete liquidation all in accordance with the terms hereof.

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<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01.             Amendment.

         This Agreement may be amended from time to time by the Depositor, the
Master Servicer and the Trustee; and without the consent of the
Certificateholders (i) to cure any ambiguity, (ii) to correct or supplement any
provisions herein which may be defective or inconsistent with any other
provisions herein or (iii) to make any other provisions with respect to matters
or questions arising under this Agreement which shall not be inconsistent with
the provisions of this Agreement; provided that such action shall not, as
evidenced by an Opinion of Counsel delivered to the Trustee, adversely affect in
any material respect the interests of any Certificateholder. No amendment shall
be deemed to adversely affect in any material respect the interests of any
Certificateholder who shall have consented thereto, and no Opinion of Counsel
shall be required to address the effect of any such amendment on any such
consenting Certificateholder.

         In addition, this Agreement may be amended from time to time by the
Depositor, the Master Servicer and the Trustee with the consent of the Majority
Certificateholders for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment or waiver shall (x) reduce in any manner the
amount of, or delay the timing of, payments on the Certificates or distributions
which are required to be made on any Certificate without the consent of the
Holder of such Certificate, (y) adversely affect in any material respect the
interests of the Holders of any Class of Certificates in a manner other than as
described in clause (x) above, without the consent of the Holders of
Certificates of such Class evidencing at least a 66% Percentage Interest in such
Class, or (z) reduce the percentage of Voting Rights required by clause (y)
above without the consent of the Holders of all Certificates of such Class then
outstanding. Upon approval of an amendment, a copy of such amendment shall be
sent to the Rating Agencies.

         Notwithstanding any provision of this Agreement to the contrary, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel, delivered by (and at the expense of)
the Person seeking such Amendment, to the effect that such amendment will not
result in the imposition of a tax on any REMIC created hereunder constituting
part of the Trust Fund pursuant to the REMIC Provisions or cause any REMIC
created hereunder constituting part of the Trust to fail to qualify as a REMIC
at any time that any Certificates are outstanding and that the amendment is
being made in accordance with the terms hereof.

         Promptly after the execution of any such amendment the Trustee shall
furnish, at the expense of the Person that requested the amendment if such
Person is the Master Servicer (but in no event at the expense of the Trustee),
otherwise at the expense of the Trust, a copy of such amendment and the Opinion
of Counsel referred to in the immediately preceding paragraph to the Master
Servicer and each Rating Agency.

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<PAGE>

         It shall not be necessary for the consent of Certificateholders under
this Section 11.01 to approve the particular form of any proposed amendment;
instead it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.

         The Trustee may, but shall not be obligated to, enter into any
amendment pursuant to this Section 11.01 that affects its rights, duties and
immunities under this Agreement or otherwise.

         Section 11.02.             Recordation of Agreement; Counterparts.

         To the extent permitted by applicable law, this Agreement is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the expense of the Trust, but only upon direction of
Certificateholders accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

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

         Section 11.03.             Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not (i) operate
to terminate this Agreement or the Trust, (ii) entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust, or (iii)
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

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

         No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously
shall have given to the Trustee a written notice of default and of the
continuance thereof, as hereinbefore provided, and unless also the Holders of
Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities

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<PAGE>

to be incurred therein or thereby, and the Trustee for 15 days after its receipt
of such notice, request and offer of indemnity, shall have neglected or refused
to institute any such action, suit or proceeding. It is understood and intended,
and expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue of any provision of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of such Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder, which priority or preference is not otherwise provided
for herein, or to enforce any right under this Agreement, except in the manner
herein provided and for the equal, ratable and common benefit of all
Certificateholders. For the protection and enforcement of the provisions of this
Section 11.03 each and every Certificateholder and the Trustee shall be entitled
to such relief as can be given either at law or in equity.

         Section 11.04.             Governing Law; Jurisdiction.

         This Agreement shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws. With respect to any
claim arising out of this Agreement, each party irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in The City of New
York, and each party irrevocably waives any objection which it may have at any
time to the laying of venue of any suit, action or proceeding arising out of or
relating hereto brought in any such courts, irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought
in any inconvenient forum and further irrevocably waives the right to object,
with respect to such claim, suit, action or proceeding brought in any such
court, that such court does not have jurisdiction over such party, provided that
service of process has been made by any lawful means.

         Section 11.05.             Notices.

         All directions, demands and notices hereunder shall be in writing and
shall be deemed to have been duly given if personally delivered at or mailed by
first class mail, postage prepaid, by facsimile or by express delivery service,
to (a) in the case of the Master Servicer, Option One Mortgage Corporation, 3
Ada Road, Irvine, California 92618, Attention: William O'Neill, or such other
address or telecopy number as may hereafter be furnished to the Depositor and
the Trustee in writing by the Master Servicer, (b) in the case of the Trustee,
Wells Fargo Bank Minnesota, N.A., 11000 Broken Land Parkway, Columbia, Maryland
21044, Attention: First Franklin Mortgage Loan Trust Series 2001-FF1, with a
copy to Wells Fargo Bank Minnesota, N.A., Sixth and Marquette, Minneapolis,
Minnesota 55479, Attention: First Franklin Series 2001-FF1, or such other
address or telecopy number as may hereafter be furnished to the Depositor and
the Master Servicer in writing by the Trustee, and (c) in the case of the
Depositor, Financial Asset Securities Corporation, 600 Steamboat Road,
Greenwich, Connecticut 06830, Attention: Legal, or such other address or
telecopy number as may be furnished to the Master Servicer and the Trustee in
writing by the Depositor. Any notice required or permitted to be mailed to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Notice of any
Master Servicer Default shall be given by telecopy and by certified mail. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have duly been given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice

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<PAGE>

required to be telecopied hereunder shall also be mailed to the appropriate
party in the manner set forth above.

         Section 11.06.             Severability of Provisions.

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

         Section 11.07.             Article and Section References.

         All article and section references used in this Agreement, unless
otherwise provided, are to articles and sections in this Agreement.

         Section 11.08.             Notice to the Rating Agencies.

         (a) Each of the Trustee and the Master Servicer shall be obligated to
use its best reasonable efforts promptly to provide notice to the Rating
Agencies with respect to each of the following of which a Responsible Officer of
the Trustee or Master Servicer, as the case may be, has actual knowledge:

                  (i) any material change or amendment to this Agreement;

                  (ii) the occurrence of any Master Servicer Event of
         Termination that has not been cured or waived;

                  (iii) the resignation or termination of the Master Servicer or
         the Trustee;

                  (iv) the final payment to Holders of the Certificates of any
         Class;

                  (v) any change in the location of any Account; and

                  (vi) if the Trustee is acting as successor Master Servicer
         pursuant to Section 7.02 hereof, any event that would result in the
         inability of the Trustee to make Advances.

         (b) In addition, the Trustee shall promptly make available to each
Rating Agency copies of each Statement to Certificateholders described in
Sections 4.03 and 3.19 hereof and the Master Servicer shall promptly furnish to
each Rating Agency copies of the following:

                  (i) each annual statement as to compliance described in
                  Section 3.20 hereof;

                  (ii) each annual independent public accountants' servicing
                  report described in Section 3.21 hereof; and

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<PAGE>

                  (iii) each notice delivered pursuant to Section 7.01(a) hereof
                  which relates to the fact that the Master Servicer has not
                  made an Advance.

         Any such notice pursuant to this Section 11.08 shall be in writing and
shall be deemed to have been duly given if personally delivered or mailed by
first class mail, postage prepaid, or by express delivery service to Fitch,
Inc., One State Street Plaza, New York, New York 10004 and Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New
York, NY 10041, Attention: Residential Mortgage Surveillance Group.

         Section 11.09.             Further Assurances.

         Notwithstanding any other provision of this Agreement, neither the
Regular Certificateholders nor the Trustee shall have any obligation to consent
to any amendment or modification of this Agreement unless they have been
provided reasonable security or indemnity against their out-of-pocket expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

         Section 11.10.             Benefits of Agreement.

         Nothing in this Agreement or in the Certificates, expressed or implied,
shall give to any Person, other than the Certificateholders and the parties
hereto and their successors hereunder, any benefit or any legal or equitable
right, remedy or claim under this Agreement.

         Section 11.11     Acts of Certificateholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Agreement to be given or taken by the
Certificateholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Certificateholders in person or by
agent duly appointed in writing, and such action shall become effective when
such instrument or instruments are delivered to the Trustee and the Master
Servicer. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "act" of the
Certificateholders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Agreement and conclusive in favor of the
Trustee and the Trust, if made in the manner provided in this Section 11.11.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by a signer acting in a capacity other than his or her
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

         (c) Any request, demand, authorization, direction, notice, consent,
waiver or other action by any Certificateholder shall bind every future Holder
of such Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu
thereof,

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<PAGE>

in respect of anything done, omitted or suffered to be done by the Trustee or
the Trust in reliance thereon, whether or not notation of such action is made
upon such Certificate.

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<PAGE>

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

                                     FINANCIAL ASSET SECURITIES
                                     CORPORATION,
                                       as Depositor

                                     By:      /s/ Frank Skibo
                                              ---------------------------------
                                     Name:    Frank Skibo
                                     Title:   Vice President

                                     OPTION ONE MORTGAGE CORPORATION,
                                       as Master Servicer

                                     By:      /s/ Rod Colombi
                                              ---------------------------------
                                     Name:    Rod Colombi
                                     Title:   Vice President

                                     WELLS FARGO BANK MINNESOTA, N.A.,
                                       as Trustee

                                     By:      /s/ Peter A. Gobell
                                              ---------------------------------
                                     Name:    Peter A. Gobell
                                     Title:   Assistant Vice President

<PAGE>

STATE OF       )
               ) ss.:
COUNTY OF      )

         On the ___th day of February, 2001 before me, a notary public in and
for said State, personally appeared _______________ known to me to be a
______________ of Financial Asset Securities Corporation, a Delaware corporation
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

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

<PAGE>

STATE OF       )
               ) ss.:
COUNTY OF      )

         On the ___th day of February, 2001 before me, a notary public in and
for said State, personally appeared _______________ known to me to be a
_______________ of Option One Mortgage Corporation, a corporation that executed
the within instrument, and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

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

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

<PAGE>

STATE OF       )
               ) ss.:
COUNTY OF      )

         On the ___th day of February, 2001 before me, a notary public in and
for said State, personally appeared __________________, known to me to be an
_____________________ of Wells Fargo Bank Minnesota, N.A., a national banking
association that executed the within instrument, and also known to me to be the
person who executed it on behalf of said association, and acknowledged to me
that such corporation executed the within instrument.

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

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

<PAGE>

                                   EXHIBIT A-1

                         FORM OF CLASS A-1 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001

Initial Certificate Principal
Balance of this Certificate
("Denomination")                       :      $201,948,000.00

Original Class Certificate
Principal Balance of this Class        :      $201,948,000.00

Percentage Interest                    :      100.00%

Pass-Through Rate                      :      Variable

CUSIP                                  :      32027N AD 3

Class                                  :      A-1

Assumed Maturity Date                  :      January 2031

                                      A-1-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                    Class A-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien adjustable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
A-1 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class A-1
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class A-1 Certificate (obtained by
dividing the Denomination of this Class A -1 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corporation (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of February 1, 2001 (the "Agreement")
among the Depositor, Option One Mortgage Corporation, as master servicer (the
"Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Class A-1 Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this Class A-1
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         Reference is hereby made to the further provisions of this Class A-1
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class A-1 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-1-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                   FIRST FRANKLIN MORTGAGE LOAN TRUST
                                   2001-FF1

                                   By:   WELLS FARGO BANK MINNESOTA,
                                         N.A., not in its individual capacity,
                                         but solely as Trustee

                                   By_______________________________________

This is one of the Class A-1 Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota,
         N.A., as Trustee

                                      A-1-3

<PAGE>

                       [Reverse of Class A-1 Certificate]

                   FIRST FRANKLIN MORTGAGE LOAN TRUST 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-1-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-1-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-1-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-1-7

<PAGE>

                                   EXHIBIT A-2

                         FORM OF CLASS A-2 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001
Initial Certificate Principal
Balance of this Certificate
("Denomination")                       :      $29,350,000.00

Original Class Certificate
Principal Balance of this Class        :      $29,350,000.00

Percentage Interest                    :      100.00%

Pass-Through Rate                      :      Variable

CUSIP                                  :      32027N AE 1

Class                                  :      A-2

Assumed Maturity Date                  :      January 2031

                                      A-2-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                    Class A-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien adjustable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
A-2 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class A-2
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class A-2 Certificate (obtained by
dividing the Denomination of this Class A -2 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corporation (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of February 1, 2001 (the "Agreement")
among the Depositor, Option One Mortgage Corporation, as master servicer (the
"Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Class A-2 Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this Class A-2
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         Reference is hereby made to the further provisions of this Class A-2
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class A-2 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-2-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                        FIRST FRANKLIN MORTGAGE LOAN TRUST
                                        2001-FF1

                                        By:      WELLS FARGO BANK MINNESOTA,
                                                 N.A., not in its individual
                                                 capacity, but solely as Trustee

                                        By______________________________________

This is one of the Class A-2 Certificates
referenced in the within-mentioned Agreement

By_______________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota,
         N.A., as Trustee

                                      A-2-3

<PAGE>

                       [Reverse of Class A-2 Certificate]

                   FIRST FRANKLIN MORTGAGE LOAN TRUST 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-2-4

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-2-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-2-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-2-7

<PAGE>

                                   EXHIBIT A-3

                         FORM OF CLASS M-1 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES AND THE CLASS A-2
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001
Initial Certificate Principal
Balance of this Certificate
("Denomination")                       :      $11,132,000.00

Original Class Certificate
Principal Balance of this Class        :      $11,132,000.00

Percentage Interest                    :      100.00%

Pass-Through Rate                      :      Variable

CUSIP                                  :      32027N AF 8

Class                                  :      M-1

Assumed Maturity Date                  :      January 2031

                                      A-3-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                    Class M-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien adjustable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-1 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-1
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-1 Certificate (obtained by
dividing the Denomination of this Class M-1 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corporation (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of February 1, 2001 (the "Agreement")
among the Depositor, Option One Mortgage Corporation, as master servicer (the
"Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Class M-1 Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this Class M-1
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class M-1
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-1 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-3-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                   First Franklin Mortgage Loan Trust 2001-FF1

                                   By:      WELLS FARGO BANK MINNESOTA,
                                            N.A.
                                            not in its individual capacity, but
                                            solely as Trustee

                                   By________________________________________

This is one of the Class M-1 Certificates
referenced in the within-mentioned Agreement

By________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota,
         N.A., as Trustee

                                      A-3-3

<PAGE>

                       [Reverse of Class M-1 Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar

                                      A-3-4

<PAGE>

duly executed by the holder hereof or such holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations and evidencing the same aggregate Percentage Interest
in the Trust will be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-3-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-3-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-3-7

<PAGE>

                                   EXHIBIT A-4

                         FORM OF CLASS M-2 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE CLASS A-2
CERTIFICATES AND THE CLASS M-1 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001
Initial Certificate Principal
Balance of this Certificate

("Denomination")                       :      $3,711,000.00

Original Class Certificate
Principal Balance of this Class        :      $3,711,000.00

Percentage Interest                    :      100.00%

Pass-Through Rate                      :      Variable

CUSIP                                  :      32027N AG 6

Class                                  :      M-2

Assumed Maturity Date                  :      January 2031

                                      A-4-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                    Class M-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien adjustable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-2 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-2
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-2 Certificate (obtained by
dividing the Denomination of this Class M-2 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corporation (the "Depositor"). The Trust was created pursuant to a
Pooling and Servicing Agreement dated as of February 1, 2001 (the "Agreement")
among the Depositor, Option One Mortgage Corporation, as master servicer (the
"Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Class M-2 Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this Class M-2
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class M-2
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-2 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-4-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                   First Franklin Mortgage Loan Trust 2001-FF1

                                   By:      WELLS FARGO BANK MINNESOTA,
                                            N.A.
                                            not in its individual capacity, but
                                            solely as Trustee

                                   By___________________________________

This is one of the Class M-2 Certificates
referenced in the within-mentioned Agreement

By_________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota,
         N.A., as Trustee

                                      A-4-3

<PAGE>

                       [Reverse of Class M-2 Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar

                                      A-4-4

<PAGE>

duly executed by the holder hereof or such holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations and evidencing the same aggregate Percentage Interest
in the Trust will be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-4-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-4-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-4-7

<PAGE>

                                   EXHIBIT A-5

                          FORM OF CLASS C CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE CLASS A-2
CERTIFICATES, THE CLASS M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES TO THE
EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001
Initial Certificate Principal
Balance of this Certificate
("Denomination")                       :      $1,236,469.32

Original Class Certificate
Principal Balance of this Class        :      $1,236,469.32

Percentage Interest                    :      100.00%

Class                                  :      C

                                      A-5-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                     Class C

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien variable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class C
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class C
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Option One Mortgage Securities Corp. is the
registered owner of the Percentage Interest evidenced by this Class C
Certificate (obtained by dividing the Denomination of this Class C Certificate
by the Original Class Certificate Principal Balance) in certain distributions
with respect to a Trust consisting primarily of the Mortgage Loans deposited by
Financial Asset Securities Corporation (the "Depositor"). The Trust was created
pursuant to a Pooling and Servicing Agreement dated as of February 1, 2001 (the
"Agreement") among the Depositor, Option One Mortgage Corporation, as master
servicer (the "Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a
national banking association, as trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Class C Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Class C Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Master Servicer or the Depositor; or there shall be delivered
to the Trustee and the Depositor a transferor certificate by the transferor and
an investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

                                      A-5-2

<PAGE>

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class C
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class C Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-5-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                   First Franklin Mortgage Loan Trust 2001-FF1

                                   By:      WELLS FARGO BANK MINNESOTA,
                                            N.A.,
                                            not in its individual capacity, but
                                            solely as Trustee

                                   By___________________________________

This is one of the Class C Certificates
referenced in the within-mentioned Agreement

By_____________________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota, N.A.,
         a national banking association, as Trustee

                                      A-5-4

<PAGE>

                        [Reverse of Class C Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-5-5

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-5-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-5-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-5-8

<PAGE>

                                   EXHIBIT A-6

                           FORM OF CLASS P CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001

Initial Certificate Principal
Balance of this Certificate
("Denomination")                       :      $100.00

Original Class Certificate
Principal Balance of this Class        :      $100.00

Percentage Interest                    :      100.00%

Class                                  :      P

                                      A-6-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                     Class P

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien variable rate mortgage loans (the
         "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class P
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class P
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Master Servicer, or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Option One Mortgage Securities Corp. is the
registered owner of the Percentage Interest evidenced by this Class P
Certificate (obtained by dividing the Denomination of this Class P Certificate
by the Original Class Certificate Principal Balance) in certain distributions
with respect to a Trust consisting primarily of the Mortgage Loans deposited by
Financial Asset Securities Corporation (the "Depositor"). The Trust was created
pursuant to a Pooling and Servicing Agreement dated as of February 1, 2001 (the
"Agreement") among the Depositor, Option One Mortgage Corporation, as master
servicer (the "Master Servicer"), and Wells Fargo Bank Minnesota, N.A., a
national banking association, as Trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Class P Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Class P Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         This Certificate does not have a pass-through rate and will be entitled
to distributions only to the extent set forth in the Agreement.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Master Servicer or the Depositor; or there shall be delivered
to the Trustee and the Depositor a transferor certificate by the transferor and
an investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability

                                      A-6-2

<PAGE>

that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class P
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class P Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-6-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                   First Franklin Mortgage Loan Trust 2001-FF1

                                   By:      WELLS FARGO BANK MINNESOTA,
                                            N.A.,
                                            not in its individual capacity, but
                                            solely as Trustee

                                   By__________________________________

This is one of the Class P Certificates
referenced in the within-mentioned Agreement

By____________________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota, N.A.,
         a national banking association, as Trustee

                                      A-6-4

<PAGE>

                        [Reverse of Class P Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-6-5

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-6-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-6-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-6-8

<PAGE>

                                   EXHIBIT A-7

                          FORM OF CLASS R CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                         :    1

Cut-off Date                            :     February 1, 2001

First Distribution Date                 :    March 26, 2001

Percentage Interest                     :    100.00%

Class                                        R

                                      A-7-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                                     Class R

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting primarily of a pool of first lien variable rate
         mortgage loans (the "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Master Servicer or the Trustee
referred to below or any of their respective affiliates.

         This certifies that Option One Mortgage Securities Corp. is the
registered owner of the Percentage Interest evidenced by this Certificate
specified above in the interest represented by all Certificates of the Class to
which this Certificate belongs in a Trust consisting primarily of the Mortgage
Loans deposited by Financial Asset Securities Corporation (the "Depositor"). The
Trust was created pursuant to a Pooling and Servicing Agreement dated as of
February 1, 2001 (the "Agreement") among the Depositor, Option One Mortgage
Corporation, as master servicer (the "Master Servicer") and Wells Fargo Bank
Minnesota, N.A., a national banking association, as trustee (the "Trustee"). To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

         This Certificate does not have a principal balance or pass-through rate
and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in Minneapolis, Minnesota.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Master Servicer or the Depositor; or there shall be delivered
to the Trustee and the Depositor a transferor certificate by the transferor and
an investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability

                                      A-7-2

<PAGE>

that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
this Certificate may be transferred without delivery to the Trustee of (a) a
transfer affidavit of the proposed transferee and (b) a transfer certificate of
the transferor, each of such documents to be in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Certificate must agree
not to transfer an Ownership Interest in this Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee. Pursuant to the Agreement, The Trustee will
provide the Internal Revenue Service and any pertinent persons with the
information needed to compute the tax imposed under the applicable tax laws on
transfers of residual interests to disqualified organizations, if any person
other than a Permitted Transferee acquires an Ownership Interest on a Class R
Certificate in violation of the restrictions mentioned above.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                      A-7-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                                        FIRST FRANKLIN MORTGAGE LOAN TRUST
                                        2001-FF1

                                        By:      WELLS FARGO BANK MINNESOTA,
                                                 N.A.,
                                                 not in its individual capacity,
                                                 but solely as Trustee

                                        By__________________________________

This is one of the Class R Certificates
referenced in the within-mentioned Agreement

By______________________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota, N.A.,
         a national banking association, as Trustee

                                      A-7-4

<PAGE>

                        [Reverse of Class R Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-7-5

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Initial Mortgage Loans as of the Cut-off
Date, the Master Servicer may purchase, in whole, from the Trust the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon notice to the Trustee upon the
earliest of (i) the Distribution Date on which the Certificate Principal
Balances of the Regular Certificates have been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, (iii) the
Distribution Date in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-7-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-7-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-7-7

<PAGE>

                                   EXHIBIT A-8

                      FORM OF DIVIDEND ACCOUNT CERTIFICATE

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                        :      1

Cut-off Date                           :      February 1, 2001

First Distribution Date                :      March 26, 2001

Percentage Interest                    :      100.00%

Class                                  :      Dividend Account Certificate

                                      A-8-1

<PAGE>

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1
                          Dividend Account Certificate

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates with respect to the Trust consisting of first lien
         variable rate mortgage loans (the "Mortgage Loans")

              FINANCIAL ASSET SECURITIES CORPORATION, as Depositor

         This Dividend Account Certificate does not evidence an obligation of,
or an interest in, and is not guaranteed by the Depositor, the Master Servicer,
or the Trustee referred to below or any of their respective affiliates.

         This certifies that Option One Mortgage Securities Corp. is the
registered owner of the Percentage Interest evidenced by this Dividend Account
Certificate in certain distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Financial Asset Securities
Corporation (the "Depositor"). The Trust was created pursuant to a Pooling and
Servicing Agreement dated as of February 1, 2001 (the "Agreement") among the
Depositor, Option One Mortgage Corporation, as master servicer (the "Master
Servicer"), and Wells Fargo Bank Minnesota, N.A., a national banking
association, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Dividend Account Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Dividend Account Certificate by virtue of the acceptance hereof assents and
by which such Holder is bound.

         No transfer of this Dividend Account Certificate shall be made unless
such transfer is made pursuant to an effective registration statement under the
Act and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Master Servicer or the Depositor; or there shall be delivered
to the Trustee and the Depositor a transferor certificate by the transferor and
an investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

                                      A-8-2

<PAGE>

         Reference is hereby made to the further provisions of this Dividend
Account Certificate set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

         This Dividend Account Certificate shall not be entitled to any benefit
under the Agreement or be valid for any purpose unless manually countersigned by
an authorized signatory of the Trustee.

                                      A-8-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: February 28, 2001

                              First Franklin Mortgage Loan Trust 2001-FF1

                              By:      WELLS FARGO BANK MINNESOTA,
                                       N.A.,
                                       not in its individual capacity, but
                                       solely as Trustee

                              By___________________________________

This is one of the Dividend Account Certificates
referenced in the within-mentioned Agreement

By_______________________________________________________
         Authorized Signatory of
         Wells Fargo Bank Minnesota, N.A.,
         a national banking association, as Trustee

                                      A-8-4

<PAGE>

                    [Reverse of Dividend Account Certificate]

                   First Franklin Mortgage Loan Trust 2001-FF1
                           Asset-Backed Certificates,
                                 Series 2001-FF1

         This Certificate is one of a duly authorized issue of Certificates
designated as First Franklin Mortgage Loan Trust 2001-FF1, Asset-Backed
Certificates, Series 2001-FF1 (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust created by the
Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of the Dividend Account Certificates on such Distribution
Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee and of Holders of the
requisite percentage of the Percentage Interests of each Class of Certificates
affected by such amendment, as specified in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      A-8-5

<PAGE>

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Principal Balance of the Mortgage Loans is less than 10% of the sum of
the aggregate Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Master Servicer may purchase, in whole, from the Trust the Mortgage Loans at
a purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in January 2031.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-8-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

Dated:_________________

                                        _____________________________________
                                        Signature by or on behalf of assignor

                                      A-8-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ____________________, or, if mailed by check, to ________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-8-8

<PAGE>

                                    EXHIBIT B

                                   [RESERVED]

                                       B-1

<PAGE>

                                    EXHIBIT C

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                    See Tab 2

                                       C-1

<PAGE>

                                    EXHIBIT D

                             MORTGAGE LOAN SCHEDULE

                                [FILED BY PAPER]

                                       D-1

<PAGE>

                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

To:      Wells Fargo Bank Minnesota, N.A.,
         1015 10th Avenue S.E.
         Minneapolis, MN 55414
         Attn: Inventory Control

         Re:      Pooling and Servicing Agreement dated as of February 1, 2001
                  among Financial Asset Securities Corporation, as Depositor,
                  Option One Mortgage Corporation, as Master Servicer and Wells
                  Fargo Bank Minnesota, N.A., as Trustee
                  -------------------------------------------------------------

         In connection with the administration of the Mortgage Loans held by you
as Trustee pursuant to the above-captioned Pooling and Servicing Agreement, we
request the release, and hereby acknowledge receipt of the Trustee's Mortgage
File Or the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number:
--------------------

Mortgagor Name, Address & Zip Code:
----------------------------------

Reason for Requesting Documents (check one):
-------------------------------

_________1.       Mortgage Paid in Full

_________2.       Foreclosure

_________3.       Substitution

_________4.       Other Liquidation (Repurchases, etc.)

_________5.       Nonliquidation            Reason:_____________________

Address to which Trustee should deliver
the Trustee's Mortgage File:
________________________________________________________________________________
________________________________________________________________________________

                                       E-1

<PAGE>

                                        By:__________________________________
                                                 (authorized signer)

                                        Issuer:______________________________

                                        Address:_____________________________
                                                _____________________________

                                        Date:________________________________

Trustee
-------

Wells Fargo Bank Minnesota, N.A.

                  Please acknowledge the execution of the above request by your
                  signature and date below:

                  ____________________________                __________________
                  Signature                                   Date

                  Documents returned to Trustee:

                  ______________________________              __________________
                  Trustee                                     Date

                                       E-2

<PAGE>

                                   EXHIBIT F-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                        February __, 2001

Financial Asset Securities Corporation          Option One Mortgage Corporation
600 Steamboat Road                              3 Ada Road
Greenwich, Connecticut 06830                    Irvine, California  92618

         Re:      Pooling and Servicing Agreement, dated as of February 1, 2000,
                  among Financial Asset Securities Corporation, Option One
                  Mortgage Corporation and Wells Fargo Bank Minnesota, N.A.,
                  Asset-Backed Certificates, Series 2001-FF1
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  Attached is the Trustee's preliminary exception report
delivered in accordance with Section 2.02 of the referenced Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"). Capitalized terms
used but not otherwise defined herein shall have the meanings set forth in the
Pooling and Servicing Agreement.

                  The Trustee has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the Pooling and Servicing Agreement. The Trustee makes no
representations as to (i) the validity, legality, sufficiency, enforceability or
genuineness of any of the documents contained in the Mortgage File pertaining to
the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan or (iii) whether any Mortgage File includes any of the documents specified
in clause (v) of Section 2.01 of the Pooling and Servicing Agreement.

                                         WELLS FARGO BANK MINNESOTA,
                                         N.A.

                                         By:________________________
                                         Name:
                                         Title:

                                      F-1-1

<PAGE>

                                   EXHIBIT F-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                       ________________
                                                            [Date]

Financial Asset Securities Corporation
600 Steamboat Road
Greenwich, Connecticut 06830

         Re:      Pooling and Servicing Agreement (the "Pooling and Servicing
                  Agreement"), dated as of February 1, 2001 among Financial
                  Asset Securities Corporation, as Depositor, Option One
                  Mortgage Corporation, as Master Servicer and Wells Fargo Bank
                  Minnesota, N.A., as Trustee with respect to First Franklin
                  Mortgage Loan Trust 2001-FF1, Asset-Backed Certificates,
                  Series 2001-FF1
                  -------------------------------------------------------------

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage loan paid in full
or listed on Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in items 1, 2, 3, 10, 11, 15, 28, 29
and 30 of the definition of Mortgage Loan Schedule in the Pooling and Servicing
Agreement accurately reflects information in the Mortgage File.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement. This
Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                   WELLS FARGO BANK MINNESOTA, N.A., as
                                   Trustee

                                   By:____________________________
                                   Name:
                                   Title:

                                      F-2-1

<PAGE>

                                   EXHIBIT F-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

Financial Asset Securities Corporation
600 Steamboat Road
Greenwich, Connecticut 06830

             Re:   First Franklin Mortgage Loan Trust 2001-FF1,
                   Asset-Backed Certificates Series 2001-FF1
                   --------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of February 1, 2001, among Financial Asset Securities Corporation as
Depositor, Option One Mortgage Corporation as Master Servicer and Wells Fargo
Bank Minnesota, N.A. as Trustee (the "Trustee"), we hereby acknowledge the
receipt of the original Mortgage Notes (a copy of which is attached hereto as
Exhibit 1) with any exceptions thereto listed on Exhibit 2.

                                        WELLS FARGO BANK MINNESOTA,
                                        N.A., as Trustee

                                        By:________________________
                                        Name:
                                        Title:

                                      F-3-1

<PAGE>

                                    EXHIBIT G

                                   [Reserved]

                                       G-1

<PAGE>

                                    EXHIBIT H

                           FORM OF LOST NOTE AFFIDAVIT
                           ---------------------------

         Personally appeared before me the undersigned authority to administer
oaths, __________________ who first being duly sworn deposes and says: Deponent
is ________________ of ________________, successor by merger to
_________________________ ("Seller") and who has personal knowledge of the facts
set out in this affidavit.

On _________________________________, _________________________________ did
execute and deliver a promissory note in the principal amount of
$____________________.

         That said note has been misplaced or lost through causes unknown and is
presently lost and unavailable after diligent search has been made. Seller's
records show that an amount of principal and interest on said note is still
presently outstanding, due, and unpaid, and Seller is still owner and holder in
due course of said lost note.

         Seller executes this Affidavit for the purpose of inducing Wells Fargo
Bank Minnesota, N.A., as trustee on behalf of First Franklin Mortgage Loan Trust
2001-FF1, Asset-Backed Certificates Series 2001-FF1, to accept the transfer of
the above described loan from Seller.

         Seller agrees to indemnify Wells Fargo Bank Minnesota, N.A., Financial
Asset Securities Corporation and Option One Mortgage Corporation harmless for
any losses incurred by such parties resulting from the above described
promissory note has been lost or misplaced.

By:__________________________
   __________________________

STATE OF       )
               )        SS:
COUNTY OF      )

         On this ______ day of ______________, 20_, before me, a Notary Public,
in and for said County and State, appeared , who acknowledged the extension of
the foregoing and who, having been duly sworn, states that any representations
therein contained are true.

         Witness my hand and Notarial Seal this _________ day of 20__.

____________________________
____________________________
My commission expires __________________________.

                                       H-1

<PAGE>

                                    EXHIBIT I

                                   [RESERVED]

                                       I-1

<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

Financial Asset Securities Corporation
600 Steamboat Road
Greenwich, Connecticut 06830

Wells Fargo Bank Minnesota, N.A.
11000 Broken Land Parkway
Columbia, MD 21044

               Re:      First Franklin Mortgage Loan Trust 2001-FF1,
                        Asset-Backed Certificates Series 2001-FF1
                        --------------------------------------------

Ladies and Gentlemen:

                  In connection with our acquisition of the above-captioned
Certificates, we certify that (a) we understand that the Certificates are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction that
is exempt from the registration requirements of the Act and any such laws, (b)
we are an "accredited investor," as defined in Regulation D under the Act, and
have such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has

                                       J-1

<PAGE>

executed and delivered to you a certificate to substantially the same effect as
this certificate, and (3) the purchaser or transferee has otherwise complied
with any conditions for transfer set forth in the Pooling and Servicing
Agreement.

                                        Very truly yours,

                                        [NAME OF TRANSFEREE]

                                        By:_____________________________
                                                Authorized Officer

                                       J-2

<PAGE>

                       FORM OF RULE 144A INVESTMENT LETTER

                                     [DATE]

Financial Asset Securities Corporation
600 Steamboat Road
Greenwich, Connecticut 06830

Wells Fargo Bank Minnesota, N.A.
11000 Broken Land Parkway
Columbia, MD 21044

            Re:   First Franklin Mortgage Loan Trust 2001-FF1,
                  Asset-Backed Certificates Series 2001-FF1
                  --------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we are not an employee benefit plan that is subject to the
Employee Retirement Income Security Act of 1974, as amended, or a plan that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor
are we acting on behalf of any such plan, (d) we have not, nor has anyone acting
on our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Securities Act or
that would render the disposition of the Certificates a violation of Section 5
of the Securities Act or require registration pursuant thereto, nor will act,
nor has authorized or will authorize any person to act, in such manner with
respect to the Certificates, (e) we are a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act and have completed
either of the forms of certification to that effect attached hereto as Annex 1
or Annex 2. We are aware that the sale to us is being made in reliance on Rule
144A. We are acquiring the Certificates for our own account or for resale
pursuant to Rule 144A and further, understand that such Certificates may be
resold, pledged or transferred only (i) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to

                                       J-3

<PAGE>

whom notice is given that the resale, pledge or transfer is being made in
reliance on Rule 144A, or (ii) pursuant to another exemption from registration
under the Securities Act.

                                        Very truly yours,

                                        [NAME OF TRANSFEREE]

                                        By:______________________________
                                                Authorized Officer

                                       J-4

<PAGE>

                                                            ANNEX 1 TO EXHIBIT J
                                                            --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

          [For Transferees Other Than Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

                  2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $ 1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

                  ___________ CORPORATION, ETC. The Buyer is a corporation
                  (other than a bank, savings and loan association or similar
                  institution), Massachusetts or similar business trust,
                  partnership, or charitable organization described in Section
                  501(c)(3) of the Internal Revenue Code of 1986, as amended.

                  ___________ BANK. The Buyer (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, A COPY OF WHICH IS
                  ATTACHED HERETO.

                  ___________ SAVINGS AND LOAN. The Buyer (a) is a savings and
                  loan association, building and loan association, cooperative
                  bank, homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, A COPY OF WHICH IS
                  ATTACHED HERETO.

--------

1        Buyer must own and/or invest on a discretionary basis at least
         $100,000,000 in securities unless Buyer is a dealer, and, in that case,
         Buyer must own and/or invest on a discretionary basis at least
         $10,000,000 in securities.

                                       J-5

<PAGE>

                  ___________ BROKER-DEALER. The Buyer is a dealer registered
                  pursuant to Section 15 of the Securities Exchange Act of 1934.

                  ___________ INSURANCE COMPANY. The Buyer is an insurance
                  company whose primary and predominant business activity is the
                  writing of insurance or the reinsuring of risks underwritten
                  by insurance companies and which is subject to supervision by
                  the insurance commissioner or a similar official or agency of
                  a State, territory or the District of Columbia.

                  ___________ STATE OR LOCAL PLAN. The Buyer is a plan
                  established and maintained by a State, its political
                  subdivisions, or any agency or instrumentality of the State or
                  its political subdivisions, for the benefit of its employees.

                  ___________ ERISA PLAN. The Buyer is an employee benefit plan
                  within the meaning of Title I of the Employee Retirement
                  Income Security Act of 1974.

                  ___________ INVESTMENT ADVISOR. The Buyer is an investment
                  advisor registered under the Investment Advisors Act of 1940.

                  ___________ SMALL BUSINESS INVESTMENT COMPANY. Buyer is a
                  small business investment company licensed by the U.S. Small
                  Business Administration under Section 301(c) or (d) of the
                  Small Business Investment Act of 1958.

                  ___________ BUSINESS DEVELOPMENT COMPANY. Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisors Act of 1940.

                  3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit (v)
loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market. Further, in determining such
aggregate amount, the Buyer may have included securities owned by subsidiaries
of the Buyer, but only if such subsidiaries are consolidated with the Buyer in
its financial statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries are managed
under the Buyer's direction. However, such securities were not included if the
Buyer is a majority-owned, consolidated

                                       J-6

<PAGE>

subsidiary of another enterprise and the Buyer is not itself a reporting company
under the Securities Exchange Act of 1934, as amended.

                  5. The Buyer acknowledges that it is familiar with Rule 144A
and understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer may be in reliance on Rule 144A.

                  6. Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                   _____________________________________
                                           Print Name of Buyer

                                   By:__________________________________
                                   Name:
                                   Title:

                                   Date:_______________________________

                                       J-7

<PAGE>

                                                            ANNEX 2 TO EXHIBIT J
                                                            --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the Buyer's
most recent fiscal year. For purposes of determining the amount of securities
owned by the Buyer or the Buyer's Family of Investment Companies, the cost of
such securities was used, except (i) where the Buyer or the Buyers Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with respect
to the cost of those securities has been published. If clause (ii) in the
preceding sentence applies, the securities may be valued at market.

                  ___________ The Buyer owned $_________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  ___________ The Buyer is part of a Family of Investment
                  Companies which owned in the aggregate $___________ in
                  securities (other than the excluded securities referred to
                  below) as of the end of the Buyer's most recent fiscal year
                  (such amount being calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,

                                       J-8

<PAGE>

(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

                  5. The Buyer is familiar with Rule 144A and understands that
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

                  6. Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee
Certificate to which this certification relates of any changes in the
information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification by the undersigned as of the date of such purchase.

                                   ___________________________________
                                   Print Name of Buyer or Adviser

                                   By:________________________________
                                   Name:
                                   Tide:

                                   IF AN ADVISER:

                                   ___________________________________
                                      Print Name of Buyer

                                   Date:______________________________

                                       J-9

<PAGE>

                                    EXHIBIT K

                     AFFIDAVIT OF TRANSFER OF R CERTIFICATES
                           PURSUANT TO SECTION 5.02(d)

                   FIRST FRANKLIN MORTGAGE LOAN TRUST 2001-FF1
                   ASSET-BACKED CERTIFICATES, SERIES 2001-FF1

STATE OF          )
                  ) ss.:
COUNTY OF         )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of , the proposed Transferee of an
Ownership Interest in Class R Certificates (the "Certificate") issued pursuant
to the Pooling and Servicing Agreement, (the "Agreement"), relating to the
above-referenced Certificates, among Financial Asset Securities Corporation, as
Depositor, Option One Mortgage Corporation, as Master Servicer (the "Master
Servicer") and Wells Fargo Bank Minnesota, N.A., as Trustee (the "Trustee").
Capitalized terms used, but not defined herein shall have the meanings ascribed
to such terms in the Agreement. The Transferee has authorized the undersigned to
make this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof and will be, as of the date
of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) to a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass- through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership,

                                       K-1

<PAGE>

trust or estate, and certain cooperatives and, except as may be provided in
Treasury Regulations, persons holding interests in pass-through entities as a
nominee for another Person.)

         5. The Transferee has reviewed the provisions of Section 5.02(d) of the
Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(d) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit K to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate.

         8. The Transferee's taxpayer identification number is _____________.

         9. The Transferee is a U.S. Person as defined in Code Section
7701-(a)(30).

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

         11. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, nor is it acting on
behalf of such a plan.

                                       K-2

<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ___ day of __________, ___.

                                   [NAME OF TRANSFEREE]

                                   By:____________________________
                                   Name:
                                   Title:

[Corporate Seal]

ATTEST:

__________________________
[Assistant] Secretary

         Personally appeared before me the above-named , known or proved to me
to be the same person who executed the foregoing instrument and to be the of the
Transferee, and acknowledged that he executed the same as his free act and deed
and the free act and deed of the Transferee.

         Subscribed and sworn before me this __ day of _______, ___.

                                _____________________________
                                        NOTARY PUBLIC

                                My Commission expires the ____ day of ____, ___.

                                       K-3

<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

Financial Asset Securities Corporation
600 Steamboat Road
Greenwich, Connecticut 06830

                Re:  First Franklin Mortgage Loan Trust 2001-FF1,
                     Asset-Backed Certificates Series 2001-FF1
                     --------------------------------------------

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of a Class [ ] Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of a Class [ ] Certificate is to impede the assessment or collection
of tax.

                                        Very truly yours,

                                        TRANSFEROR

                                        By:______________________
                                        Name:
                                        Title:

                                       L-1

<PAGE>

                                    EXHIBIT M

                           Form of Liquidation Report

Customer Name:
Account Number:
Original Principal Balance:
1.       Type of Liquidation (REO disposition/charge-off/short pay-off)
         Date last paid
         Date of foreclosure
         Date of REO
         Date of REO Disposition
         Property Sale Price/Estimated Market Value at disposition
2.       Liquidation Proceeds
         Principal Prepayment               $_____________
         Property Sale Proceeds              _____________
         Insurance Proceeds                  _____________
         Other (itemize)                     _____________
         Total Proceeds                     $_____________
3.       Liquidation Expenses
         Servicing Advances                 $_____________
         Delinquency Advances                _____________
         Monthly Advances                    _____________
         Servicing Fees                      _____________
         Other Servicing Compensation        _____________

         Total Advances                     $_____________
4.       Net Liquidation Proceeds           $_____________
         (Item 2 minus Item 3)
5.       Principal Balance of Mortgage Loan $_____________
6.       Loss, if any (Item 5 minus Item 4) $_____________

                                       M-1

<PAGE>

                                    EXHIBIT N
                                    ---------

                   FORM OF LOSS MITIGATION ADVISORY AGREEMENT

                                   See Tab 48

                                       N-2

<PAGE>

                                   SCHEDULE I

                           PREPAYMENT CHARGE SCHEDULE

                            [AVAILABLE UPON REQUEST]

<PAGE>

                                   SCHEDULE II

                               PMI MORTGAGE LOANS

                            [AVAILABLE UPON REQUEST]

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