Document:

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                                                                   EXHIBIT 10(b)

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                         RECEIVABLES PURCHASE AGREEMENT

                            dated as of June 20, 2001

                                      Among

                              CMC RECEIVABLES, INC.
                                    as Seller

                                       and

                        THREE RIVERS FUNDING CORPORATION,
                                    as Buyer

                                       and

                           COMMERCIAL METALS COMPANY,
                                   as Servicer

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                         RECEIVABLES PURCHASE AGREEMENT

                  RECEIVABLES PURCHASE AGREEMENT dated as of June 20, 2001 among
CMC RECEIVABLES, INC., a Delaware corporation (the "Seller"), THREE RIVERS
FUNDING CORPORATION, a Delaware corporation (the "Buyer"), and COMMERCIAL METALS
COMPANY, a Delaware corporation(the "Company").

                                WITNESSETH THAT:

                  WHEREAS, the Company's Operating Divisions (as hereinafter
defined) and the Company's Affiliates (as hereinafter defined), Structural
Metals, Inc., SMI Steel Inc., Owen Electric Steel Company of South Carolina
d/b/a SMI Steel South Carolina, CMC Steel Fabricators, Inc. d/b/a SMI Joist
Company, and Howell Metal Company (collectively, the "Originators") in the
ordinary course of their business generate trade receivables resulting from the
sale of merchandise and the rendering of services to their customers; and

                  WHEREAS, the Originators may from time to time transfer to the
Seller certain of such receivables pursuant to the Sale Agreement dated as of
June 20, 2001 among the Originators and the Seller, as the same may from time to
time be amended, supplemented or otherwise modified (the "Sale Agreement");

                  WHEREAS, the Seller may from time to time create pools of such
receivables; and

                  WHEREAS, the Buyer may from time to time purchase from the
Seller undivided percentage ownership interests in such pools of receivables
pursuant to and in accordance with the terms hereof;

                  NOW, THEREFORE, the parties hereto, in consideration of their
mutual covenants hereinafter set forth and intending to be legally bound hereby,
agree as follows:

                                    Article I

                            DEFINITIONS; CONSTRUCTION

                  1.01 Certain Definitions In addition to other words and terms
defined in the recitals hereof and elsewhere in this Agreement, as used herein,
the following words and terms shall have the following meanings respectively,
unless otherwise required by context:

                  "Account Balance" shall mean, in respect of each Receivable
which is included in the Receivables Pool, all amounts shown as owing by the
related Obligor on the accounting records

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of an Originator and the Seller, and all other amounts which are shown on the
most recent Settlement Statement and in respect of which the related Obligor is
obligated, excluding each Defaulted Receivable and reduced by the aggregate
amount of any taxes, transport charges or other amounts that are owed by the
Obligors with respect to Receivables but are collected by the Seller or the
Originators on behalf of any other Person at such time or in reimbursement of
amounts owed by the Seller or the Originators to any other Person at such time.

                  "Accounting Period" shall mean, with respect to any Settlement
Date, the period ending on the last calendar day (or if such last calendar day
is not a Business Day, the next succeeding Business Day) in the month
immediately preceding such Settlement Date, and the corresponding periods prior
to the Closing Date.

                  "Affected Party" shall mean each of the Buyer, any permitted
assignee of the Buyer, and each Person providing liquidity or credit support to
the Buyer pursuant to a Liquidity Agreement or a Program Support Agreement and
each of their respective Affiliates and assigns.

                  "Affiliate" shall mean, with respect to a Person, any other
Person which directly or indirectly controls, is controlled by or is under
common control with such Person. The term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

                  "Agreement" shall mean this Receivables Purchase Agreement, as
the same may from time to time be amended, supplemented or otherwise modified.

                  "Business Day" shall mean any day other than a Saturday,
Sunday, public holiday under the Laws of the Commonwealth of Pennsylvania, the
State of Texas or the State of New York or other day on which banking
institutions are authorized or obligated to close in the Commonwealth of
Pennsylvania, the State of Texas or the State of New York.

                  "Buyer's Allocation" shall have the meaning ascribed to such
term in Section 3.01 hereof.

                  "Certificate of Participation" shall mean, with respect to the
Participation Interest, the written evidence of the Buyer's interest in the
Receivables Pool related to such Participation Interest, in substantially the
form attached as Exhibit A hereto.

                  "Chief Executive Office" shall mean, with respect to the
Seller or an Originator, the place where the Seller or the Originator, as the
case may be, is located, within the meaning of

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Section 9-103(c)(2) of the Uniform Commercial Code, as the same may from time to
time be amended, supplemented or otherwise modified, or any analogous provision
of any successor statute or any analogous provision of the Uniform Commercial
Code in effect in the jurisdiction whose Law governs the perfection of the
Seller's ownership interest in any Receivable or the Buyer's ownership interest
in any Purchased Receivable.

                  "Closing Date" shall mean the date on which the Participation
Interest is initially purchased by the Buyer in the Receivables Pool pursuant to
the terms of this Agreement.

                  "Collections" shall mean, for any Purchased Receivable as of
any date, (i) the sum of all amounts, whether in the form of cash, checks,
drafts, or other instruments (excluding promissory notes), received by an
Originator, the Seller or the Servicer or in a Permitted Lockbox in payment of,
or applied to, any amount owed by an Obligor on account of such Purchased
Receivable (including but not limited to all amounts received on account of any
Defaulted Receivable), including, without limitation, all amounts received on
account of such Purchased Receivable and other fees and charges, and (ii) all
amounts deemed to have been received by an Originator, the Seller or the
Servicer as a Collection pursuant to Sections 5.03(c) or 6.04 hereof.

                  "Company Fiscal Year" shall mean the fiscal year of the
Company, each of the other Originators and the Seller for accounting purposes.

                  "Company Entity" shall have the meaning assigned to such term
in Section 9.01(s) hereof.

                  "Complete Servicing Transfer" shall have the meaning ascribed
to such term in Section 6.07 hereof.

                  "Concentration Limit" shall mean, as of any date of
determination, with respect to all of the Receivables owing from a single
Obligor (except for an Obligor listed on Exhibit I), together with Receivables
owing from its Affiliates or subsidiaries, an amount equal to four percent (4%)
of the aggregate of the Account Balances of the Eligible Receivables in the
Receivables Pool outstanding as of the last day of the most recently completed
Accounting Period; provided that such percentage shall be increased for any
applicable Obligor to the highest level for which such Obligor qualifies, as
determined at the end of the Accounting Period most recently completed, in
accordance with the following: (i) six percent (6%) in the case of any Obligor
whose long-term debt obligations are rated BBB or higher by S&P or Baa2 or
higher by Moody's; (ii) eight percent (8%) in the case of any Obligor whose
long-term debt is rated A or higher by S&P or A2 or higher by Moody's; or (iii)
ten percent (10%) in the case of any Obligor whose long-term debt is rated AA or
higher by S&P or Aa2 or higher by Moody's.

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                  "Contract" shall mean a written or oral contract, which shall
be legally binding, between an Originator and an Obligor which gives rise to a
Receivable arising from the sale by the Originator of goods or services in the
ordinary course of the business of the Originator.

                  "Cost of Funds" shall mean, with respect to any Settlement
Period, an amount, as notified in writing by the Buyer to the Seller on or prior
to the related Settlement Date, equal to the interest or discount cost for funds
borrowed or obtained during such Settlement Period, either from the issuance of
commercial paper notes, the taking of loans or otherwise, by the Buyer for the
purpose of maintaining or acquiring the Participation Interest, including in the
computation of such cost any dealer's discount or fees and any and all other
fees which are attributable to such borrowing and are specified from time to
time in writing by the Buyer to the Seller.

                  "Credit and Collection Policy" shall mean the objective
receivable credit and collection practices utilized by the Originators, the
Seller and the Servicer as of the date hereof and approved by the Buyer, as the
same may be modified in strict compliance with this Agreement.

                  "Credit Enhancement Floor" shall mean, with respect to any
Settlement Date, the sum of (a) sixteen percent (16%), plus (b) the Expected
Dilution in the aggregate with respect to all types of Dilution Factors.

                  "Credit Enhancement Reserve" shall mean, with respect to any
Settlement Date, the product of (A) the greater of (1) the sum of (x) the
aggregate of the Dilution Reserves with respect to each type of Dilution Factor
as of such Settlement Date, plus (y) the Credit Loss Reserve as of such
Settlement Date and (2) the Credit Enhancement Floor as of such Settlement Date,
and (B) the positive result, if any, of (1) the aggregate outstanding balance of
Eligible Receivables in the Receivables Pool as of the last day of the full
Accounting Period immediately preceding such Settlement Date, minus (2) the sum
of (x) the Yield Reserve with respect to the related Settlement Period, plus (y)
the Servicer's Compensation Reserve as of such Settlement Date, minus (3) the
aggregate amount by which the Account Balance of Eligible Receivables of each
Obligor as of the last day of the full Accounting Period immediately preceding
such Settlement Date exceeds the Concentration Limit for such Obligor.

                  "Credit Loss Reserve" shall mean, with respect to any
Settlement Date, the product, expressed as a percentage, of (i) 2.0, (ii) the
Loss Ratio as of such Settlement Date and (iii) the Loss Horizon Ratio as of
such Settlement Date.

                  "Days Sales Outstanding" shall mean, as of any date of
calculation, the sum of (i) the product of (A) the quotient of (x) the aggregate
Account Balances of all Purchased Receivables

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outstanding as of the last day of the most recently ended Accounting Period less
the aggregate amount of net sales of the Originators during such Accounting
Period, divided by (y) the aggregate amount of net sales of the Originators
during the Accounting Period (the "Prior Period") immediately preceding the most
recently ended Accounting Period, and (B) the number of days in the Prior
Period, plus (ii) the number of days in the most recently ended Accounting
Period.

                  "Default Ratio" shall mean, with respect to any Settlement
Date, a fraction, expressed as a percentage, the numerator of which is the
aggregate outstanding balance of Eligible Receivables which were in the
Receivables Pool as of the first day of the full Accounting Period immediately
preceding such Settlement Date and which became Defaulted Receivables during
such Accounting Period and the denominator of which is the aggregate amount of
net sales of the Originators during the fourth full Accounting Period
immediately preceding such Settlement Date.

                  "Defaulted Receivable" shall mean a Purchased Receivable (a)
the Obligor of which is not entitled to purchase additional merchandise or
services from the applicable Originator, by reason of any default or
nonperformance by such Obligor, under the terms of the Credit and Collection
Policy, (b) which has become uncollectible or has been written off the books of
the applicable Originator or the Seller by reason of such Obligor's inability to
pay, as determined by the Buyer or the Servicer, in either case in accordance
with the Credit and Collection Policy, (c) in respect of which an Event of
Bankruptcy has occurred with respect to the related Obligor or (d) in respect of
which the Obligor is more than 60 days past due.

                  "Deferred Purchase Price" shall mean the amount calculated
pursuant to Section 5.06 hereof.

                  "Depositary" shall mean Bankers Trust Company.

                  "Dilution" shall mean a reduction of the Account Balance of an
Eligible Receivable given to an Obligor in accordance with the Credit and
Collection Policy as a result of a Dilution Factor.

                  "Dilution Factor" shall mean each type of factor set forth on
Exhibit H resulting in, or which may result in, a Dilution.

                  "Dilution Horizon" shall mean, with respect to any type of
Dilution Factor, the number indicated opposite such type of Dilution Factor on
Exhibit H; provided, that the Buyer may at any time, in its reasonable
discretion, change the Dilution Horizon for any type of Dilution Factor through
the delivery by the Buyer to the Seller of an amended Exhibit H.

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                  "Dilution Horizon Ratio" shall mean, as of any Settlement Date
with respect to any type of Dilution Factor, a fraction, expressed as a
percentage, the numerator of which is the aggregate amount of net sales of the
Originators during the number of full Accounting Periods immediately preceding
such Settlement Date equal to the Dilution Horizon with respect to such type of
Dilution Factor and the denominator of which is the aggregate outstanding
balance of Eligible Receivables in the Receivables Pool as of the last day of
the full Accounting Period immediately preceding such Settlement Date. The Buyer
and the Seller hereby agree that the Dilution Horizon Ratio with respect to a
Dilution Factor which has a Dilution Horizon equal to zero shall be zero.

                  "Dilution Ratio" shall mean, as of any Settlement Date with
respect to any type of Dilution Factor, a fraction, expressed as a percentage,
the numerator of which is the aggregate dollar amount of Dilutions attributable
to such type of Dilution Factor recognized by the Originators or the Seller
during the full Accounting Period immediately preceding such Settlement Date and
the denominator of which is the aggregate amount of net sales of the Originators
during the "N"th full Accounting Period immediately preceding such Settlement
Date, where "N" is equal to the Dilution Horizon with respect to such type of
Dilution Factor. The Buyer and the Seller hereby agree that the Dilution Ratio
with respect to a Dilution Factor which has a Dilution Horizon equal to zero
shall be zero.

                  "Dilution Reserve" shall mean, as of any Settlement Date with
respect to any type of Dilution Factor, the product of (a) the sum of (i) 2.0
times the Expected Dilution with respect to such type of Dilution Factor as of
such Settlement Date, plus (ii) the product of (x) the positive result, if any,
of the Dilution Spike Ratio with respect to such type of Dilution Factor as of
such Settlement Date, minus such Expected Dilution, and (y) a fraction, the
numerator of which is such Dilution Spike Ratio and the denominator of which is
such Expected Dilution, and (b) the Dilution Horizon Ratio with respect to such
type of Dilution Factor as of such Settlement Date.

                  "Dilution Spike Ratio" shall mean, as of any Settlement Date
with respect to any type of Dilution Factor, the highest Dilution Ratio with
respect to such type of Dilution Factor for any full Accounting Period during
the period of twelve (12) consecutive full Accounting Periods immediately
preceding such Settlement Date.

                  "Dispute" shall mean any dispute, deduction, claim, offset,
defense, counterclaim, set-off or obligation of any kind, contingent or
otherwise, relating to a Receivable, including, without limitation, any dispute
relating to goods or services already paid for.

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                  "Dollar", "Dollars" and the symbol "$" shall mean lawful money
of the United States of America.

                  "Eligible Receivable" shall mean any Receivable which:

                  (a)      duly complies with all applicable Laws and other
                           legal requirements, whether Federal, state or local,
                           including, without limitation, usury laws, the
                           Federal Consumer Credit Protection Act, the Fair
                           Credit Billing Act and the Federal Truth in Lending
                           Act;

                  (b)      constitutes an "account" or a "general intangible" as
                           defined in the Uniform Commercial Code as in effect
                           in the State of New York and the jurisdiction whose
                           Law governs the perfection of the Buyer's
                           Participation Interest in such Receivable;

                  (c)      (i) was originated by an Originator in the ordinary
                           course of the Originator's business in a transaction
                           which complied with the Credit and Collection Policy,
                           or (ii) was originated by a business subsequently
                           acquired by or merged into the Originator in a
                           transaction which complied with the policies and
                           procedures of such business in effect at the time
                           such Receivable was originated, provided that the
                           eligibility of such Receivable under this clause (ii)
                           is approved in advance in writing by the Referral
                           Agent;

                  (d)      arises from a Contract (the form of which has been
                           approved by the Referral Agent) and has been billed,
                           or will be billed to the related Obligor, or in
                           respect of which the related Obligor is otherwise
                           liable, in accordance with the terms of such
                           Contract;

                  (e)      arises from a Contract that (i) does not require the
                           Obligor under such Contract to consent to the
                           transfer, sale or assignment of the rights of the
                           applicable Originator to receive payments under such
                           Contract and (ii) does not contain any provision that
                           restricts the ability of the Buyer to exercise its
                           rights under this Agreement, including, without
                           limitation, its right to review the Contract, except,
                           in each case, as consented to or waived in writing by
                           the Obligor under such Contract;

                  (f)      constitutes a legal, valid, binding and irrevocable
                           payment obligation of the related Obligor,
                           enforceable in accordance with its terms

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                           (subject to contractual discounts, allowances,
                           quality and quantity adjustments);

                  (g)      provides for payment in Dollars by the related
                           Obligor;

                  (h)      is payable into a Permitted Lockbox or Lockbox
                           Account or directly to the Servicer or the Seller;
                           provided that Receivables originated by the Cometals
                           Operating Division need not be payable into a
                           Permitted Lockbox until such time as Cometals is
                           required to maintain a Permitted Lockbox pursuant to
                           Section 6.08;

                  (i)      has not been repurchased by the Seller or deemed
                           collected pursuant to the provisions of this
                           Agreement;

                  (j)      if it were a Purchased Receivable, would not be a
                           Defaulted Receivable;

                  (k)      has an Obligor who is entitled to purchase additional
                           merchandise or receive additional services from an
                           Originator under the terms of the Credit and
                           Collection Policy; provided, that a Receivable which
                           has an Obligor who is not entitled to purchase
                           additional merchandise or receive additional services
                           from the Originator because such Obligor has reached
                           the credit limit established by the Originator shall
                           be deemed to satisfy this paragraph (k);

                  (l)      was not originated in or subject to the Laws of a
                           jurisdiction whose Laws would make such Receivable,
                           the related Contract, the transfer of such Receivable
                           by the Originator to the Seller pursuant to the Sale
                           Agreement or the sale of the Participation Interest
                           in such Receivable to the Buyer hereunder unlawful,
                           invalid or unenforceable;

                  (m)      is owned solely by the Seller free and clear of all
                           Liens, except for the Lien arising in connection with
                           this Agreement and any Program Support Agreement;

                  (n)      no rejection or return of the goods or services which
                           give rise to such Receivable has occurred and all
                           goods and services in connection therewith have been
                           finally performed or delivered to and accepted by the
                           Obligor without Dispute;

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                  (o)      is not an obligation of the United States, any state
                           or municipality or any agency or instrumentality or
                           political subdivision thereof, unless otherwise
                           agreed to in writing by the Buyer, the Seller and the
                           Affected Parties;

                  (p)      is not subject to any contractual right of set-off;

                  (q)      is an obligation representing part or all of the
                           sales price of merchandise or services;

                  (r)      such Receivable must, by its terms, require full
                           payment in respect thereof not more than 60 days past
                           the specified due date thereof;

                  (s)      has an Obligor who is located in the United States,
                           including the Commonwealth of Puerto Rico;

                  (t)      has an Obligor who is not an Affiliate of an
                           Originator or the Seller;

                  (u)      was acquired by the Seller from an Originator
                           pursuant to and in accordance with the terms of the
                           Sale Agreement; and

                  (v)      the Obligor of which has not been deemed to be
                           ineligible by the Buyer, in its sole discretion, upon
                           ten (10) days prior written notice to the Seller.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time.

                  "ERISA Affiliate" shall mean any trade or business (whether or
not incorporated) that is a member of a group of which the Seller is a member
and which is treated as a single employer under Section 414 of the Code.

                  "Event of Bankruptcy" shall mean, for any Person:

                  (a)      if such Person shall fail generally to, or admit in
                           writing its inability to, pay its debts as they
                           become due; or

                  (b)      a proceeding shall have been instituted in a court
                           having jurisdiction in the premises seeking a decree
                           or order for relief in respect of such Person in an
                           involuntary case under any applicable bankruptcy,
                           insolvency or other similar law now or hereafter in
                           effect, or for the appointment of a receiver,
                           liquidator, assignee, custodian, trustee,
                           sequestrator, conservator (under the Bank

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                           Conservation Act, as amended, or otherwise) or other
                           similar official of such Person or for any
                           substantial part of its property, or for the
                           winding-up or liquidation of its affairs; or

                  (c)      the commencement by such Person of a voluntary case
                           under any applicable bankruptcy, insolvency or other
                           similar Law now or hereafter in effect, or such
                           Person's consent to the entry of an order for relief
                           in an involuntary case under any such Law, or consent
                           to the appointment of or taking possession by a
                           receiver, liquidator, assignee, trustee, custodian,
                           sequestrator, conservator (under the Bank
                           Conservation Act, as amended, or otherwise) or other
                           similar official of such Person or for any
                           substantial part of its property, or any general
                           assignment for the benefit of creditors, or, if a
                           corporation or similar entity, any corporate action
                           in furtherance of any of the foregoing; or

                  (d)      a decree or order of a court or agency or supervisory
                           authority having jurisdiction in the premises for the
                           appointment of a receiver, liquidator, assignee,
                           trustee, custodian, sequestrator, or conservator in
                           any insolvency, readjustment of debt, marshalling of
                           assets and liabilities, or similar proceedings, shall
                           have been entered against such Person.

                  "Expected Dilution" shall mean, as of any Settlement Date with
respect to any type of Dilution Factor, a fraction, expressed as a percentage,
the numerator of which is the sum of the Dilution Ratios with respect to such
type of Dilution Factor for each of the twelve full Accounting Periods
immediately preceding such Settlement Date and the denominator of which is 12.

                  "Expiration Date" means the earliest of (i) June 16, 2004,
which may be extended from time to time for an additional period or periods for
up to 360 days commencing on the then scheduled Expiration Date, by written
notice of request given by the Seller to the Buyer, specifying the duration of
the period of extension requested, at least 120 days before such scheduled
Expiration Date, and by written notice of acceptance (which notice may be given
or withheld by the Buyer in its sole discretion) by the Buyer to the Seller not
later than ninety (90) days prior to such scheduled Expiration Date, provided,
that the new scheduled Expiration Date shall in no event result in a remaining
term of this Agreement from any date of acceptance thereof that exceeds 360
days, (ii) the date that the Buyer shall give notice of the termination of the
Buyer's obligation to purchase the Participation Interest or make Reinvestments

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hereunder pursuant to Section 10.02, and (iii) the first date on which there
shall no longer be any Liquidity Agreement or Program Support Agreement in
effect (as to which the Buyer shall promptly notify the Seller after obtaining
notice of such termination, including any anticipated termination) supporting
commercial paper issued to fund the Participation Interest hereunder; provided,
further, that if any Expiration Date is not a Business Day it shall occur on the
next preceding Business Day.

                  "Facility Fee" shall mean the facility fee set forth in a
separate letter agreement, dated as of the Closing Date, between the Seller and
the Buyer, as the same may be amended from time to time.

                  "Fitch" shall mean Fitch Inc.

                  "GAAP" shall mean generally accepted accounting principles in
the United States of America, applied on a consistent basis except to the extent
necessary to comply with changes in such generally accepted accounting
principles.

                  "Income Taxes" shall mean any federal, state, local or foreign
taxes based upon, measured by, or imposed upon gross or net income, gross or net
receipts, capital or net worth, in each case, attributable solely to cash
received by the Affected Party that is not remitted or deemed remitted to the
Originators or the Seller (regardless of the name of the tax imposed), including
any penalties, interest or additions to tax imposed with respect thereto.

                  "Investment" shall mean, on each date of determination, the
sum of (i) the Net Investment and (ii) the Deferred Purchase Price, if any, as
determined on the first Closing Date or as set forth on the most recently
delivered Settlement Statement.

                  "Law" shall mean any law (including common law), constitution,
statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or
award of any Official Body (including any law, rule, regulation or governmental
order relating to the protection of the environment or to public or employee
health or safety).

                  "Lien", in respect of the property of any Person, shall mean
any ownership interest of any other Person, any mortgage, deed of trust,
hypothecation, pledge, lien, security interest, grant of a power to confess
judgment, preference, right to priority payment, filing of any financing
statement, charge or other encumbrance or security arrangement of any nature
whatsoever, including, without limitation, any conditional sale or title
retention arrangement, any assignment, deposit arrangement, consignment or lease
intended as, or having the effect of, security, or the filing of a financing
statement in connection with any of the foregoing.

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                  "Liquidation Day" shall mean each day which occurs on or after
(i) the date designated in a notice given by the Buyer to the Seller stating
that the conditions contained in Section 4.03 hereof are not satisfied, (ii) the
Expiration Date, (iii) the date on which a Termination Event occurs and is
continuing, or (iv) the date on which the Seller gives written notice to the
Buyer that it no longer wishes to sell interests in the Receivables Pool to the
Buyer or permit Reinvestments to be made; provided, however, there shall be no
Liquidation Day after the Net Investment shall equal zero.

                  "Liquidation Period" shall mean one or more consecutive
Liquidation Days.

                  "Liquidity Agreement" shall mean the Funding Agreement dated
as of June 20, 2001 among the Buyer, Mellon Bank, as funding institution, and
the Referral Agent, as the same may from time to time be amended, supplemented,
modified, replaced or superseded.

                  "Lockbox Account" shall mean an account owned and maintained
by the Servicer or its subservicer, for the benefit of the Seller, with a
Permitted Lockbox Bank for the purpose of depositing payments made by Obligors.

                  "Lockbox Servicing Agreement" shall mean an agreement relating
to lockbox services in connection with a Permitted Lockbox which is in form and
substance satisfactory to the Buyer and which has been executed and delivered to
the Buyer by a Permitted Lockbox Bank.

                  "Loss Horizon Ratio" shall mean, with respect to any
Settlement Date, a fraction, expressed as a percentage, the numerator of which
is the aggregate amount of net sales of the Originators during the four full
Accounting Periods immediately preceding such Settlement Date and the
denominator of which is the aggregate outstanding balance of Eligible
Receivables in the Receivables Pool as of the last day of the full Accounting
Period immediately preceding such Settlement Date.

                  "Loss Ratio" shall mean, with respect to any Settlement Date,
the highest average Default Ratio for any three consecutive full Accounting
Periods during the period of twelve consecutive full Accounting Periods
immediately preceding such Settlement Date.

                  "Maximum Net Investment" shall mean $130,000,000 or such
greater amount as shall be established with the consent of the Buyer or such
lesser amount as shall be established in accordance with Section 2.03 hereof.

                  "Mellon Bank" shall mean Mellon Bank, N.A., a national banking
association.

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                  "Moody's" shall mean Moody's Investors Service, Inc.

                  "Multiemployer Plan" shall mean a multiemployer plan as
defined in Section 4001(a)(3) of ERISA to which the Seller or any ERISA
Affiliate (other than one considered an ERISA Affiliate only pursuant to
subsection (m) or (o) of Section 414 of the Code) is making or accruing an
obligation to make contributions, or has within any of the preceding five plan
years made or accrued an obligation to make contributions.

                  "Net Investment" shall mean (a) for the Closing Date, an
amount equal to the Purchase Price (not including the Deferred Purchase Price,
if any) paid for the Participation Interest on the Closing Date, and (b) for any
other day, an amount equal to the sum of (i) the Net Investment on the Closing
Date, plus (ii) amounts paid to the Seller pursuant to Section 5.01 hereof since
the Closing Date as an increase in the Net Investment, less (iii) all
Collections and other amounts paid to the Buyer and not reinvested (which shall
not include any amounts paid to the Buyer as Cost of Funds or fees) pursuant to
Sections 2.03(b), 5.03(b),(d)and (e) and 5.04 hereof since the Closing Date. In
the event that any amount received by the Buyer constituting any portion of
Collections is rescinded or must otherwise be returned or restored for any
reason to any Person, the Net Investment shall be increased by the amount of
Collections so rescinded, returned or restored.

                  "Net Sales" shall mean, with respect to an Originator during
any specified period of time, the aggregate sales by such Originator during such
period which generate Receivables.

                  "Obligor" shall mean, with respect to any Receivable, the
Person who purchased goods or services under a Contract giving rise to such
Receivable and who is obligated to make payments to an Originator or the Seller
on such Contract in respect of such Receivable.

                  "Office" shall mean, when used in connection with the Buyer,
its office located at 114 West 47th Street, Suite 1715, New York, New York
10036, or when used in connection with the Company, an Originator or the Seller,
its respective office located at 7800 Stemmons Freeway, Dallas, Texas 75247, or
at such other office or offices of the Buyer, the Company, the Originator or the
Seller or branch, subsidiary or Affiliate of any thereof as may be designated in
writing from time to time by any party hereto to the other parties hereto.

                  "Official Body" shall mean any government or political
subdivision or any agency, authority, bureau, central bank, commission,
department or instrumentality of either, or any court, tribunal, grand jury or
arbitrator, in each case whether foreign or domestic.

                                       13
<PAGE>   15

                  "Operating Divisions" shall mean the following operating
divisions of the Company: Cometals, Commonwealth Metal, Dallas Trading Division
and Secondary Metals Processing Division.

                  "Originators" shall mean the Company (acting through its
Operating Divisions) and Structural Metals, Inc., SMI Steel Inc., Owen Electric
Steel Company of South Carolina d/b/a SMI Steel South Carolina, CMC Steel
Fabricators, Inc. d/b/a SMI Joist Company, (acting through its facility in Hope,
Arkansas) and Howell Metal Company.

                  "Participation Interest" shall mean, at any time, an undivided
percentage ownership interest equal to the Buyer's Allocation at such time in
all then outstanding Receivables included in the Receivables Pool, including,
without limitation, all Collections, and all collateral security, insurance
policies, letters of credit and surety bonds given on behalf of Obligors to
secure or support payment of such Receivables, and any proceeds of any of the
foregoing.

                  "PBGC" shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA or any successor thereto.

                  "Permitted Lockbox" shall mean a post office box owned and
maintained by the Servicer or its subservicer for the benefit of the Seller for
the purpose of receiving payments made by Obligors.

                  "Permitted Lockbox Bank" shall mean any bank at which a
Lockbox Account is maintained, the short-term unsecured debt obligations of
which are rated at least A-1 by S&P, at least P-1 by Moody's and, if rated by
Fitch, at least F-1 by Fitch, appointed from time to time by the Seller and
approved by the Buyer.

                  "Person" shall mean an individual, corporation, partnership
(general or limited), trust, business trust, unincorporated association, joint
venture, joint-stock company, Official Body, or any other entity of whatever
nature.

                  "Plan" shall mean any pension plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
that is maintained for employees of the Seller or any ERISA Affiliate.

                  "Potential Servicer Event" shall mean any event or condition
which, with the giving of notice, the passage of time or both, would constitute
a Servicer Event.

                  "Potential Termination Event" shall mean any event or
condition which, with the giving of notice, the passage of time or both, would
constitute a Termination Event.

                                       14
<PAGE>   16

                  "Program Fee" shall mean, for any Settlement Period, the rate
per annum set forth in the separate letter agreement, dated as of the Closing
Date, between the Seller and the Buyer, as the same may be amended from time to
time.

                  "Program Fee Amount" shall mean, for any Settlement Period or
part thereof, an amount equal to the product of (i) the Program Fee and (ii) the
average daily Net Investment during the days elapsed in such Settlement Period
and (iii) the quotient of the number of days elapsed during such Settlement
Period divided by 360.

                  "Program Support Agreement" means, collectively, all liquidity
agreements, funding agreements (other than the Liquidity Agreement), credit
agreements, letter of credit agreements, surety agreements, security agreements,
letters of credit and all other agreements which may be in effect from time to
time and which provide liquidity or credit support in respect of the commercial
paper issued by the Buyer, excluding, in the sole discretion of the Referral
Agent, any such agreement the absence of which would not reasonably be expected
to have a material adverse effect on the ability of the Buyer to issue its
commercial paper to fund the Net Investment hereunder.

                  "Purchase Availability Amount" shall mean, as of any date, an
amount equal to the excess, if any, of (i) the Maximum Net Investment as of such
date over (ii) the Net Investment as of such date.

                  "Purchase Documents" shall mean this Agreement, the
Certificate of Participation, the Sale Agreement and such other agreements,
documents and instruments entered into and delivered by the Seller or the
Originators in connection with the transactions contemplated by this Agreement.

                  "Purchase Notice" shall mean each notice delivered pursuant to
Section 4.02(e) hereof, in such form and with such detail as the Buyer may
require from time to time.

                  "Purchase Obligation" shall have the meaning ascribed to such
term in Section 2.01 hereof.

                  "Purchase Price" shall mean, with respect to the purchase of
the Participation Interest, the amount of cash consideration set forth on the
Purchase Notice or otherwise paid by the Buyer for such Participation Interest
on the Closing Date.

                  "Purchased Receivable" shall mean a Receivable included in the
Receivables Pool in which the Buyer is maintaining the Participation Interest
pursuant to the terms of this Agreement.

                  "Rate of Collections" shall mean, for any Accounting Period, a
fraction, expressed as a percentage, the numerator of which is equal to the
total Collections in respect of all

                                       15
<PAGE>   17

Receivables (including deemed Collections to the extent actually received by the
Servicer pursuant to Section 5.07) during such Accounting Period and the
denominator of which is equal to the aggregate Account Balances of all
Receivables as of the close of business on the last day of the immediately
preceding Accounting Period.

                  "Receivable" shall mean, with respect to any Contract, all
receivables, contract rights, general intangibles, accounts, chattel paper,
instruments (including, without limitation, promissory notes), amounts due and
to become due to an Originator or the Seller arising under such Contract
(including but not limited to finance charges accrued with respect to such
amounts and fees), and all other rights, powers and privileges of the Originator
or the Seller arising thereunder or related thereto and in the merchandise
(including returned goods) and contracts relating thereto, assertable against
any Person whatsoever, all security interests, insurance policies, letters of
credit, surety bonds, guaranties and property securing or supporting payment of
such Receivable, all Records relating to such Receivable and all proceeds and
products of any of the foregoing; provided, that the term shall not include any
Receivable the Obligor of which is listed on Exhibit I hereto, as such exhibit
may be amended, supplemented or modified from time to time.

                  "Receivables Pool" shall mean, at any time, the group of
Purchased Receivables then outstanding which have, on the Closing Date, been
identified by the Seller as constituting a pool and each additional Receivable
thereafter added to such pool.

                  "Records" shall mean correspondence, memoranda, computer
programs, tapes, discs, papers, books or other documents or transcribed
information of any type whether expressed in ordinary or machine readable
language.

                  "Reference Rate" shall mean the rate of interest established
by the Referral Agent from time to time as its reference rate; any change in the
reference rate shall become effective as of the opening of business when such
change occurs. The "Reference Rate" is not intended to be the lowest rate of
interest charged by the Referral Agent in connection with extensions of credit
to debtors.

                  "Referral Agent" shall mean Mellon Bank, together with its
successors or assigns, in its capacity as referral agent for the Buyer.

                  "Reinvestment" shall mean the purchase by the Buyer and the
sale by the Seller of additional undivided percentage ownership interests in
each and every Purchased Receivable utilizing the proceeds of Collections that
were allocated to the Buyer for such purpose pursuant to Section 5.03(a).

                                       16
<PAGE>   18

                  "Remainder" shall have the meaning assigned to such term in
Section 5.03(a) hereof.

                  "Reportable Event" shall mean any reportable event as defined
in Section 4043(c) of ERISA or the regulations issued thereunder with respect to
a Plan (other than a Plan maintained by an ERISA Affiliate that is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the
Code).

                  "Responsible Officer" shall mean the chief executive officer,
chief financial officer, controller, secretary, treasurer or any vice president
of the Seller, the Company or any other Originator, respectively, as the case
may be.

                  "Sale Agreement" shall have the meaning assigned to such term
in the recitals hereto.

                  "Servicer" shall mean the Company, or any Person other than
the Company or its Affiliates which, upon the termination of the Company as
Servicer, succeeds to the functions performed by the Company as the servicer of
the Purchased Receivables pursuant to a Complete Servicing Transfer and a
Successor Servicing Agreement.

                  "Servicer Event" shall mean a Termination Event (other than
the Termination Event under Section 10.01(k) relating to the Buyer).

                  "Servicer's Compensation" shall have the meaning ascribed to
such term in Section 6.06(e) hereof.

                  "Servicer's Compensation Reserve" shall mean, as of any
Settlement Date, an amount equal to the product of (i) .50%, (ii) the aggregate
outstanding balance of Eligible Receivables in the Receivables Pool as of the
last day of the full Accounting Period immediately preceding such Settlement
Date, and (iii) a fraction, the numerator of which is the product of (a) the
Days Sales Outstanding at the close of business as of the last day of such
Accounting Period and (b) 1.5 and the denominator of which is 360.

                  "Settlement Date" shall mean, as to each Settlement Period,
the twenty-second (22nd) calendar day (or, if such twenty-second (22nd) calendar
day is not a Business Day, the next succeeding Business Day) after the last day
of the Accounting Period most recently completed.

                  "Settlement Period" shall mean (a) the period from and
including the Closing Date and ending on the day immediately preceding the first
Settlement Date, and (b) thereafter, the period from and including the
Settlement Date of the immediately preceding Settlement Period and ending on the
day immediately preceding the next Settlement Date.

                                       17
<PAGE>   19

                  "Settlement Statement" shall mean a statement substantially in
the form of Exhibit B hereto, which, among other things, will identify in the
aggregate all Receivables included in the Receivables Pool as of the last day of
the Accounting Period most recently completed, duly completed and executed by a
Responsible Officer of the Company or, if the Company is no longer the Servicer,
of the Seller and delivered to the Buyer pursuant to Section 5.01 hereof.

                  "S&P" shall mean Standard & Poor's Ratings Services.

                  "Successor Servicing Agreement" shall mean any agreement
between the Buyer and any Person, other than the Company or its Affiliate, which
contains provisions concerning the servicing of the Purchased Receivables
substantially similar to the provisions contained herein, including Sections
5.03, 5.04, 5.06, 6.01, 6.02, 6.04, 6.06 and 6.07 hereof, pursuant to which such
Person performs servicing functions in respect of the Purchased Receivables, and
all agreements, instruments and documents attached thereto or delivered in
connection therewith, as any of the same may from time to time be amended,
supplemented or otherwise modified and in effect.

                  "Termination Event" shall have the meaning ascribed to such
term in Section 10.01 hereof.

                  "Transaction Costs" shall have the meaning ascribed to such
term in Section 11.01 hereof.

                  "UCC" shall have the meaning ascribed to such term in Section
1.02 hereof.

                  "Withdrawal Liability" shall mean 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 Subtitle E of Title IV of ERISA.

                  "Yield Reserve" shall mean, with respect to any Settlement
Period, an amount equal to the result of (X) the sum of (i) the Cost of Funds
for such Settlement Period and (ii) the product of (a) the Program Fee, (b) the
Net Investment at the close of business on the first day of such Settlement
Period, and (c) a fraction, the numerator of which is the actual number of days
in such Settlement Period and the denominator of which is 360, and (iii) the
product of (a) the Facility Fee, (b) the Maximum Net Investment as of the close
of business of the first day of such Settlement Period, and (c) a fraction, the
numerator of which is the actual number of days in such Settlement Period and
the denominator of which is 360, divided by (Y) the actual number of days in of
such Settlement Period, times (Z) the product of the Days Sales Outstanding as
of the last day of its most recently ended Accounting Period times 1.5.

                                       18
<PAGE>   20

                  1.02 Interpretation and Construction. Unless the context of
this Agreement otherwise clearly requires, references to the plural include the
singular, the singular the plural and the part the whole. References in this
Agreement to "determination" by the Buyer shall be conclusive absent manifest
error and include good faith estimates by the Buyer (in the case of quantitative
determinations) and good faith beliefs by the Buyer (in the case of qualitative
determinations). The words "hereof", "herein", "hereunder" and similar terms in
this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement. The section and other headings contained in this
Agreement are for reference purposes only and shall not control or affect the
construction of this Agreement or the interpretation hereof in any respect.
Section, subsection and appendix references are to this Agreement unless
otherwise specified. As used in this Agreement, the masculine, feminine or
neuter gender shall each be deemed to include the others whenever the context so
indicates. Terms not otherwise defined herein which are defined in the Uniform
Commercial Code as in effect in the State of New York (the "UCC") on the date
hereof shall have the respective meanings ascribed to such terms therein unless
the context otherwise clearly requires. This Agreement shall be construed as a
whole and in accordance with its fair meaning.

                                   Article II

                         AGREEMENT TO PURCHASE AND SELL

                  2.01 Purchase Limits. Subject to the terms and conditions
hereof, the Seller may at its option sell to the Buyer, and the Buyer agrees to
purchase from the Seller (such agreement being referred to herein as the
"Purchase Obligation"), at any time and from time to time on and after the date
hereof and to but excluding the Expiration Date, undivided percentage ownership
interests in the Receivables Pool by purchasing the Participation Interest in
such Receivables Pool. Subject to the terms and conditions hereof, the Buyer
shall also (i) make Reinvestments by permitting the Servicer to cause
Collections allocated to the Buyer to be applied to the purchase of additional
undivided percentage ownership interests in the Receivables Pool, and (ii)
increase its Net Investment in the Participation Interest on any Settlement Date
at the request of the Seller (without regard to a minimum amount). The Buyer
shall not purchase the Participation Interest on the Closing Date, or permit a
Reinvestment to be made on any day, or increase its Net Investment on any
Settlement Date, to the extent that the amount of such purchase or Reinvestment
shall exceed the Purchase Availability Amount, or shall cause the Buyer's
Allocation (after giving effect to such purchase or Reinvestment) to exceed
100%. The Buyer shall not be obligated to increase the Maximum Net Investment.
The Buyer shall not purchase the Participation Interest if the Buyer cannot
issue its commercial paper notes or

                                       19
<PAGE>   21

short-term promissory notes or otherwise borrow in order to fund the Purchase
Price of such Participation Interest, or to make any such purchase or any
Reinvestment or increase its Net Investment on any Settlement Date at or after
the earlier to occur of (i) the Expiration Date, and (ii) the reduction of the
Maximum Net Investment to zero pursuant to Section 2.03 hereof. So long as no
Termination Event or Potential Termination Event shall have occurred and be
continuing, the Buyer shall make timely annual requests for renewal of the
Liquidity Agreement during the term of this Agreement, provided, that no such
renewal shall be required to extend the term of the Liquidity Agreement beyond
the Expiration Date.

                  2.02 Amount of Purchases. The sale of the Participation
Interest on the Closing Date by the Seller to the Buyer shall be for a minimum
Purchase Price of $25,000,000.

                  2.03 Reduction of the Maximum Net Investment and Net
Investment; Termination of the Agreement.

         (a) Reduction of Maximum Net Investment. The Maximum Net Investment
shall be reduced to zero (i) on the Expiration Date, or (ii) in accordance with
Section 10.02 hereof. In addition, upon written notice from the Seller to the
Buyer, the Seller may reduce in whole or in part the Maximum Net Investment,
effective as of the next Settlement Date on or after the thirtieth (30th) day
following the date on which such notice is given; provided, however, that (i)
any partial reduction must be in an amount equal to $5,000,000 or any greater
amount which is an integral multiple of $5,000,000, and (ii) if the Maximum Net
Investment at the time of such notice is less than or equal to $20,000,000, the
Seller may only elect to reduce the amount of the Maximum Net Investment to
zero. Notwithstanding any other provision of this Agreement, the Maximum Net
Investment may not at any time be reduced below the amount of the aggregate Net
Investment in effect at such time.

         (b) Reduction of the Net Investment. If at any time the Seller shall
wish to cause the reduction of the Net Investment (but not to commence the
permanent liquidation of the Participation Interest), the Seller may do so upon
ten (10) days prior written notice thereof to the Buyer (such notice to include
the amount of such proposed reduction and the proposed date on which such
reduction will commence, which date shall be agreed to by the Buyer). On the
proposed date of commencement of such reduction and on each day thereafter, the
Servicer shall refrain from making Reinvestments of Collections until the amount
of such Collections not so reinvested shall equal the desired amount of
reduction. The Servicer shall pay to the Buyer all Collections received on each
day during the period in which Reinvestment of Collections has been suspended
pursuant to this Section 2.03(b) on the date which is the earlier of (i) two (2)
Business Days or (ii) the number of days specified in Section 9-306(4)(d) of the

                                       20
<PAGE>   22

Uniform Commercial Code as in effect in the jurisdiction whose Laws govern the
rights of the Buyer in and to any such Collections after the day on which such
Collections are received by the Servicer. The Net Investment shall be deemed
reduced in the amount to be paid to the Buyer only when in fact so paid. The
Seller shall use reasonable efforts to attempt to choose a reduction amount, and
the date of the commencement thereof, so that such reduction shall commence and
conclude in the same Settlement Period. The Seller shall pay to the Buyer an
amount equal to any actual loss, cost or expense incurred by the Buyer as the
result of the repayment of the Net Investment prior to the maturity date of any
(x) loans made to the Buyer by third parties or (y) commercial paper notes or
short-term promissory notes issued by the Buyer, in each case for the purpose of
maintaining the Participation Interest. Buyer shall provide the Seller with
written notice as promptly as practicable of such actual loss, cost or expense,
which notice shall provide the calculations used in determining the amount of
such loss, cost or expense.

         (c) Termination of the Agreement. This Agreement shall terminate at the
latest to occur of (i) the Expiration Date, (ii) the first day on which the Net
Investment equals zero, all other amounts accrued and owing to the Buyer under
this Agreement have been paid in full and the Maximum Net Investment has been
reduced to zero, or (iii) the first day on which all Eligible Receivables in the
Receivables Pool have been collected or written off by the Seller and the
Maximum Net Investment has been reduced to zero; provided, however, that the
covenants, representations, warranties and indemnities of the Company and the
Seller to the Buyer contained herein or made pursuant hereto shall survive such
termination. Upon such termination, the Buyer shall convey to the Seller,
without recourse, its Participation Interest in all Purchased Receivables and
shall deliver to the Seller all instruments and documents relating thereto. Upon
such reconveyance, the Deferred Purchase Price shall be deemed to have been paid
in full.

                  2.04 Fees Payable to the Buyer.

         (a) Facility Fee. The Seller agrees to pay to the Buyer, in
consideration for the Purchase Obligation hereunder, from and including the date
of execution of this Agreement to but excluding the Expiration Date, the
Facility Fee. The accrued Facility Fee shall be due and payable in accordance
with Sections 5.03 and 5.04 hereof until the earlier of the Expiration Date or
the date on which the Maximum Net Investment is reduced to zero pursuant to
Section 2.03(a) hereof. To the extent the Facility Fee is not paid from
Collections in accordance with Section 5.03 or 5.04 hereof, the Facility Fee
shall be an absolute and unconditional obligation of the Seller.

         (b) Fees Non-Refundable. The fees to be paid to the Buyer pursuant to
this Section 2.04 are non-refundable and shall

                                       21
<PAGE>   23

not be refunded for any reason whatsoever, including, without limitation, the
later reduction or termination of the Maximum Net Investment in whole or in part
in accordance with the provisions of this Agreement.

                                   Article III

                               BUYER'S ALLOCATION

                  3.01 Buyer's Allocation. The Buyer's Allocation on any day of
determination shall be a percentage, not in excess of 100%, equal to the
quotient of (i) the Investment, divided by (ii) the positive result of (a) the
aggregate Account Balances of all Eligible Receivables included in the
Receivables Pool on the date of determination before giving effect to
Collections on such date, less (b) the aggregate amount by which the Account
Balance of Eligible Receivables of each Obligor exceeds the Concentration Limit
for such Obligor.

                  3.02 Frequency of Computation of the Buyer's Allocation. The
Buyer's Allocation shall be initially computed as of the opening of business of
the Servicer on the Closing Date. Thereafter, until the Net Investment shall be
reduced to zero, the Buyer's Allocation shall be automatically recomputed as of
the close of business of the Servicer on each Business Day, and the Buyer's
Allocation shall constitute the percentage ownership interest of the Buyer in
the Receivables Pool on such date; provided, however, that on and after a
Liquidation Day and during the continuance of a Liquidation Period, the Buyer's
Allocation shall be equal to the Buyer's Allocation as computed on the first
Business Day preceding the occurrence of such Liquidation Day. The Buyer's
Allocation shall be reduced to zero at such time as the related Net Investment
shall be reduced to zero, the Buyer shall have received all amounts in respect
of accrued and unpaid Cost of Funds and Program Fee and all other amounts
payable to it pursuant to this Agreement, and the Servicer, provided the Company
is not the Servicer, shall have received the accrued Servicer's Compensation.

                                   Article IV

                               ClOSING PROCEDURES

                  4.01 Purchase and Sale Procedures.

         (a) General. The sale of the Participation Interest hereunder shall,
with respect to the Receivables Pool, transfer ownership to the Buyer of an
undivided percentage ownership interest in each Receivable in such Receivables
Pool, effective upon the creation of such Receivable.

         (b) Indemnity for Failure to Close. If a sale of the Participation
Interest fails to occur on the Closing Date as

                                       22
<PAGE>   24

specified in the Purchase Notice delivered pursuant to Section 4.02(e) hereof
and agreed to by the Buyer pursuant to Section 4.04 hereof for reasons other
than a breach by the Buyer, the Seller shall reimburse the Buyer on demand for
any loss, cost or expense (including loss of margin) incurred by the Buyer with
respect to this Agreement, its obligations hereunder or its funding of the
proposed Purchase Price (including, without limitation, any loss, cost or
expense in obtaining, liquidating or employing deposits as loans from third
parties or the loss, cost or expense of issuing its commercial paper notes or
short-term promissory notes in order to fund such Purchase Price) until the
earlier of (A) the Closing Date as specified in a subsequent Purchase Notice
delivered pursuant to Section 4.02(e) hereof and agreed to by the Buyer pursuant
to Section 4.04 hereof or (B) the date on which (i) the Buyer redeploys any
funds committed to fund such Purchase Price at a rate of return greater than or
equal to the Cost of Funds, or (ii) such commercial paper notes or short-term
promissory notes become due and payable, as the case may be. The Buyer shall
notify the Seller of the amount determined by the Buyer (which determination
shall be conclusive and binding absent manifest error) to be necessary to
compensate the Buyer for such loss, cost or expense. Such amount shall be due
and payable by the Seller to the Buyer ten (10) Business Days after such notice
is given.

                  4.02 Conditions Precedent to the First Purchase. The
obligation of the Buyer to purchase the Participation Interest from the Seller
on the Closing Date shall be subject to the satisfaction on or before June 30,
2001 of the conditions set forth in Section 4.03 hereof and the following
further conditions:

         (a) Standing. The Buyer shall have received (i) from each of the Seller
and each Originator, a certificate, dated a recent date relative to the Closing
Date as determined by the Buyer, of the Secretary of State or other similar
official as to its good standing under the Laws of its jurisdiction of
organization, and (ii) from each Originator, a certificate, dated a recent date
relative to the Closing Date as determined by the Buyer, of the Secretary of
State or other similar official of the State where its chief executive offices
are located as to its good standing under the Laws of such jurisdiction.

         (b) Opinions of Counsel. The Buyer shall have received favorable
written opinions of David M. Sudbury, Esq., General Counsel of the Company, and
of Haynes and Boone, LLP, counsel for the Originators and the Seller, each dated
the Closing Date, each in form and substance acceptable to the Buyer.

         (c) Financing Statements, etc. The Buyer shall have received evidence
satisfactory to it of the completion of all recordings, registrations and
filings as may be necessary in the opinion of the Buyer to evidence or perfect
the ownership

                                       23
<PAGE>   25

interests to be acquired by the Buyer hereunder, including, without limitation:

                           (i) acknowledgment copies of proper financing
                  statements on Form UCC-1 filed on or prior to the Closing
                  Date, naming each Originator as debtor and/or assignor and the
                  Seller as secured party and/or assignee (in respect of the
                  transfer of Receivables contemplated by the Sale Agreement)
                  and naming the Seller as debtor and/or assignor and the Buyer
                  as secured party and/or assignee (in respect of the transfer
                  of the Participation Interest contemplated by this Agreement),
                  or such other similar instruments or documents as may be
                  necessary in the opinion of the Buyer under the Uniform
                  Commercial Code or any comparable law of all appropriate
                  jurisdictions to evidence or perfect the Buyer's Participation
                  Interest; and

                           (ii) evidence of searches satisfactory to the Buyer
                  listing all effective financing statements which name an
                  Originator (or any predecessor entity thereof) or the Seller
                  as debtor and/or assignor in the jurisdictions in which
                  filings are made pursuant to subsection (i) above, together
                  with copies of such financing statements, none of which (other
                  than the filings made pursuant to subsection (i) above) shall
                  cover any Receivables or the related Contracts, and of tax
                  lien searches satisfactory to the Buyer.

         (d) Lockbox Agreements. The Buyer shall have received duly executed
copies of Lockbox Servicing Agreements with each of one or more Permitted
Lockbox Banks.

         (e) Purchase Notice. The Buyer shall have received from the Seller, no
less than two (2) Business Days prior to the Closing Date, a notice (the
"Purchase Notice") in substantially the form of Exhibit F hereto, utilizing
information as of the last day of the most recently completed Accounting Period,
together with such written documentation of the procedures utilized and
calculations made in connection with the preparation of such Purchase Notice as
the Buyer may request.

         (f) Responsible Officer Certificate. The Buyer shall have received a
certificate of a Responsible Officer, dated the Closing Date, from each of the
Seller and each Originator, in substantially the form attached hereto as Exhibit
C, and as to such other matters incident to the transactions contemplated by the
Purchase Documents as the Buyer may reasonably request, in form and substance
satisfactory to the Buyer. The Buyer may conclusively rely on any such
certificate unless and until a later certificate revising the prior certificate
is received by the Buyer.

                                       24
<PAGE>   26

         (g) Certificate of Participation. The Buyer shall have received on the
Closing Date, a Certificate of Participation executed on behalf of the Seller by
a Responsible Officer.

         (h) Buyer's Review. The Buyer shall have completed to its satisfaction
a review of the Servicer's billing and collection operations and reporting
systems.

         (i) Regulatory Approvals. Each Originator and the Seller shall have
received all necessary and desirable regulatory approvals, if any, of the
transactions under this Agreement and the Sale Agreement.

                  4.03 Conditions Precedent to Each Purchase and Reinvestment
The obligation of the Buyer to purchase the Participation Interest from the
Seller on the Closing Date, to make a Reinvestment on any date, or to increase
the Net Investment in the Receivables Pool on any Settlement Date, is subject to
the performance by each of the Originators and the Seller of its respective
obligations hereunder on or before the Closing Date, such date on which a
Reinvestment will be made or such Settlement Date, and to the satisfaction of
the following further conditions:

         (a) Details, Proceedings and Documents. All legal details and
proceedings in connection with the transactions contemplated by the Purchase
Documents or the Receivables to be included in the Receivables Pool on the
Closing Date, such Settlement Date or such date of such Reinvestment shall be in
form and substance satisfactory to the Buyer, and the Buyer shall have received
all such originals or certified copies or other copies of such documents and
proceedings in connection with such transactions, in form and substance
satisfactory to the Buyer.

         (b) Representations and Warranties. On and as of such date (i) the
representations and warranties of the Seller contained in Article VIII hereof
and of each of the Originators contained in the Sale Agreement shall be true and
correct with the same force and effect as though made on and as of the Closing
Date, such Settlement Date or such date of Reinvestment (except to the extent
that such representations and warranties relate solely to an earlier date), (ii)
the Originators and the Seller shall be in compliance with the respective
covenants contained in Article IX hereof and in the Sale Agreement, and (iii) no
Termination Event or Potential Termination Event shall occur as a result of the
Purchase and sale of the Participation Interest in the Receivables Pool on the
Closing Date, such Settlement Date or such date of Reinvestment, or shall have
occurred and be continuing or shall exist on the Closing Date, such Settlement
Date or such date of Reinvestment.

         (c) Sale Agreement. The Sale Agreement shall be in full force and
effect.

                                       25
<PAGE>   27

                  4.04 Purchase Price Subject to the terms and conditions
hereof, and relying upon the representations and warranties set forth herein, on
the Closing Date, the Buyer shall purchase the Participation Interest in the
Receivables Pool described in the Purchase Notice delivered by the Seller to the
Buyer and agreed upon by the Buyer. On the date of purchase of the Participation
Interest, the Buyer shall make available to the Seller at its Office, or such
other place as the Seller has notified the Buyer, the Purchase Price therefor.

                  4.05 Sale Without Recourse.

         (a) The sale of the Participation Interest hereunder shall, except to
the extent specified in Section 5.06 hereof, be made without recourse to the
Seller with respect to any loss arising from Defaulted Receivables, provided,
that nothing contained herein shall limit the rights of the Buyer provided in
Section 2.04, Article V, Section 6.04 and Articles VII and XI hereof.

         (b) This Agreement also constitutes a security agreement under the UCC.
The Buyer and the Seller intend that the transactions contemplated by this
Agreement shall be treated as sales and not as a financing. However, in the
event that it is ever determined that such transactions constitute a financing
arrangement, the Seller hereby grants to the Buyer on the date hereof and on the
terms and conditions of this Agreement a first priority security interest in and
against all of the Seller's right, title and interest in and to the Purchased
Receivables and the proceeds thereof for the purposes of securing the
obligations of the Seller and the rights of the Buyer under this Agreement.

                  4.06 Non-Assumption by the Buyer of Obligations No obligation
or liability of the Seller to any Obligor under any Purchased Receivable or
Contract shall be assumed by the Buyer hereunder or under the Certificate of
Participation, and any such assumption is hereby expressly disclaimed. The Buyer
shall be indemnified by the Seller in accordance with Section 11.04 hereof in
respect of any losses, claims, damages, liabilities, costs or expenses arising
out of or incurred in connection with any Obligor's assertion of such obligation
or liability against the Buyer.

                  4.07 Character of Receivables Added to Receivables Pools All
Receivables acquired by the Seller pursuant to the Sale Agreement shall be
included in the Receivables Pool immediately upon the Seller's acquisition
thereof. All such Receivables will comprise only one Receivables Pool.

                                       26
<PAGE>   28

                                    Article V

                            SETTLEMENTS; ADJUSTMENTS

                  5.01 Settlement Statements The Seller shall, or shall cause
the Servicer to, submit to the Buyer not less than two (2) Business Days prior
to each Settlement Date, a Settlement Statement signed by a Responsible Officer
dated as of such Settlement Date and including information in respect of the
Receivables Pool as of the last day of the Accounting Period most recently
completed. The execution and delivery of any Settlement Statement shall
constitute a representation and warranty by the Seller and the Servicer that the
information contained therein is true and correct as of the date thereof. Such
Settlement Statement shall be accompanied by such other information as the Buyer
may reasonably request. Subject to the terms and conditions of this Agreement,
if the Seller requests on a Settlement Statement that the Net Investment be
increased to an amount in excess of the Net Investment as of the immediately
preceding Settlement Date, the Buyer shall make available to the Seller at its
Office, or such other place as the Seller has notified to the Buyer, on the next
succeeding Settlement Date, the amount of such increase in the Net Investment;
provided, that such increase in the Net Investment shall not cause the Net
Investment to exceed the Maximum Net Investment then in effect. The Seller may
request a reduction in the Net Investment in accordance with Section 2.03(b).

                  5.02 Receivables Status Upon ten (10) Business Days' notice
from the Buyer, the Seller or the Servicer will furnish or cause to be furnished
to the Buyer a written report, signed by a Responsible Officer, containing such
information as the Buyer may reasonably request (in such form as the Buyer may
reasonably request), which shall include, without limitation, with respect to
the Participation Interest (a) the Account Balances of all Purchased
Receivables, together with all Collections, Dilutions, and other adjustments to
such Receivables since the date of the last written report furnished to the
Buyer, and an aging of all Purchased Receivables as of a date no later than the
date of such notice; and (b) an analysis and explanation of significant
variances, if any, between actual Collections of Purchased Receivables during
such Settlement Period and historical collections experience.

                  5.03 Non-Liquidation Settlements.

         (a) Daily Settlements. On each day (other than a Liquidation Day) with
regard to each Settlement Period, the Buyer shall be allocated an amount of
Collections equal to the product of (i) the Buyer's Allocation, expressed as a
decimal, and (ii) Collections, if any, with respect to the Purchased Receivables
on such day. The Servicer shall hold in trust for the benefit of the Buyer out
of such amount in respect of such Buyer's

                                       27
<PAGE>   29

Allocation an amount equal to the Cost of Funds and Program Fee Amount accrued
through such day and not previously so held (whether or not accrued during the
current Settlement Period), and (following such allocation) shall hold in trust
for its own account an amount, if available, equal to the Servicer's
Compensation accrued through such day for the Participation Interest and not
previously so held and (following such allocation) shall hold in trust for the
account of the Buyer an amount, if available, equal to the Facility Fee accrued
through such day and not previously so held. The remainder of such amount (the
"Remainder") in respect of the Buyer's Allocation shall, subject to the terms
and conditions of this Agreement, be utilized by the Servicer to make a
Reinvestment in the Receivables Pool in the amount of the Remainder, subject to
Sections 2.01 and 4.03 hereof, and after giving effect to any allocation of new
Receivables to the Receivables Pool. Any portion of the Remainder not applied to
a Reinvestment shall be held by the Servicer in accordance with subsection (d)
below. The Remainder, or any portion thereof, which is applied to a
Reinvestment, and any amount of Collections which were not allocated to the
Buyer pursuant to the first sentence of this Section 5.03(a), shall be remitted
by the Servicer to the Seller. Notwithstanding the foregoing, in the event that
at the end of any Settlement Period the amounts held in trust for the benefit of
the Buyer pursuant to the second sentence of this Section 5.03(a) and not
previously paid to the Buyer are less than the accrued and unpaid Cost of Funds
and Program Fee Amount for such Settlement Period, then any amount which had
been deemed to be a Remainder during such Settlement Period (up to the amount of
such deficit in the amount available to pay the Cost of Funds and Program Fee
Amount) shall be deemed to have been held in trust for the benefit of the Buyer
pursuant to the second sentence of this Section 5.03(a).

         (b) Settlement Period. On each Settlement Date (other than a Settlement
Date with respect to a Settlement Period during which a Liquidation Day occurs),
the Servicer shall pay to the Buyer and the Servicer the amounts held in trust
for the benefit of the Buyer and the Servicer, respectively, pursuant to
subsection (a) above and not previously paid to the Buyer and the Servicer,
respectively.

         (c) Deemed Collections. If on any day the Account Balance of a
Purchased Receivable is reduced as a result of a Dilution with respect to such
Purchased Receivable, the Servicer shall be deemed to have received on such day
a Collection of Purchased Receivables in the amount of such reduction. If on any
day any of the representations and warranties of the Seller set forth in Section
8.02(b) and (c) is no longer true or was not true when made with respect to such
Purchased Receivable, or if any of the representations and warranties of the
Seller set forth in Section 8.02(a) was not true when made, the Seller shall be

                                       28
<PAGE>   30

deemed to have received on such day a Collection of such Purchased Receivable in
full.

         (d) Unreinvested Collections. Any portion of the Remainder which may
not be immediately applied to Reinvestments in the Participation Interest in
accordance with Section 5.03(a) for any reason, shall be so reinvested as soon
as practicable without violating any provisions of this Agreement; provided,
however, that if any portion of the Remainder may not be applied to
Reinvestments in the Participation Interest for any reason on the date which is
the earlier of (i) two (2) Business Days or (ii) the number of days specified in
Section 9-306(4)(d) of the Uniform Commercial Code as in effect in the
jurisdiction whose Laws govern the rights of the Buyer in and to any such
portion of the Remainder after the Servicer receives such portion of the
Remainder, the Servicer shall pay such portion of the Remainder to the Buyer on
such earlier date. The Net Investment shall be deemed reduced in the amount to
be paid to the Buyer only when in fact so paid.

         (e) Reduction of Buyer's Allocation. Notwithstanding anything to the
contrary contained herein, if, on any Settlement Date prior to the occurrence of
a Liquidation Day (after giving effect to all payments required to be made by
the Seller or the Servicer to or for the account of the Buyer pursuant to this
Section 5.03 and any increase in the Net Investment effected on such day), the
Buyer's Allocation shall exceed one hundred percent (100%), the Seller shall
make a payment of an amount in immediately available funds to the Referral Agent
for the account of the Buyer as a reduction of the Net Investment such that,
after giving effect to such payment, the Buyer's Allocation is equal to one
hundred percent (100%).

                  5.04 Liquidation Settlements.

         (a) Notwithstanding the provisions of Sections 5.03(a) and (b) hereof,
on each Liquidation Day with regard to each Settlement Period, the Servicer
shall allocate to, and hold in trust for the benefit of, the Buyer for payment
in accordance with Section 5.04(b), an amount of Collections equal to the
product of (i) the Buyer's Allocation, and (ii) Collections in respect of the
Purchased Receivables for such Liquidation Day. The Collections allocated to the
Buyer pursuant to this section shall be allocated on a daily basis (i) first, to
the payment of any Cost of Funds and Program Fee accrued and owing to the Buyer,
(ii) second, subject to Section 6.06(e), to the payment of any Servicer's
Compensation accrued and owing to the Servicer, (iii) third, to make payment in
respect of any Facility Fee accrued and owing to the Buyer, (iv) fourth, to make
payment in respect of the Net Investment, and (v) fifth, to the payment of any
other amount accrued and owing to the Buyer under this Agreement. Any amount of
such Collections which were not allocated to the Buyer

                                       29
<PAGE>   31

pursuant to the first sentence of this Section 5.04 on such Liquidation Day,
shall be remitted by the Servicer to the Seller.

         (b) Collections held by the Servicer on behalf of the Buyer pursuant to
this Section 5.04 shall be remitted to the Buyer on the date which is the
earlier of (i) two (2) Business Days or (ii) the number of days specified in
Section 9-306(4)(d) of the Uniform Commercial Code as in effect in the
jurisdiction whose Laws govern the rights of the Buyer in and to any such
Collections after the Servicer receives such Collections.

                  5.05 Allocation of Collections.

         (a) Except as required by Law or the underlying Contract, if any
Obligor is obligated under one or more Purchased Receivables and also under one
or more Contracts not constituting Purchased Receivables, then any payment
received from or on behalf of such Obligor shall be applied (i) to a specific
Contract if the Obligor designates such payment to be so applied, or (ii) to the
Purchased Receivables in the order in which payments are due thereunder if the
application of such payment is not so designated.

         (b) Notwithstanding any other provision of this Agreement, the Buyer is
not entitled to receive any portion of Collections once the Net Investment is
reduced to zero and the Seller has no remaining payment obligations to the Buyer
under this Agreement.

                  5.06 Deferred Purchase Price. On the Closing Date, and,
thereafter, in each Settlement Statement, the Servicer shall calculate the
Deferred Purchase Price as of the last day of the full Accounting Period most
recently completed, which shall be an amount equal to the sum of (1) the Credit
Enhancement Reserve, plus (2) the Yield Reserve, plus (3) the Servicer's
Compensation Reserve; provided, that if a Liquidation Day occurs, the Deferred
Purchase Price will thereafter be the amount of the Deferred Purchase Price at
the close of business on the day immediately preceding such Liquidation Day.

                  5.07 Treatment of Collections and Deemed Collections. Any
Collections deemed to be received pursuant to this Agreement shall be paid by
the Seller to the Servicer in same day funds on the date of such deemed receipt.
The Servicer shall hold or distribute all Collections deemed received pursuant
to Sections 5.03 and 6.04 hereof to the same extent as if such Collections had
actually been received. So long as the Servicer shall hold any Collections or
deemed Collections required to be paid to the Buyer, it shall hold such
Collections in trust and separate and apart from its own funds and shall clearly
mark its records to reflect such trust.

                                       30
<PAGE>   32

                                   Article VI

                            PROTECTION OF THE BUYER;
                         ADMINISTRATION AND COLLECTIONS

                  6.01 Maintenance of Information and Computer Records. The
Seller will, or will cause the Servicer to, hold in trust and keep safely for
the Buyer all evidence of the Buyer's right, title and interest in the
Receivables Pool. The Seller will, or will cause the Servicer and each
Originator to, on or prior to the Closing Date, and with respect to all
Receivables that are added to the Receivables Pool after the Closing Date, on
each respective date such Receivables are added, place an appropriate code or
notation in its Records to indicate those Receivables which are or which will be
included in the Receivables Pool.

                  6.02 Protection of the Interests of the Buyer.

         (a) The Seller will, or will cause the Servicer to, from time to time
do and perform any and all acts and execute any and all documents (including,
without limitation, the execution, amendment or supplementation of any financing
statements, continuation statements, the Certificate of Participation and
notices of Certificate of Participation relating to the Participation Interest
for filing under the provisions of the Uniform Commercial Code of any applicable
jurisdiction, the execution, amendment or supplementation of any instrument of
transfer, and the making of notations on the Records of the Seller) as may be
requested by the Buyer in order to effect the purposes of this Agreement and the
sale of the Participation Interest hereunder and to perfect the Buyer's right,
title and interest in the Receivables Pool and all Collections with respect
thereto against all Persons whomsoever.

         (b) To the fullest extent permitted by applicable Law, the Seller
hereby irrevocably grants to the Buyer and the Referral Agent an irrevocable
power of attorney, with full power of substitution, coupled with an interest, to
sign and file in the name of the Seller, or in its own name, financing
statements and continuation statements and amendments thereto with respect to
the Buyer's Participation Interest in the Purchased Receivables.

         (c) At any reasonable time and from time to time at the Buyer's
reasonable request and (unless a Termination Event or Potential Termination
Event has occurred and is continuing) upon 3 Business Days notice to the Seller,
the applicable Originator or the Servicer, the Seller, such Originator or the
Servicer, as the case may be, shall permit such Person as the Buyer may
designate to conduct audits or visit and inspect any of the properties of the
Seller, such Originator or the Servicer, as the case may be, to examine the
Records, internal controls and procedures maintained by the Seller, such
Originator or the

                                       31
<PAGE>   33

Servicer, as the case may be, and take copies and extracts therefrom, and to
discuss the Seller's, such Originator's or the Servicer's, as the case may be,
affairs with its officers, employees and independent accountants. Each of the
Seller, such Originator and the Servicer hereby authorizes such officers,
employees and its independent accountants (in the case of such accountants, in
the presence of a Responsible Officer of the Seller, such Originator or the
Servicer, as the case may be) to discuss with the Buyer the affairs of the
Seller, such Originator or the Servicer, as the case may be. The Seller shall
reimburse the Buyer for all reasonable fees, costs and expenses incurred by or
on behalf of the Buyer in connection with the foregoing actions promptly upon
receipt of a written invoice therefor.

         (d) The Buyer shall have the right to do all such acts and things as it
may deem necessary to protect its interests, including, without limitation,
confirmation and verification of Purchased Receivables; provided, that the Buyer
will not contact any Obligor unless a Termination Event or Potential Termination
Event has occurred.

                  6.03 Maintenance of the Location of Writings and Records. The
Seller will at all times until completion of a Complete Servicing Transfer keep
or cause to be kept at its Chief Executive Office or at an office of the
Servicer designated in advance to the Buyer, each writing or Record which
evidences, and which is necessary or desirable to establish or protect,
including such books of account and other Records as will enable the Buyer or
its designee to determine at any time the status of, the Participation Interest
of the Buyer in each Purchased Receivable; provided, that any Records may be
stored at other locations to the extent temporary location elsewhere is
necessary in connection with litigation, repossession, other collection
activities or other usual business purposes. The Seller shall at its own expense
prepare and maintain machine-readable magnetic tapes or other media in such
format as the Buyer, in its reasonable discretion, may require pertaining to the
Purchased Receivables.

                  6.04 Information. The Seller will, or will cause the Servicer
to, furnish to the Buyer such additional information with respect to the
Purchased Receivables (including but not limited to the Credit and Collection
Policy) as the Buyer may reasonably request. The Seller will also furnish to the
Buyer all modifications, adjustments or supplements to the Credit and Collection
Policy as in effect on the date hereof; provided, however, that neither the
Seller nor any Originator shall, without the Buyer's prior written consent,
alter its credit, enforcement and other policies as in effect from time to time
if the effect of any alteration thereof would be to materially adversely affect
the collectibility of the Purchased Receivables. If any such alteration made
without the Buyer's consent is later determined by the Buyer to have had a
material adverse effect on

                                       32
<PAGE>   34

the collectibility of Purchased Receivables, then the Seller or the Originator,
as the case may be, shall promptly revise such policies in order to prevent any
such material adverse effect from occurring thereafter, and the Purchased
Receivables that, in the sole judgment of the Buyer, became uncollectible due to
such change shall be deemed collected and shall be treated as deemed Collections
pursuant to Section 5.07 hereof. Promptly upon becoming aware of any Termination
Event or Potential Termination Event, the Servicer shall give the Buyer notice
thereof.

                  6.05 Performance of Undertakings Under the Purchased
Receivables; Indemnification. Each Originator will at all times observe and
perform, or cause to be observed and performed, all obligations and undertakings
to the Obligors arising in connection with each Purchased Receivable or related
Contract and neither the Originator nor the Seller will take any action or cause
any action to be taken to impair the rights of the Seller to the Receivables or
the rights of the Buyer to its Participation Interest in the Purchased
Receivables. In such connection, the Buyer shall be indemnified by the Seller in
accordance with Section 11.04 hereof and by each Originator in accordance with
the Sale Agreement in respect of any losses, claims, damages, liabilities, costs
or expenses incurred or arising out of any action taken or caused to be taken by
the Originator or the Seller which impairs the Seller's rights to the
Receivables or the Buyer's rights to its Participation Interest in the Purchased
Receivables.

                  6.06 Administration and Collections; Indemnification.

         (a) General. Until a Complete Servicing Transfer shall have occurred,
the Company will be responsible for the administration, servicing and collection
of the Purchased Receivables; provided, however, that the Company may delegate
its duties to the Originator in accordance with Section 6.09 and, upon written
approval by the Buyer, such duties may also be delegated by the Company to any
of its Affiliates or a third party (without impairment, in either case, of the
Company's Obligations as Servicer). If and to the extent that the Company or any
of its Affiliates or any such third party is performing such functions, the
Company agrees to exercise or cause such Affiliate or third party to exercise
the same degree of skill and care and apply the same standards, policies,
procedures and diligence that it applies to the performance of the same
functions with respect to accounts owned by the Company.

         (b) Administration. The Servicer shall, to the maximum extent permitted
by Law, have the power and authority, on behalf of the Buyer as part of the
Servicer's administrative and servicing obligations hereunder, to take such
action in respect of any such Purchased Receivable as the Servicer may deem
advisable, including the resale of any repossessed, returned or rejected goods;
provided, however, that the Servicer may not

                                       33
<PAGE>   35

under any circumstances compromise, rescind, cancel, adjust or modify (including
by extension of time for payment or granting any discounts, allowances or
credits) the Account Balance of the related Contract for any Purchased
Receivable, except in accordance with the Credit and Collection Policy or
otherwise with the Buyer's prior written consent. The Servicer undertakes to
comply with each of the covenants of the Seller included herein in respect of
which the Seller undertakes to cause the Servicer to take or avoid taking
actions specified therein, and further agrees to perform the Servicer's
obligations under Article II of the Sale Agreement.

         (c) Enforcement Proceedings. In the event of a default under any
Purchased Receivable before a Servicer Event, the Servicer shall, at the
Seller's expense, to the maximum extent permitted by Law, have the power and
authority, on behalf of the Buyer as part of the Servicer's administrative and
servicing obligations hereunder, to take any action in respect of any such
Purchased Receivable as the Servicer may deem advisable; provided, however, that
the Servicer or the Seller, as the case may be, shall take no enforcement action
(judicial or otherwise) with respect to such Purchased Receivable, except in
accordance with the Credit and Collection Policy or otherwise with the written
consent of the Buyer. The Servicer or the Seller, as the case may be, will apply
or will cause to be applied at all times before a Servicer Event the same
standards and follow the same procedures with respect to deciding to commence,
and in prosecuting, litigation on such Purchased Receivables as is applied and
followed with respect to like accounts not owned by the Buyer. In no event shall
the Servicer or the Seller, as the case may be, be entitled to make or authorize
any Person to make the Buyer a party to any litigation without the Buyer's
express prior written consent.

         (d) Obligations of the Buyer. The Buyer may, but shall have no
obligation to, take any action or commence any proceeding to realize upon any
Purchased Receivable. At such time as the Servicer or the Seller, as the case
may be, has any obligation to pursue the collection of Purchased Receivables and
the Buyer possesses any documents necessary therefor, the Buyer agrees to
furnish such documents to the Servicer or the Seller, as the case may be, to the
extent and for the period necessary for the Servicer or the Seller, as the case
may be, to comply with its obligations hereunder.

         (e) Servicer's Compensation. The Servicer's Compensation for performing
its responsibilities as the servicer with respect to any Purchased Receivables
on any day shall be equal to the quotient of (A) the product of (1) one-half of
one percent (0.50%), and (2) the Account Balances of Purchased Receivables on
such day, divided by (B) 360. Subject to Section 6.07(a), the Servicer's
Compensation shall be retained by the Servicer in accordance with Section 5.03
hereof or paid to

                                       34
<PAGE>   36

the Servicer by the Buyer in the event Collections are applied in accordance
with Section 5.04 hereof; provided, however, that if the Company is the
Servicer, the Servicer's Compensation shall not be paid on or after any day on
which a Termination Event shall have occurred and be continuing.

         (f) Indemnity. The Servicer shall indemnify the Buyer in respect of any
losses, claims, damages, liabilities, costs or expenses incurred or arising out
of any action taken or caused to be taken by the Servicer under this Section
6.06.

                  6.07 Complete Servicing Transfer.

         (a) General. If at any time a Servicer Event shall have occurred and be
continuing, the Buyer may, by notice in writing to the Seller and the Company,
terminate the Company's capacity as Servicer in respect of the Purchased
Receivables (such termination referred to herein as a "Complete Servicing
Transfer"), notify Obligors of its interest in the Purchased Receivables, take
control of the Lockbox Accounts and exercise all other incidences of ownership
in the Purchased Receivables. After a Complete Servicing Transfer, the Buyer may
administer, service and collect the Purchased Receivables itself, and in such
event may retain the Servicer's Compensation for its own account, in any manner
it sees fit, including, without limitation, by compromise, extension or
settlement of such Purchased Receivables. Alternatively, the Buyer may engage
Mellon Bank to perform all or any part of the administration, servicing and
collection of the Purchased Receivables and pay to Mellon Bank all or a portion
of the Servicer's Compensation in consideration thereof.

         (b) Transition. The Company, within ten (10) Business Days after
receiving a notice pursuant to Section 6.07(a) hereof, shall, at its own cost
and expense, deliver or cause to be delivered to the Buyer or its designated
agent (i) a schedule of the Purchased Receivables indicating as to each such
Purchased Receivable information as to the related Obligor, the Account Balance
as of such date of the related Contract and the location of the evidences of
such Purchased Receivable and related Contract, together with such other
information as the Buyer may reasonably request and (ii) all evidence of such
Purchased Receivables and related Contracts and such other Records related
thereto (including, without limitation, true copies of any computer tapes and
data in computer memories) as the Buyer may reasonably deem necessary to enable
it to protect and enforce its rights to, or its position as owner of, a
Participation Interest therein. After any such delivery, neither the Seller nor
any Originator will hold or retain any executed counterpart or any document
evidencing such Purchased Receivables or related Contracts without clearly
marking the same to indicate conspicuously that the same is not the original and
that transfer

                                       35
<PAGE>   37

thereof does not transfer any rights against the related Obligor or any other
Person.

         (c) Collections. From and after the occurrence of a Complete Servicing
Transfer, the Seller and the Servicer will cause to be transmitted and delivered
directly to the Buyer or its designated agent, for the Buyer's own account,
forthwith upon receipt and in the exact form received, all Collections (properly
endorsed, where required, so that such items may be collected by the Buyer) on
account of its Participation Interest in the Purchased Receivables. All such
Collections consisting of cash shall not be commingled with other items or
monies of the Seller or any Originator for a period longer than the lesser of
(i) two (2) Business Days or (ii) the number of days specified in Section
9-306(4)(d) of the Uniform Commercial Code as in effect in the jurisdiction
whose Laws govern the rights of the Buyer in and to any such Collections. If the
Buyer or its designated agent receives items or monies that are not payments on
account of its Participation Interest in the Purchased Receivables, such items
or monies shall be delivered promptly to the Seller after being so identified by
the Buyer or its designated agent. The Seller hereby irrevocably grants the
Buyer or its designated agent, if any, an irrevocable power of attorney, with
full power of substitution, coupled with an interest, to take, from and after
the occurrence of a Termination Event or Potential Termination Event, in the
name of the Seller all steps with respect to the Purchased Receivable which the
Buyer, in its reasonable discretion, may deem necessary or advisable to
negotiate or otherwise realize on any right of any kind held or owned by the
Seller or transmitted to or received by the Buyer or its designated agent
(whether or not from the Seller or any Obligor) in connection with its
Participation Interest in such Purchased Receivable; provided, however, that the
Buyer hereby agrees not to exercise, and not to permit its designated agents to
exercise, such power of attorney unless a Servicer Event shall have occurred and
be continuing. The Buyer will provide such periodic accountings and other
information related to disposition of funds so collected as the Seller may
reasonably request.

         (d) Collection and Administration at Expense of Company. The Company
agrees that, in the event of a Complete Servicing Transfer, it will reimburse
the Buyer for all reasonable out-of-pocket expenses (including, without
limitation, reasonable attorneys' and accountants' and other third parties' fees
and expenses, expenses incurred by the Referral Agent's credit recovery group
(or any successor), expenses of litigation or preparation therefor, and expenses
of audits and visits to the offices of the Company) incurred by the Buyer or the
Referral Agent in connection with and following the transfer of functions
following a Complete Servicing Transfer (excluding, however, the fees of any
successor Servicer).

                                       36
<PAGE>   38

         (e) Payments by Obligors. At any time, and from time to time following
a Complete Servicing Transfer, or if a Servicer Event shall have occurred and be
continuing, the Seller, each Originator and the Servicer shall permit such
Persons as the Buyer may designate to open and inspect all mail received in the
Permitted Lockboxes, by the Seller at any of its offices or by an Originator or
the Servicer at any of their respective offices if (in the case of an Originator
or the Servicer) such mail on its face appears that it may be related to the
Purchased Receivables, and to remove therefrom any and all Collections or other
correspondence from Obligors or the Originator in respect of Purchased
Receivables. All Collections received by the Buyer shall be applied in
accordance with Section 5.05 hereof. The Buyer shall be entitled to notify the
Obligors of Purchased Receivables to make payments directly to the Buyer of
amounts due thereunder at any time and from time to time following the
occurrence of (i) a Servicer Event, (ii) a Complete Servicing Transfer, or (iii)
a violation by the Seller of the provisions of Section 6.08 hereof.

                  6.08 Lockboxes. The Seller and each Originator hereby agree
(i) to cause all Collections which may be sent by mail as payment on account of
Purchased Receivables to be mailed by Obligors to Permitted Lockboxes; (ii) to
make or cause the Servicer to make the necessary bookkeeping entries to reflect
such Collections on the Records pertaining to such Purchased Receivables; (iii)
to apply or cause the Servicer to apply all such Collections as provided in this
Agreement; (iv) not to amend or modify any term, with respect to the disposition
of such Collections or any other amounts received by the Seller, the Originators
or the Servicer or any Permitted Lockbox Bank, of this Agreement or any other
agreement (including instructions with respect thereto) without the prior
written consent of the Buyer to such amendment or modification; provided that
the Cometals Operating Division shall not be required to maintain a Permitted
Lockbox or to comply with clause (i) above until the tenth day following the
date on which the Seller or the Servicer receives notice from the Buyer that a
Potential Termination Event or other event which gives the Buyer reasonable
grounds for insecurity has occurred and the Buyer is requiring Cometals to
commence to maintain a Permitted Lockbox and to comply with clause (i) above.

                  6.09 Subservicing The Servicer may delegate its
responsibilities for the servicing and administration of the Receivables and
Collections of an Originator (other than the Company and its Operating
Divisions) to such Originator; provided, that (i) the Servicer shall remain
liable for the performance of the duties and obligations of the Servicer
pursuant to the terms hereof, and (ii) any applicable subservicing agreement
provides that such subservicer may be removed as subservicer if it fails to
perform its duties as subservicer or if any event occurs which materially and
adversely

                                       37
<PAGE>   39

affects the ability of such subservicer to perform its duties and obligations as
subservicer. The Servicer will be responsible for any compensation paid to a
subservicer. The appointment of any subservicer in respect of any Receivables
shall not relieve the Servicer of its obligation to service and administer such
Receivables and the Servicer shall be liable for the acts of each subservicer.

                                   Article VII

                              REPURCHASES BY SELLER

                  7.01 Repurchases. If on the last day of a Settlement Period
the Net Investment shall be equal to or less than five percent (5%) of the
Purchase Price paid for the Participation Interest on the Closing Date, the
Seller shall be entitled on such last day to repurchase the Participation
Interest from the Buyer upon at least ten (10) Business Days' prior written
notice to the Buyer.

                  7.02 Repurchase Price. In the case of a repurchase by the
Seller pursuant to Section 7.01 hereof, the Seller shall, on the date of such
repurchase, pay to the Buyer, as the repurchase price thereof, an amount equal
to the sum of (i) the Net Investment as of such date, plus (ii) the Cost of
Funds and Program Fee Amount accrued and owing as of such date, plus (iii) if
the Servicer is not the Company or an Affiliate, the accrued Servicer's
Compensation as of such date, plus (iv) all other amounts due to the Buyer
hereunder, plus (v) any actual loss, cost or expense incurred by the Buyer as
the result of the repayment of the Net Investment prior to the maturity date of
any (a) loans made to the Buyer by third parties or (b) commercial paper notes
or short-term promissory notes issued by the Buyer, in each case for the purpose
of maintaining the Participation Interest. The Buyer shall provide the Seller
with prompt written notice of such actual loss, cost or expense, which notice
shall provide the calculations used in determining the amount of such loss, cost
or expense.

                  7.03 Reassignment of Repurchased Receivables. Upon receipt of
the purchase price of the Participation Interest pursuant to Section 7.02
hereof, the Buyer shall reassign to the Seller the Buyer's Participation
Interest in the Purchased Receivables, without recourse, representation or
warranty (except for the warranty that upon the reassignment to the Seller of
the Buyer's Participation Interest in such Purchased Receivables, no Lien
created by the Buyer will affect the Purchased Receivables).

                  7.04 Obligations Not Affected. The obligations of the Seller
to the Buyer under this Article VII shall not be affected by any invalidity,
illegality or irregularity of any Purchased Receivable, the related Contract or
the sale thereof, except and to the extent that any such invalidity, illegality
or

                                       38
<PAGE>   40

irregularity is caused solely by the gross negligence or willful misconduct of
the Buyer.

                                  Article VIII

                         REPRESENTATIONS AND WARRANTIES

                  8.01 General Representations and Warranties of the Seller. The
Seller, in addition to its other representations and warranties contained herein
or made pursuant hereto, hereby represents and warrants to the Buyer, on and as
of the date hereof, the Closing Date, each Settlement Date on which the Net
Investment is increased, and each date on which a Reinvestment is made, that:

         (a) Organization and Qualification. The Seller is a corporation duly
organized, validly existing and in good standing under the Laws of its
jurisdiction of organization. The Seller is duly qualified to do business as a
foreign limited liability company in good standing in each jurisdiction in which
the ownership of its properties or the nature of its activities, or both,
requires it to be so qualified or, if not so qualified, the failure to so
qualify would not have a material adverse effect on its business, operations,
properties or financial condition. All of the Seller's issued and outstanding
stock is owned by the Company, free of any Liens, and has been fully paid and is
nonassessable.

         (b) Authorization. The Seller has the power and authority to execute
and deliver the Purchase Documents, to convey the Participation Interest to the
Buyer, and to perform its obligations hereunder and thereunder.

         (c) Execution and Binding Effect. Each of the Purchase Documents
(except the Certificate of Participation) has been duly and validly executed and
delivered by the Seller and constitutes a legal, valid and binding obligation of
the Seller enforceable in accordance with its terms except as enforceability may
be limited by bankruptcy, insolvency, reorganization or other similar laws in
effect from time to time affecting the enforcement of creditors' rights
generally and by general principles of equity, regardless of whether such
enforceability is considered in a proceeding in equity or at law. When duly
executed and delivered by the Seller under the provisions hereof, the
Certificate of Participation will constitute a legal, valid and binding
assignment by the Seller enforceable in accordance with the terms thereof and
hereof, which will vest absolutely and unconditionally in the Buyer a valid
Participation Interest in the Purchased Receivables purported to be assigned
thereby, subject to no Liens whatsoever. Upon the filing of the financing
statements required under Section 4.02(c) hereof, the Buyer's Participation
Interest will be perfected under Article Nine of such Uniform Commercial Code,
prior to and enforceable against

                                       39
<PAGE>   41

all creditors of and purchasers from the Seller and all other Persons
whatsoever.

         (d) Authorizations and Filings. No authorization, consent, approval,
license, exemption or other action by, and no registration, qualification,
designation, declaration or filing with, any Official Body is or will be
necessary or, in the opinion of the Seller, advisable in connection with the
execution and delivery of the Purchase Documents, the consummation of the
transactions herein or therein contemplated or the performance of or the
compliance with the terms and conditions hereof or thereof, to ensure the
legality, validity or enforceability hereof or thereof, or to ensure that the
Buyer will have its Participation Interest in and to the Purchased Receivables
perfected and prior to all other Liens (including competing ownership
interests), other than the filing of financing statements under the Uniform
Commercial Code in the jurisdictions required under Section 4.02(c) hereof.

         (e) Absence of Conflicts. Neither the execution and delivery of the
Purchase Documents, nor the consummation of the transactions herein or therein
contemplated, nor the performance of or the compliance with the terms and
conditions hereof or thereof, will (i) violate any Law applicable to it or (ii)
conflict with or result in a breach of or a default under (A) the operating
agreement or certificate of formation of the Seller or (B) any agreement or
instrument, including, without limitation, any and all indentures, debentures,
loans or other agreements to which the Seller is a party or by which it or any
of its properties (now owned or hereafter acquired) may be subject or bound.

         (f) Location of Chief Executive Office, etc. As of the date hereof the
Seller's Chief Executive Office is located at 7800 Stemmons Freeway, Dallas,
Texas. The Seller has only the Affiliates identified in Exhibit D hereto, and
has not changed its name, merged or consolidated with any other corporation or
been the subject of any proceeding under Title 11, United States Code
(Bankruptcy) within the past ten (10) years.

         (g) No Termination Event. No event has occurred and is continuing and
no condition exists which constitutes a Termination Event or a Potential
Termination Event.

         (h) Accurate and Complete Disclosure. No information, whether written
or oral, furnished by the Seller to the Buyer pursuant to or in connection with
this Agreement, including such information in the Certificate of Participation,
Purchase Notice and any Settlement Statement, or any transaction contemplated
hereby is false or misleading in any material respect as of the date as of which
such information was furnished (including by omission of material information
necessary to make such information not misleading).

                                       40
<PAGE>   42

         (i) No Proceedings. There are no proceedings or investigations pending
or, to the Seller's best knowledge, threatened before any court, official body,
regulatory body, administrative agency, or other tribunal or governmental
instrumentality (A) asserting the invalidity of the Purchase Documents, (B)
seeking to prevent the consummation of any of the transactions contemplated by
the Purchase Documents, or (C) seeking any determination or ruling that could
materially and adversely affect (i) the performance by the Seller or the
Servicer of its obligations under this Agreement, or (ii) the validity or
enforceability of the Purchase Documents, the Contracts or any material amount
of the Receivables.

         (j) Bulk Sales Act. No transaction contemplated hereby requires
compliance with any bulk sales act or similar law.

         (k) Litigation. No injunction, decree or other decision has been issued
or made by any court, government or agency or instrumentality thereof with
respect to or affecting the Seller and no litigation, investigation or
proceeding of the type referred to in Section 9.01(j) exists.

         (l) Margin Regulations. The use of all funds acquired by the Seller
under this Agreement will not conflict with or contravene any of Regulations T,
U and X of the Board of Governors of the Federal Reserve System, as the same may
from time to time be amended, supplemented or otherwise modified.

         (m) Not an Investment Company. The Seller is not, and will not become
as a result of the transactions contemplated by the Purchase Documents, an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940, as amended.

                  8.02 Representations and Warranties of the Seller With Respect
to Each Sale of Receivables. By selling the Participation Interest in the
Receivables Pool to the Buyer (including by Reinvestment), the Seller represents
and warrants to the Buyer as of the date of such sale or Reinvestment and as of
each Settlement Date on which the Net Investment is increased (in addition to
its other representations and warranties contained herein or made pursuant
hereto) that:

         (a) Account Balances; Purchase Notice. If such sale is on the Closing
Date, the Account Balances of the related Contracts for the Purchased
Receivables are the respective amounts therefor set forth in the Purchase
Notice, and all information set forth on such Purchase Notice is true and
correct as of such Closing Date.

         (b) Assignment. The Certificate of Participation vests in the Buyer all
the right, title and interest of the

                                       41
<PAGE>   43

Seller in and to the Purchased Receivables (to the extent of the Participation
Interest), and constitutes a valid sale thereof, enforceable against all
creditors of and purchasers from the Seller.

         (c) No Liens. Each Purchased Receivable, together with the related
Contract and all purchase orders and other agreements related to such Purchased
Receivable, is owned by the Seller free and clear of any Lien, except as
provided herein, and when the Buyer purchases the Participation Interest in such
Purchased Receivables it shall have acquired and shall continue to have
maintained an undivided percentage ownership interest to the extent of its
Participation Interest in such Purchased Receivables and in the Collections with
respect thereto free and clear of any Lien, except as provided herein.

         (d) Consideration. The Seller has either (i) purchased the receivables
in exchange for payment (made by the Seller in accordance with the provisions of
the Sale Agreement) in an amount which constitutes fair consideration and
approximate market value for the Receivables and in a sale the terms and
conditions of which (including, without limitation, the purchase price thereof)
reasonably approximate an arm's-length transaction between unaffiliated parties
or (ii) acquired the Receivables as a capital contribution in accordance with
the provisions of the Sale Agreement. No such sale, and no such contribution,
has been made for or on account of an antecedent debt owed to the Seller and no
such sale or contribution is or may be voidable or subject to avoidance under
any section of the U.S. Bankruptcy Code.

                  8.03 Representations and Warranties of the Servicer. The
Servicer represents and warrants (in the case of the initial Servicer, as of the
date hereof, and in the case of any Servicer appointed thereafter pursuant to
Article VI, as of the date of its acceptance of its appointment, and in each
case as of the date of each Settlement Statement) as follows:

         (a) Organization and Qualification. The Servicer is a corporation duly
organized, validly existing and in good standing under the Laws of its
jurisdiction of incorporation. The Servicer is duly qualified to do business as
a foreign corporation in good standing in each jurisdiction in which the
ownership of its properties or the nature of its activities or both, requires it
to be so qualified or, if not so qualified, the failure to so qualify would not
have a material adverse effect on its business, operations, properties or
financial condition.

         (b) Authorization. The Servicer has the corporate power and authority
to execute and deliver this Agreement and to perform its obligations hereunder.

         (c) Execution and Binding Effect. This Agreement has been duly and
validly executed and delivered by the Servicer and

                                       42
<PAGE>   44

constitutes a legal, valid and binding obligation of the Servicer
enforceable in accordance with its terms except as enforceability may be limited
by bankruptcy, insolvency, reorganization or other similar laws in effect from
time to time affecting the enforcement of creditors' rights generally and by
general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

         (d) Authorizations and Filings. No authorization, consent, approval,
license, exemption or other action by, and no registration, qualification,
designation, declaration or filing with, any Official Body is or will be
necessary or, in the opinion of the Servicer, advisable in connection with the
execution and delivery of this Agreement, the consummation of the transactions
herein contemplated or the performance of or the compliance with the terms and
conditions hereof by the Servicer, to ensure the legality, validity or
enforceability hereof.

         (e) Absence of Conflicts. Neither the execution and delivery of this
Agreement and the Sale Agreement, nor the consummation of the transactions
herein and therein contemplated, nor the performance of or the compliance with
the terms and conditions hereof by the Servicer, will (i) violate any Law or
(ii) conflict with or result in a breach of or a default under (A) the articles
or certificate of incorporation or by-laws of the Servicer or (B) any agreement
or instrument in any material respect, including, without limitation, any and
all indentures, debentures, loans or other agreements to which the Servicer is a
party or by which it or any of its properties (now owned or hereafter acquired)
may be subject or bound.

         (f) No Termination Event. No event has occurred and is continuing and
no condition exists which constitutes a Termination Event or a Potential
Termination Event.

         (g) Accurate and Complete Disclosure. No information, whether written
or oral, furnished by the Servicer to the Buyer pursuant to or in connection
with this Agreement, including such information in any Settlement Statement, or
any transaction contemplated hereby, including without limitation information
regarding the Permitted Lockboxes and Permitted Lockbox Accounts, is false or
misleading in any material respect as of the date as of which such information
was furnished (including by omission of material information necessary to make
such information not misleading).

         (h) No Proceedings. There are no proceedings or investigations pending
or threatened before any court, official body, regulatory body, administrative
agency, or other tribunal or governmental instrumentality (A) asserting the
invalidity of any of this Agreement (B) seeking to prevent the consummation of
any of the transactions contemplated by any of this Agreement, or (C) seeking
any determination or ruling that could materially and

                                       43
<PAGE>   45

adversely affect (i) the performance by the Servicer of its obligations under
this Agreement or (ii) the validity or enforceability of the Contracts or any
material amount of the Receivables.

         (i) Not an Investment Company. The Servicer is not, and will not become
as a result of the transactions contemplated by the Purchase Documents, an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940, as amended.

                                   Article IX

                                    COVENANTS

                  9.01 Affirmative Covenants of the Seller. In addition to its
other covenants contained herein or made pursuant hereto, the Seller covenants
to the Buyer as follows:

         (a) Notice of Termination Event. Promptly upon becoming aware of any
Termination Event or Potential Termination Event, the Seller shall give the
Buyer notice thereof, together with a written statement of a Responsible Officer
setting forth the details thereof and any action with respect thereto taken or
contemplated to be taken by the Seller.

         (b) Notice of Material Adverse Change. Promptly upon becoming aware
thereof, the Seller shall give the Buyer notice of any material adverse change
in the business, operations or financial condition of the Seller which could
affect adversely the collectibility of the Purchased Receivables or the ability
to service the Purchased Receivables. In order to verify compliance with this
Section 9.01(b), the Seller shall furnish the following to the Buyer:

                  (i) as soon as practicable and in any event within 45 days
         following the close of each fiscal quarter, excluding the last fiscal
         quarter, of each fiscal year of the Seller during the term of this
         Agreement, an unaudited consolidated balance sheet of the Seller as at
         the end of such quarter and unaudited consolidated statements of income
         and cash flows of the Seller for such quarter and for the fiscal year
         through such quarter, setting forth in comparative form the
         corresponding figures for the corresponding quarter of the preceding
         fiscal year, all in reasonable detail and certified by the principal
         financial officer of the Seller, subject to adjustments of the type
         which would occur as a result of a year-end audit, as having been
         prepared in accordance with GAAP; and

                  (ii) as soon as practicable and in any event within 90 days
         after the close of each fiscal year of the

                                       44
<PAGE>   46

         Seller during the term of this Agreement, a consolidated balance sheet
         of the Seller as at the close of such fiscal year and consolidated
         statements of income and cash flows of the Seller for such fiscal year,
         setting forth in comparative form the corresponding figures for the
         preceding fiscal year, all in reasonable detail and certified (with
         respect to the consolidated financial statements) by the principal
         financial officer of the Seller as having been prepared in accordance
         with GAAP.

         (c) Preservation of Existence. The Seller shall preserve and maintain
its existence, rights, franchises and privileges in the jurisdiction of its
organization, and qualify and remain qualified in good standing as a foreign
limited liability company in each jurisdiction where the failure to preserve and
maintain such existence, rights, franchises, privileges and qualification could
materially adversely affect (i) the interests of the Buyer hereunder or (ii) the
ability of the Seller to perform its obligations hereunder.

         (d) Compliance with Laws. The Seller shall comply in all material
respects with all Laws applicable to the Seller, its business and properties,
and the Receivables.

         (e) Enforceability of Obligations. The Seller shall ensure that, with
respect to each Purchased Receivable, the obligation of any related Obligor to
pay the unpaid balance of such Purchased Receivable in accordance with the terms
of the related Contract remains legal, valid, binding and enforceable against
such Obligor, except (i) as otherwise permitted by Section 6.06(b) hereof, (ii)
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws which may be applied in the
event of the bankruptcy or insolvency of such Obligor, and (iii) as such
enforceability may be limited by general principles of equity (whether
considered in a suit at law or in equity).

         (f) Books and Records. The Seller shall maintain and implement
administrative and operating procedures (including, without limitation, the
ability to recreate Records evidencing the Purchased Receivables in the event of
the destruction of the originals thereof), and keep and maintain all documents,
books, Records and other information reasonably necessary or advisable for the
collection of all Purchased Receivables (including, without limitation, Records
adequate to permit the identification of all Collections and adjustments to each
existing Purchased Receivable) at its Chief Executive Office, except as provided
in Section 6.03 hereof.

         (g) Fulfillment of Obligations. The Seller will duly observe and
perform, or cause to be observed or performed, all obligations and undertakings
on its part to be observed and

                                       45
<PAGE>   47

performed under or in connection with the Purchased Receivables, and will do
nothing to impair the rights, title and interest of the Buyer in and to its
Participation Interest in the Purchased Receivables.

         (h) Customer List. The Seller shall at all times maintain (or cause the
Servicer to maintain) a current list (which may be stored on magnetic tapes or
disks) of all Obligors under Contracts related to Purchased Receivables,
including the name, address, telephone number and account number of each such
Obligor. The Seller shall deliver or cause to be delivered a copy of such list
to the Buyer as soon as practicable following the Buyer's request.

         (i) Copies of Reports, Filings, Opinions, etc.

                  (1) Together with each Settlement Statement required to be
         delivered pursuant to Section 5.01, the Seller shall cause the Servicer
         to prepare and forward to the Buyer (i) a report in substantially the
         form of Exhibit E hereto, relating to the Receivables Pool, as of the
         close of business on the last day of the Accounting Period most
         recently completed, and (ii) a listing by Obligor of all Purchased
         Receivables together with an aging of such Purchased Receivables as of
         the last day of the most recently completed Accounting Period.

                  (2) The Seller shall, upon request by the Buyer, but not more
         often than annually, furnish to the Buyer an opinion of counsel who
         shall be satisfactory to the Buyer with respect to the perfection of
         the Buyer's right, title and interest in the Receivables Pool and all
         Collections with respect thereto against all Persons whomsoever.

                  (3) Simultaneously with the delivery of the Seller's annual
         financial statements pursuant to Section 9.01(b)(ii) for each fiscal
         year of the Seller commencing with the fiscal year ending in 2002, the
         Seller shall, at the Seller's expense, cause a firm of nationally
         recognized independent certified public accountants acceptable to the
         Buyer (who may render other services to the Servicer or the Seller) to
         furnish a report (which report shall cover the twelve months ending on
         the last day of the Seller's fiscal year which is covered by such
         financial statements) to the Buyer and the Referral Agent to the effect
         that they have applied certain procedures agreed upon with the Servicer
         and Buyer and examined certain documents and records relating to the
         servicing of the Receivables under this Agreement and as to the
         accounting firm's findings with regard to the

                                       46
<PAGE>   48

         procedures; provided that such examinations and reports may be combined
         with the examinations and reports required by Section 9.03(i)(3).

         (j) Litigation. As soon as possible, and in any event within five (5)
Business Days of the Seller's knowledge thereof, the Seller shall give the Buyer
notice of (i) any litigation, investigation or proceeding to which the Seller is
a party or which could have an adverse effect on the business, operations,
property or financial condition of the Seller or impair the ability of the
Seller to perform its obligations under this Agreement and (ii) any material
adverse development in previously disclosed litigation.

         (k) Total Systems Failure. The Seller shall cause the Servicer to
promptly notify the Buyer of any total systems failure and to advise the Buyer
of the estimated time required to remedy such total systems failure and of the
estimated date on which a Settlement Statement can be delivered. Until a total
systems failure is remedied, the Seller shall cause the Servicer (i) to furnish
to the Buyer such periodic status reports and other information relating to such
total systems failure as the Buyer may reasonably request and (ii) to promptly
notify the Buyer if the Servicer believes that such total systems failure cannot
be remedied by the estimated date, which notice shall include a description of
the circumstances which gave rise to such delay, the action proposed to be taken
in response thereto, and a revised estimate of the date on which a Settlement
Statement can be delivered. The Seller shall cause the Servicer to promptly
notify the Buyer when a total systems failure has been remedied.

         (l) Notice of Relocation. The Seller shall give the Buyer sixty (60)
days' prior written notice of any relocation of its Chief Executive Office if,
as a result of such relocation, the applicable provisions of the Uniform
Commercial Code of any applicable jurisdiction or other applicable Laws would
require the filing of any amendment of any previously filed financing statement
or continuation statement or of any new financing statement. The Seller will at
all times maintain its Chief Executive Office within a jurisdiction in the
United States in which Article Nine of the Uniform Commercial Code (1972 or
later revision) is in effect.

         (m) Further Information. The Seller will furnish or cause to be
furnished to the Buyer such other information, as promptly as practicable, and
in such form and detail, as the Buyer may reasonably request.

         (n) Treatment of Purchase. For accounting purposes, the Seller shall
treat the Purchase and each Reinvestment made hereunder as a sale of an
undivided participation interest in the Purchased Receivables. The Seller shall
also maintain its

                                       47
<PAGE>   49

records and books of account in a manner which clearly reflects the sale of the
Participation Interest to the Buyer and the Buyer's Investment therein.

         (o) Administrative and Operating Procedures. The Seller shall maintain
and implement administrative and operating procedures adequate to permit the
identification of the Receivables Pool and all collections and adjustments
attributable to each Receivables Pool.

         (p) Certificates of Title.

                  (1) If any amount payable under or in connection with any
         Purchased Receivable shall be or become evidenced by any promissory
         note, chattel paper or other instrument, such note, chattel paper or
         instrument shall be duly endorsed in a manner satisfactory to the Buyer
         and delivered to the Buyer or its agent.

                  (2) The Seller shall deliver to the Buyer any certificate of
         title or other evidence of ownership issued by the United States or any
         state or any political subdivision thereof relating to any chattel held
         as security for any amount payable under or in connection with any
         Purchased Receivable, with evidence of perfection of the security
         interest in such property noted thereon, if such notation is required
         under the laws of the jurisdiction in which such property is located in
         order to perfect a security interest in such property.

                  (3) If the Contract relating to any Purchased Receivable
         requires the related Obligor to maintain insurance upon the chattel
         security relating to such Contract, the Seller shall deliver to the
         Buyer all documents or certificates relating to such insurance.

                  (4) The Seller shall deliver to the Buyer any other document
         required by the terms of the related Contracts.

         (q) Acknowledgment of Servicer. If there is a Servicer other than the
Seller, the Company or the Buyer, the Seller shall deliver to the Buyer a copy
of the Successor Servicing Agreement together with an acknowledgment from the
Servicer affirming that the Successor Servicing Agreement is in full force and
effect.

         (r) Transfer of Receivables from the Company. Any Receivable
transferred by the Company to the Seller shall be transferred in accordance with
the terms and conditions of the Sale Agreement.

                                       48
<PAGE>   50

         (s) Separate Existence. The Seller hereby acknowledges that the Buyer
is entering into the transactions contemplated by this Agreement in reliance
upon the Seller's identity as a separate legal entity from the Originators or
any Company Entity (as defined below). Therefore, from and after the date of
execution and delivery of this Agreement, the Seller shall take all reasonable
steps including, without limitation, all steps that the Buyer may from time to
time reasonably request, to maintain the Seller's identity as a separate legal
entity and to make it manifest to third parties that the Seller is an entity
with assets and liabilities distinct from those of the Originators and any
Affiliates (other than the Seller) thereof (each of the Originators and its
Affiliates (other than the Seller) shall be referred to herein as a "Company
Entity"), and not just a division of any Company Entity. Without limiting the
generality of the foregoing and in addition to and consistent with the covenants
set forth above, the Seller shall:

                  (i) require that all full-time employees of the Seller
         identify themselves as such and not as employees of any Company Entity
         (including, without limitation, by means of providing appropriate
         employees with business or identification cards identifying such
         employees as the Seller's employees);

                  (ii) to the extent any employee, consultant or agent of the
         Seller is also an employee, consultant or agent of any Company Entity,
         allocate the compensation of such employee, consultant or agent between
         the Seller and such Company Entity on a basis which reflects the
         services rendered to the Seller and such Company Entity;

                  (iii) allocate all overhead expenses (including, without
         limitation, telephone and other utility charges) for items shared
         between the Seller and any Company Entity on a reasonable basis
         consistent with GAAP;

                  (iv) at all times on and after the Closing Date have at least
         one director on its board of directors who is not, (A) a director,
         member, officer or employee of any Company Entity, (B) a person related
         to any officer, member, or director of any Company Entity, (C) a holder
         (directly or indirectly) of more than 5% of any voting securities of
         any Company Entity, or (D) a person related to a holder (directly or
         indirectly) of more than 5% of any voting securities of any Company
         Entity (the "Independent Director");

                  (v) ensure that all of its actions are duly authorized by vote
         of its board of directors (including

                                       49
<PAGE>   51

         the Independent Director) in accordance with its bylaws;

                  (vi) maintain the Seller's books and records separate from
         those of any Company Entity and in a location which is clearly
         identified (by signage or otherwise) as allocated solely to the Seller;

                  (vii) prepare its financial statements separately from those
         of other Company Entities;

                  (viii) except as herein specifically otherwise provided, not
         commingle funds or other assets of Seller with those of any other
         Company Entity and not maintain bank accounts or other depository
         accounts other than each Lockbox Account to which any Company Entity is
         an account party, into which any Company Entity makes deposits or from
         which any Company Entity has the power to make withdrawals;

                  (ix) be obligated to reimburse any Company Entity which pays
         any of the Seller's operating expenses; and

                  (x) not permit the Seller to be named as an insured on the
         insurance policy covering the property of any Company Entity, except
         and only to the extent that such policy also covers property of the
         Seller, or enter into an agreement with the holder of such policy
         whereby in the event of a loss in connection with the property of any
         Company Entity, proceeds are paid to the Seller.

         (t) Enforcement of Sale Agreement. The Seller shall enforce the
obligations of the Originators and the Company under the Sale Agreement for the
benefit of the Buyer.

         (u) Compliance with ERISA. (1) The Seller shall comply in all material
respects with the applicable provisions of ERISA and (2) furnish to the Buyer
(i) as soon as possible after, and in any event within thirty (30) days after
any Responsible Officer of the Seller or any ERISA Affiliate either knows or has
reason to know that, any Reportable Event has occurred and the aggregate
unfunded vested benefits of the Seller and all ERISA Affiliates of the Seller
exceed $50,000,000, (A) a copy of the notice of such event required to be given
to the PBGC or, if notice is not so required, a statement of an officer of the
Seller having responsibility over its employee benefits (a "Benefits Officer")
setting forth in reasonable detail the nature of such event and the action
proposed to be taken with respect thereto and (B) in the event that a notice is
required to be given to the PBGC, as soon as practicable after the reasonable
request of the Buyer following receipt a copy of such notice, a statement of a
Benefits Officer of the type described in (A)

                                       50
<PAGE>   52

above, (ii) promptly after receipt thereof, a copy of any notice the Seller or
any ERISA Affiliate may receive from the PBGC relating to the intention of the
PBGC to terminate any Plan or Plans (other than a Plan maintained by an ERISA
Affiliate that is considered an ERISA Affiliate only pursuant to subsection (m)
or (o) of Section 414 of the Code) or to appoint a trustee to administer any
Plan or Plans, (iii) within ten (10) days after the due date for filing with the
PBGC pursuant to Section 412(n) of the Code of a notice of failure to make a
required installment or other payment with respect to a Plan, a copy of such
notice, and, as soon as practicable after the reasonable request of the Buyer, a
statement of a Benefits Officer setting forth in reasonable detail the nature of
such failure and the action proposed to be taken with respect thereto and (iv)
promptly and in any event within thirty (30) days after receipt thereof by the
Seller or any ERISA Affiliate from the sponsor of a Multiemployer Plan, a copy
of each notice received by the Seller or any ERISA Affiliate concerning (A) the
imposition of Withdrawal Liability in excess of $10,000,000 or (B) a
determination that a Multiemployer Plan is, or is expected to be, terminated or
in reorganization, in each case within the meaning of Title IV of ERISA.

                  9.02 Negative Covenants of the Seller. The Seller covenants
that it will not, without the prior written consent of the Buyer:

         (a) Statementing for and Treatment of the Sales. Prepare any financial
statements for financial accounting or reporting purposes which shall account
for the transactions contemplated hereby in any manner other than as a sale of
the Participation Interest in the Purchased Receivables to the Buyer.

         (b) No Rescissions or Modifications. Rescind or cancel any Purchased
Receivable or related Contract or modify any terms or provisions thereof, except
in accordance with the Credit and Collection Policy or otherwise with the prior
written consent of the Buyer.

         (c) No Liens. Cause any of the Purchased Receivables to be sold,
pledged, assigned or transferred or to be subject to a Lien, other than the sale
and assignment of the Participation Interest therein to the Buyer and the Liens
created in connection with the transactions contemplated by this Agreement and
the Program Support Agreements.

         (d) Mergers, Acquisitions. Be a party to any merger or consolidation,
or purchase or otherwise acquire all or substantially all of the assets or any
stock of any class of, or any partnership or joint venture interest in, any
other Person

         (e) No Changes. Change its name, identity or organizational structure
in any manner which would, could or

                                       51
<PAGE>   53

might make any financing statement or continuation statement filed in connection
with this Agreement or the transactions contemplated hereby seriously misleading
within the meaning of Section 9-402(7) of the Uniform Commercial Code of any
applicable jurisdiction or other applicable Laws unless it shall have given the
Buyer at least sixty (60) days' prior written notice thereof, or amend its
limited liability company agreement.

         (f) Payment Instructions. Add any bank as a Permitted Lockbox Bank,
terminate any bank listed on Exhibit G hereto as a Permitted Lockbox Bank,
change any Lockbox Account listed on Exhibit G hereto, or make any change in its
instructions to Obligors regarding payments to be made to the Seller or payments
to be made to any Permitted Lockbox Bank, unless the Buyer shall have received
ten (10) Business Days' prior notice of such addition, termination or change
and, with respect to the addition of any Permitted Lockbox Bank, a Lockbox
Servicing Agreement executed by such Permitted Lockbox Bank shall have been
delivered to the Buyer.

         (g) Sales, etc. Sell, transfer, convey, assign or lease all or any
substantial part of its assets, or sell or assign with or without recourse any
Receivables (other than pursuant hereto), or permit any subsidiary to do any of
the foregoing.

         (h) Permitted Debt. Incur any debt or other liability except for (a)
debt of the Seller in favor of an Originator which is evidenced by a promissory
note of the Seller containing the following terms: (i) a fixed date for the
payment of principal and interest which date shall be no earlier than one year
and one day after the date specified in Section 8.2 of the Sale Agreement;
provided, that the note may be prepaid on any date no earlier than 91 days after
the date specified in Section 8.2 of the Sale Agreement so long as sufficient
funds remain in the Seller after such prepayment to provide for the payment of
all of the Seller's fees and expenses anticipated to accrue through the maturity
date; (ii) the obligations under such promissory note shall be subordinated to
all obligations of the Seller to the Buyer and no payments shall be made under
such promissory note until all obligations to the Buyer have been satisfied in
full, provided that payments (including prepayments) of principal and interest
may be made if, after giving effect to such payment, no Termination Event or
Potential Termination Event would occur or be continuing; and (iii) the
obligations of the Seller under such promissory note shall not constitute a
claim against the Seller in the event the Seller has insufficient funds to
satisfy the obligation unless all obligations of the Seller to the Buyer have
been paid in full and any period during which a trustee or receiver of the
Seller or the Seller's assets could recover any payments made to the Buyer
hereunder has expired, (b) obligations in connection with operating expenses
arising in the ordinary

                                       52
<PAGE>   54

course of its business and (c) any liability arising under this Agreement.

         (i) Other Agreements. Not enter into or be a party to any agreement or
instrument other than agreements with the Company covering the lease of its
offices, the allocation of its overhead and the provision for management
expenses, agreements covering insurance, this Agreement, the Sale Agreement, or
any other agreement referred to herein or contemplated hereby, amend, modify or
waive any provision in any thereof, or give any approval or consent or
permission provided for in any thereof without the prior written consent of the
Buyer (which consent will not be unreasonably withheld); provided, however, that
each such agreement shall contain an undertaking from each Person who enters
into any such agreement with the Seller that such Person will not institute, or
join with any other Person in instituting, against the Seller any proceeding of
the type referred to in Section 11.19.

         (j) Other Business. Without the prior written consent of the Buyer, not
engage in any business or enterprise or enter into any transaction other than as
contemplated by this Agreement and the Sale Agreement.

                  9.03 Affirmative Covenants of the Servicer. In addition to its
other covenants contained herein or made pursuant hereto, the Servicer covenants
to the Buyer as follows:

         (a) Notice of Termination Event. Promptly upon becoming aware of any
Termination Event or Potential Termination Event, the Servicer shall give the
Buyer notice thereof, together with a written statement of a Responsible Officer
setting forth the details thereof and any action with respect thereto taken or
contemplated to be taken by the Servicer.

         (b) Notice of Material Adverse Change. Promptly upon becoming aware
thereof, the Servicer shall give the Buyer notice of any material adverse change
in the business, operations or financial condition of the Servicer which could
affect adversely the collectibility of the Purchased Receivables or the ability
to service the Purchased Receivables. In order to verify compliance with this
Section 9.01(b), the Servicer shall furnish the following to the Buyer:

                  (i) as soon as practicable and in any event within 45 days
         following the close of each fiscal quarter, excluding the last fiscal
         quarter, of each fiscal year of the Servicer during the term of this
         Agreement, an unaudited consolidated balance sheet of the Servicer as
         at the end of such quarter and unaudited consolidated statements of
         income and cash flows of the Servicer for such quarter and for the
         fiscal year through such quarter, setting forth in

                                       53
<PAGE>   55

         comparative form the corresponding figures for the corresponding
         quarter of the preceding fiscal year, together with notes thereto as
         are required to be included therein in accordance with GAAP, all in
         reasonable detail and certified by the principal financial officer of
         the Servicer, subject to adjustments of the type which would occur as a
         result of a year-end audit, as having been prepared in accordance with
         GAAP; and

                  (ii) as soon as practicable and in any event within 90 days
         after the close of each fiscal year of the Servicer during the term of
         this Agreement, a consolidated balance sheet of the Servicer as at the
         close of such fiscal year and consolidated statements of income and
         cash flows of the Servicer for such fiscal year, setting forth in
         comparative form the corresponding figures for the preceding fiscal
         year, all in reasonable detail and certified (with respect to the
         consolidated financial statements) by independent certified public
         accountants of recognized standing selected by the Servicer and
         satisfactory to the Buyer, whose certificate or opinion accompanying
         such financial statements shall not contain any qualification,
         exception or scope limitation not satisfactory to the Buyer.

         (c) Preservation of Corporate Existence. The Servicer shall preserve
and maintain its corporate existence, rights, franchises and privileges in the
jurisdiction of its incorporation, and qualify and remain qualified in good
standing as a foreign corporation in each jurisdiction where the failure to
preserve and maintain such existence, rights, franchises, privileges and
qualification could materially adversely affect (i) the interests of the Buyer
hereunder or (ii) the ability of the Servicer to perform its obligations
hereunder.

         (d) Compliance with Laws. The Servicer shall comply in all material
respects with all Laws applicable to the Servicer, its business and properties,
and the Receivables.

         (e) Enforceability of Obligations. The Servicer shall ensure that, with
respect to each Purchased Receivable, the obligation of any related Obligor to
pay the unpaid balance of such Purchased Receivable in accordance with the terms
of the related Contract remains legal, valid, binding and enforceable against
such Obligor, except (i) as otherwise permitted by Section 6.06(b) hereof, (ii)
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws which may be applied in the
event of the bankruptcy or insolvency of such Obligor, and (iii) as such
enforceability may be limited by general principles of equity (whether
considered in a suit at law or in equity).

                                       54
<PAGE>   56

         (f) Books and Records. The Servicer shall maintain and implement
administrative and operating procedures (including, without limitation, the
ability to recreate Records evidencing the Purchased Receivables in the event of
the destruction of the originals thereof), and keep and maintain all documents,
books, Records and other information reasonably necessary or advisable for the
collection of all Purchased Receivables (including, without limitation, Records
adequate to permit the identification of all Collections and adjustments to each
existing Purchased Receivable) at its Chief Executive Office, except as provided
in Section 6.03 hereof.

         (g) Fulfillment of Obligations. The Servicer will duly observe and
perform, or cause to be observed or performed, all obligations and undertakings
on its part to be observed and performed under or in connection with the
Purchased Receivables, and will do nothing to impair the rights, title and
interest of the Buyer in and to its Participation Interest in the Purchased
Receivables.

         (h) Customer List. The Servicer shall at all times maintain a current
list (which may be stored on magnetic tapes or disks) of all Obligors under
Contracts related to Purchased Receivables, including the name, address,
telephone number and account number of each such Obligor. The Servicer shall
deliver or cause to be delivered a copy of such list to the Buyer as soon as
practicable following the Buyer's request.

         (i) Copies of Reports, Filings, Opinions, etc.

                  (1) Together with each Settlement Statement required to be
         delivered pursuant to Section 5.01, the Servicer shall prepare and
         forward to the Buyer (i) a report in substantially the form of Exhibit
         E hereto, relating to the Receivables Pool, as of the close of business
         on the last day of the Accounting Period most recently completed, and
         (ii) a listing by Obligor of all Purchased Receivables together with an
         aging of such Purchased Receivables as of the last day of the most
         recently completed Accounting Period.

                  (2) The Servicer shall, upon request by the Buyer, but not
         more often than annually, furnish to the Buyer an opinion of counsel
         who shall be satisfactory to the Buyer with respect to the perfection
         of the Buyer's right, title and interest in the Receivables Pool and
         all Collections with respect thereto against all Persons whomsoever.

                  (3) Simultaneously with the delivery of the Servicer's annual
         financial statements pursuant to Section 9.03(b)(ii) for each fiscal
         year of the Servicer, commencing with the fiscal year ending in

                                       55
<PAGE>   57

         2002, the Servicer shall, at the Servicer's expense, cause a firm of
         nationally recognized independent certified public accountants
         acceptable to the Buyer (who may render other services to the Servicer
         or the Seller) to furnish a report (which report shall cover the twelve
         months ending on the last day of the Servicer's fiscal year which is
         covered by such financial statements) to the Buyer and the Referral
         Agent to the effect that they have applied certain procedures agreed
         upon with the Servicer and Buyer and examined certain documents and
         records relating to the servicing of the Receivables under this
         Agreement and as to the accounting firm's findings with regard to the
         procedures; provided that such examinations and reports may be combined
         with the examinations and reports required by Section 9.01(i)(3).

         (j) Litigation. As soon as possible, and in any event within five (5)
Business Days of the Servicer's knowledge thereof, the Servicer shall give the
Buyer notice of (i) any litigation, investigation or proceeding, whether or not
the Servicer is a party, which could have a material adverse effect on the
business, operations, property or financial condition of the Servicer or impair
the ability of the Servicer to perform its obligations under this Agreement and
(ii) any material adverse development in previously disclosed litigation.

         (k) Total Systems Failure. The Servicer shall promptly notify the Buyer
of any total systems failure and to advise the Buyer of the estimated time
required to remedy such total systems failure and of the estimated date on which
a Settlement Statement can be delivered. Until a total systems failure is
remedied, the Servicer shall (i) furnish to the Buyer such periodic status
reports and other information relating to such total systems failure as the
Buyer may reasonably request and (ii) promptly notify the Buyer if the Servicer
believes that such total systems failure cannot be remedied by the estimated
date, which notice shall include a description of the circumstances which gave
rise to such delay, the action proposed to be taken in response thereto, and a
revised estimate of the date on which a Settlement Statement can be delivered.
The Servicer will promptly notify the Buyer when a total systems failure has
been remedied.

         (l) Notice of Relocation. The Servicer shall give the Buyer sixty (60)
days' prior written notice of any relocation of its Chief Executive Office if,
as a result of such relocation, the applicable provisions of the Uniform
Commercial Code of any applicable jurisdiction or other applicable Laws would
require the filing of any amendment of any previously filed financing statement
or continuation statement or of any new financing statement. The Servicer will
at all times maintain its Chief Executive Office within a jurisdiction in the
United States in

                                       56
<PAGE>   58

which Article Nine of the Uniform Commercial Code (1972 or later revision) is in
effect.

         (m) Further Information. The Servicer will furnish or cause to be
furnished to the Buyer such other information, as promptly as practicable, and
in such form and detail, as the Buyer may reasonably request.

         (n) Administrative and Operating Procedures. The Servicer shall
maintain and implement administrative and operating procedures adequate to
permit the identification of the Receivables Pool and all collections and
adjustments attributable to each Receivables Pool.

         (o) Certificates of Title.

                  (1) If any amount payable under or in connection with any
         Purchased Receivable shall be or become evidenced by any promissory
         note, chattel paper or other instrument, such note, chattel paper or
         instrument shall be duly endorsed in a manner satisfactory to the Buyer
         and delivered to the Buyer or its agent.

                  (2) The Servicer shall deliver to the Buyer any certificate of
         title or other evidence of ownership issued by the United States or any
         state or any political subdivision thereof relating to any chattel held
         as security for any amount payable under or in connection with any
         Purchased Receivable, with evidence of perfection of the security
         interest in such property noted thereon, if such notation is required
         under the laws of the jurisdiction in which such property is located in
         order to perfect a security interest in such property.

                  (3) If the Contract relating to any Purchased Receivable
         requires the related Obligor to maintain insurance upon the chattel
         security relating to such Contract, the Servicer shall deliver to the
         Buyer all documents or certificates relating to such insurance.

                  (4) The Servicer shall deliver to the Buyer any other document
         required by the terms of the related Contracts.

         (p) Compliance with Sale Agreement. The Servicer shall, and shall cause
each other Originator to, comply with its obligations under the Sale Agreement
for the benefit of the Buyer.

         (q) Notice of Ratings Changes. The Servicer shall give the Buyer prompt
notice of any change from time to time

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<PAGE>   59

(including any credit watch or warning with respect thereto) in the ratings from
S&P or Moody's of the Servicer's long term unsecured debt.

                  9.04 Negative Covenants of the Servicer. The Servicer
covenants that it will not, without the prior written consent of the Buyer:

         (a) No Rescissions or Modifications. Rescind or cancel any Purchased
Receivable or related Contract or modify any terms or provisions thereof, except
in accordance with the Credit and Collection Policy or otherwise with the prior
written consent of the Buyer.

         (b) No Liens. Cause any of the Purchased Receivables to be sold,
pledged, assigned or transferred or to be subject to a Lien, other than the sale
and assignment of the Participation Interest therein to the Buyer and the Liens
created in connection with the transactions contemplated by this Agreement.

         (c) No Changes. Change its name, identity or corporate structure in any
manner which would, could or might make any financing statement or continuation
statement filed in connection with this Agreement or the Sale Agreement or the
transactions contemplated hereby or thereby seriously misleading within the
meaning of Section 9-402(7) of the Uniform Commercial Code of any applicable
jurisdiction or other applicable Laws unless it shall have given the Buyer at
least sixty (60) days' prior written notice thereof.

                                    ARTICLE X

                                   TERMINATION

                  10.01 Termination Events. A "Termination Event" shall mean the
occurrence and continuance of one or more of the following events or conditions:

                  (a)      either the Seller or Servicer, as the case may be,
                           shall fail to remit or fail to cause to be remitted
                           to the Buyer on any Settlement Date any Collections
                           or other amounts required to be remitted to the
                           Buyer, on such Settlement Date; or

                  (b)      the Seller or any Originator shall fail to deposit or
                           pay, or fail to cause to be deposited or paid, when
                           due any other amount due hereunder or under the Sale
                           Agreement; or

                  (c)      any representation, warranty, certification or
                           statement made by the Seller or any Originator under
                           this Agreement or in any agreement, certificate,
                           report, appendix, schedule or

                                       58
<PAGE>   60

                           document furnished by or on behalf of the Seller or
                           any Originator to the Buyer pursuant to or in
                           connection with this Agreement (including, without
                           limitation, the Sale Agreement) shall prove to have
                           been false or misleading in any respect material to
                           this Agreement or the transactions contemplated
                           hereby as of the time made or deemed made (including
                           by omission of material information necessary to make
                           such representation, warranty, certification or
                           statement not misleading) and, if remediable, shall
                           remain false or misleading in any material respect
                           for ten (10) Business Days after the earlier of (i)
                           notice to the Seller or the Servicer thereof and (ii)
                           discovery by the Seller or the Servicer thereof; or

                  (d)      the Seller, any Originator or the Servicer shall fail
                           to obtain the prior consent of the Buyer to any
                           action or provision as to which such consent is
                           required by the terms of this Agreement or the Sale
                           Agreement; or

                  (e)      the Seller, any Originator or the Servicer shall
                           default or fail in the performance or observance of
                           any other covenant, agreement or duty applicable to
                           it contained herein or in the Sale Agreement and such
                           default or failure shall continue for twenty (20)
                           days after either (i) any Responsible Officer of the
                           Seller or such Originator becomes aware thereof or
                           (ii) written notice thereof to the Seller by the
                           Buyer; or

                  (f)      a default shall have occurred and be continuing
                           following the expiration of any applicable grace
                           period under any instrument or agreement evidencing,
                           securing or providing for the issuance of
                           indebtedness for borrowed money of, or guaranteed by,
                           the Seller, any Originator or any Affiliate thereof,
                           and in an amount equal to or in excess of $10,000,000
                           in the case of any Originator or any Affiliate
                           thereof other than the Seller, which default would
                           permit acceleration of the maturity of such
                           indebtedness; or

                  (g)      a Permitted Lockbox Bank shall default or fail in the
                           performance or observance of any agreement or duty
                           applicable to it under the Lockbox Servicing
                           Agreement executed by it and such default or failure
                           shall continue for three (3) Business Days after
                           notice thereof to such Permitted Lockbox Bank and
                           within such period another Permitted Lockbox with
                           another Permitted Lockbox Bank is not

                                       59
<PAGE>   61

                           established by the Seller, if so requested by the
                           Buyer; or

                  (h)      litigation (including, without limitation, derivative
                           actions), arbitration, governmental proceedings or
                           actions pursuant to or brought to enforce any Law is
                           pending against the Seller, any Originator or any
                           Affiliate thereof which in the reasonable opinion of
                           the Buyer is likely to (i) impair the ability of the
                           Seller to perform its obligations under this
                           Agreement or the Sale Agreement, or (ii) materially
                           adversely affect the financial position or business
                           of the Originator or impair the ability of the
                           Originator to perform its obligations under this
                           Agreement, the Sale Agreement or the Company's
                           Consent; or

                  (i)      there shall have occurred any event which materially
                           adversely affects the collectibility of a material
                           amount of the Purchased Receivables or there shall
                           have occurred any other event which materially
                           adversely affects the ability of the Servicer to
                           collect the Purchased Receivables or the ability of
                           the Servicer to perform hereunder; or

                  (j)      an Event of Bankruptcy shall occur with respect to
                           (i) the Seller or any Originator, or (ii) one or more
                           Affiliates of the Seller or any Originator which
                           could have a material adverse effect on the business,
                           financial condition or operations of the Seller or
                           such Originator and, in the case of an involuntary
                           proceeding, such proceeding shall continue
                           undismissed for sixty (60) days or a final order or
                           decree shall be entered; or

                  (k)      the Buyer or the Receivables Pool shall be deemed to
                           have become an "investment company" within the
                           meaning of the Investment Company Act of 1940, as
                           amended; or

                  (l)      the average Rate of Collections for any three
                           consecutive Accounting Periods shall be less than
                           50%; or

                  (m)      the Sale Agreement ceases to be in full force and
                           effect, or ceases to evidence the transfer by the
                           Originators to the Seller of all Receivables; or

                  (n)      either (i) the Servicer is rated below B+ by S&P and
                           below B1 by Moody's (the "Threshold Level" of S&P and
                           Moody's, respectively), (ii) the Servicer is rated at
                           or above the Threshold Level by one of

                                       60
<PAGE>   62

                           S&P or Moody's, but two or more rating categories
                           below the Threshold Level by the other thereof, (iii)
                           the Servicer is rated by only one of S&P or Moody's
                           and that one rating is below the Threshold Level or
                           (iv) the Servicer is not rated by either S&P or
                           Moody's;

                  (o)      the ability of the Seller to transfer undivided
                           interests in the Receivables hereunder or the ability
                           of the Company to transfer Receivables under the Sale
                           Agreement shall have been adversely affected by any
                           action of a regulatory authority having jurisdiction
                           over the Seller or any Originator, as the case may
                           be; or

                  (p)      (1) this Agreement or the Certificate of
                           Participation shall for any reason cease to evidence
                           the transfer to the Buyer (or its assignees or
                           transferees) of legal and equitable right, title and
                           interest to, and ownership of, an undivided
                           percentage ownership interest in the Purchased
                           Receivables and Collections with respect thereto to
                           the extent of the Participation Interest, or (2) if
                           this Agreement or the Certificate of Participation
                           shall not evidence the transfer of an undivided
                           percentage ownership interest as described in clause
                           (1) above, this Agreement or such Certificate of
                           Participation shall for any reason not create a valid
                           and perfected first priority security interest (as
                           defined in the UCC) in favor of the Buyer in the
                           Purchased Receivables and Collections with respect
                           thereto;

                  (q)      (i) any Person or two or more Persons acting in
                           concert shall have acquired beneficial ownership
                           (within the meaning of Rule 13d-3 of the Securities
                           and Exchange Commission under the Securities Exchange
                           Act of 1934) of 50% or more of the outstanding shares
                           of the voting capital stock of the Company having the
                           power (without the occurrence of a contingency) to
                           elect the Board of Directors of the Company; or (ii)
                           as of any date, a majority of the Board of Directors
                           of the Company consists of individuals who were not
                           either (A) directors of the Company as of the
                           corresponding date of the previous year, (B) selected
                           or nominated to become directors by the Board of
                           Directors of the Company of which a majority
                           consisted of individuals described in clause (A), or
                           (C) selected or nominated to become directors by the
                           Board of Directors of the Company of which a majority
                           consisted of individuals

                                       61
<PAGE>   63

                           described in clause (A) and individuals described in
                           clause (B);

                  (r)      the average Default Ratio for any three consecutive
                           Accounting Periods is greater than 3%; or

                  (s)      the average Dilution Ratio for any three consecutive
                           Accounting Periods is greater than 5%.

                  10.02 Consequences of a Termination Event.

         (a) If a Termination Event specified in Section 10.01 hereof shall
occur and be continuing, the Buyer may, by notice to the Seller, terminate its
obligation to purchase the Participation Interest or make Reinvestments
hereunder; provided, that in the case of a Termination Event under Section
10.01(j), such obligation of the Buyer hereunder shall be automatically
terminated without any action on the part of the Buyer. Any such termination
shall reduce the Maximum Net Investment in effect from time to time thereafter
to the amount of the aggregate Net Investment at such time.

         (b) Upon any termination of the Buyer's obligation to purchase the
Participation Interest and to make Reinvestments pursuant to this Section 10.02,
the Buyer shall have, in addition to all rights and remedies under this
Agreement or otherwise, all other rights and remedies provided under the Uniform
Commercial Code of the applicable jurisdiction and under other applicable Laws,
which rights shall be cumulative.

         (c) The parties hereto acknowledge that this Agreement is, and is
intended to be, a contract to extend financial accommodations to the Seller
within the meaning of Section 365(e)(2)(B) of the Federal Bankruptcy Code (11
U.S.C. Section 365(e)(2)(B)) (or any amended or successor provision thereof or
any amended or successor code).

                                   ARTICLE XI

                                  MISCELLANEOUS

                  11.01 Expenses. The Company agrees, upon receipt of a written
invoice, to pay or cause to be paid, and to save the Buyer and the Referral
Agent harmless against liability for the payment of, all reasonable
out-of-pocket expenses (including, without limitation, reasonable attorneys',
accountant's and other third parties' fees and expenses, any filing fees, stamp
taxes, expenses of litigation or preparation therefor, audit expenses and
expenses incurred by officers or employees of the Buyer, but excluding salaries
and similar overhead costs of the Buyer and the Referral Agent which are
incurred notwithstanding the execution and performance of this Agreement)
incurred by or on

                                       62
<PAGE>   64

behalf of the Buyer and the Referral Agent from time to time (a) arising in
connection with the development, audit, delivery, collection, preparation,
printing, execution, performance, administration and interpretation of the
Purchase Documents, or transactions undertaken, pursuant to or in connection
herewith or therewith (including, without limitation, the perfection or
protection of the Buyer's Participation Interest in the Purchased Receivables),
(b) relating to any amendments, waivers or consents to the Purchase Documents
requested by the Seller or the Company, (c) arising in connection with the
Buyer's or its agent's enforcement or preservation of rights under the Purchase
Documents, or (d) arising in connection with any litigation or preparation for
litigation involving the Purchase Documents, which, including all amounts
payable under Section 11.03, shall be referred to in this Agreement as
"Transaction Costs".

                  11.02 Payments. All payments to be made to the Buyer hereunder
shall be payable at 11:00 a.m., Pittsburgh time, on the day when due, at the
Buyer's Office in Dollars in immediately available funds. To the extent
permitted by Law, any amounts due from the Seller hereunder which are not paid
when due shall bear interest for each day from the day due until paid, payable
on demand, at a rate per annum equal to two percent (2.00%) above the Reference
Rate.

                  11.03 Indemnity for Taxes, Reserves and Expenses. If after the
date hereof, the adoption of any Law or guideline or any amendment or change in
the administration, interpretation or application of any existing or future Law
or guideline by any Official Body charged with the administration,
interpretation or application thereof, or the compliance with any request or
directive of any Official Body (whether or not having the force of Law):

                  (a) subjects an Affected Party to any tax or changes the basis
         of taxation with respect to the Purchase Documents, the Participation
         Interest, the Purchased Receivables or payments of amounts due
         hereunder or under the Purchased Receivables (including, without
         limitation, any sales, gross receipts, general corporate, personal
         property, privilege or license taxes (unless such tax results solely
         from the failure to file or keep current any certification or
         documentation required to qualify for any exemption from or reduction
         of any such tax to which such Affected Party would otherwise be
         entitled), and including claims, losses and liabilities arising from
         any failure to pay or delay in paying any such tax (unless such failure
         or delay results solely from such Affected Party's gross negligence or
         willful misconduct), but excluding Income Taxes incurred by such
         Affected Party arising out of or as a result of this Agreement or the
         ownership of the Participation Interest or in respect of any
         Receivable), or

                                       63
<PAGE>   65

                  (b) imposes, modifies or deems applicable any reserve
         (including, without limitation, any reserve imposed by the Board of
         Governors of the Federal Reserve System), special deposit or similar
         requirement against assets held by, credit extended by, deposits with
         or for the account of, or other acquisition of funds by, an Affected
         Party, or

                  (c) shall change the amount of capital maintained or requested
         or directed to be maintained by an Affected Party, or

                  (d) imposes upon an Affected Party any other condition or
         expense (including, without limitation, (i) loss of margin and (ii)
         reasonable attorneys' fees and expenses, expenses incurred by officers
         or employees of the Referral Agent's credit recovery group (or any
         successor thereto) and expenses of litigation or preparation therefor
         in contesting any of the foregoing) with respect to the Purchase
         Documents, the Participation Interest, the Purchased Receivables or the
         purchase, maintenance or funding of the purchase of the Participation
         Interest in any Receivables by an Affected Party,

and the result of any of the foregoing is to increase the cost to, reduce the
income receivable by, reduce the rate of return on capital, or impose any
expense (including loss of margin) upon, an Affected Party with respect to this
Agreement, the obligations hereunder or the funding of purchases hereunder, the
Buyer may notify the Seller of the amount of such increase, reduction, or
imposition in writing within 180 days of the later of the event giving rise to
such increased costs or the Buyer's knowledge thereof, and shall provide the
Seller with a certificate which identifies the factual basis for such increase,
reduction or imposition, the amount or amounts that the Buyer has reasonably
determined will compensate it hereunder, and the manner in which such amount or
amounts have been calculated, and the Seller shall pay to the Buyer the amount
so notified to the Seller by the Buyer (which determination shall be conclusive)
necessary to compensate the Buyer for such increase, reduction or imposition;
provided, that the Seller and any other persons who from time to time sell
receivables or interests therein to the Buyer ("Other Sellers") each shall be
liable for such amount ratably in accordance with the usage under their
respective facilities; provided, further, that (i) if any portion of such amount
is attributable to the Seller and not attributable to any Other Seller, the
Seller shall be solely liable for such portion, and (ii) if any portion of such
amount is attributable to any Other Seller and not attributable to the Seller in
any way, the Seller shall not be liable for any of such portion. The Buyer's
determination with respect to the allocation of such amounts among the Seller
and Other Sellers shall be binding on the Seller. Such amounts shall be due and
payable by the Seller to

                                       64
<PAGE>   66

such Affected Party ten (10) Business Days after such notice is given.

                  11.04 Indemnity.

         (a) The Seller agrees to indemnify, defend and save harmless the Buyer,
the Referral Agent, their respective directors, officers, shareholders,
employees, agents and each legal entity, if any, who controls the Buyer or the
Referral Agent (each, an "Indemnified Party"), forthwith on demand, from and
against any and all losses, claims, damages, liabilities, costs and expenses
(including, without limitation, all reasonable attorneys' fees and expenses,
expenses incurred by their respective credit recovery groups (or any successors
thereto) and expenses of settlement, litigation or preparation therefor) which
the Buyer may incur or which may be asserted against the Buyer by any Person
(including, without limitation, any Originator or any Obligor or any other
Person whether on its own behalf or derivatively on behalf of the Seller) (all
of the foregoing being collectively referred to as "Losses"), INCLUDING ANY
LOSSES ARISING OR RESULTING FROM NEGLIGENCE ON THE PART OF AN INDEMNIFIED PARTY,
but excluding, (a) Losses to the extent resulting from the gross negligence or
willful misconduct on the part of such Indemnified Party, (b) recourse (except
as otherwise provided in this Agreement) for Defaulted Receivables, (c) any
Losses with respect to any tax, reserve, capital charge or expense related
thereto (indemnification with respect to such Losses being provided as and to
the extent provided in Section 11.03), or (d) Losses to the extent that such
Losses resulted from an act or omission of the Servicer, if the Servicer is not
the Company or an Affiliate of the Company arising from or incurred in
connection with (i) any breach of a representation, warranty or covenant by the
Seller or any Originator made or deemed made hereunder or in connection herewith
or the transactions contemplated herewith, or (ii) any suit, action, claim,
proceeding or governmental investigation, pending or threatened, whether based
on statute, regulation or order, on tort, on contract or otherwise, before any
local, state or federal court, arbitrator or administrative, governmental or
regulatory body, which arises out of or relates to the Purchase Documents, the
Participation Interest in the Purchased Receivables or related Contracts, or the
use of the proceeds of the sale of the Participation Interest in the Receivables
pursuant hereto or the transactions contemplated hereby (all Losses, after
giving effect to the limitations set forth in clauses (a) through (d) above,
being hereinafter referred to as "Indemnified Amounts").

         (b) Without limitation of the generality of Section 11.04(a), the
Seller shall pay on demand to each Indemnified Party any and all amounts
necessary to indemnify such Indemnified Party from and against any and all
Indemnified Amounts relating to or resulting from any of the following:

                                       65
<PAGE>   67

                  (i) the creation of the Participation Interest in any
         Purchased Receivable which is not at the date of the creation of such
         Participation Interest an Eligible Receivable;

                  (ii) reliance on any representation or warranty made or deemed
         made by the Seller or any Originator (or any of its respective
         Responsible Officers) or any statement made by any Responsible Officer
         of the Seller or any Originator under or in connection with this
         Agreement which shall have been incorrect in any material respect when
         made;

                  (iii) the failure by the Seller or any Originator to comply
         with any applicable law, rule or regulation;

                  (iv) the failure to vest in the Buyer an undivided percentage
         interest, to the extent of the Participation Interest, in the Purchased
         Receivables and Collections in respect thereof, free and clear of any
         Lien; (v) the failure to have filed, or any delay in filing, financing
         statements or other similar instruments or documents under the UCC of
         any applicable jurisdiction or under any other applicable law with
         respect to the assignment of the Participation Interest;

                  (vi) any dispute, claim, offset or defense (other than
         discharge in bankruptcy of the Obligor) of the Obligor to the payment
         of any Purchased Receivable (including, without limitation, a defense
         based on such Purchased Receivable or the related Contract not being a
         legal, valid and binding obligation of such Obligor enforceable against
         it in accordance with its terms), or any other claim resulting from the
         sale of the merchandise or service related to such Purchased Receivable
         or the furnishing or failure to furnish such merchandise or services;

                  (vii) any failure of the Seller or any Originator to perform
         its duties or obligations in accordance with the provisions of this
         Agreement; or

                  (viii) any products liability claim arising out of or in
         connection with merchandise, insurance or services which are the
         subject of any Contract.

         (c) Promptly upon receipt by any Indemnified Party hereunder of notice
of the commencement of any suit, action, claim, proceeding or governmental
investigation (an "Action"), such Indemnified Party shall, if a claim in respect
thereof is to be made against the Seller hereunder, notify the Seller in

                                       66
<PAGE>   68

writing of the commencement thereof. The Seller may participate in the defense
of any such Action at its expense, and no settlement thereof shall be made
without the approval of the Seller and the Indemnified Party. The approval of
the Seller will not be unreasonably withheld or delayed. In case any Action
shall be brought against any Indemnified Party, the Seller shall be entitled to
participate in and, to the extent that it shall wish, to assume the defense
thereof, with counsel satisfactory to the Indemnified Party, and after notice
from the Seller to such Indemnified Party of its election so to assume the
defense thereof, the Seller shall not be liable to such Indemnified Party for
any legal or other expenses subsequently incurred by such Indemnified Party in
connection with the defense thereof other than reasonable costs of
investigation. In any such Action, any Indemnified Party shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party unless (i) the Seller and such Indemnified
Party shall have mutually agreed in writing to the retention of such counsel or
(ii) the named parties to any such Action (including any impleaded parties)
include both the Seller and such Indemnified Party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the Seller shall not, in
conjunction with any Action or related Actions in the same jurisdiction, be
liable for the fees and expenses of more than one separate firm in addition to
any local counsel for all such Indemnified Parties, unless (i) the Seller and
such Indemnified Parties shall have mutually agreed in writing to the retention
of separate counsel or (ii) the named parties to any such Action (including any
impleaded parties) include such Indemnified Parties and representation of such
Indemnified Parties by the same counsel would be inappropriate due to actual or
potential differing interests between them, and that all such fees and expenses
shall be reimbursed as they are incurred.

         (d) The indemnity contained in this Section 11.04 shall survive the
termination of this Agreement.

                  11.05 Holidays. Except as may be provided in this Agreement to
the contrary, if any payment due hereunder shall be due on a day which is not a
Business Day, such payment shall instead be due the next following Business Day.

                  11.06 Records. All amounts calculated or due hereunder shall
be determined from the records of the Buyer, which determinations shall be
conclusive absent manifest error.

                  11.07 Amendments and Waivers. The Buyer, the Company and the
Seller may from time to time enter into agreements amending, modifying or
supplementing this Agreement, and the Buyer, in its sole discretion, may from
time to time grant waivers of the provisions of this Agreement or consents to

                                       67
<PAGE>   69

a departure from the due performance of the obligations of the Seller or any
Originator under this Agreement. Any such agreement, waiver or consent must be
in writing and shall be effective only to the extent specifically set forth in
such writing. Any waiver of any provision hereof, and any consent to a departure
by the Seller from any of the terms of this Agreement, shall be effective only
in the specific instance and for the specific purpose for which given and if
such amendment, waiver or departure would have a material adverse effect on the
rights or obligations the Referral Agent or any Affected Party, such amendment,
departure or waiver shall not be effective until consented to by the affected
party.

                  11.08 No Implied Waiver; Cumulative Remedies. No course of
dealing and no delay or failure of the Buyer in exercising any right, power or
privilege under the Purchase Documents shall affect any other or future exercise
thereof or the exercise of any other right, power or privilege; nor shall any
single or partial exercise of any such right, power or privilege or any
abandonment or discontinuance of steps to enforce such a right, power or
privilege preclude any further exercise thereof or of any other right, power or
privilege. The rights and remedies of the Buyer under the Purchase Documents are
cumulative and not exclusive of any rights or remedies which the Buyer would
otherwise have.

                  11.09 No Discharge. The obligations of the Seller and the
Originators under the Purchase Documents shall be absolute and unconditional and
shall remain in full force and effect without regard to, and shall not be
released, discharged or in any way affected by (a) any exercise or nonexercise
of any right, remedy, power or privilege under or in respect of the Purchase
Documents or applicable Law, including, without limitation, any failure to
set-off or release in whole or in part by the Buyer of any balance of any
deposit account or credit on its books in favor of the Seller or an Originator
or any waiver, consent, extension, indulgence or other action or inaction in
respect of any thereof, or (b) any other act or thing or omission or delay to do
any other act or thing which would operate as a discharge of the Seller or an
Originator as a matter of Law.

                  11.10 Notices. All notices under Section 10.02 hereof shall be
given to the Seller by telephone (confirmed by first-class mail) or facsimile,
(which shall be effective when given by telephone or sent by facsimile) or by
first-class mail, express mail or courier (which shall be effective when
deposited in the mail or delivered to the courier), in all cases with charges
prepaid. All other notices, requests, demands, directions and other
communications (collectively "notices") under the provisions of this Agreement
shall be in writing (including telexed or facsimile communication) unless
otherwise expressly permitted hereunder and shall be sent by first-class mail,
express mail, or by facsimile, in all cases with charges

                                       68
<PAGE>   70

prepaid, and any such properly given notice shall be effective when received.
All notices shall be sent to the applicable party at the address stated on the
signature page hereof or in accordance with the last unrevoked written direction
from such party to the other parties hereto.

                  11.11 Severability. The provisions of this Agreement are
intended to be severable. If any provision of this Agreement shall be held
invalid or unenforceable in whole or in part in any jurisdiction, such provision
shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or
enforceability of such provision in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.

                  11.12 Governing Law. THIS AGREEMENT AND THE CERTIFICATES OF
PARTICIPATION SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK INCLUDING ITS CONFLICT OF LAWS RULES. The Seller hereby
consents to the jurisdiction of the courts of the State of New York and the
courts of the United States located in the State of New York for the purpose of
adjudicating any claim or controversy arising in connection with this Agreement,
and for such purpose, to the extent it may lawfully do so, waives any objection
to such jurisdiction or to venue therein.

                  11.13 Prior Understandings. This Agreement sets forth the
entire understanding of the parties relating to the subject matter hereof, and
supersedes all prior understandings and agreements, whether written or oral.

                  11.14 Survival. All representations and warranties of the
Seller and the Originators contained herein or made in connection herewith or in
connection with the Certificate of Participation shall survive the making
thereof, and shall not be waived by the execution and delivery of this Agreement
or the Certificate of Participation, any investigation by the Buyer, the
purchase, repurchase or payment of the Participation Interest in any Purchased
Receivable, or any other event or condition whatsoever (other than a written
waiver complying with Section 11.07 hereof). All obligations of the Seller to
make payments to, or to indemnify, the Buyer or to repurchase the Participation
Interest in the Purchased Receivables from the Buyer shall survive the payment
of all Purchased Receivables, the termination of the Purchase Obligation and the
termination of all other obligations of the Seller hereunder and shall not be
affected by reason of an invalidity, illegality or irregularity of any Purchased
Receivable. The covenants and agreements contained in or given pursuant to this
Agreement (including, without limitation, those contained in Article IX) shall
continue in full force and effect until the termination of the Purchase
Obligation, liquidation of the Participation Interest in the

                                       69
<PAGE>   71

Purchased Receivables and discharge of all other obligations of the Seller and
the Originators hereunder.

                  11.15 Counterparts. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument.

                  11.16 Set-Off. In case a Termination Event shall occur and be
continuing, the Buyer and, to the fullest extent permitted by Law, the holder of
any assignment of the Buyer's rights hereunder (including without limitation
each Affected Party), shall each have the right, in addition to all other rights
and remedies available to it, without notice to the Seller, to set-off against
and to appropriate and apply to any amount owing by the Seller hereunder which
has become due and payable, any debt owing to, and any other funds held in any
manner for the account of, the Seller by the Buyer or by any holder of any
assignment, including, without limitation, all funds in all deposit accounts
(whether time or demand, general or special, provisionally credited or finally
credited, or otherwise) now or hereafter maintained by the Seller with the Buyer
or any holder of any assignment. Such right shall exist whether or not such debt
owing to, or funds held for the account of, the Seller is or are matured other
than by operation of this Section 11.16 and regardless of the existence or
adequacy of any collateral, guaranty or any other security, right or remedy
available to the Buyer or any holder. Nothing in this Agreement shall be deemed
a waiver or prohibition or restriction of the Buyer's or any holder's rights of
set-off or other rights under applicable Law.

                  11.17 Time of Essence. Time is of the essence in this
Agreement.

                  11.18 Payments Set Aside. To the extent that the Seller, any
Originator or any Obligor makes a payment to the Buyer or the Buyer exercises
its rights of set-off and such payment or set-off or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by, or is required to be refunded, rescinded,
returned, repaid or otherwise restored to the Seller, such Originator, such
Obligor, a trustee, a receiver or any other Person under any Law, including,
without limitation, any bankruptcy law, any state or federal law, common law or
equitable cause, the obligation or part thereof originally intended to be
satisfied shall, to the extent of any such restoration, be reinstated, revived
and continued in full force and effect as if such payment had not been made or
such set-off had not occurred. The provisions of this Section 11.18 shall
survive the termination of this Agreement.

                                       70
<PAGE>   72

                  11.19 No Petition. Each of the Seller and each Originator
agrees that it will not institute against, or join any other Person in
instituting against, the Buyer any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other similar proceeding under the laws
of the United States or any state of the United States. The provisions of this
Section 11.19 shall survive the termination of this Agreement.

                  11.20 No Recourse. The obligations of the Buyer under this
Agreement are solely the corporate obligations of the Buyer. No recourse shall
be had for the payment of any amount owing in respect to this Agreement or for
the payment of any fee hereunder or for any other obligation or claim arising
out of or based upon this Agreement against GSS, against any stockholder,
employee, officer, director or incorporator of the Buyer or against the Referral
Agent or any stockholder, employee, officer, director, incorporator or affiliate
thereof. For purposes of this paragraph, the term "GSS" shall mean and include
Global Securitization Services, LLC and all Affiliates thereof and any employee,
officer, director, incorporator, shareholder or beneficial owner of any of them;
provided, however, that the Buyer shall not be considered to be an affiliate of
GSS or the Referral Agent.

                  11.21 Tax Treatment. It is the intention of the parties hereto
that for the purposes of all taxes, the transactions contemplated hereby shall
be treated as a loan by the Buyer to the Seller secured by the Receivables (the
"Intended Characterization"). Each party hereby agrees that will report such
transactions for the purposes of all taxes, and otherwise will act for the
purposes of all taxes, in a manner consistent with the Intended
Characterization.

                  11.22 Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. No party may assign any of its rights or delegate any of its duties
hereunder without the prior written consent of the other parties hereto;
provided that the Buyer shall not be prohibited from making any assignment
contemplated in or permitted by a Liquidity Agreement or a Program Support
Agreement.

                                       71
<PAGE>   73

                  IN WITNESS WHEREOF, the parties hereto, by their duly
authorized signatories, have executed and delivered this Agreement as of the
date first above written.

                                THREE RIVERS FUNDING CORPORATION

                                By:
                                   ---------------------------------------------

                                Title:
                                      ------------------------------------------

                                Address:

                                c/o Global Securitization Services, LLC
                                114 West 47th Street, Suite 1715
                                New York, New York  10036
                                Attention:  Mr. Bernard J. Angelo
                                Telephone:  (212) 302-5151
                                Facsimile:  (212) 302-8767

                                with a copy of all notices to:

                                Mellon Bank, N.A., as Referral Agent
                                One Mellon Bank Center - Room 0410
                                Pittsburgh, Pennsylvania 15258-0001
                                Attention:  Mr. Jonathan F. Widich
                                Telephone:  (412) 234-0711
                                Facsimile:  (412) 234-5434

                                CMC RECEIVABLES, INC.

                                By:
                                   ---------------------------------------------

                                Title:
                                      ------------------------------------------

                                Address:

                                7800 Stemmons Freeway
                                10th Floor
                                Dallas, Texas 75247
                                Attention: Louis A. Federle
                                Telephone:  (214) 689-4370
                                Facsimile:  (214) 689-4320

                                       72
<PAGE>   74

                                COMMERCIAL METALS COMPANY, as Company,
                                Originator and Servicer

                                By:
                                   ---------------------------------------------

                                Title:
                                      ------------------------------------------

                                Address:

                                7800 Stemmons Freeway
                                10th Floor
                                Dallas, Texas 75247
                                Attention: Louis A. Federle
                                Telephone:  (214) 689-4370
                                Facsimile:  (214) 689-4320

Acknowledged and Agreed to by:

STRUCTURAL METALS, INC.

By:
   -----------------------

Title:
      --------------------

SMI STEEL, INC.

By:
   -----------------------

Title:
      --------------------

OWEN ELECTRIC STEEL COMPANY OF SOUTH CAROLINA
d/b/a SMI STEEL SOUTH CAROLINA

By:
   -----------------------

Title:
      --------------------

CMC STEEL FABRICATORS, INC.
d/b/a SMI JOIST COMPANY

By:
   -----------------------

Title:
      --------------------

HOWELL METAL COMPANY

By:
   -----------------------

Title:
      --------------------

                                       73<PAGE>

                                                                       EXECUTION
================================================================================

                          ABN AMRO MORTGAGE CORPORATION

                                    Depositor

                                       and

                          ABN AMRO MORTGAGE GROUP, INC.

                                    Servicer

                                       and

                            THE CHASE MANHATTAN BANK

                                     Trustee

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

                        POOLING AND SERVICING AGREEMENT

                            Dated as of June 1, 2001

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

                                 $620,329,602.66

                       Mortgage Pass-Through Certificates

                                  SERIES 2001-3

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

<PAGE>

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                                TABLE OF CONTENTS
ARTICLE I

DEFINITIONS...............................................................................................-5-

ARTICLE II CONVEYANCE OF TRUST FUND; ORIGINAL ISSUANCE OF
           CERTIFICATES..................................................................................-45-
           Section 2.1  Conveyance of Trust Fund.........................................................-45-
           Section 2.2  Acceptance by Trustee............................................................-49-
           Section 2.3  Representations and Warranties of the Depositor..................................-51-
           Section 2.4  Authentication and Delivery of Certificates; Designation
                          of Certificates as REMIC Regular and Residual Interests........................-55-
           Section 2.5  Designation of Startup Day.......................................................-57-
           Section 2.6  No Contributions.................................................................-57-
           Section 2.7  Representations and Warranties of the Servicer...................................-57-

ARTICLE III ADMINISTRATION AND SERVICING OF LOANS........................................................-58-
           Section 3.1  Servicer to Act as Servicer; Administration of the Loans.........................-58-
           Section 3.2  Collection of Certain Loan Payments; Custodial Account
                        for P&I..........................................................................-61-
           Section 3.3  Permitted Withdrawals from the Custodial Account for P&I.........................-63-
           Section 3.4  Taxes, Assessments and Similar Items; Escrow Accounts............................-65-
           Section 3.5  Maintenance of Insurance.........................................................-66-
           Section 3.6  Enforcement of Due-on-Sale Clauses; Assumption
                        and Substitution Agreements......................................................-68-
           Section 3.7  Realization upon Defaulted Loans.................................................-68-
           Section 3.8  Trustee to Cooperate; Release of Mortgage Files..................................-71-
           Section 3.9  Servicing Compensation...........................................................-71-
           Section 3.10 Reports to the Trustee; Custodial Account for P&I
                        Statements.......................................................................-72-
           Section 3.11 Annual Statement as to Compliance................................................-72-
           Section 3.12 Annual Independent Public Accountants' Servicing Report..........................-73-
           Section 3.13 Access to Certain Documentation and Information
                        Regarding the Loans..............................................................-73-
           Section 3.14 [Reserved].......................................................................-73-
           Section 3.15 Sale of Defaulted Loans and REO Properties.......................................-73-
           Section 3.16 Delegation of Duties.............................................................-75-
           Section 3.17 [Reserved].......................................................................-75-
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                                      -i-
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           Section 3.18 [Reserved].......................................................................-75-
           Section 3.19 Appointment of a Special Servicer................................................-75-
           Section 3.20 Allocation of Realized Losses....................................................-76-
           Section 3.21 Maintenance of the Rounding Account; Collections
                        Thereunder.......................................................................-77-

ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
           STATEMENTS AND REPORTS........................................................................-77-
           Section 4.1  Distributions to Certificateholders..............................................-77-
           Section 4.2  Statements to Certificateholders.................................................-84-
           Section 4.3  Advances by the Servicer; Distribution Reports to the
                        Trustee..........................................................................-86-
           Section 4.4  Nonrecoverable Advances..........................................................-87-
           Section 4.5  Foreclosure Reports..............................................................-87-
           Section 4.6  Adjustment of Servicing Fees with Respect to Payoffs.............................-87-
           Section 4.7  Prohibited Transactions Taxes and Other Taxes....................................-88-
           Section 4.8  Tax Administration...............................................................-89-
           Section 4.9  Equal Status of Servicing Fee....................................................-89-
           Section 4.10 Appointment of Paying Agent and Certificate Administrator........................-89-
           Section 4.11 Policy Matters...................................................................-90-
ARTICLE V  THE CERTIFICATES..............................................................................-93-
           Section 5.1  The Certificates.................................................................-93-
           Section 5.2  Certificates Issuable in Classes; Distributions of Principal
                        and Interest; Authorized Denominations..........................................-100-
           Section 5.3  Registration of Transfer and Exchange of Certificates...........................-100-
           Section 5.4  Mutilated, Destroyed, Lost or Stolen Certificates...............................-101-
           Section 5.5  Persons Deemed Owners...........................................................-101-
           Section 5.6  Temporary Certificates..........................................................-102-
           Section 5.7  Book-Entry for Book-Entry Certificates..........................................-102-
           Section 5.8  Notices to Clearing Agency......................................................-103-
           Section 5.9  Definitive Certificates.........................................................-104-
           Section 5.10 Office for Transfer of Certificates.............................................-104-

ARTICLE VI THE DEPOSITOR AND THE SERVICER...............................................................-104-
           Section 6.1 Liability of the Depositor and the Servicer......................................-104-
           Section 6.2 Merger or Consolidation of the Depositor or the Servicer.........................-105-
           Section 6.3 Limitation on Liability of the Servicer and Others...............................-105-
           Section 6.4 Servicer Not to Resign...........................................................-106-
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                                      -ii-
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ARTICLE VII     DEFAULT.................................................................................-106-
           Section 7.1  Events of Default...............................................................-106-
           Section 7.2  Other Remedies of Trustee.......................................................-108-
           Section 7.3  Directions by Certificateholders and Duties of Trustee
                        During Event of Default.........................................................-108-
           Section 7.4  Action upon Certain Failures of Servicer and upon Event
                        of Default......................................................................-109-
           Section 7.5  Appointment of Successor Servicer...............................................-109-
           Section 7.6  Notification to Certificateholders..............................................-111-

ARTICLE VIII    CONCERNING THE TRUSTEE..................................................................-111-
           Section 8.1  Duties of Trustee...............................................................-111-
           Section 8.2  Certain Matters Affecting Trustee...............................................-113-
           Section 8.3  Trustee Not Required to Make Investigation......................................-114-
           Section 8.4  Trustee Not Liable for Certificates or Loans....................................-114-
           Section 8.5  Trustee May Own Certificates....................................................-115-
           Section 8.6  Servicer to Pay Trustee's Fees and Expenses.....................................-115-
           Section 8.7  Eligibility Requirements for Trustee............................................-116-
           Section 8.8  Resignation and Removal of Trustee..............................................-116-
           Section 8.9  Successor Trustee...............................................................-117-
           Section 8.10 Merger or Consolidation of Trustee..............................................-117-
           Section 8.11 Appointment of Co-Trustee or Separate Trustee...................................-118-
           Section 8.12 Appointment of Custodians.......................................................-119-
           Section 8.13 Authenticating Agent............................................................-119-
           Section 8.14 Bloomberg.......................................................................-120-
           Section 8.15 Reports to Securities and Exchange Commission...................................-120-
           Section 8.16 [Reserved]......................................................................-120-

ARTICLE IX      TERMINATION.............................................................................-121-
           Section 9.1  Termination upon Purchase by the Depositor or
                        Liquidation of All Loans........................................................-121-
           Section 9.2  Trusts Irrevocable..............................................................-122-
           Section 9.3  Additional Termination Requirements.............................................-122-

ARTICLE X       MISCELLANEOUS PROVISIONS................................................................-123-
           Section 10.1  Amendment......................................................................-123-
           Section 10.2  Recordation of Agreement.......................................................-125-
           Section 10.3  Limitation on Rights of Certificateholders.....................................-125-
           Section 10.4  Governing Law; Jurisdiction....................................................-126-
           Section 10.5  Notices........................................................................-126-
           Section 10.6  Severability of Provisions.....................................................-127-
           Section 10.7  MBIA Rights....................................................................-127-
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                                     -iii-

<PAGE>

                                    EXHIBITS

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

                                      -iv-

<PAGE>

     This Pooling and Servicing Agreement, dated and effective as of June 1,
2001 (this "Agreement"), is executed by and among ABN AMRO Mortgage Corporation,
as depositor (the "Depositor"), ABN AMRO Mortgage Group, Inc., as servicer (the
"Servicer"), and The Chase Manhattan Bank, as trustee (the "Trustee").
Capitalized terms used in this Agreement and not otherwise defined have the
meanings ascribed to such terms in Article I hereof.

                              PRELIMINARY STATEMENT

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

     The Certificates issued hereunder, other than the Class B-3, Class B-4 and
Class B-5 Certificates have been offered for sale pursuant to a Prospectus,
dated October 12, 1999, and a Prospectus Supplement, dated June 25, 2001 of the
Depositor (together, the "Prospectus"). The Class B-3, Class B-4 and Class B-5
Certificates have been offered for sale pursuant to a Private Placement
Memorandum dated June 25, 2001. The Trust Fund created hereunder is intended to
be the "Trust" as described in the Prospectus and the Private Placement
Memorandum and the Certificates are intended to be the "Certificates" described
therein.

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

     As provided herein, the Trustee will elect to treat the segregated pool of
assets consisting of the REMIC I Regular Interests as a REMIC for federal income
tax purposes, and such segregated pool of assets will be designated as "REMIC
II". Component R-2 of the Class R Certificate will represent the sole class of
"residual interests" in REMIC II for purposes of the REMIC Provisions under
federal income tax law. The following table irrevocably sets forth the
designations, the Remittance Rate and initial Class Principal Balance for each
Class of Certificates which, together with the Class R-2 Component, constitute
the entire beneficial interests in REMIC II. Determined solely for purposes of
satisfying Treasury regulation section 1.860G-1(a)(4)(iii), the "latest possible

<PAGE>

maturity date" for each of the REMIC I Regular Interests and for each Class of
Certificates shall be the first Distribution Date that is at least two years
after the end of the remaining amortization schedule of the Loan in the Mortgage
Pool that has, as of the Closing Date, the longest remaining amortization
schedule, irrespective of its scheduled maturity. The following table sets forth
the designation, Remittance Rate, initial Class Principal Balance, and Last
Scheduled Distribution Date for each Class of Certificates comprising the
beneficial interests in REMIC II and the Class R Certificate:

                                        Initial Class
                                          Principal
                       Remittance        or Notional           Last Scheduled
       Designation       Rate (1)          Balance         Distribution Date*
       -----------     ------------   ------------------    -----------------

     Class A-1           6.750%          $15,000,000.00        July 25,2031

     Class A-2           6.600%          100,000,000.00        July 25,2031

     Class A-3           0.150%(2)       100,000,000.00        July 25,2031

     Class A-4           6.750%          207,500,000.00        July 25,2031

     Class A-5           6.750%           29,363,315.00        July 25,2031

     Class A-6           6.750%           29,760,000.00        July 25,2031

     Class A-7           6.700%           16,721,000.00        July 25,2031

     Class A-8           6.375%           54,296,000.00        July 25,2031

     Class A-9           6.050%           44,273,000.00        July 25,2031

     Class A-10          6.750%           16,717,000.00        July 25,2031

     Class A-11          6.750%           10,500,000.00        July 25,2031

     Class A-12          6.750%(3)         3,398,000.00        July 25,2031

     Class A-13          6.750%(4)         5,675,285.00        July 25,2031

     Class A-14          6.750%(5)        17,929,215.00        July 25,2031

     Class A-15          6.750%(6)        44,000,000.00        July 25,2031

     Class A-16          6.750%(7)         1,500,000.00        July 25,2031

     Class A-17          6.750%(8)           500,000.00        July 25, 2001

     Class A-18          0.050%(9)        16,721,000.00        July 25, 2001

     Class A-X           6.750%(10)       23,731,944.00        July 25,2031

     Class A-P           0.000%(11)        1,485,051.00        July 25,2031

                                      -2-
<PAGE>

     Class M             6.750%           10,855,800.00        July 25,2031

     Class B-1           6.750%            4,032,200.00        July 25,2031

     Class B-2           6.750%            2,481,300.00        July 25,2031

     Class B-3           6.750%            1,861,000.00        July 25,2031

     Class B-4           6.750%            1,240,600.00        July 25,2031

     Class B-5           6.750%            1,240,735.66        July 25,2031

     Class R+            6.750%                  100 (10)      July 25,2031

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

 *   The Distribution Date in the month after the maturity date for the latest
     maturing Loan.

 +   The Class R Certificate is entitled to receive the Residual Distribution
     Amount and Excess Liquidation Proceeds.

(1)  Interest distributed to the Certificates (other than the Principal Only
     Certificates and the Principal Only Component) on each Distribution Date
     will have accrued during the preceding calendar month at the applicable per
     annum Remittance Rate.

(2)  The Class A-3 Certificates will accrue interest on the Class A-3 Notional
     Amount (as defined herein).

(3)  On each Distribution Date prior to the Credit Support Depletion Date (as
     defined herein), an amount equal to the Class A-12 Accrual Amount will be
     added to the Class A-12 Class Principal Balance, and such amount will be
     distributed as principal to the Class A-12 Certificates and to other
     Components and Classes of the Class A Certificates as described herein and
     will not be distributed as interest to the Class A-12 Certificates.

(4)  On each Distribution Date prior to the Credit Support Depletion Date (as
     defined herein), an amount equal to the Class A-13 Accrual Amount will be
     added to the Class A-13 Class Principal Balance, and such amount will be
     distributed as principal to the Class A-13 Certificates and to other
     Components and Classes of the Class A Certificates as described herein and
     will not be distributed as interest to the Class A-13 Certificates.

(5)  For purposes of calculating distributions, the Class A-14 Certificates will
     each be comprised of five Components having the designations, initial
     Component Principal Balances and Remittance Rates set forth below:

                             Initial Component Principal
         Designation             or Notional Balance           Remittance Rate
         -----------             -------------------           ---------------

       Component A-14-1             $5,150,000.00                 6.750%

       Component A-14-2             6,117,000.00                  6.750%(A)

       Component A-14-3             4,878,000.00                  6.750%(B)

       Component A-14-4             7,607,718.00                  6.750%(C)

       Component A-14-5             1,784,215.00                  0.000%(D)

     (A) On each Distribution Date prior to the Credit Support Depletion Date
         (as defined herein), an amount equal to the Component A-14-2 Accrual
         Amount will be added

                                      -3-
<PAGE>

         to the Component A-14-2 Component Principal Balance and such amount
         will be distributed as principal to Component A-14-2 and other
         Components and Classes of the Class A Certificates as described herein
         and will not be distributed as interest to Component A-14-2.

     (B) On each Distribution Date prior to the Credit Support Depletion Date
         (as defined herein), an amount equal to the Component A-14-3 Accrual
         Amount will be added to the Component A-14-3 Component Principal
         Balance and such amount will be distributed as principal to Component
         A-14-3 and other Components and Classes of the Class A Certificates as
         described herein and will not be distributed as interest to Component
         A-14-3.

     (C) Component A-14-4 will accrue interest on the Component A-14-4 Notional
         Amount (as defined herein).

     (D) Component A-14-5 will not be entitled to distributions of interest and
         will receive principal only in respect of the Loans with Pass-Through
         Rates that are less than 6.750% per annum..

(6)  The Class A-15 Certificates will generally not be entitled to receive any
     distributions of principal, Principal Prepayments or Liquidation Proceeds
     until the Distribution Date in July 2006.

(7)  The Class A-16 Certificates will generally not be entitled to receive any
     distributions of principal, Principal Prepayments or Liquidation Proceeds
     until the Distribution Date in July 2006.

(8)  The Class A-17 Certificates will generally not be entitled to receive any
     distributions of principal, Principal Prepayments or Liquidation Proceeds
     until the Distribution Date in July 2006.

(9)  The Class A-18 Certificates will accrue interest on the Class A-18 Notional
     Amount (as defined herein). The Class A-X Certificates will accrue interest
     on the Class A-X Notional Amount (as defined herein).

(10) The Class A-P Certificates will not be entitled to distributions of
     interest and will receive principal only in respect of the Loans with
     Pass-Through Rates that are less than 6.750% per annum..

(11) The Class R Certificate will be comprised of two components, component R-1,
     which represents the sole residual interest in REMIC I (as defined herein),
     and component R-2, which represents the sole residual interest in REMIC II
     (as defined herein).

                                      -4-
<PAGE>

                               W I T N E S S E T H

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

                                    ARTICLE I

                                   DEFINITIONS

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

     Accretion Directed Certificates: The Class A-8, Class A-12 and Class A-13
Certificates.

     Accretion Directed Components: Component A-14-2 and Component A-14-3 of the
Class A-14 Certificates.

     Accrual Certificates: The Class A-12 and Class A-13 Certificates.

     Accrual Components: Component A-14-2 and Component A-14-3 of the Class A-14
Certificates.

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

     Affiliate: With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. The Trustee may obtain
and rely on an Officer's Certificate of the Servicer or the Depositor to
determine whether any Person is an Affiliate of such party.

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

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

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

                                      -5-
<PAGE>

     Anniversary: Each anniversary of the Cut-off Date.

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

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

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

     Authorized Denomination: With respect to the Certificates (other than the
Class A-7 Certificates and Class R Certificate), an initial Certificate
Principal Balance equal to $25,000 each and integral multiples of $1 in excess
thereof. With respect to the Class A-7 Certificates, an initial Certificate
Principal Balance equal to $1,000 each and integral multiples of $1,000 in
excess thereof. With respect to the Class R Certificate, one Certificate with a
Percentage Interest equal to 100%.

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

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

            (a) all Prepaid Monthly Payments;

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

            (c) all Payoffs received after the applicable Prepayment Period
         (together with any interest payment received with such Payoffs to the
         extent that it represents the payment of interest accrued on such Loan
         for the period subsequent to the applicable Prepayment Period);

                                      -6-
<PAGE>

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

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

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

            (g) Excess Liquidation Proceeds;

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

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

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

     Bankruptcy Coverage: As of the Cut-Off Date, $171,140, and thereafter, the
initial Bankruptcy Coverage amount of $171,140, less (a) any scheduled or
permissible reduction in the amount of Bankruptcy Coverage pursuant to this
definition and (b) Bankruptcy Losses allocated to the Certificates. The
Bankruptcy Coverage may be reduced upon written confirmation from each Rating
Agency that such reduction will not adversely affect the then current ratings
assigned to the Certificates by each Rating Agency without regard to the Class
A-7 Policy.

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

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

                                      -7-
<PAGE>

     Book-Entry Certificates: The Class A Certificates, (other than the Class
A-18 Certificates), the Class M Certificates, the Class B-1 Certificates and the
Class B-2 Certificates beneficial ownership and transfers of which shall be made
through book entries as described in Section 5.7.

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

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

     Certificate Account: The separate trust account created and maintained with
the Trustee or any other bank or trust company acceptable to each Rating Agency
which is incorporated or organized under the laws of the United States or any
state thereof, which account shall bear a designation clearly indicating that
the funds deposited therein are held in trust for the benefit of the Trustee on
behalf of the Certificateholders or any other account serving a similar function
acceptable to each Rating Agency. Funds in the Certificate Account in respect of
the Loans and amounts withdrawn from the Certificate Account attributable to the
Loans shall be accounted for separately. If the Trustee has appointed a
Certificate Administrator pursuant to Section 4.10, funds on deposit in the
Certificate Account may be invested in Eligible Investments and reinvestment
earnings thereon shall be paid to the Certificate Administrator as additional
compensation for the Certificate Administrator's performance of the duties
delegated to it by the Trustee. Funds deposited in the Certificate Account
(exclusive of the Servicing Fee) shall be held in trust for the
Certificateholders and for the uses and purposes set forth in Section 3.2,
Section 3.3 and Section 4.1.

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

     Certificate Administrator: As defined in Section 4.10.

     Certificate Administrator and Trustee Fee: For each Loan, a fee per annum
equal to 0.0100%, of the outstanding Principal Balance thereof which shall be
paid by the Servicer to the Certificate Administrator and the Trustee.

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

                                      -8-
<PAGE>

         (a) with respect to the Senior Certificates and Senior Components:

              (i)   first, pro rata, according to their outstanding Certificate
                    Principal Balances or Component Principal Balance, as
                    applicable, to the Class A-P Certificates and Component
                    A-14-5 of the Class A-14 Certificates, the Discount
                    Fractional Principal Amount;

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

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

                    (b)   the Component A-14-2 Accrual Amount, the Component
                          A-14-3 Accrual Amount, the Class A-12 Accrual Amount
                          and the Class A-13 Accrual Amount, as principal to the
                          Accretion Directed Certificates and the Accretion
                          Directed Components in the order of priority set forth
                          in clauses I(a)(iv)(a)2. through I(a)(iv)(a)4. below;

              (iv)  fourth, to the Senior Certificates and Senior Components
                    (other than the Class A-P Certificates and Component A-14-5
                    of the Class A-14 Certificates, the Interest Only
                    Certificates and Interest Only Component), the Senior
                    Principal Amount concurrently as follows:

                    (a)   25.36400684170% sequentially as follows:

                                      -9-
<PAGE>

                          1.   first, sequentially to the Class A-9
                               Certificates, Class A-10 Certificates, Class A-11
                               Certificates and Component A-14-1 of the Class
                               A-14 Certificates, to the extent necessary to
                               reduce the Class Principal Balances of the Class
                               A-9, Class A-10 and Class A-11 Certificates and
                               Component A-14-1 of the Class A-14 Certificates
                               to their respective Planned Principal Balance set
                               forth in Exhibit M attached hereto;

                          2.   second, sequentially to the Class A-8
                               Certificates, Component A-14-2 of the Class A-14
                               Certificates, Component A-14-3 of the Class A-14
                               Certificates and the Class A-12 Certificates, to
                               the extent necessary to reduce the Class
                               Principal Balances of the Class A-8 Certificates
                               and Class A-12 Certificates and the Component
                               Principal Balances of Component A-14-2 of the
                               Class A-14 Certificates and Component A-14-3 of
                               the Class A-14 Certificates to their respective
                               Targeted Principal Balance set forth in Exhibit N
                               attached hereto;

                          3.   third, sequentially to the Class A-13
                               Certificates and Component A-14-2 of the Class
                               A-14 Certificates, without regard to its Targeted
                               Principal Balances set forth in Exhibit N
                               attached hereto, until its Class Principal
                               Balance or Component Principal Balance, as
                               applicable, has been reduced to zero;

                          4.   fourth, sequentially to the Class A-8
                               Certificates, Component A-14-3 of the Class A-14
                               Certificates and the Class A-12 Certificates,
                               without regard to their respective Targeted
                               Principal Balances set forth in Exhibit N
                               attached hereto, until their Class Principal
                               Balances or Component Principal Balances, as
                               applicable, have been reduced to zero;

                                      -10-
<PAGE>

                          5.   fifth, sequentially to the Class A-9
                               Certificates, the Class A-10 Certificates, the
                               Class A-11 Certificates and Component A-14-1 of
                               the Class A-14 Certificates, without regard to
                               their respective Planned Principal Balances set
                               forth in Exhibit M attached hereto, until their
                               Class Principal Balances or its Component
                               Principal Balance, as applicable, have ben
                               reduced to zero;

                    (b)   74.63599315830% sequentially as follows:

                          1.   first, to the Class A-15, Class A-16 and Class
                               A-17 Certificates, pro rata, according to their
                               outstanding Certificate Principal Balances, up to
                               the Lockout Principal Amount, until their Class
                               Principal Balances have been reduced to zero;

                          2.   second, concurrently as follows:

                               a.   64.02535228216% sequentially as follows:

                                    i.     first, to the Class R Certificate,
                                           until its Class Principal Balance has
                                           been reduced to zero;

                                    ii.    second, to the Class A-4
                                           Certificates, until their Class
                                           Principal Balance has been reduced to
                                           zero;

                                    iii.   third, to the Class A-5 Certificates,
                                           until the Class Principal Balance of
                                           the Class A-5 Certificates on the
                                           Closing Date has been reduced by
                                           $17,781,315.00 pursuant to this
                                           clause;

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

                                      -11-
<PAGE>

                               b.   35.97464771784% sequentially as follows:

                                    i.     first,for each and every Distribution
                                           Date occurring in or after July 2004,
                                           $16,721.00 to the Class A-7
                                           Certificates, until their Class
                                           Principal Balance has been reduced to
                                           zero;

                                    ii.    second, currently as follows:

                                           (a)   13.49480968858% sequentially to
                                                 the Class A-1 and Class A-5
                                                 Certificates, until their Class
                                                 Principal Balances have been
                                                 reduced zero;

                                           (b)   86.50519031142% sequentially to
                                                 the Class A-2 and Class A-5
                                                 Certificates, until their Class
                                                 Principal Balances have been
                                                 reduced to zero;

                               c.   third, to the Class A-7 Certificates, until
                                    their Class Principal Balance has been
                                    reduced to zero;

                          3.   third, to the Class A-15, Class A-16 and Class
                               A-17 Certificates, pro rata, according to their
                               outstanding Certificate Principal Balances, until
                               their Class Principal Balances have been reduced
                               to zero;

              (v)   fifth, pro rata, according to their outstanding Certificate
                    Principal Balances or Component Principal Balance, as
                    applicable, to the Class A-P Certificates and Component
                    A-14-5 of the Class A-14 Certificates, up to the Subordinate
                    Principal Amount (determined without regard to the proviso
                    of such definition) for such Distribution Date, the Discount
                    Fractional Principal Shortfall amount payable to the Class
                    A-P Certificates and Component A-14-5 of the Class A-14
                    Certificates on previous Distribution Dates pursuant to
                    clause

                                      -12-
<PAGE>

                    (I)(a)(vi) of this definition of "Certificate Distribution
                    Amount" and remaining unpaid from such previous Distribution
                    Dates; and

              (vi)  sixth, pro rata, according to their outstanding Certificate
                    Principal Balances or Component Principal Balance, as
                    applicable, to the Class A-P Certificates and Component
                    A-14-5 of the Class A-14 Certificates, up to the Subordinate
                    Principal Amount (determined without regard to the proviso
                    of such definition) for such Distribution Date (less any
                    amounts distributed to the Class A-P Certificates and
                    Component A-14-5 of the Class A-14 Certificates pursuant to
                    paragraph (I)(a)(v)), the Discount Fractional Principal
                    Shortfall; provided that any amounts distributed in respect
                    of the Discount Fractional Principal Shortfall pursuant to
                    paragraph (I)(a)(v) or this paragraph (I)(a)(vi) of this
                    definition of "Certificate Distribution Amount" shall not
                    cause a further reduction of the Class A-P Class Principal
                    Balance or the Component A-14-5 Component Principal Balance;

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

              (i)   first, to MBIA, the MBIA Reimbursement Amount;

              (ii)  second, to the Class M, B-1, B-2, B-3, B-4 and B-5
                    Certificates, in their order of seniority, the following:

                    (a)   their respective amounts of previously unpaid and then
              current Interest Distribution Amounts;

                    (b)   their pro rata share, according to their respective
              Class Principal Balances, of the Subordinate Principal Amount
              allocable pursuant to the definition of "Subordinate Principal
              Amount" herein, until their Class Principal Balances have been
              reduced to zero;

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

                                      -13-
<PAGE>

                    reduction in the Class Principal Balances of the Senior
                    Certificates or Subordinate Certificates or the Component
                    Principal Balances of the Senior Components; and

              (iv)  fourth, to the Class R Certificate, the Residual
                    Distribution Amount;

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

         (a) first, pro rata, according to their outstanding Certificate
     Principal Balances or Component Principal Balance, as applicable, to the
     Class A-P Certificates and Component A-14-5 of the Class A-14 Certificates,
     the Discount Fractional Principal Amount;

         (b) second, to the Senior Certificates (including the Accrual
     Certificates and Accrual Components, but excluding the Principal Only
     Certificates and Principal Only Component), previously unpaid and then
     current Interest Distribution Amounts, pro rata, according to such amount
     payable to the extent of amounts available;

         (c) third, to the Senior Certificates (other than the Interest Only
     Certificates and Interest Only Component and the Class A-P Certificates and
     Component A-14-5 of the Class A-14 Certificates), the Senior Principal
     Amount, pro rata, according to their respective Class Principal Balances
     (other than the Interest Only Certificates and Interest Only Component and
     the Class A-P Certificates and Component A-14-5 of the Class A-14
     Certificates); provided, however, that the aggregate amount of principal
     payable to the Class A-17 Certificates will be paid to Component A-14-5 of
     the Class A-14 Certificates (without causing a further reduction of the
     Component A-14-5 Component Principal Balance), up to an amount equal to the
     excess of (i) 54.575% of the aggregate Discount Fractional Principal
     Shortfall, since the Closing Date over (ii) 54.575% of the aggregate
     Discount Fractional Principal Shortfall paid since the Closing Date, before
     being paid to the Class A-17 Certificates (the Class Principal Balance of
     which shall be reduced by any amounts paid to Component A-14-5 of the Class
     A-14 Certificates pursuant to this proviso);

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

         (e) fifth, to MBIA, the MBIA Reimbursement Amount; and

                                      -14-
<PAGE>

         (f) sixth, to the Class R Certificate, the Residual Distribution Amount
     for such Distribution Date.

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

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

     Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, and with respect to the Class A-7
Certificates, MBIA to the extent of any MBIA Reimbursement Amount, except that,
solely for the purposes of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Depositor, the Certificate
Administrator, the Servicer or any Affiliate thereof shall be deemed not to be
outstanding and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite percentage of Percentage
Interests necessary to effect any such consent has been obtained; provided, that
the Trustee, the Certificate Registrar and the Paying Agent may conclusively
rely upon an Officer's Certificate to determine whether any Person is an
Affiliate of the Depositor, the Certificate Administrator or the Servicer.

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

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

     Class A Certificates: The Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8,
A-9, A-10, A-11, A-12, A-13, A-14, A-15, A-16, A-17, A-18, A-P and A-X
Certificates, collectively, and designated as such on the face thereof in
substantially the forms attached hereto as Exhibits A-1 through A-18,
respectively.

     Class A-7 Coverage Payments: As of any Distribution Date, all amounts
available to be distributed to the Class A-7 Certificates on such Distribution
Date pursuant to Section 4.1(b) and (f).

     Class A-7 Policy: The irrevocable Certificate Guaranty Insurance Policy,
No. 35618, including any endorsements thereto, issued by MBIA with respect to
the Class A-7 Certificates, in the form attached hereto as Exhibit O.

     Class A-7 Policy Payments Account: The separate Eligible Account created
and maintained by the Trustee pursuant to Section 4.11(c) in the name of the
Trustee for the

                                      -15-
<PAGE>

benefit of the Class A-7 Certificateholders and designated "The Chase Manhattan
Bank in trust for registered holders of ABN AMRO Mortgage Corporation
Multi-Class Mortgage Pass-Through Certificates, Series 2001-3, Class A-7." Funds
in the Class A-7 Policy Payments Account shall be held in trust for the Class
A-7 Cerificateholders for the uses and purposes set forth in this Agreement.

     Class A-3 Notional Amount: As of the Closing Date approximately
$100,000,000.00 and thereafter, with respect to any Distribution Date, will be
equal to the Class Principal Balance of the Class A-2 Certificates.

     Class A-18 Notional Amount: As of the Closing Date approximately
$16,721,000.00 and thereafter, with respect to any Distribution Date, will be
equal to the Class Principal Balance of the Class A-7 Certificates.

     Class A-12 Accrual Amount: For any Distribution Date prior to the Credit
Support Depletion Date, an amount equal to the accrued interest that would
otherwise be distributable in respect of the Class A-12 Certificates on such
Distribution Date and which will be added to the Class A-12 Principal Balance.

     Class A-13 Accrual Amount: For any Distribution Date prior to the Credit
Support Depletion Date, an amount equal to the accrued interest that would
otherwise be distributable in respect of the Class A-13 Certificates on such
Distribution Date and which will be added to the Class A-13 Principal Balance.

     Class A-X Notional Amount: As of the Closing Date approximately
$23,731,944.00, and thereafter, with respect to any Distribution Date will equal
the total Principal Balance, as of the first day of the month preceding such
Distribution Date (after giving effect to all payments scheduled to be made on
such day whether or not received), of the Premium Loans multiplied by the
following fraction:

              the weighted average of the Pass-Through Rates of the
          Premium Loans as of the first day of such month minus 6.750%
          ------------------------------------------------------------
                                  6.750%

     Class Notional Amount: With respect to the Class A-3, Class A-18 and Class
A-X Certificates, the Class A-3 Notional Amount, Class A-18 Notional Amount and
Class A-X Notional Amount, respectively.

     Class Principal Balance: For any Class of Certificates (other than the
Interest Only Certificates), the applicable initial Class Principal Balance set
forth in the Preliminary Statement hereto, corresponding to the rights of such
Class in payments of principal due to be passed through to Certificateholders
from principal payments on the Loans, as reduced from time to time by (x)
distributions of principal to Certificateholders of such Class and

                                      -16-
<PAGE>

(y) the portion of Realized Losses allocated to the Class Principal Balance of
such Class pursuant to Section 3.20 with respect to a given Distribution Date.
Exclusively for the purpose of determining any subrogation rights of MBIA
arising under Section 4.11 hereof, the "Class Principal Balance" of the Class
A-7 Certificates shall not be reduced by the amount of any payments made by MBIA
in respect of principal on such Certificates under the Class A-7 Policy, except
to the extent such payment shall have been reimbursed to MBIA pursuant to the
provisions of this Agreement. For any Distribution Date, the reduction of the
Class Principal Balance of any Class of Certificates pursuant to Section 3.20
shall be deemed effective prior to the determination and distribution of
principal on such Class pursuant to the definition of "Certificate Distribution
Amount". Notwithstanding the foregoing, the Class Principal Balance of the most
subordinate Class of Certificates outstanding at any time shall be equal to the
aggregate Scheduled Principal Balance of all of the Loans less the Class
Principal Balance of all other Classes of Certificates. The Class Principal
Balance for the Class A-1 Certificates shall be referred to as the "Class A-1
Principal Balance", the Class Principal Balance for the Class A-2 Certificates
shall be referred to as the "Class A-2 Principal Balance" and so on. The Class
Principal Balances of the Interest Only Certificates shall be zero.

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

     Class R Certificateholder: The registered Holder of the Class R
Certificate.

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

     Closing Date: June 25, 2001.

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

     Compensating Interest: For any Distribution Date, with respect to the Loans
contained therein, the lesser of (i) the sum of (a) one-twelfth of 0.125% of the
aggregate outstanding Principal Balance of each Loan on such Distribution Date,
(b) the aggregate Payoff Earnings and (c) the aggregate Payoff Interest and (ii)
the aggregate Uncollected Interest.

     Component: A portion of the Class A-14 Certificates representing parts of
the entitlement of such Class to principal and/or interest as described in the
Preliminary Statement hereto and the remainder of this Agreement and hereafter
referred to as Component A-14-1, A-14-2, A-14-3, A-14-4 and A-14-5.

                                      -17-
<PAGE>

     Component A-14-2 Accrual Amount: For any Distribution Date prior to the
Credit Support Depletion Date, an amount equal to the accrued interest that
would otherwise be distributable in respect of Component A-14-2 of the Class
A-14 Certificates on such Distribution Date and which will be added to the
Component A-14-2 Component Principal Balance.

     Component A-14-3 Accrual Amount: For any Distribution Date prior to the
Credit Support Depletion Date, an amount equal to the accrued interest that
would otherwise be distributable in respect of Component A-14-3 of the Class
A-14 Certificates on such Distribution Date and which will be added to the
Component A-14-3 Component Principal Balance.

     Component A-14-4 Notional Amount: As of the Closing Date approximately
$7,607,718, and thereafter, an amount equal to the sum of:

                     3/54ths of the Class Principal Balance
                          of the Class A-8 Certificates

                                        +

                    14/135ths of the Class Principal Balance
                         of the Class A-9 Certificates.

     Component Notional Amount: With respect to Component A-14-4 of the Class
A-14 Certificates, the Component A-14-4 Notional Amount.

     Component Principal Balance: For Components A-14-1, A-14-2, A-14-3 and
A-14-5 of the Class A-14 Certificates, the applicable initial Component
Principal Balance therefor set forth in the Preliminary Statement hereto,
corresponding to the rights of such Component in payments of principal due to be
passed through to the holders of the Class A-14 Certificates from principal
payments on the Loans, as reduced from time to time by (x) distributions of
principal to the holders of the Class A-14 Certificates in respect of such
Component and (y) the portion of Realized Losses allocated to the Component
Principal Balance in respect of such Component pursuant to the definition of
"Realized Loss" with respect to a given Distribution Date. For any Distribution
Date, the reduction of the Component Principal Balance of any Component pursuant
to the definition of "Realized Loss" shall be deemed effective prior to the
determination and distribution of principal on such Component pursuant to the
definition of "Certificate Distribution Amount." Notwithstanding the foregoing,
any amounts distributed in respect of losses pursuant to paragraphs (I)(a)(v) or
(I)(a)(vi) of the definition of "Certificate Distribution Amount" shall not
cause a further reduction in the Component A-14-5 Component Principal Balance.
The Component Principal Balance for Component A-14-1 shall be referred to as the
"Component A-14-1 Principal Balance", the Component Principal Balance for
Component A-14-2 shall

                                      -18-
<PAGE>

be referred to as the "Component A-14-2 Principal Balance", the Component
Principal Balance for Component A-14-3 shall be referred to as the "Component
A-14-3 Principal Balance" and the Component Principal Balance for Component
A-14-5 shall be referred to as the "Component A-14-5 Principal Balance." The
Component Principal Balance of the Interest Only Component shall be zero.

     Corporate Trust Office: The corporate trust office of the Trustee in the
State of Texas, at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 600 Travis Street, 9th Floor,
Houston, Texas 77002, Attention: Terry Stewart.

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

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

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

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

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

                                      -19-
<PAGE>

     Custodian: A custodian which is appointed pursuant to a Custodial
Agreement. Any Custodian so appointed shall act as agent on behalf of the
Trustee, and shall be compensated by the Trustee at no additional charge to the
Servicer. The Trustee shall remain at all times responsible under the terms of
this Agreement, notwithstanding the fact that certain duties have been assigned
to a Custodian.

     Cut-Off Date: June 1, 2001.

     Data: As defined in Section 8.14.

     Deceased Holder: A beneficial Holder of a Class A-7 Certificate who was
living at the time such Class A-7 Certificate was acquired and whose executor,
authorized personal representative, surviving tenant by the entirety, surviving
joint tenant or surviving tenant in common or other person endowed t act on
behalf of such Beneficial Holder causes to be furnished to the Trustee evidence
of such Beneficial Holder's death satisfactory to the Trustee and any tax
waivers requested by the Trustee.

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

     Deficiency Amount: As of any Distribution Date, the excess, if any of (i)
the sum of (A) the Net Interest Shortfall allocated to the Class A-7
Certificates on such Distribution Date and (B) the principal portion of any
Realized Loss, including any Excess Loss, allocated to the Class A-7
Certificates on such Distribution Date over (ii) the Class A-7 Coverage
Payments.

     Definitive Certificates: As defined in Section 5.7.

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

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

     Depository: DTC or any successor thereto.

     Depository Agreement: The Letter of Representations, dated June 25, 2001 by
and among DTC, the Depositor and the Trustee.

                                      -20-
<PAGE>

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

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

              6.750% - the Pass-Through Rate on such Discount Loan
              ----------------------------------------------------
                                     6.750%

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

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

     Discount Loan: The Loans having Pass-Through Rates of less than 6.750%.

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

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

     DTC: The Depository Trust Company.

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

                                      -21-
<PAGE>

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

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

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

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

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

         (b) direct obligations of, or guaranteed as to timely payment of
     principal and interest by, FHLMC, FNMA or the Federal Farm Credit System,
     provided, that any such obligation, at the time of purchase or contractual
     commitment providing for the purchase thereof, is qualified by each Rating
     Agency as an investment of funds backing securities rated "AAA" in the case
     of S&P and Fitch (the initial rating of the Class A Certificates);

         (c) demand and time deposits in or certificates of deposit of, or
     bankers' acceptances issued by, any bank or trust company, savings and loan
     association or savings bank, provided, that the short-term deposit ratings
     and/or long-term unsecured debt obligations of such depository institution
     or trust company (or in the case of the principal depository institutions
     in a holding company system, the commercial paper or long-term unsecured
     debt obligations of such holding company) have, in the case of commercial
     paper, the highest rating available for such securities by each Rating
     Agency and, in the case of long-term unsecured debt obligations, one of the
     two highest ratings available for such securities by each Rating Agency, or
     in each case such lower rating as will not result in the downgrading or
     withdrawal of the rating or ratings then assigned to any Class of
     Certificates by any Rating Agency but in no event less than the initial
     rating of the Senior Certificates (determined without regard to the Class
     A-7 Policy);

                                      -22-
<PAGE>

         (d) general obligations of or obligations guaranteed by any state of
     the United States or the District of Columbia receiving one of the two
     highest long-term debt ratings available for such securities by each Rating
     Agency, or such lower rating as will not result in the downgrading or
     withdrawal of the rating or ratings then assigned to any Class of
     Certificates by any Rating Agency (determined without regard to the Class
     A-7 Policy);

         (e) commercial or finance company paper (including both
     non-interest-bearing discount obligations and interest-bearing obligations
     payable on demand or on a specified date not more than one year after the
     date of issuance thereof) that is rated by each Rating Agency in its
     highest short-term unsecured rating category at the time of such investment
     or contractual commitment providing for such investment, and is issued by a
     corporation the outstanding senior long-term debt obligations of which are
     then rated by each Rating Agency in one of its two highest long-term
     unsecured rating categories, or such lower rating as will not result in the
     downgrading or withdrawal of the rating or ratings then assigned to any
     Class of Certificates by any Rating Agency but in no event less than the
     initial rating of the Senior Certificates (determined without regard to the
     Class A-7 Policy);

         (f) guaranteed reinvestment agreements issued by any bank, insurance
     company or other corporation rated in one of the two highest rating levels
     available to such issuers by each Rating Agency at the time of such
     investment, provided, that any such agreement must by its terms provide
     that it is terminable by the purchaser without penalty in the event any
     such rating is at any time lower than such level;

         (g) repurchase obligations with respect to any security described in
     clause (a) or (b) above entered into with a depository institution or trust
     company (acting as principal) meeting the rating standards described in (c)
     above;

         (h) 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 rated by each Rating Agency in one of its
     two highest long-term unsecured rating categories at the time of such
     investment or contractual commitment providing for such investment;
     provided, however, that securities issued by any such corporation will not
     be Eligible Investments to the extent that investment therein would cause
     the outstanding principal amount of securities issued by such corporation
     that are then held as part of the Certificate Account to exceed 20% of the
     aggregate principal amount of all Eligible Investments then held in the
     Certificate Account;

         (i) units of taxable money market funds (including those for which the
     Trustee or any affiliate thereof receives compensation with respect to such
     investment) which funds have been rated by each Rating Agency in its
     highest rating

                                      -23-
<PAGE>

     category or which have been designated in writing by each Rating Agency as
     Eligible Investments with respect to this definition;

         (j) 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 each Rating Agency as a permitted
     investment of funds backing securities having ratings equivalent to the
     initial rating of the Class A Certificates (determined without regard to
     the Class A-7 Policy); and

         (k) such other obligations as are acceptable as Eligible Investments to
     each Rating Agency;

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

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

     Escrow Account: As defined in Section 3.4.

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

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

     Excess Liquidation Proceeds: With respect to any Distribution Date, the
excess, if any, of aggregate Liquidation Proceeds in the applicable Prepayment
Period over the amount that would have been received if a Payoff had been made
on the last day of such applicable Prepayment Period with respect to each Loan
which became a Liquidated Loan during such applicable Prepayment Period.

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

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

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

                                      -24-
<PAGE>

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

     FHA: Federal Housing Administration, or any successor thereto.

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

     Fiscal Agent: As defined in the Class A-7 Policy.

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

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

     Fraud Coverage: As of the Cut-Off Date approximately $6,203,296, and
thereafter, the Fraud Coverage will generally be equal to (1) prior to the third
Anniversary, an amount equal to 1.00% of the aggregate Principal Balance of all
Loans as of the Cut-Off Date minus the aggregate amounts allocated to the
Certificates with respect to Fraud Losses on such Loans up to such date of
determination and (2) from the third to the fifth Anniversary, an amount equal
to (a) 0.50% of the aggregate Principal Balance of all of the Loans as of the
Due Date of the calendar month preceding the most recent Anniversary minus (b)
the aggregate amounts allocated to the Certificates with respect to Fraud Losses
on the Loans since the most recent Anniversary up to such date of determination.
On and after the fifth Anniversary, the Fraud Coverage will be zero. Fraud
Coverage may be reduced upon written confirmation from each Rating Agency that
such reduction will not adversely affect the then current ratings assigned to
the Certificates by each Rating Agency (determined without regard to the Class
A-7 Policy).

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

     Independent: When used with respect to any specified Person, any such
Person who (i) is in fact independent of the Depositor and the Servicer, (ii)
does not have any direct financial interest or any material indirect financial
interest in the Depositor or the Servicer or

                                      -25-
<PAGE>

any Affiliate of either and (iii) is not connected with the Depositor or the
Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

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

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

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

     Insured Payment: (i) With respect to any Distribution Date, any Deficiency
Amount and (ii) any amount previously distributed to a Class A-7
Certificateholder on the Class A-7 Certificates that is recoverable and sought
to be recovered as a voidable preference by a trustee in bankruptcy pursuant to
the United States Bankruptcy Code (11 U.S.C.), as amended from time to time, in
accordance with a final nonappealable order of a court having competent
jurisdiction.

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

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

     Interest Only Certificates: The Class A-3, Class A-18 and Class A-X
Certificates.

     Interest Only Component: Component A-14-4 of the Class A-14 Certificates.

                                      -26-
<PAGE>

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

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

     Late Payment Rate: The rate of interest publicly announced by Citibank,
N.A. at its principal office in New York as its prime rate (any change in such
prime rate of interest to be effective on the date such change is announced by
Citibank, N.A.) plus 3%. The Late Payment Rate shall be computed on the basis of
a year of 365 days calculating the actual number of days elapsed. In no event
shall the Late Payment Rate exceed the maximum rate permissible under law
applicable to this Agreement limiting interest rates.

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

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

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

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

     Living Holder: A Beneficial holder of a Class A-7 Certificate who is not a
Deceased Holder.

     Loans: The Mortgages and the related Mortgage Notes, each transferred and
assigned to the Trustee pursuant to the provisions hereof as from time to time
are held as

                                      -27-
<PAGE>

part of the Trust Fund, as so identified in the Loan Schedule. Each of the Loans
is referred to individually in this Agreement as a "Loan".

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

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

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

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

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

         (v)      the original Principal Balance;

         (vi)     the first payment date;

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

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

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

         (x)      the Loan-to-Value ratio at origination and as of the Cut-Off
     Date;

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

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

         (xiii)   the nature of occupancy at origination;

         (xiv)    the servicing fee;

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

         (xvi)    the closing date.

                                      -28-
<PAGE>

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

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

     Lockout Percentage: For any Distribution Date, will equal (i) the sum of
(x) the Class A-15 Class Principal Balance, (y) the Class A-16 Class Principal
Balance and (z) the Class A-17 Class Principal Balance; divided by (ii) the
aggregate Scheduled Principal Balance of all Loans immediately preceding the
Distribution Date (exclusive of the Discount Fraction of the Discount Loans).

     Lockout Principal Amount: For any Distribution Date will equal the product
of (i) the Lockout Percentage; (ii) the Step Down Percentage; and (iii) the sum
of (A) the Principal Payment Amount (exclusive of the portion attributable to
the Discount Fractional Principal Amount); (B) the Principal Prepayment Amount
(exclusive of the portion attributable to the Discount Fractional Principal
Amount); and (C) the Liquidation Principal.

     MBIA: MBIA Insurance Corporation, a subsidiary of MBIA Inc., organized and
created under the laws of the State of New York, or any successor thereto.

     MBIA Contact Person: The officer designated by the Servicer to provide
information to MBIA pursuant to Section 4.11(i).

     MBIA Default: As defined in Section 4.11(l).

     MBIA Reimbursement Amount: The amount of all Insured Payments and other
payments made by MBIA pursuant to the Class A-7 Policy which have not been
previously repaid, together with interest accrued at the Late Payment Rate.

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

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

     Mortgage File: As defined in Section 2.1.

                                      -29-
<PAGE>

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

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

     Mortgage Pool: All of the Loans.

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

     Mortgagor: The obligor on a Mortgage Note.

     Net Interest Shortfall: For any Distribution Date, an amount equal to the
sum of (i) Prepayment Interest Shortfall; (ii) any Relief Act Interest
Shortfall; and (iii) the portion of Realized Losses attributable to interest
allocated to such class.

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

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

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

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

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

                                      -30-
<PAGE>

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

     Ownership Interest: As defined in Section 5.1(b)

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

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

     Paying Agent: As defined in Section 4.10.

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

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

     Payoff Interest: For any Distribution Date with respect to a Loan for which
a Payoff was received by the Servicer during the Prepayment Period, an amount of
interest thereon at the applicable Pass-Through Rate from the first day of such
Prepayment Period to the date of receipt thereof.

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

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

                                      -31-
<PAGE>

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

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

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

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

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

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

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

                                      -32-
<PAGE>

and, with the exception of the FHLMC, a majority of its board of directors is
not selected by such governmental unit.

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

     Plan: As defined in Section 5.1(d).

     Planned Principal Balance: For any Distribution Date, the amount set forth
in the table attached hereto as Exhibit M for such Distribution Date, for the
Class A-9, Class A-10, and Class A-11 Certificates and Component A-14-1 of the
Class A-14 Certificates.

     Premium Loans: The Loans having Pass-Through Rates in excess of 6.750% per
annum.

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

     Prepayment Interest Shortfall: For any Distribution Date, an amount equal
to the sum of all interest shortfalls resulting from (i) Payoffs during the
related Prepayment Period, to the extent not covered by Compensating Interest;
and (ii) Curtailments during the related Prepayment Period.

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

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

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

     The Principal Balance of a Loan (including a Substitute Loan) shall not be
adjusted solely by reason of any bankruptcy or similar proceeding or any
moratorium or similar

                                      -33-
<PAGE>

waiver or grace period. Whenever a Realized Loss has been incurred with respect
to a Loan during a calendar month, the Principal Balance of such Loan shall be
reduced by the amount of such Realized Loss as of the Distribution Date next
following the end of such calendar month after giving effect to the allocation
of Realized Losses and distributions of principal to the Certificates.

     Principal Only Certificates: The Class A-P Certificates.

     Principal Only Component: Component A-14-5 of the Class A-14 Certificates.

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

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

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

     Principal Prepayment Amount: On any Distribution Date and for the Loans,
the sum with respect to the Loans of (i) Curtailments received during the
applicable Prepayment Period from such Loans and (ii) Payoffs received during
the applicable Prepayment Period from the Loans.

     Pro Rata Allocation: The allocation of the principal portion of certain
losses relating to a Loan to the Senior Certificates (other than the Class A-P
Certificates and the Interest Only Certificates and the Principal Only Component
and Interest Only Component) and/or to the Subordinate Certificates, as
applicable, pro rata according to their respective Certificate Principal
Balances or Component Principal Balances in the case of the Class A-14
Certificates or, in the case of the Accrual Certificates or Accrual Components,
the Certificate Principal Balance of the Accrual Certificate or Component
Principal Balance of that Accrual Component on the Closing Date, if lower
(except (i) if the loss is recognized with respect to a Discount Loan, in which
event the Discount Fraction of such loss will be allocated to the Class A-P
Certificates and Component A-14-5 of the Class A-14 Certificates pro rata
according to the outstanding Certificate Principal Balances of the Class A-P
Certificate and the outstanding Component Principal Balance of Component A-14-5
of the Class A-14 Certificates, and the remainder of such loss will be allocated
as described above in this definition without regard to this parenthetical and
(ii) all losses allocable to the Class A-14

                                      -34-
<PAGE>

Certificates (other than losses allocable to Component A-14-5 of the Class A-14
Certificates which will be reimbursed as provided in this Agreement) will be
allocated to the Class A-17 Certificates until the Class Principal Balance of
the Class A-17 Certificates has been reduced to zero) in reduction thereof, and
the allocation of the interest portion of such losses to such Certificates
(other than the Class A-P Certificates and Component A-14-5 of the Class A-14
Certificates), pro rata according to the amount of interest accrued but unpaid
on each such Class in reduction thereof and then pro rata according to their
outstanding Certificate Principal Balances or, in the case of the Accrual
Certificates or Accrual Components, the Certificate Principal Balance of that
Accrual Certificate or Component Principal Balance of that Accrual Component on
the Closing Date, if lower (except (i) all losses attributable to interest
allocable to the Class A-2 Certificates will be allocated to the Class A-16
Certificates until the Class Principal Balance thereof has been reduced to zero;
and (ii) all losses attributable to interest allocable to the Class A-14
Certificates will be allocated to the Class A-17 Certificates until the Class
Principal Balance thereof has been reduced to zero), in reduction thereof.

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

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

     Random Lot: With respect to any Distribution Date on which a mandatory
distribution is to be made on any Class A-7 Certificate (as described in Section
4.1(e)), the method by which the Depository will determine which Class A-7
Certificate will be paid principal, using its established random lot procedures
or, if such Certificates are no longer represented by a Book-Entry Certificate,
using the Paying Agent's, or if no Paying Agent has been appointed hereunder,
the Trustee's procedures.

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

                                      -35-
<PAGE>

     Ratings: As of any date of determination, the ratings, if any, of the
Certificates as assigned by each Rating Agency (determined without regard to the
Class A-7 Policy).

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

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

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

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

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

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

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

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

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

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

                                      -36-
<PAGE>

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

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

     Reserve Fund: The separate Eligible Account created and maintained by the
Trustee pursuant to Section 4.1(a) with a depository institution in the name of
the Trustee for the benefit of the Certificateholders specified in Section
4.1(a) and designated "The Chase Manhattan Bank Reserve Fund in trust for
registered holders of ABN AMRO Mortgage Corporation Multi-Class Mortgage
Pass-Through Certificates, Series 2001-3, Class A-7 and Class A-18." The Reserve
Fund will not be a part of the Trust Fund or any REMIC created hereunder and,
for all federal income tax purposes, will be beneficially owned by Bear, Stearns
& Co. Inc. Funds on deposit in the Reserve Fund shall be invested in Eligible
Investments and reinvestment earnings thereon shall remain in the Reserve Fund
for distribution pursuant to Section 4.1(b) and (f).

     Residual Certificate: The Class R Certificate, which is being issued in a
single class. Components R-1 and R-2 of the Class R Certificate is hereby each
designated the sole Class of "residual interests" in REMIC I and REMIC II,
respectively, for purposes of Section 860G(a)(2) of the Code.

     Residual Distribution Amount: On any Distribution Date, any portion of the
Available Distribution Amount remaining after all distributions to the
Certificates pursuant to the definition of Certificate Distribution Amount. Upon
termination of the obligations created by this Agreement and the Trust Fund
created hereby, the amounts which remain on deposit in the Certificate Account
after payment to the Certificateholders of the amounts set forth in Section 9.1
of this Agreement, and subject to the conditions set forth therein.

     Responsible Officer: When used with respect to the Trustee or any Seller,
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, the Chairman of the Committee on Trust
Matters, 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,
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 in each case having direct responsibility for the administration of
this Agreement, and also, with respect to a particular matter, any other officer
to whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject. When used with respect to the Servicer,
the Chairman or Vice-Chairman of the Board of Directors or

                                      -37-
<PAGE>

Trustees, the Chairman or Vice-Chairman of the Executive or Standing Committee
of the Board of Directors or Trustees, the President, any Vice-President, the
Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Controller and any Assistant Controller or any other officer of the Servicer
customarily performing functions similar to those performed by any of the
above-designated officers and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject. When used with respect
to the Depositor or any other Person, the Chairman or Vice-Chairman of the Board
of Directors, the Chairman or Vice-Chairman of any executive committee of the
Board of Directors, the President, any Vice-President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant Treasurer, or any other
officer of the Depositor customarily performing functions similar to those
performed by any of the above-designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

     Rounding Account: The separate trust account established by the deposit as
of the Closing Date of $999.99 and maintained by the Trustee pursuant to Section
3.21, which account shall bear a designation clearly indicating that the funds
deposited therein are held in trust for the benefit of the Trustee on behalf of
the Class A-7 Certificateholders, or any other account serving a similar
function acceptable to each Rating Agency, and which account provides that the
Trustee may make, or cause to be made, withdrawals as provided in Section 3.21
hereof.

     Rounding Amount: With respect to the Rounding Account, the amount of funds,
if any, needed to be withdrawn from such account and used to round the amount of
any principal distributions to any of the Class A-7 Certificates on any
Distribution Date upward to the next higher integral multiple of $1,000.

     S&P: Standard & Poor's, a division of the McGraw Hill Companies, Inc.
provided, that at any time it be a Rating Agency.

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

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

     Seller: ABN AMRO Mortgage Group, Inc.

                                      -38-
<PAGE>

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

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

     Senior Percentage: As of the Closing Date, approximately 96.48%, and
thereafter, with respect to any Distribution Date, the sum of the Class
Principal Balances of the Senior Certificates (other than the Class A-P
Certificates and Component A-14-5 of the Class A-14 Certificates) divided by
aggregate Scheduled Principal Balance of all Loans (reduced by the Discount
Fraction of the Discount Loans), in each case immediately prior to such
Distribution Date.

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

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

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

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

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

<TABLE>
<CAPTION>

      DISTRIBUTION DATE OCCURRING IN                SENIOR PREPAYMENT PERCENTAGE
      ------------------------------                ----------------------------
<S>                                                 <C>
      July 2001 through June 2006................   100%

                                      -39-
<PAGE>

      July 2006 through June 2007................   SENIOR PERCENTAGE + 70% of SUBORDINATE PERCENTAGE
      July 2007 through June 2008................   SENIOR PERCENTAGE + 60% of SUBORDINATE PERCENTAGE
      July 2008 through June 2009................   SENIOR PERCENTAGE + 40% of SUBORDINATE PERCENTAGE
      July 2009 through June 2010................   SENIOR PERCENTAGE + 20% of SUBORDINATE PERCENTAGE
      July 2010 and thereafter...................   SENIOR PERCENTAGE
</TABLE>

     If on any Distribution Date the allocation to the Certificates (other than
the Class A-P Certificates and Component A-14-5 of the Class A-14 Certificates)
of Principal Prepayments in the percentage required would reduce the sum of the
Class Principal Balances of the Certificates (other than the Class A-P
Certificates and Component A-14-5 of the Class A-14 Certificates) below zero,
the Senior Prepayment Percentage for such Distribution Date shall be limited to
the percentage necessary to reduce such sum to zero. Notwithstanding the
foregoing, however, on each Distribution Date, the Class A-P Certificates and
Component A-14-5 of the Class A-14 Certificates will receive the Discount
Fraction of all principal payments, including, without limitation, Principal
Prepayments, received in respect of each Discount Loan.

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

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

     Servicer: ABN AMRO Mortgage Group, Inc., a Delaware corporation, or any
successor thereto appointed as provided pursuant to Section 7.5, acting to
service and administer such Loans pursuant to Section 3.1.

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

     Servicing Fee: For each Loan, the fee paid to the Servicer to perform
primary servicing functions with respect to such Loan, equal to the per annum
rate of 0.2500% for each Loan in the Loan Schedule on the outstanding Principal
Balance of such Loan.

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

     Special Hazard Coverage: As of the Cut-Off Date approximately $6,203,296,
and thereafter on each anniversary of the Cut-Off Date, the Special Hazard
Coverage shall be

                                      -40-
<PAGE>

reduced, but not increased, to an amount equal to the lesser of (1) the greatest
of (a) the aggregate Principal Balance of the Loans located in the single
California zip code area containing the largest aggregate Principal Balance of
the Loans, (b) 1% of the aggregate unpaid Principal Balance of the Loans and (c)
twice the unpaid Principal Balance of the largest single Loan, in each case
calculated as of the Due Date in the immediately preceding month, and (2) the
initial Special Hazard Coverage amount of $6,203,296 as reduced by the Special
Hazard Losses allocated to the Certificates since the Cut-Off Date. Special
Hazard Coverage may be reduced upon written confirmation from each Rating Agency
that such reduction will not adversely affect the then current ratings assigned
to the Certificates by each Rating Agency (determined without regard to the
Class A-7 Policy).

     Special Hazard Loss: The occurrence of any direct physical loss or damage
to a Mortgaged Property not covered by a standard hazard maintenance policy with
extended coverage which is caused by or results from any cause except: (i) fire,
lightning, windstorm, hail, explosion, riot, riot attending a strike, civil
commotion, vandalism, aircraft, vehicles, smoke, sprinkler leakage, except to
the extent of that portion of the loss which was uninsured because of the
application of a co-insurance clause of any insurance policy covering these
perils; (ii) normal wear and tear, gradual deterioration, inherent vice or
inadequate maintenance of all or part thereof; (iii) errors in design, faulty
workmanship or materials, unless the collapse of the property or a part thereof
ensues and then only for the ensuing loss; (iv) nuclear reaction or nuclear
radiation or radioactive contamination, all whether controlled or uncontrolled
and whether such loss be direct or indirect, proximate or remote or be in whole
or in part caused by, contributed to or aggravated by a peril covered by this
definition of Special Hazard Loss; (v) hostile or warlike action in time of
peace or war, including action in hindering, combating or defending against an
actual, impending or expected attack (a) by any government or sovereign power
(dejure or defacto), or by an authority maintaining or using military, naval or
air forces, (b) by military, naval or air forces, or (c) by an agent of any such
government, power, authority or forces; (vi) any weapon of war employing atomic
fission or radioactive force whether in time of peace or war; (vii)
insurrection, rebellion, revolution, civil war, usurped power or action taken by
governmental authority in hindering, combating or defending against such
occurrence; or (viii) seizure or destruction under quarantine or customs
regulations, or confiscation by order of any government or public authority.

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

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

                                      -41-
<PAGE>

||

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

     Subordinate Certificates: The Class M, Class B-1, Class B-2, Class B-3,
Class B-4 and Class B-5 Certificates, collectively, and designated as such on
the face thereof in substantially the form attached hereto as Exhibits A-19
through A-24, respectively and for purposes of this Agreement, the "order of
seniority" from highest to lowest of such certificates shall be the order
designated in the beginning of this definition.

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

     Subordinate Percentage: As of the Closing Date approximately 3.52%, and
thereafter, with respect to any Distribution Date, the excess of 100% over the
Senior Percentage for such date.

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

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

     (1) the Subordinate Percentage of the Principal Payment Amount (exclusive
         of the portion thereof attributable to the Discount Fractional
         Principal Amount);

     (2) the Subordinate Principal Prepayment Amount; and

     (3) the Subordinate Liquidation Amount;

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

Any reduction in the Subordinate Principal Amount pursuant to the proviso above
shall offset the amount calculated pursuant to clause (1), clause (3) and clause
(2), in such order of priority. On any Distribution Date, the Subordinate
Principal Amount shall be allocated pro rata, by Class Principal Balance, among
the Classes of Subordinate Certificates and paid in the order of distribution to
such Classes pursuant to clause (I)(b) of the definition of "Certificate
Distribution Amount" herein, except as otherwise stated in such definition.
Notwithstanding the foregoing, on any Distribution Date prior to distributions
on such date,

                                      -42-
<PAGE>

if the Subordination Level for any Class of Subordinate Certificates is less
than such percentage as of the Closing Date, the pro rata portion of the
Subordinate Principal Prepayment Amount otherwise allocable to the Class or
Classes junior to such Class will be distributed to the most senior Class of the
Subordinate Certificates for which the Subordination Level is less than such
percentage as of the Closing Date, and to the Classes of Subordinate
Certificates senior thereto, pro rata according to the Class Principal Balances
of such Classes.

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

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

     Substitute Loan: As defined in Section 2.2.

     Targeted Principal Balance: For any Distribution Date, the amount set forth
in the table attached hereto as Exhibit N for such Distribution Date, for the
Class A-8 and Class A-12 Certificates and Component A-14-2 and Component A-14-3
of the Class A-14 Certificates.

     Tax Matters Person: The Holder of the Class R Certificate issued hereunder
or any Permitted Transferee of such Class R Certificateholder shall be the
initial "tax matters person" for REMIC I and REMIC II within the meaning of
Section 6231(a)(7) of the Code. For tax years commencing after any transfer of
the Class R Certificate, the holder of the greatest Percentage Interest in the
Class R Certificate at year end shall be designated as the Tax Matters Person
with respect to that year. If the Tax Matters Person becomes a Disqualified
Organization, the last preceding Holder of such Authorized Denomination of the
Class R Certificate that is not a Disqualified Organization shall be Tax Matters
Person pursuant to Section 5.1(c). If any Person is appointed as tax matters
person by the Internal Revenue Service pursuant to the Code, such Person shall
be Tax Matters Person.

     Transfer: As defined in Section 5.1(b).

     Transferee: As defined in Section 5.1(b).

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

                                      -43-
<PAGE>

     Trust Fund: The corpus of the trust created pursuant to Section 2.1 of this
Agreement. The Trust Fund consists of (i) the Loans and all rights pertaining
thereto; (ii) such assets as from time to time may be held by the Trustee
(except amounts representing the Servicing Fee and amounts on deposit in Escrow
Accounts); including the Certificate Account and the Class A-7 Policy Payments
Account and all amounts deposited therein pursuant to the applicable provisions
of this Agreement; (iii) such assets as from time to time may be held by the
Servicer in a Custodial Account for P&I related to the Loans (except amounts
representing the Servicing Fee); (iv) property which secured a Loan and which
has been acquired by foreclosure or deed in lieu of foreclosure after the
Cut-Off Date; (v) amounts paid or payable by the insurer under any FHA insurance
policy and proceeds of any VA guaranty and any other insurance policy related to
any Loan or the Mortgage Pool; (vi) the Class A-7 Policy; and (vii) the rights
and remedies of the Depositor contained in Section 8 of the Mortgage Loan
Purchase Agreement dated as of the Closing Date, between the Seller and the
Depositor. The Rounding Account and the Reserve Fund will not be part of the
Trust Fund.

     Trustee: The Chase Manhattan Bank, a New York state banking corporation, or
its successor-in-interest as provided in Section 8.9, or any successor trustee
appointed as herein provided.

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

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

     Underwriters: Bear, Stearns & Co. Inc. and ABN AMRO Incorporated.

     U.S. Person: A citizen or resident of the United States, a corporation or
partnership (including an entity treated as a corporation or partnership for
federal income tax purposes) created or organized in, or under the laws of, the
United States or any state thereof or the District of Columbia (except, in the
case of a partnership, to the extent provided in regulations) or an estate whose
income is subject to United States federal income tax regardless of its source,
or a trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more such U.S.
Persons have the authority to control all substantial decisions of the trust. To
the extent prescribed in regulations by the Secretary of the Treasury, which
have not yet been issued, a trust which

                                      -44-
<PAGE>

was in existence on August 20, 1996 (other than a trust treated as owned by the
grantor under subpart E of part 1 of subchapter J of chapter 1 of the Code), and
which was treated as a U.S. Person on August 20, 1996 may elect to continue to
be treated as a U.S. Person notwithstanding the previous sentence.

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

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

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

                                   ARTICLE II

                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.1 Conveyance of Trust Fund . The Depositor, concurrently with the
execution and delivery hereof, does hereby irrevocably sell, convey and assign
to the Trustee and REMIC I without recourse all the right, title and interest of
the Depositor in and to the Trust Fund and to REMIC II without recourse all the
right, title and interest of the Depositor in and to the REMIC I Regular
Interests, for the benefit respectively of REMIC II and the Certificateholders,
including all interest and principal received by the Depositor with respect to
the Loans after the Cut-Off Date (and including without limitation scheduled
payments of principal and interest due after the Cut-Off Date but received by
the Depositor on or before the Cut-Off Date, but not including payments of
principal and interest due on the Loans on or before the Cut-Off Date). In
addition, on or prior to the Closing Date, the Depositor shall cause MBIA to
deliver the Class A-7 Policy to the Trustee. The Depositor, at its own expense,
shall file or cause to be filed protective Form UCC-1 financing statements with
respect to the Loans in the State of Illinois or other applicable jurisdiction,
listing itself as "Debtor" under such financing statement and listing the
Trustee, for the benefit of the Certificateholders, as "Secured Party" under
such financing statement.

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

         (i) The original Mortgage Note (or, if the original Mortgage Note has
     been lost or destroyed, a lost note affidavit and indemnity) bearing all
     intervening

                                      -45-
<PAGE>

     endorsements endorsed, "Pay to the order of The Chase Manhattan Bank, as
     Trustee, for the benefit of the Certificateholders of ABN AMRO Mortgage
     Corporation Series 2001-3 Attn: Institutional Trust Services, 600 Travis
     Street, 9th Floor, Houston, TX 77002, without recourse" and signed in the
     name of the Seller by an Authorized Officer showing an unbroken chain of
     title from the originator thereof to the person endorsing;

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

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

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

         (iv) The originals of all required intervening assignments, if any,
     with evidence of recording thereon, and if such assignment was executed
     pursuant to a power of attorney, a certified true copy of the power of
     attorney certified by the recorder's office, with evidence of recording
     thereon, or certified by a title insurance company or escrow company to be
     a true copy thereof; provided, that if such original

                                      -46-
<PAGE>

     assignment or power of attorney cannot be delivered with evidence of
     recording thereon on or prior to the Closing Date because of a delay caused
     by the public recording office where such original assignment has been
     delivered for recordation or because such original Assignment has been
     lost, the Depositor shall deliver or cause to be delivered to the Trustee a
     true and correct copy of such Assignment, together with (a) in the case of
     a delay caused by the public recording office, an Officer's Certificate
     signed by a Responsible Officer of the Seller stating that such original
     assignment has been dispatched to the appropriate public recording official
     for recordation or (b) in the case of an original assignment that has been
     lost, a certificate by the appropriate county recording office where such
     assignment is recorded or from a title insurance company or escrow company
     indicating that such original was lost and the copy of the original
     assignment is a true and correct copy;

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

         (vi) The mortgage insurance certificate;

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

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

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

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

                                      -47-
<PAGE>

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

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

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

     It is the express intent of this Agreement that the conveyance of the Loans
by the Depositor to the Trustee as provided in this Section 2.1 be, and be
construed as, a sale of the Loans by the Depositor to the Trustee and that the
sale of the Certificates to the Certificateholders, if they are sold, be, and be
construed as, a sale of a 100% interest in the Loans and the Trust Fund to such
Certificateholders. It is, further, not the intention of this Agreement that
such conveyance be deemed a pledge of the Loans by the Depositor to the Trustee
to secure a debt or other obligation of the Depositor. However, in the event
that, notwithstanding the intent of this Agreement, the Loans are held to be
property of the Depositor, or if for any other reason this Agreement is held or
deemed to create a security interest in the Loans, then (a) this Agreement shall
also be deemed to be a security agreement within the meaning of Articles 8 and 9
of the New York Uniform Commercial Code; (b) the conveyance provided for in this
Section 2.1 shall be deemed to be a grant by the Depositor to the Trustee for
the benefit of the Certificateholders of a security interest in all of the
Depositor's right, title and interest in and to the Loans and all amounts
payable to the holders of the Loans in accordance with the terms thereof and all
proceeds of the

                                      -48-
<PAGE>

conversion, voluntary or involuntary, of the foregoing into cash, instruments,
securities or other property, including without limitation all amounts, other
than investment earnings, from time to time held or invested in the Certificate
Account, whether in the form of cash, instruments, securities or other property;
(c) the possession by the Trustee or any Custodian of Mortgage Notes and such
other items of property as constitute instruments, money, negotiable documents
or chattel paper shall be deemed to be "in possession by the secured party" for
purposes of perfecting the security interest pursuant to Section 9-305 of the
New York Uniform Commercial Code; and (d) notifications to persons holding such
property, and acknowledgments, receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Trustee for the benefit of the Certificateholders for the purpose of
perfecting such security interest under applicable law (except that nothing in
this clause (d) shall cause any person to be deemed to be an agent of the
Trustee for any purpose other than for perfection of such security interest
unless, and then only to the extent, expressly appointed and authorized by the
Trustee in writing). The Depositor and the Trustee, upon directions from the
Depositor, shall, to the extent consistent with this Agreement, take such
actions as may be necessary to ensure that, if this Agreement were deemed to
create a perfected security interest in Loans, such security interest would be
deemed to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of this Agreement.

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

     Section 2.2 Acceptance by Trustee . The Trustee acknowledges, subject to
the provisions of Section 2.1 and to any document exceptions reported pursuant
to the Trustee's reviews as described below, receipt of the Mortgage Notes (or
lost note affidavits and indemnities), the Mortgages, the assignments of the
Mortgages and the Officer's Certificates referred to in Section 2.1 above, and
declares that it holds and will hold such documents and the other documents
constituting a part of the Mortgage Files delivered to it as Trustee in trust,
upon the trusts herein set forth, for the use and benefit of all present and
future Certificateholders. The Trustee acknowledges that, as of the date of the
execution of this Agreement, the Mortgage Files have been delivered to the
Trustee and the Trustee has conducted a preliminary review of the Mortgage
Files. The Trustee further acknowledges that such review included a review of
the Mortgage Notes (or lost note affidavits and indemnities) to determine that
the appropriate Mortgage Notes (or lost note affidavits and indemnities) have
been delivered and endorsed in the manner set forth in Section 2.1(i). In
connection with such review, the Trustee shall have delivered an exceptions
report indicating any discrepancies relating to such review. In addition, the
Trustee agrees, for the benefit of Certificateholders, to review each Mortgage
File within 45 days, or with respect to

                                      -49-
<PAGE>

assignments which must be recorded, within 180 days, after execution of this
Agreement to ascertain that all required documents set forth in items (i), (ii),
(v), (vi) and, to the extent delivered to the Trustee, items (iii), (iv), (vii)
and (viii) of Section 2.1 have been executed and received, and that such
documents relate to the Loans identified in Exhibit D annexed hereto, and in so
doing the Trustee may rely on the purported due execution and genuineness of any
such document and on the purported genuineness of any signature thereon. The
Trustee shall have no duty to verify or determine whether any Mortgage File
should contain documents described in Sections 2.1(iii), (iv), (vii) and (viii).
The Trustee shall be under no duty or obligation to inspect, review or make any
independent examination of any documents contained in each Mortgage File beyond
the review specifically required herein. The Trustee makes no representations as
to (i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File or any of the Loans identified
on the Loan Schedule, or (ii) the collectability, insurability, effectiveness or
suitability of any such Loan. If at the conclusion of such 45-day period or
180-day period the Trustee finds any document constituting a part of a Mortgage
File not to have been executed or received or to be unrelated to the Loans
identified in said Exhibit D (each such finding, a "material defect"), the
Trustee shall promptly notify the Depositor, which shall have a period of 90
days after the REMIC has received notice to correct or cure any such material
defect; provided, however, that if the Trustee shall not have received a
document by reason of the fact that such document shall not have been returned
by the appropriate recording office then the Depositor shall have until a date
one year later from the Cut-Off Date to correct or cure such defect. The
Depositor hereby covenants and agrees that, if any such material defect as
defined above is not corrected or cured, the Depositor will, within 90 days of
the REMIC having received notice, either (i) repurchase the related Loan at a
price equal to 100% of the Principal Balance of such Loan (or any property
acquired in respect thereof) plus accrued interest on such Principal Balance at
the applicable Pass-Through Rate to the next scheduled Due Date of such Loan or
(ii) substitute for any Loan to which such material defect relates a different
mortgage loan (a "Substitute Loan") maturing no later than and not more than two
years earlier than the Loan being substituted for and having a principal balance
equal to or less than and a Mortgage Interest Rate equal to or greater than the
Mortgage Interest Rate of the Loan being substituted for, a Loan-to-Value Ratio
equal to or less than the Loan-to-Value Ratio of the Loan being substituted for
and otherwise having such characteristics so that the representations and
warranties of the Depositor set forth in Section 2.3 hereof would not have been
incorrect had such Substitute Loan originally been a Loan; provided, however,
that if the Principal Balance of the original Loan exceeds the principal balance
of the Substitute Loan, an amount equal to that difference shall be deposited by
the Depositor in the Certificate Account; provided, further, however, that no
such substitution may occur after 90 days of the Closing Date unless the Trustee
shall have received from the Depositor an Opinion of Counsel to the effect that
such substitution will not adversely affect the REMIC status of REMIC I or REMIC
II or constitute a prohibited transaction or substitution under the REMIC
provisions of the Code, and, if applicable, within the meaning of the REMIC
Provisions of the particular State, if any, which would impose a tax on the
Trust Fund. Monthly Payments due with respect to

                                      -50-
<PAGE>

Substitute Loans in the month of substitution are not a part of the Trust Fund
and will be retained by the Servicer. The Depositor shall notify each Rating
Agency of any such substitution. For the month of substitution, distributions to
Certificateholders will include the Monthly Payment due on the Loan being
substituted for in such month. The purchase price for the repurchased Loan or
property shall be deposited by the Depositor in the Certificate Account and in
the case of a Substitute Loan, the Mortgage File relating thereto shall be
delivered to the Trustee or the Custodian. Upon receipt by the Trustee of
written notification of such deposit signed by a Servicing Officer or the new
Mortgage File, as the case may be, and an Officer's Certificate that such
repurchase or substitution is in accordance with this Agreement, the Trustee
shall release or cause to be released to the Depositor the related Mortgage File
for the Loan being repurchased or substituted for, as the case may be, and shall
execute and deliver or cause to be executed and delivered such instrument of
transfer or assignment presented to it by the Depositor, in each case without
recourse, as shall be necessary to transfer to the Depositor the Trustee's
interest in such original or repurchased Loan or property and the Trustee shall
have no further responsibility with regard to such Loan. It is understood and
agreed that the obligation of the Depositor to substitute a new Loan for or
repurchase any Loan or property as to which such a material defect in a
constituent document exists shall constitute the sole remedy respecting such
defect available to Certificateholders or the Trustee on behalf of
Certificateholders, but such obligation shall survive termination of this
Agreement. Neither the Trustee nor the Custodian shall be responsible for
determining whether any assignment or mortgage delivered pursuant to Section
2.1(ii) is in recordable form or, if recorded, has been properly recorded.

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

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

         (ii) that as of the date of the transfer of the Loans to the Trustee,
     the Depositor is the sole owner and holder of each Loan free and clear of
     all liens, pledges, charges or security interests of any nature and has
     full right and authority, subject to no interest or participation of, or
     agreement with, any other party, to sell and assign the same;

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

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

                                      -51-
<PAGE>

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

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

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

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

         (ix) that each Mortgage is a valid and enforceable first lien on the
     property securing the related Mortgage Note, and that each Loan is covered
     by an ALTA mortgagee title insurance policy or other form of policy or
     insurance generally acceptable to FNMA or FHLMC, issued by, and is a valid
     and binding obligation of, a title insurer acceptable to FNMA or FHLMC
     insuring the originator, its successor and assigns, as to the lien of the
     Mortgage in the original principal amount of the Loan subject only to (a)
     the lien of current real property taxes and assessments not yet due and
     payable, (b) covenants, conditions and restrictions, rights of way,
     easements and other matters of public record as of the date of recording of
     such Mortgage acceptable to mortgage lending institutions in the area in
     which the Mortgaged Property is located or specifically referred to in the
     appraisal performed in connection with the origination of the related Loan
     and (c) such other matters to which like properties are commonly subject
     which do not individually, or in the

                                      -52-
<PAGE>

     aggregate, materially interfere with the benefits of the security intended
     to be provided by the Mortgage;

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

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

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

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

         (xiv) that based upon a representation by each Mortgagor at the time of
     origination or assumption of the applicable Loan, 97.46% of the Loans
     measured by Principal Balance were to be secured by primary residences and
     no more than 2.54% of the Loans measured by Principal Balance were to be
     secured by second homes;

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

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

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

                                      -53-
<PAGE>

         (xviii) each Loan was either (A) originated directly by or closed in
     the name of either: (i) a savings and loan association, savings bank,
     commercial bank, credit union, insurance company, or similar institution
     which is supervised and examined by a federal or state authority or (ii) a
     mortgagee approved by the Secretary of Housing and Urban Development
     pursuant to Sections 203 and 211 of the National Housing Act or (B)
     originated or underwritten by an entity employing underwriting standards
     consistent with the underwriting standards of an institution as described
     in subclause (A)(i) or (A)(ii) above;

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

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

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

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

     Within 90 days of its discovery or its receipt or any Seller's receipt of
notice of breach, the Depositor shall or shall cause such Seller to cure such
breach in all material respects or shall repurchase the Loan or any property
acquired in respect thereof from the Trustee at a repurchase price equal to 100%
of the Principal Balance of such Loan plus accrued interest on such Principal
Balance at the Mortgage Interest Rate to the next scheduled Installment Due Date
of such Loan or remove such Loan from the Trust Fund and substitute in its place
a Substitute Loan or Loans with the characteristics set forth in Section 2.2
above for Substitute Loans; provided, however, that if such breach would cause
the Loan to be other than a "qualified mortgage" as defined in Section
860G(a)(3) of the Code, any such cure, repurchase or substitution must occur
within 90 days from the date such breach was discovered; provided, further, that
no substitution (or cure which would constitute a loan modification for federal
income tax purposes) may be effected any later than two years after the Closing
Date; provided, further, that as a pre-condition to any substitution (or cure
which would constitute a loan modification for federal income tax

                                      -54-
<PAGE>

purposes) to be effected later than 90 days after the Closing Date (and within
two years of the Closing Date), the Trustee shall receive from the Depositor an
Opinion of Counsel to the effect that such substitution (or cure which would
constitute a loan modification for federal income tax purposes) will not
adversely affect the REMIC status of REMIC I or REMIC II or constitute a
prohibited transaction under the REMIC Provisions of the Code and, if
applicable, the REMIC provisions of the relevant State. Except as expressly set
forth herein, neither the Trustee nor the Servicer is under any obligation to
discover any breach of the above mentioned representations and warranties. It is
understood and agreed that the obligation of the Depositor or the Seller to
repurchase or substitute any Loan or property as to which a breach has occurred
and is continuing shall constitute the sole remedy respecting such breach
available to Certificateholders or the Trustee on behalf of Certificateholders,
and such obligation shall survive as the obligation of the Depositor, the Seller
or their respective successors.

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

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

     (b) This Agreement shall be construed so as to carry out the intention of
the parties that each of REMIC I and REMIC II be treated as a REMIC at all times
prior to the date on which the Trust Fund is terminated. The "regular interests"
(within the meaning of Section 860G(a)(1) of the Code) in REMIC II shall consist
of the Class A Certificates and the Subordinate Certificates. The "residual
interest" (within the meaning of Section 860G(a)(2) of the Code) in REMIC II
shall consist of Component R-2 of the Class R Certificate. The "regular
interests" (within the meaning of Section 860G(a)(1) of the Code) of REMIC I
shall consist of Class A-1 Regular Interest, the Class A-2 Regular Interest, the
Class A-4 Regular Interest, the Class A-5 Regular Interest, the Class A-6
Regular Interest, the Class A-7 Regular Interest, the Class A-8 Regular
Interest, the Class A-9 Regular Interest, the Class A-10 Regular Interest, the
Class A-11 Regular Interest, the Class A-12 Regular Interest, the Class A-13
Regular Interest, the Class A-14-1 Regular Interest, the Class A-14-2 Regular
Interest, the Class A-14-3 Regular Interest, the Class A-14-5 Regular Interest,
the Class A-15 Regular Interest, the Class A-16 Regular Interest, the Class A-17
Regular Interest, the Class A-P Regular Interest, the Class A-X Regular
Interest, the Class M Regular Interest, the Class B-1 Regular Interest, the
Class B-2 Regular Interest, the Class B-3 Regular Interest, the Class B-4
Regular Interest and the Class B-5 Regular Interest. The "residual interest"
(within the meaning of Section 860(G)(a)(2) of the Code) of REMIC I shall
consist of Component R-1 of the Class R Certificate.

                                      -55-
<PAGE>

     (c) All payments with respect to each of the Class A-1, Class A-2, Class
A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class
A-11, Class A-12, Class A-13, Component A-14-1 of the Class A-14 Certificates,
Component A-14-2 of the Class A-14 Certificates, Component A-14-3 of the Class
A-14 Certificates, Component A-14-5 of the Class A-14 Certificates, Class A-15,
Class A-16, Class A-17, Class A-P, Class A-X, Class M, Class B-1, Class B-2,
Class B-3, Class B-4 and Class B-5 Certificates and Components shall each be
considered to have been made solely from the Regular Interest of REMIC I having
the same designation. All principal payments with respect to each such Class of
Certificates (other than the Class A-3, Class A-18 and Class A-X Certificates)
and Components (other than Component A-14-4 of the Class A-14 Certificates)
shall be considered to have been made solely from the principal payments of the
corresponding Regular Interests of REMIC I, and the Class Principal Balance or
Component Principal Balance of each such Class of Certificate (other than the
Class A-3, Class A-18 and Class A-X Certificates) or Component (other than
Component A-14-4 of the Class A-14 Certificates) shall be equal at all times to
the principal balance of each such corresponding Regular Interest of REMIC I.
All interest payments with respect to the Class A-3 Certificates shall be
considered to have been made solely from the interest payments of the Class A-2
Regular Interest of REMIC I. All interest payments with respect to the Class
A-18 Certificates shall be considered to have been made solely from the interest
payments of the Class A-7 Regular Interest of REMIC I. All interest payments
with respect to Component A-14-4 of the Class A-14 Certificates shall be
considered to have been made solely from the interest payments of the Class A-8
Regular Interest and Class A-9 Regular Interest of REMIC I. All interest
payments with respect to the Class A-X Certificates shall be considered to have
been made solely from the interest payments of the Class A-X Regular Interest of
REMIC I, and the notional principal amount of the Class A-X Regular Interest
shall be equal at all times to the Class A-X Notional Amount.

     The interest rate of each REMIC I Regular Interest Class A-1, A-2, A-4,
A-5, A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12,
Class A-13, A-14-1, A-14-2, A-14-3, A-15, A-16, A-17, A-X, M, B-1, B-2, B-3, B-4
and B-5 shall be 6.750%. The Class A-P Regular Interest Classes shall not bear
interest, but will receive principal only in respect of the Loans. The Class
A-14-5 Regular Interest Classes shall not bear interest, but will receive
principal only in respect of the Loans.

     (d) The Class A-3 Certificates shall be considered for federal income tax
purposes to have a notional principal amount which is equal at all times to the
principal balance of the Class A-2 Regular Interest, and shall bear interest at
0.150%. The Class A-18 Certificates shall be considered for federal income tax
purposes to have a notional principal amount which is equal at all times to the
principal balance of the Class A-7 Regular Interest, and shall bear interest at
0.050%. The Class A-14-4 component shall be considered for federal income tax
purposes to have two subcomponent notional principal amounts, each of which is
equal at all times to the principal balance of the Class A-8 or Class A-9
Regular Interest, and such subcomponents shall bear interest at 0.375% and
0.700%, respectively.

                                      -56-
<PAGE>

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

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

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

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

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

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

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

                                      -57-
<PAGE>

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

         (f) as long as the Servicer has any obligations to service the Loans
     hereunder (and it has not assigned such obligations pursuant to Section
     3.1(c)), it shall be a FNMA or a FHLMC-qualified servicer.

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

                                   ARTICLE III

                      ADMINISTRATION AND SERVICING OF LOANS

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

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

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

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

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

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

                                      -58-
<PAGE>

     To the extent consistent with the foregoing and subject to any express
limitations set forth in this Agreement, the Servicer shall seek to maximize the
timely and complete recovery of principal and interest on the Mortgage Notes;
provided, however, that nothing herein contained shall be construed as an
express or implied guarantee by the Servicer of the collectability of the Loans.
Subject only to the above-described servicing standards and the terms of this
Agreement and of the respective Loans, the Servicer, as an independent
contractor, shall service and administer the Loans and shall have full power and
authority, acting alone or through one or more subservicers, special servicers
or agents (subject to paragraph (c) of this Section 3.1), to do any and all
things in connection with such servicing and administration which it may deem
necessary or desirable for the purpose of conserving the assets of the Trust
Fund. Without limiting the generality of the foregoing, the Servicer shall and
is hereby authorized and empowered by the Trustee to continue to execute and
deliver, on behalf of itself, the Certificateholders and the Trustee or any of
them, any and all financing statements, continuation statements and other
documents or instruments necessary to maintain the lien on each Mortgaged
Property and related collateral; and modifications, waivers, consents or
amendments to or with respect to any documents contained in the related Mortgage
File; and any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge and all other comparable instruments, with respect
to the Loans and with respect to the related Mortgaged Properties.
Notwithstanding the foregoing, the Servicer (whether acting alone or through one
or more subservicers, special servicers or agents) shall not modify, amend,
waive or otherwise consent to the change of the terms of any of the Loans
(including without limitation extending the stated maturity date of any Loan or
forgiving principal of or interest on any Loan), except as permitted by Section
3.2 hereof. The Servicer shall service and administer the Loans in accordance
with applicable law and shall provide to the Mortgagors any reports required to
be provided to them thereby. To enable the Servicer to carry out its servicing
and administrative duties hereunder, upon the Servicer's written request
accompanied by the forms of any documents requested, the Trustee shall execute
and deliver to the Servicer any powers of attorney and other documents necessary
or appropriate and the Trustee shall not be responsible for releasing such
powers of attorney. The Trustee shall not be responsible for, and the Servicer
shall indemnify the Trustee for, any action taken by the Servicer pursuant to
the application of any such power of attorney. The relationship of the Servicer
(and of any successor thereto) to the Trustee under this Agreement is intended
by the parties to be that of an independent contractor and not that of a joint
venturer, partner or agent.

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

                                      -59-
<PAGE>

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

     (c) The Servicer may enter into sub-servicing agreements with third parties
with respect to any of its respective obligations hereunder, provided, that (1)
any such agreement shall be consistent with the provisions of this Agreement and
(2) no sub-servicer retained by the Servicer shall grant any modification,
waiver or amendment to any Loan without the approval of the Servicer. Any such
sub-servicing agreement may permit the sub-servicer to delegate its duties to
agents or subcontractors so long as the related agreements or arrangements with
such agents or subcontractors are consistent with the provisions of this Section
3.1(c).

     Any sub-servicing agreement entered into by the Servicer with a Person
other than the Depositor shall provide that it may be assumed or terminated by
the Trustee if the Trustee has assumed the duties of the Servicer, without cost
or obligation to the assuming or terminating party or the Trust Fund, upon the
assumption by such party of the obligations of the Servicer pursuant to Section
7.5.

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

     In the event that the Trustee assumes the servicing obligations of the
Servicer, upon request of the Trustee, the Servicer shall at its own expense
deliver to the Trustee all documents and records relating to any sub-servicing
agreement and the Loans then being serviced thereunder and an accounting of
amounts collected and held by it, if any, and will otherwise use its best
efforts to effect the orderly and efficient transfer of any sub-servicing
agreement to the Trustee.

                                      -60-
<PAGE>

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

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

     (e) Notwithstanding any sub-servicing agreement, any of the provisions of
this Agreement relating to agreements or arrangements between the Servicer and
any Person (including the Depositor) acting as sub-servicer (or its agents or
subcontractors) or any reference to actions taken through any Person (including
the Depositor) acting as sub-servicer or otherwise, the Servicer shall remain
obligated and primarily liable to the Trustee and Certificateholders for the
servicing and administering of the Loans in accordance with the provisions of
this Agreement without diminution of such obligation or liability by virtue of
such sub-servicing agreements or arrangements or by virtue of indemnification
from the Depositor or any other Person acting as sub-servicer (or its agents or
subcontractors) to the same extent and under the same terms and conditions as if
the Servicer alone were servicing and administering the Loans. The Servicer
shall be entitled to enter into an agreement with any sub-servicer providing for
indemnification of the Servicer by such sub-servicer (including the Depositor
and the Trustee), and nothing contained in this Agreement shall be deemed to
limit or modify such indemnification, but no such agreement for indemnification
shall be deemed to limit or modify this Agreement.

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

     (a) The Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Loans, and shall, to the extent
such procedures shall be consistent with this Agreement, follow such collection
procedures as it follows with respect to conventional mortgage loans it services
for itself and any of its Affiliates; provided, however, that the Servicer
agrees not to permit any modification with respect to any Loan that would change
the manner in which the Mortgage Interest Rate is computed, forgive any
principal or interest or change the term of such Loan. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any assumption fee, late
payment charge or other charge in connection with a Loan, and (ii) arrange a
schedule, running for no more than 180 days after the scheduled Due Date, for
payment of any installment on any Mortgage Note or after the due date of any
other payment due under the related Mortgage Note for the liquidation of
delinquent items, provided, that the Servicer shall continue to be obligated to
make Advances in accordance with Section 4.3 during the continuance of such
period. With respect to any Loans which provide for the right of the holder
thereof to call for early

                                      -61-
<PAGE>

repayment thereof at times specified therein, neither the Trustee nor the
Servicer shall exercise any such right, except that the Trustee shall exercise
such right at the written direction of the Servicer set forth in an Officer's
Certificate in connection with a default under the related Note. Notwithstanding
anything herein to the contrary, neither the Servicer nor any other party may
take any action that would cause a "significant modification" of any Loan within
the meaning of the REMIC Provisions that would cause REMIC I or REMIC II to fail
to qualify as a REMIC at any time or cause a tax to be imposed on the Trust Fund
under the REMIC Provisions.

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

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

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

         (iii) All net Liquidation Proceeds;

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

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

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

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

                                      -62-
<PAGE>

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

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

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

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

     Certain of the Loans may provide for payment by the Mortgagor of amounts to
be used for payment of taxes, assessments, hazard or other insurance premiums or
comparable items for the account of the Mortgagor. The Servicer may deal with
these amounts in accordance with its normal servicing procedures.

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

         (a) to reimburse itself for Advances made by it pursuant to Section 3.4
     or 4.3, the Servicer's right to reimburse itself pursuant to this subclause
     (a) being limited to (i) amounts received on or in respect of particular
     Loans (including, for this

                                      -63-
<PAGE>

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

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

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

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

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

         (f) to reimburse itself for any Nonrecoverable Advances;

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

                                      -64-
<PAGE>

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

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

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

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

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

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

     (b) With respect to each Loan, the Servicer shall maintain accurate records
with respect to each related Mortgaged Property reflecting the status of taxes,
assessments and other similar items that are or may become a lien on the related
Mortgaged Property and the status of insurance premiums payable with respect
thereto. The Servicer shall require that payments for taxes, assessments,
insurance premiums and other similar items be made by the Mortgagor at the time
they first become due. If a Mortgagor fails to make any such payment

                                      -65-
<PAGE>

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

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

                                      -66-
<PAGE>

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

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

                                      -67-
<PAGE>

such fidelity bond and errors and omissions insurance shall diminish or relieve
the Servicer from its duties and obligations as set forth in this Agreement.

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

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

     Section 3.7 Realization upon Defaulted Loans.

     (a) Consistent with the servicing standard set forth in Section 3.1 and
with a view to the best economic interest of the Trust Fund, the Servicer shall
foreclose upon or otherwise comparably convert (which may include acquisition of
an REO Property) the Mortgaged Properties securing such of the Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.2. In
connection with such foreclosure or other conversion, the Servicer shall follow
such practices and procedures as it shall deem necessary or advisable and as
shall be normal and usual in its general mortgage servicing activities. The
foregoing is subject to the proviso that the Servicer shall not be required to
expend its own funds in

                                      -68-
<PAGE>

connection with any foreclosure or to restore any damaged property unless it
shall determine (i) that such foreclosure and/or restoration expenses will
increase the Liquidation Proceeds to Certificateholders after reimbursement to
itself for such expenses and (ii) that such expenses will be recoverable to it
through Liquidation Proceeds (respecting which it shall have priority for
purposes of withdrawal from the Custodial Account for P&I pursuant to Section
3.3). Any gain on foreclosure or other conversion of a Liquidated Loan shall be
distributed to the Class R Certificateholder, but only to the extent that such
gain is not necessary to make distributions to the Certificateholders of the
other Classes of Certificates. The Servicer shall be responsible for all other
costs and expenses incurred by it in any such proceedings; provided, however,
that it shall be entitled to reimbursement thereof (as well as any Servicing
Fees and other amounts due it, if any), to the extent, but only to the extent,
that withdrawals from the Custodial Account for P&I with respect thereto are
permitted under Section 3.3. Within 30 days after receipt of Liquidation
Proceeds in respect of a Liquidated Loan, the Servicer shall provide to the
Trustee a statement of accounting for the related Liquidated Loan, including
without limitation (i) the Loan number, (ii) the date the Loan was acquired in
foreclosure or deed in lieu, and the date the Loan became a Liquidated Loan,
(iii) the gross sales price and the related selling and other expenses, (iv)
accrued interest calculated from the foreclosure date to the liquidation date,
and (v) such other information as the Trustee may reasonably specify.

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

     (c) The Trust Fund shall not acquire any real property (or personal
property incident to such real property) except in connection with a default or
imminent default of a Loan. Based on a report prepared by an Independent Person
who regularly conducts environmental audits that the Mortgaged Property for
which foreclosure proceedings are contemplated is in compliance with applicable
environmental laws, and there are no circumstances present at such Mortgaged
Property relating to the use, management or disposal of any hazardous materials,
wastes, or petroleum based materials for which investigation, testing,
monitoring, containment, clean-up or remediation could be required under any
federal, state or local law or that it would be in the best economic interest of
the Trust Fund to acquire title to such Mortgaged Property and further to take
such actions as would be necessary and appropriate to effect such compliance
and/or respond to such circumstances, the Servicer will not conduct such
foreclosure proceedings. If the Servicer otherwise becomes aware, under its
customary servicing procedures, of an environmental hazard with respect to a
Loan for which foreclosure proceedings are contemplated, the

                                      -69-
<PAGE>

Servicer will not conduct such foreclosure proceedings unless it determines in
good faith that the liability associated with the environmental hazard will be
less than the Liquidation Proceeds to be realized from the sale of the related
Mortgaged Property. In the event that the Trust Fund acquires any real property
(or personal property incident to such real property) in connection with a
default or imminent default of a Loan, such REO Property shall be disposed of by
the Trust Fund within three years after its acquisition by the Trust Fund unless
the Trustee shall have received from the Servicer an Opinion of Counsel to the
effect that the holding by the Trust Fund of such REO Property subsequent to
three years after its acquisition will not cause either REMIC I or REMIC II to
fail to qualify as a REMIC under the REMIC Provisions at any time that any REMIC
I Regular Interests or Certificates are outstanding, in which case such REO
Property shall be disposed of as soon as possible by the Trust Fund but in no
event shall be held longer than the maximum period of time during which the
Trust Fund is then permitted to hold such REO Property and allow REMIC I and
REMIC II to remain qualified as REMICs under the REMIC Provisions. The Servicer
shall manage, conserve, protect and operate each such REO Property for the
Certificateholders solely for the purpose of its prompt disposition and sale in
a manner which does not cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code.
Pursuant to its efforts to sell such REO Property, the Servicer shall either
itself or through an agent selected by the Servicer protect and conserve such
REO Property in the same manner and to such extent as is customary in the
locality where such property is located and may, incident to its conservation
and protection of the interests of the Certificateholders, rent the same, or any
part thereof, as the Servicer deems to be in the best interest of the Servicer
and the Certificateholders for the period prior to the sale of such REO
Property. All proceeds from the renting of such REO Property shall, net of any
costs or expenses of the Servicer in connection therewith, be deposited into the
Custodial Account for P&I pursuant to Section 3.3(b)(ix).

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

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

                                      -70-
<PAGE>

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

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

     Section 3.8 Trustee to Cooperate; Release of Mortgage Files. Upon the
payment in full of any Loan, or the receipt by the Servicer of a notification
that the payment in full will be escrowed in a manner customary for such
purposes, the Servicer will immediately notify the Trustee by an Officer's
Certificate (which Officer's Certificate shall include a statement to the effect
that all amounts received in connection with such payment which are required to
be deposited in the Custodial Account for P&I pursuant to Section 3.2 have been
or will be so deposited) and shall by such Officer's Certificate request
delivery to it of the Mortgage File. Upon receipt of such Officer's Certificate
and request, the Trustee shall promptly release or cause to be released the
related Mortgage File to the Servicer. From time to time and as appropriate for
the servicing or foreclosure of any Loan, the Trustee shall, upon written
request of the Servicer and delivery to the Trustee of a trust receipt signed by
a Servicing Officer, release or cause to be released the related Mortgage File
to the Servicer and shall execute such documents furnished to it as shall be
necessary to the prosecution of any such proceedings. Such trust receipt shall
obligate the Servicer to return each and every document previously requested
from the Mortgage File to the Trustee when the need therefor by the Servicer no
longer exists unless the Loan shall be liquidated, in which case, upon receipt
of a certificate of a Servicing Officer similar to that hereinabove specified,
the trust receipt shall be released by the Trustee to the Servicer by delivery
to a Servicing Officer and the Trustee shall have no further responsibility with
respect to such Mortgage Files.

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

                                      -71-
<PAGE>

the blanket hazard insurance policy and the blanket fidelity bond and errors and
omissions policy required by Section 3.5) and shall not be entitled to
reimbursement therefor except as specifically provided in Sections 3.1, 3.3, 3.5
and 3.7.

     On each Distribution Date, the Servicer shall pay to the Certificate
Administrator and the Trustee the Certificate Administration and Trustee Fee out
of the Servicing Fee retained by the Servicer on such Distribution Date. Such
amounts shall be compensation for the activities of the Certificate
Administrator and the Trustee hereunder. The Certificate Administrator and the
Trustee shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor,
except as specifically provided herein.

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

     Section 3.11 Annual Statement as to Compliance. The Servicer will deliver
to the Trustee, on or before March 15 of each year, beginning March 15, 2002, an
Officer's Certificate stating as to each signer thereof, that (i) a review of
the activities of the Servicer during the preceding calendar year and of
performance under this Agreement has been made under such officer's supervision,
and (ii) to the best of such officer's knowledge, based on such review, the
Servicer has fulfilled all of its obligations under this Agreement throughout
such year, or if there has been a default in the fulfillment of any such
obligation, specifying each such default known to such officer and the nature
and status thereof. Copies of such statement shall be provided to each Rating
Agency and to any Certificateholder upon request by the Servicer, or by the
Trustee at the Servicer's expense.

                                      -72-
<PAGE>

     Section 3.12 Annual Independent Public Accountants' Servicing Report. On or
before March 15 of each year, beginning March 15, 2002, the Servicer, at its
expense, shall cause a firm of independent public accountants who are members of
the American Institute of Certified Public Accountants to furnish a statement to
the Trustee and each Rating Agency to the effect that such firm has examined
certain documents and records relating to the servicing of the Loans and that,
either (a) on the basis of such examination conducted substantially in
compliance with the audit program for mortgages serviced for FHLMC, such firm is
of the opinion that such servicing has been conducted in compliance with the
manner of servicing set forth in agreements substantially similar to this
Agreement except for (i) such exceptions as such firm shall believe to be
immaterial and (ii) such other exceptions as shall be set forth in such
statement or, (b) that their examination conducted substantially in compliance
with the uniform single audit program for mortgage bankers disclosed no
exceptions or errors in records relating to mortgage loans serviced for others
that in their opinion are material and that Paragraph 4 of that program requires
them to report. Copies of such statement shall be provided to Certificateholders
upon request by the Servicer, or by the Trustee at the Servicer's expense.

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

     Section 3.14 [Reserved].

     Section 3.15 Sale of Defaulted Loans and REO Properties.

     (a) With respect to any Defaulted Loan or REO Property which the Servicer
has determined to sell in accordance with the standards set forth in Section
3.7, the Servicer shall deliver to the Trustee an Officer's Certificate to the
effect that no satisfactory arrangements can be made for collection of
delinquent payments thereon pursuant to Section 3.2, and, consistent with the
servicing standard set forth in Section 3.1 and with a view to the best economic
interest of the Trust Fund, the Servicer has determined to sell such Defaulted
Loan or REO Property in accordance with this Section 3.15. The Servicer may then
offer to sell to any Person any Defaulted Loan or any REO Property or, subject
to the following sentence, purchase any such Defaulted Loan or REO Property (in
each case at the Repurchase Price therefor), but shall in any event, so offer to
sell any REO Property no later than the time

                                      -73-
<PAGE>

determined by the Servicer to be sufficient to result in the sale of such REO
Property within the period specified in Section 3.7(c). The Servicer shall
accept the highest bid received from any Person for any Defaulted Loan or any
REO Property in an amount at least equal to the Purchase Price therefor or, at
its option, if it has received no bid at least equal to the Purchase Price
therefor, purchase the Defaulted Loan or REO Property at the Purchase Price.

     In the absence of any such bid or purchase by the Servicer, the Servicer
shall accept the highest bid received from any Person that is determined by the
Servicer to be a fair price for such Defaulted Loan or REO Property, if the
highest bidder is a Person other than an Interested Person, or is determined to
be such a price by the Trustee, if the highest bidder is an Interested Person.
Notwithstanding anything to the contrary herein, neither the Trustee, in its
individual capacity, nor any of its Affiliates may bid for or purchase any
Defaulted Loan or any REO Property pursuant hereto.

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

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

     (c) The Servicer shall act on behalf of the Trust Fund in negotiating and
taking any other action necessary or appropriate in connection with the sale of
any Defaulted Loan or REO Property, including the collection of all amounts
payable in connection therewith. Any sale of a Defaulted Loan or any REO
Property shall be without recourse to, or

                                      -74-
<PAGE>

representation or warranty by, the Trustee, the Depositor, the Servicer or the
Trust Fund (except that any contract of sale and assignment and conveyance
documents may contain customary warranties of title, so long as the only
recourse for breach thereof is to the Trust Fund), and, if consummated in
accordance with the terms of this Agreement, neither the Servicer, the Depositor
nor the Trustee shall have any liability to the Trust Fund or any
Certificateholder with respect to the purchase price therefor accepted by the
Servicer or the Trustee.

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

     Section 3.16 Delegation of Duties. In the ordinary course of business, the
Servicer or the Trustee may at any time delegate any duties hereunder to any
Person who agrees to conduct such duties in accordance with the applicable terms
of this Agreement. In case of such delegation, the Servicer or the Trustee shall
supervise, administer, monitor and oversee the activities of such Person
hereunder to insure that such Person performs such duties in accordance herewith
and shall be responsible for the acts and omissions of such Person to the same
extent as it is responsible for its own actions or omissions hereunder. Any such
delegations shall not relieve the Servicer or the Trustee of its liability and
responsibility with respect to such duties, and shall not constitute a
resignation within the meaning of Section 6.4 hereof and shall be revocable by
any successor Servicer or the Trustee.

     Section 3.17 [Reserved].

     Section 3.18 [Reserved].

     Section 3.19 Appointment of a Special Servicer. The Servicer may enter into
a special servicing agreement with an unaffiliated holder of Subordinate
Certificates or a holder of a class of securities representing interests in such
Class of Subordinate Certificates, such agreement to be (i) substantially in the
form of Exhibit R hereto or (ii) subject to each Rating Agency's acknowledgment
that the ratings of the Certificates (determined without regard to the Class A-7
Policy) in effect immediately prior to the entering into of such agreement would
not be qualified, downgraded or withdrawn and the Certificates would not be
placed on credit review status (except for possible upgrading) as a result of
such agreement. Any such agreement may contain provisions whereby such holder
may instruct the Servicer to commence or delay foreclosure proceedings with
respect to delinquent Loans and may contain provisions for the deposit of cash
by the holder that would be available for distribution to Certificateholders if
Liquidation Proceeds are less than they otherwise may have been had the Servicer
acted in accordance with its normal procedures.

     Section 3.20 Allocation of Realized Losses. Prior to each Distribution
Date, the Servicer shall determine the amount of Realized Losses, if any, with
respect to each Loan.

                                      -75-
<PAGE>

The amount of Realized Losses shall be evidenced by an Officer's Certificate
signed by a Responsible Officer of the Servicer. All Realized Losses, except for
Excess Losses, will be allocated as follows: (i) for losses allocable to
principal (a) first, to the Subordinate Certificates in reverse order of
seniority until each of their Class Principal Balances have been reduced to zero
and (b) second, to the Senior Certificates and Components, by Pro Rata
Allocation, until the Certificate Principal Balances and Component Principal
Balances thereof have been reduced to zero; and (ii) for losses allocable to
interest (a) first, to the Subordinate Certificates in reverse order of
seniority, in reduction of accrued but unpaid interest thereon and then in
reduction of the Class Principal Balance of such Certificates and (b) second, to
the Senior Certificates and Component thereof, by Pro Rata Allocation, until the
Certificate Principal Balances and Component Principal Balances thereof have
been reduced to zero.

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

     On each Distribution Date, after giving effect to the principal
distributions and allocations and reimbursement of losses as provided in this
Agreement (without regard to this paragraph), if the Aggregate Certificate
Principal Balance of all outstanding Classes of Certificates exceeds the
aggregate principal balance of the Loans, after deduction of (i) all principal
payments due on or before the Cut-Off Date in respect of each such Loan whether
or not paid and (ii) all amounts of principal in respect of each such Loan that
have been received or advanced and included in the Available Distribution
Amount, and all losses in respect of such Loans that have been allocated to the
Certificates, on such Distribution Date or prior Distribution Dates, then such
excess will be deemed a principal loss and will be allocated (i) first, to the
Subordinate Certificates in reverse order of seniority until each of their Class
Principal Balances has been reduced to zero, and (ii) second, to the Senior
Certificates and Senior Components, other than the Interest Only Certificates
and Interest Only Component, pro rata according to their Certificate Principal
Balances or Component Principal Balances or, in the case of the Accrual
Certificates or Accrual Components, the Certificate Principal Balance of that
Accrual Certificate or Component Principal Balance of that Accrual Component on
the Closing Date, if lower in reduction thereof (except (i) all losses allocable
to the Class A-2 Certificates will be allocated to the Class A-16 Certificates
until the Class Principal Balance thereof has been reduced to zero; and (ii) all
losses allocable to the Class A-14 Certificates will be allocated to the Class
A-17 Certificates until the Class Principal Balance thereof has been reduced to
zero).

     Any Realized Loss, including any Excess Loss, allocated to the Class A-7
Certificates will be covered by the Class A-7 Policy. Any payment under the
Class A-7 Policy with respect to a Realized Loss allocated to the Class A-7
Certificates shall not result in a further reduction to the Class Principal
Balance of the Class A-7 Certificates.

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<PAGE>

     Section 3.21 Maintenance of the Rounding Account; Collections Thereunder.
On or prior to the Closing Date, the Trustee shall establish the Rounding
Account and Bear, Stearns & Co. Inc. shall deposit $999.99 therein. The Trustee
shall maintain such account to provide, if needed, the applicable Rounding
Amount on any Distribution Date. On the first Distribution Date with respect to
which the Trustee determines that amounts are available out of the Available
Distribution Amount for distributions of principal on the Class A-7
Certificates, and the aggregate amount allocable to such distributions of
principal is not an amount equal to an integral multiple of $1,000, the Trustee
shall withdraw from the Rounding Account the applicable Rounding Amount. On each
succeeding Distribution Date, prior to the Credit Support Depletion Date, with
respect to which the Trustee determines that amounts are available out of the
Available Distribution Amount for distributions of principal on the Class A-7
Certificates, the aggregate amount allocable to such Class will be applied first
to replenish any funds withdrawn from the Rounding Account on prior Distribution
Dates which have not been repaid. If the remainder of the aggregate amount
allocable to distributions of principal to the Class A-7 Certificates is not an
amount equal to an integral multiple of $1,000, the Trustee shall withdraw from
the Rounding Account, to the extent funds are available therein, the applicable
Rounding Amount.

     Any amounts withdrawn by the Trustee from the Rounding Account shall be
deposited in the Certificate Account for distribution to the Holders of Class
A-7 Certificateholders as described in the immediately preceding paragraph.
Funds held in the Certificate Account shall be invested in Eligible Investments
which shall mature not later than one Business Day prior to the Distribution
Date.

     The Rounding Account shall be an "outside revenue fund" under the REMIC
Provisions that is beneficially owned for all federal income tax purposes by
Bear, Stearns & Co. Inc.

                                   ARTICLE IV

                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

     Section 4.1 Distributions to Certificateholders. (a) The Trustee shall
establish and maintain a separate account as set forth in Article I (the
"Certificate Account"), the purpose of which is to accept deposits from the
Servicer and to make distributions to the Certificateholders and MBIA of the
amounts set forth in this Section 4.1. Further, the Trustee shall establish and
maintain the Reserve Fund which shall be an Eligible Account into which there
shall have been deposited the amount of $15,000.00 on the Closing Date. No
additional funds will be deposited in the Reserve Fund after the Closing Date.
All funds deposited in the Reserve Fund including interest thereon shall be held
in trust for the benefit of the Holders of the Class A-7 and Class A- 18
Certificates, until withdrawn in accordance

                                      -77-
<PAGE>

with this Section 4.1. The Reserve Fund shall be an "outside reserve fund" under
the REMIC Provisions that is beneficially owned for all federal income tax
purposes by Bear, Stearns & Co. Inc.

     (b) On each Distribution Date, the Trustee or the Paying Agent, if any,
shall (i) withdraw from the Certificate Account the Available Distribution
Amount for such Distribution Date and shall distribute to each Certificateholder
and MBIA, from the amount so withdrawn and to the extent of the Available
Distribution Amount, such Certificateholder's share (based on the aggregate
Percentage Interests represented by the Certificates of the applicable Class
held by such Certificateholder) or MBIA's share (based upon the amount due to
MBIA), as the case may be, of the amounts and in the order of priority as set
forth in the definition of "Certificate Distribution Amount", (ii) distribute
Excess Liquidation Proceeds to the Class R Certificateholder and (iii)
distribute the amount withdrawn from the Reserve Fund with respect to such
Distribution Date pursuant to Section 4.1(f), to the extent of funds on deposit
in the Reserve Fund and shall apply such funds to distributions on the Class A-7
and Class A-18 Certificates as interest thereon, up to the amount of the
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls allocated to
the Class A-7 and Class A-18 Certificates pursuant to the definitions of
"Interest Distribution Amount" and "Uncompensated Interest Shortfall", with
respect to such Distribution Date, by wire transfer in immediately available
funds for the account of the Certificateholder or MBIA, as applicable, or by any
other means of payment acceptable to each Certificateholder of record on the
immediately preceding Record Date (other than as provided in Section 9.1
respecting the final distribution), or MBIA, as applicable, as specified by each
such Certificateholder and at the address of such Holder appearing in the
Certificate Register or MBIA, as applicable; provided, that if the Trustee has
appointed a Certificate Administrator, such distributions in (i), (ii) and (iii)
above shall be made in accordance with written statements received from the
Certificate Administrator pursuant to Section 4.2.

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

     (d) Whenever, on the basis of Curtailments, Payoffs and Monthly Payments on
the Loans and Insurance Proceeds and Liquidation Proceeds received and expected
to be received during the applicable Prepayment Period, the Trustee believes, or
the Certificate Administrator, if any, has notified the Trustee that it
believes, that the entire remaining unpaid Class Principal Balance of any Class
of Certificates will become distributable on the next Distribution Date, the
Trustee or the Certificate

                                      -78-
<PAGE>

Administrator, if any, shall, no later than the Determination Date of the month
of such Distribution Date, mail or cause to be mailed to each Person in whose
name a Certificate to be so retired is registered at the close of business on
the Record Date, to the Underwriters and to each Rating Agency a notice to the
effect that:

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

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

     (e) Prior to the Credit Support Depletion Date, distributions in reduction
of the outstanding Certificate Principal Balance of the Class A-7 Certificates
will be made in integral multiples of $1,000 at the request of the appropriate
representatives of Deceased Holders of Certificates and at the request of Living
Holders of Certificates or by mandatory distributions, pursuant to Section
4.1(e)(i) and Section 4.1(e)(iv). On and after the Credit Support Depletion
Date, distributions in reduction of the outstanding Certificate Principal
Balance of the Class A-7 Certificates will be made on a pro rata basis pursuant
to Section 4.1(e)(v).

         (i) On each Distribution Date prior to the Credit Support Depletion
     Date on which principal distributions to the Class A-7 Certificates are
     made pursuant to Section 4.1, such distributions shall be made to the Class
     A-7 Certificateholders by the Depository pursuant to the Depository
     Agreement in the following priority:

            (1) first, to requesting Deceased Holders, in the order in which
         such requests are received by the Depository, but not exceeding an
         aggregate amount of $100,000 for each requesting Deceased Holder; and

            (2) second, to requesting Living Holders, in the order in which such
         requests are received by the Depository, but not exceeding an aggregate
         amount of $10,000 for each requesting Living Holder.

Thereafter, the Depository shall make distributions with respect to the Class
A-7 Certificates as provided in clauses (1) and (2) above up to a second
$100,000 and $10,000, respectively. This sequence of priorities shall be
repeated until the Depository has honored all requests for

                                      -79-
<PAGE>

principal distributions by Deceased Holders and Living Holders to the extent of
amounts available for principal distributions to the Class A-7 Certificates.

         All requests for principal distributions to the Class A-7 Certificates
     will be accepted in accordance with the provisions set forth in Section
     4.1(e)(iii). Requests for principal distributions that are received by the
     Trustee after the related Record Date and requests for principal
     distributions received in a timely manner but not accepted with respect to
     any Distribution Date, will be treated as requests for principal
     distributions by the Beneficial Holder(s) making such requests on the next
     succeeding Distribution Date, and each succeeding Distribution Date
     thereafter, until each such request is accepted or is withdrawn as provided
     in Section 4.1(e)(iii). Such requests as are not so withdrawn shall retain
     their order of priority without the need for any further action on the part
     of the appropriate Beneficial Holder of the Class A-7 Certificates, all in
     accordance with the procedures of the Depository and the Trustee. Upon the
     transfer of beneficial ownership of the Class A-7 Certificates, any
     distribution request previously submitted shall be deemed to have been
     withdrawn only upon the receipt by the Trustee, on or before the Record
     Date for any applicable Distribution Date of notification of such
     withdrawal in the manner set forth in Section 4.1(e)(iii) using a form
     required by the Depository.

         Distributions in reduction of the outstanding Certificate Principal
     Balance of the Class A-7 Certificates shall be applied by the Trustee in an
     amount equal to the portion of the Certificate Distribution Amount
     allocable to the Class A-7 Certificates, plus any amounts available for
     distribution from the Rounding Account established as provided in Section
     3.21, provided that the aggregate distribution of principal to the Class
     A-7 Certificateholders on any Distribution Date shall be made in an
     integral multiple of $1,000.

         To the extent that the portion of the Certificate Distribution Amount
     allocable to the Class A-7 Certificates on any Distribution Date exceeds
     the outstanding Certificate Principal Balance of the Class A-7 Certificates
     with respect to which principal distribution requests, as set forth above,
     have been received, principal distributions in reduction of the outstanding
     Certificate Principal Balance of the Class A-7 Certificates will be made by
     mandatory distribution pursuant to Section 4.1(e)(iv).

         (ii) The Class A-7 Certificates shall be deemed to be held by a
     Deceased Holder for purposes of this Section 4.1(e) if the death of the
     Beneficial Holder thereof is deemed to have occurred by the Trustee. Class
     A-7 Certificates beneficially owned by tenants by the entirety, joint
     tenants or tenants in common shall be considered to be beneficially owned
     by a single owner. The death of a tenant by the entirety, joint tenant or
     tenant in common shall be deemed to be the death of the Beneficial Holder,
     and the Class A-7 Certificates so beneficially owned shall be

                                      -80-
<PAGE>

     eligible for priority with respect to principal distributions, subject to
     the limitations stated above. The Class A-7 Certificates beneficially owned
     by a trust shall be considered to be beneficially owned by each beneficiary
     of the trust to the extent of such beneficiary's beneficial interest
     therein, but in no event will a trust's beneficiaries collectively be
     deemed to be Beneficial Holders of a number of Class A-7 Certificates
     greater than the number of Class A-7 Certificates of which such trust is
     the owner.

The death of a beneficiary of a trust shall be deemed to be the death of a
Beneficial Holder of Class A-7 Certificates beneficially owned by the trust to
the extent of such beneficiary's beneficial interest in such trust. The death of
an individual who was a tenant by the entirety, joint tenant or tenant in common
in a tenancy which is the beneficiary of a trust shall be deemed to be the death
of the beneficiary of such trust. The death of a person who, during his or her
lifetime, was entitled to substantially all of the beneficial ownership
interests in Class A-7 Certificates shall be deemed to be the death of the
holder of such Class A-7 Certificates regardless of the registration of
ownership, if such beneficial ownership interest can be established to the
satisfaction of the Trustee. Such beneficial interest shall be deemed to exist
in typical cases of street name or nominee ownership, ownership by a trustee,
ownership under the Uniform Gifts to Minors Act and community property or other
joint ownership arrangements between a husband and wife. Beneficial interest
shall include the power to sell, transfer or otherwise dispose of Class A-7
Certificates and the right to receive the proceeds therefrom, as well as
interest and principal distributions, as applicable, payable with respect
thereto. Neither the Trustee nor the Paying Agent shall be under any duty to
determine independently the occurrence of the death of any Deceased Holder. The
Trustee may rely entirely upon documentation delivered to it pursuant to Section
4.1(e)(iii) in establishing the eligibility of any Holder to receive the
priority accorded Deceased Holders in Section 4.1(e)(i).

     (iii) Requests for principal distributions to Class A-7 Certificates shall
be made by delivering a written request therefor to the DTC Participant or
Indirect DTC Participant that maintains the account evidencing such Beneficial
Holder's interest in such Certificate. In the case of a request on behalf of a
Deceased Holder, appropriate evidence of death and any tax waivers are required
to be forwarded to the Trustee, under separate cover; provided, however, that
the Trustee has no obligation and will incur no liability for failure to examine
the sufficiency of such tax waiver. The DTC Participant shall in turn make the
request of the Depository (or, in the case of an Indirect DTC Participant, such
Indirect DTC Participant shall notify the related DTC Participant of such
request, which DTC Participant shall make the request of the Depository) on a
form required by the Depository and provided to the DTC Participant. Upon
receipt of such request, the Depository will date and time stamp such request
and forward such request to the Trustee. The Depository may establish such
procedures as it deems fair and equitable to establish the order of receipt of
requests for such distributions received by it on the same day. None of the
Company, the Servicer, the Paying Agent or the Trustee shall be liable for any
delay in delivery of requests for distributions or

                                      -81-
<PAGE>

withdrawals of such requests by the Depository, a DTC Participant or any
Indirect DTC Participant.

     The Trustee shall maintain a list of those DTC Participants representing
the appropriate holders of Class A-7 Certificates that have submitted requests
for principal distributions, together with the order of receipt and the amounts
of such requests. The Trustee shall notify the Depository as to which requests
should be honored on each Distribution Date at least two Business Days prior to
such Distribution Date and shall notify the Depository as to the portion of the
Certificate Distribution Amount (together with any amounts available for
distribution from the Rounding Account) to be distributed to Class A-7
Certificates by mandatory distribution pursuant to Section 4.1(e)(iv). Requests
shall be honored by the Depository in accordance with the procedures, and
subject to the priorities and limitations, described in this Section 4.1(e). The
exact procedures to be followed by the Trustee and the Depository for purposes
of determining such priorities and limitations will be those established from
time to time by the Trustee or the Depository, as the case may be. The decisions
of the Trustee and the Depository concerning such matters will be final and
binding on all affected persons.

     Class A-7 Certificates that have been accepted for a distribution shall
receive distributions on the applicable Distribution Date. Such Certificates
shall cease to bear interest on the amount of principal to be distributed on any
Distribution Date after the last calendar day of the month preceding the month
in which such Distribution Date occurs.

     Any Beneficial Holder of a Class A-7 Certificate that has requested a
principal distribution may withdraw its request by so notifying in writing the
DTC Participant or Indirect DTC Participant that maintains such Beneficial
Holder's account. In the event that such account is maintained by an Indirect
DTC Participant, such Indirect DTC Participant must notify the related DTC
Participant which in turn must forward the withdrawal of such request, on a form
required by the Depository, to the Depository to be forwarded to the Trustee. If
such notice of withdrawal of a request for distribution has not been received by
the Depository and forwarded to the Trustee on or before the Record Date for the
next Distribution Date, the previously made request for a principal distribution
shall be irrevocable with respect to the making of principal distributions on
such Distribution Date.

     In the event any requests for principal distributions are rejected by the
Trustee for failure to comply with the requirements of this Section 4.1(e), the
Trustee shall return such request to the appropriate DTC Participant with a copy
to the Depository with an explanation as to the reason for such rejection.

         (iv) To the extent, if any, that principal distributions to be made to
     the applicable Class A-7 Certificates on a Distribution Date exceed the
     aggregate amount of principal distribution requests which have been
     received on or before the applicable Record Date, as provided in Section
     4.1(e)(i) above, additional Class A-7

                                      -82-
<PAGE>

     Certificates will be selected to receive mandatory principal distributions
     in lots equal to $1,000 in accordance with the then-applicable Random Lot
     procedures of the Depository, and the then-applicable procedures of the DTC
     Participants and Indirect DTC Participants representing the Beneficial
     Holders (which procedures may or may not be by random lot). The Trustee
     shall notify the Depository of the aggregate amount of the mandatory
     principal distribution to be made on the next Distribution Date. The
     Depository shall then allocate such aggregate amount among the DTC
     Participants on a Random Lot basis. Each DTC Participant and, in turn, each
     Indirect DTC Participant shall then select, in accordance with its own
     procedures, the applicable Class A-7 Certificates from among those held in
     its accounts to receive mandatory principal distributions, such that the
     total amount of principal distributed to the so selected Class A-7
     Certificates is equal to the aggregate amount of such mandatory
     distributions allocated to such DTC Participant by the Depository and to
     such Indirect DTC Participant by its related DTC Participant, as the case
     may be. DTC Participants and Indirect DTC Participants that hold Class A-7
     Certificates selected for mandatory principal distributions are required to
     provide notice of such mandatory distributions to the affected Beneficial
     Holders.

         (v) Notwithstanding any provisions herein to the contrary, on each
     Distribution Date on and after the Credit Support Depletion Date,
     distributions in reduction of the outstanding Certificate Principal Balance
     of the Class A-7 Certificates will be made pro rata (based upon their
     respective outstanding Certificate Principal Balances) among the Beneficial
     Holders of the Class A-7 Certificates and shall not be made in integral
     multiples of $1,000 nor pursuant to requests for distribution or by
     mandatory distributions as provided for by this Section 4.1(e).

         Subject to the third paragraph of Section 10.1 hereof, in the event
     that Definitive Certificates representing Class A-7 Certificates are
     issued, an amendment to this Agreement, which may be approved without the
     consent of any Certificateholders, shall establish procedures relating to
     the manner in which distributions in reduction of the outstanding
     Certificate Principal Balance of Class A-7 Certificates are to be made.

     (f) The Trustee shall from time to time make withdrawals from the Reserve
Fund on behalf of the Class A-7 and Class A-18 Certificateholders for the
following purposes:

         (i) on or prior to each Withdrawal Date, to withdraw from the Reserve
     Fund an amount equal to the lesser of (a) the sum of any Prepayment
     Interest Shortfall plus any Relief Act Interest Shortfall allocated to the
     Class A-7 Certificates pursuant to the definitions of "Interest
     Distribution Amount" and "Uncompensated Interest Shortfall" for the related
     Distribution Date, and (b) the amount on deposit in the Reserve Fund, and
     remit such amount to the Certificate Account for distribution to the Class
     A-7 and Class A-18 Certificateholders on such Distribution Date;

                                      -83-
<PAGE>

         (ii) on the earlier of (a) the Distribution Date on which the Class
     Principal Balance of the Class A-2 Certificates is reduced to zero and (b)
     the termination of this Agreement pursuant to Section 9.1, to clear and
     terminate the Reserve Fund and to pay all amounts on deposit therein to
     Bear, Stearns & Co. Inc. at the address supplied by it to the Trustee for
     such purpose.

     Section 4.2 Statements to Certificateholders. (a) Not later than three (3)
days prior to each Distribution Date, the Servicer shall forward to the Trustee
or the Certificate Administrator, if any, the Servicer's Section 3.10 Report
setting forth certain information with respect to the Loans. With each
distribution from the Certificate Account on a Distribution Date, the Trustee or
the Certificate Administrator, if any, shall, based on the information set forth
in the Servicer's Section 3.10 Report, prepare and forward to each
Certificateholder, a statement (each a "Certificateholders' Report") setting
forth, to the extent applicable, the amount of the distribution payable to the
applicable Class that represents principal and the amount that represents
interest, and the applicable Class Principal Balance after giving effect to such
distribution.

     In addition, not later than each Distribution Date, the Certificate
Administrator or Trustee, as applicable, shall forward to such
Certificateholder, the Trustee (if the Trustee has appointed a Certificate
Administrator), MBIA and the Depositor an additional report which sets forth
with respect to the Loans:

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

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

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

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

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

                                      -84-
<PAGE>

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

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

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

         (vii) The amount of interest accrued but not paid on the each Class of
     Certificates entitled to interest since (a) the prior Distribution Date and
     (b) the Cut-Off Date;

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

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

         (x) The amount of any withdrawal from the Reserve Fund since the prior
     Distribution Date; and

         (xi) The amount remaining in the Reserve Fund after taking into account
     amounts withdrawn from the Reserve Fund for such Distribution Date.

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

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

                                      -85-
<PAGE>

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

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

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

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

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

     In the event that the Trustee has appointed a Certificate Administrator,
prior to 5:00 P.M. New York City time on the Withdrawal Date, the Certificate
Administrator shall

                                      -86-
<PAGE>

provide the Trustee with a statement regarding the amount of principal and
interest, the Residual Distribution Amount and the Excess Liquidation Proceeds
to be distributed to each Class of Certificates on such Distribution Date (such
amounts to be determined in accordance with the definition of "Certificate
Distribution Amount", Section 4.1 hereof and other related definitions set forth
in Article I hereof).

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

     Section 4.5 Foreclosure Reports. Each year beginning in 2001 the Servicer
shall make any reports of foreclosures and abandonments of any Mortgaged
Property required by Section 6050J of the Code. In order to facilitate this
reporting process, the Servicer, on or before February 28th of each year,
commencing with 2002, shall provide to the Internal Revenue Service, the Trustee
and the Certificate Administrator, if any, reports relating to each instance
occurring during the previous calendar year in which the Servicer (i) on behalf
of the Trustee acquires an interest in a Mortgaged Property through foreclosure
or other comparable conversion in full or partial satisfaction of a Loan, or
(ii) knows or has reason to know that a Mortgaged Property has been abandoned.
The reports from the Servicer shall be in form and substance sufficient to meet
the reporting requirements imposed by such Section 6050J.

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

                                      -87-
<PAGE>

definition of Compensating Interest for all Loans as to which Payoffs have
occurred and the rights of the Certificateholders to such portion of the
Servicing Fee shall not be cumulative.

     Section 4.7 Prohibited Transactions Taxes and Other Taxes.

     (a) In the event that any tax (including a tax on "prohibited transactions"
as defined in Section 860F(a)(2) of the Code and including any and all interest,
penalties, fines and additions to tax, as well as any and all reasonable counsel
fees and out-of-pocket expenses incurred in contesting the imposition of such
tax) is imposed on the Trust Fund and is not otherwise paid pursuant to Section
4.7(b) hereof, the Servicer shall pay such taxes when and as the same shall be
due and payable (but such obligation shall not prevent the Servicer, the
Trustee, the Certificate Administrator, if any, or any other appropriate Person
from contesting any such tax in appropriate proceedings and shall not prevent
the Servicer from withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings); provided, that the Servicer shall be entitled
to be indemnified for any such taxes (excluding taxes referred to in Section
4.7(b)) to the extent set forth in Section 6.3 hereof so long as the Servicer's
failure to exercise reasonable care with respect to the performance of its
duties hereunder was not the primary cause of the imposition of such taxes. If
the Servicer is indemnified for such taxes pursuant to this Section 4.7(a), such
amount shall be first charged against amounts otherwise distributable to the
Holders of Component R-1 of the Class R Certificate (or, if the tax relates to
REMIC II, Component R-2 of the Class R Certificate) on a pro rata basis, then
against amounts otherwise distributable with respect to the REMIC I Regular
Interests (or, if the tax relates to REMIC II, to the Holders of the REMIC II
Certificates) on a pro rata basis. The Trustee is hereby authorized to retain
from amounts otherwise distributable to the Certificateholders sufficient funds
to reimburse the Servicer for the payment of such tax for which the Servicer is
entitled to indemnification.

     (b) The Servicer shall pay on written demand, and shall indemnify and hold
harmless the Trust Fund from and against, any and all taxes imposed on the Trust
Fund (including, for this purpose, any and all interest, penalties, fines and
additions to tax, as well as any and all reasonable counsel fees and
out-of-pocket expenses incurred in contesting the imposition of such tax).

     Section 4.8 Tax Administration.

     (a) The Trustee is hereby appointed as attorney-in-fact and agent for the
initial Tax Matters Person; provided, that the Trustee may appoint, and hereby
does so appoint, the Certificate Administrator as attorney-in-fact and agent for
the Tax Matters Person. The Trustee may, by written notice delivered to the
Certificate Administrator, revoke the appointment of the Certificate
Administrator as attorney-in-fact and agent for the Tax Matters Person, in which
case the Trustee shall act in such capacity.

                                      -88-
<PAGE>

     (b) In order to enable the Trustee or the Certificate Administrator, as
applicable, to perform its duties as set forth in this Section 4.8 and Section
3.1(b), the Servicer agrees to provide any tax forms, instruments or other
documents related thereto, as the Trustee or the Certificate Administrator, as
applicable, may reasonably request, including, without limitation, any tax
forms, instruments or other documents prepared by the Servicer pursuant to this
Section 4.8. In order to enable the Trustee or the Certificate Administrator, as
applicable, to perform its duties as set forth in this Section 4.8 and Section
3.1(b), the Servicer shall use its best efforts to cause to be delivered to the
Trustee or the Certificate Administrator, as applicable, within ten (10) days
after the Closing Date all information or data that the Trustee or the
Certificate Administrator, as applicable, determines to be relevant for tax
purposes to the valuations and offering prices of the Certificates, including,
without limitation, the price, yield, prepayment assumption and projected cash
flows. Thereafter, the Servicer shall use its best efforts to provide to the
Trustee or the Certificate Administrator, as applicable, promptly upon request
therefor, any such additional information or data that the Trustee or the
Certificate Administrator, as applicable, may, from time to time, request in
order to enable the Trustee or the Certificate Administrator, as applicable, to
perform its duties as set forth in this Section 4.8 and Section 3.1(b).

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

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

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

                                      -89-
<PAGE>

     Section 4.11 Policy Matters.

     (a) If, on the third Business Day before any Distribution Date, the Trustee
determines that a Deficiency Amount exists on such Distribution Date, the
Trustee shall give notice to MBIA and the Fiscal Agent (as defined in the Class
A-7 Policy), if any, by telephone or telecopy of the amount of such Deficiency
Amount, confirmed in writing by notice substantially in the form of Exhibit A to
the Class A-7 Policy by 12:00 noon, New York City time on such third Business
Day. The Trustee's responsibility for delivering the notice to MBIA as provided
in the preceding sentence is contingent upon its receipt of available, timely
and accurate information from the Servicer.

     (b) In the event the Trustee receives a certified copy of an order of the
appropriate court that any scheduled payment of principal or interest on a Class
A-7 Certificate has been voided in whole or in part as a preference payment
under applicable bankruptcy law, the Trustee shall (i) promptly notify MBIA and
the Fiscal Agent, if any, and (ii) comply with the provisions of the Class A-7
Policy to obtain payment by MBIA of such voided scheduled payment. In addition,
the Trustee shall mail notice to all Holders of the Class A-7 Certificates so
affected that, in the event that any such Holder's scheduled payment is so
recovered, such Holder will be entitled to payment pursuant to the terms of the
Class A-7 Policy, a copy of which shall be made available to such Holders by the
Trustee. The Trustee shall furnish to MBIA and the Fiscal Agent, if any, its
records listing the payments on the affected Class A-7 Certificates, if any,
that have been made by the Trustee and subsequently recovered from the affected
Holders, and the dates on which such payments were made by the Trustee.

     (c) At the time of the execution hereof, and for the purposes hereof, the
Trustee shall establish a separate special purpose trust account in the name of
the Trustee for the benefit of Holders of the Class A-7 Certificates (the "Class
A-7 Policy Payments Account") over which the Trustee shall have exclusive
control and sole right of withdrawal. The Class A-7 Policy Payments Account
shall be an Eligible Account. The Trustee shall deposit any amount paid under
the Class A-7 Policy into the Class A-7 Policy Payments Account and distribute
such amount only for the purposes of making the payments to Holders of the Class
A-7 Certificates in respect of the Insured Payment for which the related claim
was made under the Class A-7 Policy. Such amounts shall be allocated by the
Trustee to Holders of Class A-7 Certificates affected by such shortfalls in the
same manner as principal and interest payments are to be allocated with respect
to such Certificates pursuant to Section 4.1. It shall not be necessary for such
payments to be made by checks or wire transfers separate from the checks or wire
transfers used to make regular payments hereunder with funds withdrawn from the
Certificate Account. However, any payments made on the Class A-7 Certificates
from funds in the Class A-7 Policy Payments Account shall be noted as provided
in subsection (e) below. Funds held in the Class A-7 Policy Payments Account
shall not be invested by the Trustee.

                                      -90-
<PAGE>

     (d) Any funds received from MBIA for deposit into the Class A-7 Policy
Payments Account pursuant to the Class A-7 Policy in respect of a Distribution
Date or otherwise as a result of any claim under the Class A-7 Policy shall be
applied by the Trustee directly to the payment in full (i) of the Deficiency
Amount due on such Distribution Date on the Class A-7 Certificates, or (ii) of
other amounts payable under the Class A-7 Policy. Funds received by the Trustee
as a result of any claim under the Class A-7 Policy shall be used solely for
payment to the Holders of the Class A-7 Certificates and may not be applied for
any other purpose, including, without limitation, satisfaction of any costs,
expenses or liabilities of the Trustee, the Servicer or the Trust Fund. Any
funds remaining in the Class A-7 Policy Payments Account on the first Business
Day after each Distribution Date shall be remitted promptly to MBIA pursuant to
the written instruction of MBIA.

     (e) The Trustee shall keep complete and accurate records in respect of (i)
all funds remitted to it by MBIA and deposited into the Class A-7 Policy
Payments Account and (ii) the allocation of such funds to (A) payments of
interest on and principal in respect of any Class A-7 Certificates, (B) Realized
Losses allocated to the Class A-7 Certificates, (C) the Net Interest Shortfalls
allocated to the Class A-7 Certificates and (D) the amount of funds available to
make distributions on the Class A-7 Certificates pursuant to Sections 4.1(b) and
(f) including all amounts in the Reserve Fund. MBIA shall have the right to
inspect such records at reasonable times during normal business hours upon three
Business Days' prior notice to the Trustee.

     (f) The Trustee acknowledges, and each Holder of a Class A-7 Certificate by
its acceptance of the Class A-7 Certificate agrees, that, without the need for
any further action on the part of MBIA or the Trustee to the extent MBIA makes
payments, directly or indirectly, on account of principal of or interest on any
Class A-7 Certificates, MBIA will be fully subrogated to the rights of the
Holders of such Class A-7 Certificates to receive such principal and interest
from the Trust Fund. The Holders of the Class A-7 Certificates, by acceptance of
the Class A-7 Certificates, assign their rights as Holders of the Class A-7
Certificates to the extent of MBIA's interest with respect to amounts paid under
the Class A-7 Policy. Anything herein to the contrary notwithstanding, solely
for purposes of determining MBIA's rights, as applicable, as subrogee for
payments distributable pursuant to Section 4.1, any payment with respect to
distributions to the Class A-7 Certificates which is made with funds received
pursuant to the terms of the Class A-7 Policy, shall not be considered payment
of the Class A-7 Certificates from the Trust Fund and shall not result in the
distribution or the provision for the distribution in reduction of the Class
Principal Balance of the Class A-7 Certificates within the meaning of Article
IV.

     The Trustee and the Servicer shall cooperate in all respects with any
reasonable request by MBIA for action to preserve or enforce MBIA's rights or
interests under this Agreement without limiting the rights or affecting the
interests of the Holders as otherwise set forth herein.

                                      -91-
<PAGE>

     (g) Upon its becoming aware of the occurrence of an Event of Default, the
Trustee shall promptly notify MBIA of such Event of Default.

     (h) The Trustee shall promptly notify MBIA of either of the following as to
which a Responsible Officer has actual knowledge: (A) the commencement of any
proceeding by or against the Depositor commenced under the United States
bankruptcy code or any other applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (an "Insolvency Proceeding") and (B) the making of
any claim in connection with any Insolvency Proceeding seeking the avoidance as
a preferential transfer (a "Preference Claim") of any distribution made with
respect to the Class A-2 Certificates as to which it has actual knowledge. Each
Holder of a Class A-7 Certificate, by its purchase of Class A-7 Certificates,
and the Trustee hereby agrees that MBIA (so long as no MBIA Default exists) may
at any time during the continuation of any proceeding relating to a Preference
Claim direct all matters relating to such Preference Claim, including, without
limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance
bond pending any such appeal. In addition and without limitation of the
foregoing, MBIA shall be subrogated to the rights of the Trustee and each Holder
of a Class A-7 Certificate in the conduct of any Preference Claim, including,
without limitation, all rights of any party to an adversary proceeding action
with respect to any court order issued in connection with any such Preference
Claim.

     (i) The Servicer shall designate an MBIA Contact Person who shall be
available to MBIA to provide reasonable access to information regarding the
Loans. The initial MBIA Contact Person is to the attention of Secondary
Marketing.

     (j) The Trustee shall promptly surrender the Class A-7 Policy to MBIA for
cancellation upon the reduction of the Class Principal Balance of the Class A-7
Certificates to zero.

     (k) The Trustee shall send to MBIA the certificates and statements prepared
pursuant to Sections 3.11 and 3.12 and the statements prepared pursuant to
Section 4.2, as well as any other statements or communications sent to Holders
of the Class A-7 Certificates, in each case at the same time such reports,
statements and communications are otherwise sent.

     (l) For so long as there is not continuing default by MBIA under its
obligations under the Class A-7 Policy (an "MBIA Default"), each Holder of a
Class A-7 Certificate agrees that MBIA shall be treated by the Depositor, the
Servicer and the Trustee as if MBIA were the Holder of all Class A-7
Certificates for the purpose (and solely for the purpose) of the giving of any
consent, the making of any direction or the exercise of any voting or other
control rights otherwise given the Holders of the Class A-7 Certificates
hereunder without any further consent of the Holders of the Class A-7
Certificates.

                                      -92-
<PAGE>

     With respect to this Section 4.11, (i) the terms "Receipt" and "Received"
shall mean actual delivery to MBIA and MBIA's Fiscal Agent, if any, received
prior to 12:00 noon, New York City time, on a Business Day; delivery either on a
day that is not a Business Day or after 12:00 noon, New York City time, shall be
deemed to be Received on the next succeeding Business Day. If any notice or
certificate given under the Class A-7 Policy by the Trustee is not in proper
form or is not properly completed, executed or delivered, it shall be deemed not
to have been Received. MBIA or its Fiscal Agent, if any, shall promptly so
advise the Trustee and the Trustee may submit an amended notice and (ii)
"Business Day" means any day other than (A) a Saturday or Sunday, (B) a day on
which MBIA is closed or (C) a day on which banking institutions in the City of
New York, New York, or in which the Corporate Trust Office of the Trustee is
located, are authorized or obligated by law or executive order to be closed.

                                    ARTICLE V

                                THE CERTIFICATES

     Section 5.1 The Certificates.

     (a) The Certificates shall be substantially in the forms set forth in
Exhibits A and B attached hereto, and shall be executed by the Trustee,
authenticated by the Trustee (or any duly appointed Authenticating Agent) and
delivered to or upon the order of the Depositor upon receipt by the Trustee of
the documents specified in Section 2.1. The Certificates shall be issuable in
Authorized Denominations evidencing Percentage Interests. Certificates shall be
executed by manual or facsimile signature on behalf of the Trust Fund by
authorized officers of the Trustee. Certificates bearing the manual or facsimile
signatures of individuals who were at the time of execution the proper officers
of the Trustee shall bind the Trust Fund, notwithstanding that such individuals
or any of them have ceased to hold such offices prior to the authentication and
delivery of such Certificates or did not hold such offices at the date of such
Certificates. No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein
executed by the Trustee or any Authenticating Agent by manual signature, and
such certificate upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.

     (b) The following definitions apply for purposes of this Section 5.1:
"Disqualified Organization" means any Person which is not a Permitted
Transferee, but does not include any "Pass-Through Entity" which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary; "Pass-Through Entity"
means any regulated investment company, real estate investment trust, common
trust fund, partnership, trust or estate, and any organization to

                                      -93-
<PAGE>

which Section 1381 of the Code applies; "Ownership Interest" means, with respect
to any Residual Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as the Holder
thereof and any other interest therein whether direct or indirect, legal or
beneficial, as owner or as pledgee; "Transfer" means any direct or indirect
transfer or sale of, or directly or indirectly transferring or selling, any
Ownership Interest in a Residual Certificate; and "Transferee" means any Person
who is acquiring by Transfer any Ownership Interest in a Residual Certificate.

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

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

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

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

                                      -94-
<PAGE>

         proposed Transfer is to allow such Holder to impede the assessment or
         collection of tax.

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

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

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

         (iii) (A) If any Disqualified Organization shall become a Holder of a
     Residual Certificate, then the last preceding Permitted Transferee shall be
     restored, to the extent permitted by law, to all rights and obligations as
     Holder thereof retroactive to the date of registration of such Transfer of
     such Residual Certificate. If any Non-U.S. Person shall become a Holder of
     a Residual Certificate, then the last preceding Holder which is a U.S.
     Person shall be restored, to the extent permitted by law, to all rights and
     obligations as Holder thereof retroactive to the date of registration of
     the Transfer to such Non-U.S. Person of such Residual Certificate. If a
     transfer of a Residual Certificate is disregarded pursuant to the
     provisions of Treasury Regulations Section 1.860E-1 or Section 1.860G- 3,
     then the last preceding Permitted Transferee shall be restored, to the
     extent permitted by law, to all rights and obligations as Holder thereof
     retroactive to the date of registration of such Transfer of such Residual
     Certificate. The Trustee, the Certificate Administrator, the Certificate
     Registrar and the Paying Agent shall be under no liability to any Person

                                      -95-
<PAGE>

     for any registration of Transfer of a Residual Certificate that is in fact
     not permitted by this Section 5.1(c) or for making any payments due on such
     Certificate to the Holder thereof or for taking any other action with
     respect to such Holder under the provisions of this Agreement.

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

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

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

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

                                      -96-
<PAGE>

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

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

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

                                      -97-
<PAGE>

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

         (vii) The Holder of the Class R Certificate issued hereunder, while not
     a Disqualified Organization, is the Tax Matters Person.

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

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

     (e) No transfer, sale, pledge or other disposition of a Junior Subordinate
Certificate shall be made unless such transfer, sale, pledge or other
disposition is made in accordance with this Section 5.1(e) or Section 5.1(f).
Each Person who, at any time, acquires any ownership interest in any Junior
Subordinate Certificate shall be deemed by the acceptance or acquisition of such
ownership interest to have agreed to be bound by the following provisions of
this Section 5.1(e) and Section 5.1(f), as applicable. No transfer of a Junior
Subordinate Certificate shall be deemed to be made in accordance with this
Section 5.1(e) unless such transfer is made pursuant to an effective
registration statement

                                      -98-
<PAGE>

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

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

                                      -99-
<PAGE>

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

     Section 5.2 Certificates Issuable in Classes; Distributions of Principal
and Interest; Authorized Denominations. The aggregate principal amount of
Certificates that may be authenticated and delivered under this Agreement is
limited to the aggregate Principal Balance of the Loans as of the Cut-Off Date,
as specified in the Preliminary Statement to this Agreement, except for
Certificates authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Certificates pursuant to Section 5.3. Such
aggregate principal amount shall be allocated among one or more Classes having
designations, types of interests, initial per annum Remittance Rates, initial
Class Principal Balances, initial Component Principal Balances and last
scheduled Distribution Dates as specified in the Preliminary Statement to this
Agreement. The aggregate Percentage Interest of each Class of Certificates of
which the Class Principal Balance equals zero as of the Cut-Off Date that may be
authenticated and delivered under this Agreement is limited to 100%.
Certificates shall be issued in Authorized Denominations.

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

     Upon surrender for registration of transfer of any Certificate to the
Trustee at the office of First Trust of New York, National Association, 100 Wall
Street, Suite 1600, New York, NY 10005, Attention: Glenn Anderson, or such other
address or agency as may hereafter be provided to the Certificate Administrator,
if any, and the Servicer in writing by the Trustee, the Trustee shall execute,
and the Trustee or any Authenticating Agent shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Certificates of Authorized Denominations of like Percentage Interest. At the
option of the Certificateholders, Certificates may be exchanged for other
Certificates in Authorized Denominations of like Percentage Interest, upon
surrender of the Certificates to be exchanged at any such office or agency.
Whenever any Certificates are so surrendered for exchange, the Trustee shall
execute, and the Trustee, or any Authenticating Agent, shall authenticate and
deliver, the Certificates which the Certificateholder making the exchange is
entitled to receive. Every Certificate presented or surrendered for transfer
shall (if so required by the Trustee or any Authenticating Agent) be duly
endorsed by, or be

                                     -100-
<PAGE>

accompanied by a written instrument of transfer in form satisfactory to the
Trustee or any Authenticating Agent and duly executed by, the Holder thereof or
such Holder's attorney duly authorized in writing.

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

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

     Section 5.4 Mutilated, Destroyed, Lost or Stolen Certificates. If (i) any
mutilated Certificate is surrendered to the Trustee or any Authenticating Agent,
or (ii) the Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and there is
delivered to the Trustee or any Authenticating Agent (and with respect to the
Class A-7 Certificates, MBIA) 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 any Authenticating Agent that such Certificate has been acquired by a
bona fide purchaser, the Trustee shall execute and the Trustee or any
Authenticating Agent shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like Percentage Interest. Upon the issuance of any new Certificate under this
Section 5.4, the Trustee or any Authenticating Agent may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee or any Authenticating Agent) connected therewith. Any
replacement Certificate issued pursuant to this Section 5.4 shall constitute
complete and indefeasible evidence of ownership in the Trust Fund, as if
originally issued, whether or not the lost or stolen Certificate shall be found
at any time.

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

     Section 5.6 Temporary Certificates. Upon the initial issuance of the
Certificates, the Trustee may execute, and the Trustee or any Authenticating
Agent shall authenticate and deliver, temporary Certificates which are printed,
lithographed, typewritten or otherwise produced, in any Authorized Denomination,
of the tenor of the definitive Certificates in lieu of which they are issued and
with such variations in form from the forms of the Certificates

                                     -101-
<PAGE>

set forth as Exhibits A and B hereto as the Trustee's officers executing such
Certificates may determine, as evidenced by their execution of the Certificates.
Notwithstanding the foregoing, the Certificates may remain in the form set forth
in this Section.

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

     Section 5.7 Book-Entry for Book-Entry Certificates. Notwithstanding the
foregoing, the Book-Entry Certificates, upon original issuance, shall be issued
in the form of one or more typewritten Certificates of Authorized Denomination
representing the Book-Entry Certificates, to be delivered to DTC, the initial
Clearing Agency, by, or on behalf of, the Depositor. The Book-Entry Certificates
shall initially be registered on the Certificate Register in the name of Cede &
Co., the nominee of DTC, as the initial Clearing Agency, and no Beneficial
Holder shall receive a definitive certificate representing such Beneficial
Holder's interest in any Class of Book-Entry Certificate, except as provided
above and in Section 5.9. Each Book-Entry Certificate shall bear the following
legend:

     Unless this Certificate is presented by an authorized representative of The
     Depository Trust Company, a New York corporation ("DTC"), to the Trustee or
     its agent for registration of transfer, exchange, or payment, and any
     Certificate issued is registered in the name of Cede & Co. or such other
     name as is requested by an authorized representative of DTC (and any
     payment is made to Cede & Co. or to such other entity as is requested by an
     authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
     FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
     registered owner hereof, Cede & Co., has an interest herein.

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

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

                                     -102-
<PAGE>

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

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

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

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

     Section 5.8 Notices to Clearing Agency. Whenever notice or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.9, the Trustee shall give all such
notices and communications specified herein to be given to Holders of the
Book-Entry Certificates to the Clearing Agency which shall give such notices and
communications to the related DTC Participants in accordance with its applicable
rules, regulations and procedures.

     Section 5.9 Definitive Certificates. If (a) the Clearing Agency notifies
the Certificate Administrator, if any, or the Trustee that it is no longer
willing or able to discharge properly its responsibilities under the Depositary
Agreement with respect to the Book-Entry Certificates and the Trustee or the
Certificate Administrator is unable to locate a qualified successor, (b) the
Depositor, at its option, advises the Certificate Administrator, if any, or the
Trustee in writing that it elects to terminate the book-entry system with
respect to the Book-Entry Certificates through the Clearing Agency or (c) after
the occurrence of an Event of Default, Certificateholders holding Book-Entry
Certificates evidencing Percentage Interests aggregating not less than 66% of
the aggregate Class Principal Balance of such

                                     -103-
<PAGE>

Certificates advise the Certificate Administrator, if any, or the Trustee and
the Clearing Agency through DTC Participants in writing that the continuation of
a book-entry system with respect to the Book-Entry Certificates through the
Clearing Agency is no longer in the best interests of the Certificateholders
with respect to such Certificates, the Trustee shall notify or cause to be
notified all Certificateholders of Book-Entry Certificates of the occurrence of
any such event and of the availability of Definitive Certificates. Upon
surrender to the Trustee of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency for
registration, the Trustee shall execute and the Trustee or any Authenticating
Agent shall authenticate and deliver the Definitive Certificates. Neither the
Depositor, the Certificate Administrator, if any, the Authenticating Agent nor
the Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Certificates for all of the
Certificates all references herein to obligations imposed upon or to be
performed by the Clearing Agency shall be deemed to be imposed upon and
performed by the Trustee, the Certificate Administrator, if any, and the
Trustee, the Certificate Administrator, the Certificate Registrar and the Paying
Agent shall recognize the Holders of Definitive Certificates as
Certificateholders hereunder.

     Section 5.10 Office for Transfer of Certificates. The Trustee shall
maintain in New York, New York, an office or agency where Certificates may be
surrendered for registration of transfer or exchange. First Trust of New York,
National Association, 100 Wall Street, Suite 1600, New York, New York 10005,
Attention: Glenn Anderson, is initially designated for said purposes. The
Trustee will give prompt written notice to the Certificateholders and MBIA of
any change in such location of any such office or agency.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

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

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

                                     -104-
<PAGE>

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

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

     Section 6.4 Servicer Not to Resign. The Servicer shall not resign from the
obligations and duties hereby imposed on it, except upon determination that its
duties hereunder are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it, the other activities of the

                                     -105-
<PAGE>

Servicer so causing such a conflict being of a type and nature carried on by the
Servicer at the date of this Agreement. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee. The Servicer shall notify each Rating Agency of
any such resignation. No such resignation shall become effective until a
successor servicer shall have assumed the Servicer's responsibilities and
obligations in accordance with Section 7.5 hereof.

     Notwithstanding the limitations stated above, the Servicer may transfer its
obligations, duties and rights hereunder without the consent of the
Certificateholders, provided, that (i) the Servicer obtains the prior written
consent of each Rating Agency, (ii) the transferee is a FNMA- or FHLMC-approved
servicer having a net worth of not less than $15,000,000, (iii) the successor
servicer assumes all of the Servicer's responsibilities and obligations in
accordance with Section 7.5 hereof, and (iv) the then-current rating of the
Class A Certificates will not be reduced as a result of such transfer, without
regard to the guaranty provided by the Class A-7 Policy, and (v) the successor
servicer has, in the reasonable opinion of the Trustee, the qualifications,
resources and experience to properly carry out, observe and perform the duties,
obligations and responsibilities of Servicer hereunder; provided, that the
foregoing clause (v) is intended solely for the benefit of (and may be exercised
or waived at the sole discretion of) the Trustee, to enable the Trustee to
assure itself that any successor Servicer has such acceptable qualifications,
resources and experience, and such clause (v) is not intended to be for the
benefit of, and shall not be relied upon or enforced by, any Certificateholder,
and provided, further, that any consent to such transfer will not be
unreasonably withheld by the Trustee.

                                   ARTICLE VII

                                     DEFAULT

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

         (i) any failure by the Servicer to distribute or cause to be
     distributed to the Trustee or its delegate on the Withdrawal Date any
     payment required to be made to the Trustee under the terms of this
     Agreement;

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

                                     -106-
<PAGE>

     less than 25% of the Trust Fund or 51% of the aggregate Percentage
     Interests of any Class of Certificates;

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

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

         (v) the Servicer shall admit in writing its inability to pay its debts
     generally as they become due, file a petition to take advantage of any
     applicable insolvency or reorganization statute, make an assignment for the
     benefit of its creditors or voluntarily suspend payment of its obligations;
     or

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

then, if an Event of Default described in clauses (i)-(v) of this Section 7.1
shall occur, and in each and every such case, subject to applicable law, so long
as an Event of Default shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund or 51% of the aggregate Percentage Interests of any Class of Certificates
by notice in writing to the Servicer (and to the Trustee if given by the
Certificateholders) may terminate all of the rights and obligations of the
Servicer under this Agreement, but without prejudice to any rights it may have
to reimbursement of expenses, Advances and other advances of its own funds as
Servicer to the extent permitted by this Agreement, other than the Depositor's
(or its successors') obligation to repurchase any Loans pursuant to Section 2.2
or 2.3 shall survive any such termination. If an Event of Default described in
clause (vi) hereof shall occur, the Trustee shall, by notice in writing to the
Servicer, which shall be telecopied to the Servicer, immediately terminate all
of the rights and obligations of the Servicer, under this Agreement and in and
to the Loans and the proceeds thereof. On or after the receipt by the Servicer
of such written notice, all authority and power of the Servicer under this
Agreement, whether with respect to the Certificates or the Loans or otherwise,
shall pass to and be vested in the Trustee pursuant to and under this Section
7.1 (subject to the provisions of Section 7.5); and, without limitation, the
Trustee is hereby authorized and empowered to execute and deliver, on behalf of
the Servicer, as

                                     -107-
<PAGE>

attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Loans and related documents or otherwise at the
expense of the Servicer. The Servicer agrees to cooperate with the Trustee in
effecting the termination of the Servicer's responsibilities and rights
hereunder and shall promptly provide the Trustee all documents and records
whether in written or electronic form reasonably requested by it to enable it to
assume the Servicer's functions hereunder and shall promptly also transfer to
the Trustee of this Agreement all amounts which then have been or should have
been deposited in the Custodial Account for P&I by the Servicer or which are
thereafter received with respect to the Loans as well as any escrowed funds held
by it or in connection with its servicing activities hereunder. The Servicer and
the Trustee shall give each Rating Agency notice of any Event of Default.

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

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

                                     -108-
<PAGE>

the Trustee in good faith determines that the action or proceeding so directed
would involve it in personal liability or be unjustly prejudicial to the
non-assenting Certificateholders or if the Trustee has received contrary
directions pursuant to this Section 7.3.

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

     Section 7.5 Appointment of Successor Servicer.

     (a) When the Servicer receives a notice of termination pursuant to Section
7.1 or the Trustee receives the resignation of the Servicer evidenced by an
Opinion of Counsel pursuant to Section 6.4, the Trustee shall become the
successor in all respects to the Servicer in its capacity as Servicer under this
Agreement and the transactions set forth or provided for herein, provided,
however, that the Trustee's obligation to make any Advances shall be no greater
than set forth in Section 4.3 of this Agreement, and the Trustee shall have all
the rights and powers and be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof and in its capacity as such successor shall have the same limitation of
liability herein granted to the Servicer and provided, further, that the Trustee
shall not be required to make an Advance from its own funds if such Advance
would be prohibited by law. As compensation therefor, the Trustee shall be
entitled to receive monthly an amount not to exceed the Servicing Fee as agreed
by the Trustee and the Servicer, together with such other servicing compensation
in the form of assumption fees, late charges, prepayment fees or otherwise
provided in Section 3.9. If the agreed amount is less than the Servicing Fee,
the excess shall be paid to the Class R Certificateholder. If the Trustee and
the Servicer shall not agree on the amount of such compensation, the Trustee
shall solicit bids for a successor servicer as described in Section 7.5(b),
provided, however, if no successor servicer is obtained through the bidding
process, the Trustee may act as such, or may pursuant to Section 7.5(b) appoint
a successor servicer to act as such, for the Servicing Fee together with such
other servicing compensation as provided in Section 3.9. In no event shall the
Trustee's assumption of or succession to the obligations of the Servicer make
the Trustee liable for any actions or omissions of the Servicer in its capacity
as Servicer.

     (b) Notwithstanding the above, the Trustee may and shall, if it is unable
(or unwilling due to disagreement on compensation as provided in Section 7.5
(a)) to act as

                                     -109-
<PAGE>

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

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

                                     -110-
<PAGE>

hereunder or any portion thereof caused by the failure of the Servicer to
deliver, or any delay in delivering, cash, documents or records to it.

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

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     Section 8.1 Duties of Trustee. The Trustee, prior to the occurrence of an
Event of Default and after the curing of all Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. In case an Event of Default has
occurred (which has not been cured), the Trustee, subject to the provisions of
Sections 7.1, 7.3, 7.4 and 7.5, shall exercise such of the rights and powers
vested in it by this Agreement, and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs. Any permissive right of the Trustee
enumerated in this Agreement shall not be construed as a duty.

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

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

         (i) Prior to the occurrence of an Event of Default and after the curing
     of all such Events of Default which may have occurred, the duties and
     obligations of the

                                     -111-
<PAGE>

     Trustee shall be determined solely by the express provisions of this
     Agreement, the Trustee shall not be liable except for the performance of
     such duties and obligations as are specifically set forth in this
     Agreement, no implied covenants or obligations shall be read into this
     Agreement against the Trustee and, in the absence of bad faith on the part
     of the Trustee, the Trustee may conclusively rely, as to the truth of the
     statements and the correctness of the opinions expressed therein, upon any
     certificates or opinions furnished to the Trustee and conforming to the
     requirements of this Agreement;

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

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

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

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

         (vi) Subject to the other provisions of this Agreement and without
     limiting the generality of this Section 8.1, the Trustee shall have no duty
     (A) to see to any recording, filing, or depositing of this Agreement or any
     agreement referred to herein or any financing statement or continuation
     statement evidencing a security interest, or to see to the maintenance of
     any such recording or filing or depositing or to any rerecording, refiling
     or redepositing of any thereof, (B) to see any insurance, (C) to see to the
     payment or discharge of any tax, assessment, or other governmental charge
     or any lien or encumbrance of any kind owing with respect to, assessed or
     levied against, any part of the Trust Fund other than from funds available
     in the Certificate Account, and (D) to confirm or verify the contents of
     any reports or certificates of the

                                     -112-
<PAGE>

     Servicer delivered to the Trustee pursuant to this Agreement believed by
     the Trustee to be genuine and to have been signed or presented by the
     proper party or parties.

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

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

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

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

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

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

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

                                     -113-
<PAGE>

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

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

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

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

                                     -114-
<PAGE>

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

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

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

                                     -115-
<PAGE>

     Section 8.7 Eligibility Requirements for Trustee. The Trustee hereunder
shall at all times be a corporation or association organized and doing business
under the laws of any state of the United States of America, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
federal or state authority. The Trustee shall not control the Servicer nor be a
parent of or a subsidiary of the Servicer. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.7 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.7, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.8.

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

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

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

                                     -116-
<PAGE>

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

     Section 8.9 Successor Trustee. Any successor trustee appointed as provided
in Section 8.8 shall execute, acknowledge and deliver to the Servicer and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective, and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein. The predecessor trustee shall deliver or cause to be
delivered to the successor trustee all Mortgage Files and related documents and
statements held by it hereunder (other than any Mortgage Files at the time held
by the Custodian, if it shall agree to become the agent of any successor trustee
hereunder), and the Servicer and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in the successor trustee all
such rights, powers, duties and obligations.

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

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

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

     Section 8.11 Appointment of Co-Trustee or Separate Trustee. Notwithstanding
any other provisions hereof, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the Trust Fund or property
securing the same may at the time be located, the Servicer and the Trustee
acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trustee

                                     -117-
<PAGE>

to act as co-trustee or co-trustees, jointly with the Trustee, or separate
trustee or separate trustees, of all or any part of the Trust Fund, and to vest
in such Person or Persons, in such capacity, such title to the Trust Fund, or
any part thereof, and, subject to the other provisions of this Section 8.11,
such powers, duties, obligations, rights and trusts as the Servicer and the
Trustee may consider necessary or desirable. If the Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in case an Event of Default shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment. Each co-trustee
separate trustee hereunder shall not be required to meet the terms of
eligibility as a successor trustee under Section 8.7 hereunder and no notice to
holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 8.9 hereof.

     In the case of any appointment of a co-trustee or separate trustee pursuant
to this Section 8.11, all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly, except
to the extent that under any law of any jurisdiction in which any particular act
or acts are to be performed (whether as Trustee hereunder or as successor to the
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust Fund or a portion thereof in any
such jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

     Any notice, request or other writing given to the Trustee shall be deemed
to have been given to each of the then separate trustees and co-trustees, as
effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

     Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. The Trustee shall not be responsible
for any action or inaction of any such separate trustee or co-trustee. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or
be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee.

                                     -118-
<PAGE>

     The Trustee may appoint one or more Eligible Institutions to act as its
agent or agents to perform any or all of its duties and obligations under this
Agreement. Each such agent shall be subject to all of the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Trustee.

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

     Section 8.13 Authenticating Agent.

     (a) The Trustee may appoint from time to time an authenticating agent (the
"Authenticating Agent") which shall be authorized to act on behalf of the
Trustee in authenticating Certificates. Wherever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by the Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by the
Authenticating Agent. Any successor Authenticating Agent must be acceptable to
the Servicer and have a principal office and place of business in New York, New
York or Chicago, Illinois, have a combined capital and surplus of at least
$50,000,000, and be authorized to do a trust business and subject to supervision
or examination by federal or state authorities.

     (b) Any corporation into which the Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency business of the Authenticating Agent, shall continue to be
the Authenticating Agent without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

     (c) The Authenticating Agent may at any time resign by giving at least 30
days' advance written notice of resignation to the Trustee and to the Servicer.
The Trustee may at any time terminate the agency of the Authenticating Agent by
giving written notice of termination to the Authenticating Agent and to the
Servicer. Upon receiving a notice of resignation or upon such a termination, or
in case at any time the Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 8.13, the Trustee promptly shall
appoint a successor Authenticating Agent, shall give written notice of such

                                     -119-
<PAGE>

appointment to the Servicer and shall mail notice of such appointment to all
Certificateholders. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section
8.13.

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

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

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

     Section 8.16 [Reserved].

                                   ARTICLE IX

                                   TERMINATION

     Section 9.1 Termination upon Purchase by the Depositor or Liquidation of
All Loans. The respective obligations and responsibilities of the Servicer and
the Trustee created hereby (other than the obligation to make payments to
Certificateholders as hereafter set forth in this Section 9.1 and obligations to
the Trustee in Sections 8.4 and 8.6) shall terminate upon the earlier of (i) the
later of the final payment or other liquidation (or any Advance with respect
thereto) of the last Loan remaining in the Trust Fund and the disposition of all
property acquired in respect of any Loan or (ii) the purchase by the Depositor
of all Loans at a price equal to the sum of (a) the principal balance of each
Loan

                                     -120-
<PAGE>

plus accrued interest thereon at the applicable Mortgage Interest Rate to the
next scheduled Installment Due Date and (b) the fair market value of all
acquired property in respect of Loans, such fair market value to be determined
by an appraiser selected by the Trustee and (c) the amount of any MBIA
Reimbursement Amount due to MBIA or (iii) the purchase by the Servicer, so long
as the Servicer is the Depositor, of all outstanding Certificates and delivery
of such Certificates to the Trustee and payment to MBIA of any outstanding MBIA
Reimbursement Amount; provided, however, that in no event shall the trust
created hereby continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of
the United States to the Court of St. James, living on the date hereof; and
provided, further, that a "plan of liquidation" of each of REMIC I and II in
accordance with Section 860F of the Code must be adopted in conjunction with any
termination effected pursuant to subclauses (i), (ii), or (iii) of this Section
9.1.

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

     Notice of any termination pursuant to clause (i), (ii) or (iii) above,
specifying the Distribution Date upon which all Certificateholders may surrender
their Certificates to the Trustee or its agent for payment and cancellation,
shall be given promptly by the Trustee or its agent (upon direction by the
Servicer no less than 10 days prior to the date such notice is to be mailed) by
letter to Certificateholders, MBIA and each Rating Agency mailed by first class
mail no later than the 25th day of the month preceding the month of such final
distribution specifying (i) the Distribution Date upon which final payment on
the Certificates will be made upon presentation and surrender of Certificates at
the office or agency of the Trustee or the Certificate Registrar therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office or agency of the Trustee or the Certificate Registrar therein specified.
The Trustee or its agent shall give such notice to the Certificate Registrar and
each Rating Agency at the time such notice is given to the Certificateholders.
Upon any such termination, the duties of the Certificate Registrar shall also
terminate. In the event such notice is given, the Trustee shall cause all funds
on deposit in the Reserve Fund in excess of amounts to be distributed to the
Class A-7 and Class A-18 Certificateholders on the final Distribution Date, to
be distributed to Bear, Stearns & Co. Inc., the beneficial owner of the Reserve
Fund, and all funds on deposit in the Rounding Account to be distributed to
Bear, Stearns & Co. Inc., the beneficial owner of the Rounding Account, at the
addresses supplied by Bear, Stearns & Co. Inc. to the Trustee for such purpose.
In the event such notice is given in connection with Depositor's election to
purchase, the Depositor shall deposit in the Certificate Account on the related
Withdrawal Date an amount equal to the above-described purchase price and

                                     -121-
<PAGE>

upon such deposit Certificateholders and MBIA will be entitled to the amount of
such purchase price but not amounts in excess thereof, all as provided herein.
With respect to the Certificates, upon presentation and surrender of the
Certificates pursuant to any termination under this Section 9.1, the Trustee or
Paying Agent shall cause to be distributed to Certificateholders and MBIA an
amount equal to (a) the amount otherwise distributable on such Distribution
Date, if not in connection with a purchase; or (b) if the Depositor elected to
so purchase, the purchase price calculated as above provided. Upon any
termination pursuant to clause (iii) above, or upon certification to the Trustee
by a Servicing Officer following such final deposit, the Trustee and any
Custodian shall promptly release to the Servicer the Mortgage Files for the
remaining Loans, and the Trustee shall execute all assignments, endorsements and
other instruments necessary to effectuate such transfer.

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

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

     Section 9.3 Additional Termination Requirements.

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

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

         (B) At or after the time of adoption of such a plan of complete
     liquidation and at or prior to the final Distribution Date, the Servicer as
     agent of the Trustee shall

                                     -122-
<PAGE>

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

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

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

     Section 10.1 Amendment. This Agreement may be amended from time to time by
the Depositor and the Trustee, without the consent of any of the
Certificateholders, (a) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein, or
to make any other provisions with respect to matters or questions arising under
this Agreement, (b) to modify, eliminate or add to any provisions to such extent
as shall be necessary to maintain the qualification of the Trust Fund as a REMIC
at all times that any Class A or Subordinate Certificates are outstanding,
provided, that the Trustee has received an Opinion of Counsel to the effect that
such action is necessary or desirable to maintain such qualification, provided,
that such action under clauses (a) and (b) above shall not adversely affect in
any material respect the interests of any Certificateholder or MBIA or (c) such
amendment is made to conform the terms of this Agreement to the terms described
in the Prospectus dated October 12, 1999, together with the Prospectus
Supplement dated June 25, 2001.

     This Agreement may also be amended from time to time by the Depositor and
the Trustee with the consent of the Holders of Certificates evidencing, in
aggregate, not less than 50% of the Trust Fund for the purpose of adding any
provisions or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Holders of
Certificates; provided, however, that no such amendment shall (a) reduce in any
manner the amount of, or delay the timing of, payments received on Loans which
are required to be distributed in respect of any Certificate without the consent
of the Holder of such Certificate; (b) adversely affect in any material respect
the interest of the Holders of the Class A Certificates in a manner other than
as described in (a) above without the consent of the Holders of Class A
Certificates aggregating not less than 66-2/3% of the aggregate Percentage
Interest evidenced by all Class A Certificates; (c) adversely affect in any
material respect the interest of the Holders of the Subordinate Certificates in
a manner other than as described in clause (a) above without the consent of the
Holders of Subordinate Certificates aggregating not less than 66-2/3% of the
aggregate Percentage Interest

                                     -123-
<PAGE>

evidenced by all Subordinate Certificates; (d) adversely affect in any material
respect the interest of the Class R Certificateholder without the consent of the
Holder of the Class R Certificate; (e) change in any material respect the rights
and obligations of the Servicer or successor Servicer under this Agreement
without the prior written consent of such party; or (f) reduce the aforesaid
percentage of the Certificates the Holders of which are required to consent to
any such amendments without the consent of the Holders of all Certificates then
outstanding; or (g) adversely affect in any material respect the rights and
interest of MBIA without its consent, which consent shall not be unreasonably
withheld; provided, that for the purposes of this Agreement, the Holder of the
Class R Certificate shall have no right to vote at all times that any Class A
Certificates or Subordinate Certificates are outstanding if such amendment
relates to the modification, elimination or addition of any provision necessary
to maintain the qualification of the Trust Fund as a REMIC.

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

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

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

     Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement.
The Trustee may, but shall not be obligated to, enter into any such amendment
which affects the Trustee's own rights, duties or immunities under this
Agreement.

     Section 10.2 Recordation of Agreement. This Agreement (or an abstract
hereof, if acceptable by the applicable recording office) is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Servicer at its expense, but only after the Depositor has delivered to the
Trustee an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders.

                                     -124-
<PAGE>

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

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

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

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

     Section 10.4 Governing Law; Jurisdiction. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

                                     -125-
<PAGE>

(WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES), AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

     Section 10.5 Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by certified or registered mail, return receipt requested
(a) in the case of the Depositor, to ABN AMRO Mortgage Corporation, 181 West
Madison Street, Suite 3250, Chicago, Illinois 60602, Attention: Maria Fregosi -
Director - ABN AMRO Mortgage Operations, or such other address as may hereafter
be furnished to the Servicer and the Trustee in writing by the Depositor, (b) in
the case of the Servicer, to InterFirst, 777 East Eisenhower Parkway, Ann Arbor,
Michigan 48108, Attention: Steve Kapp - Vice President with a copy to ABN AMRO
Mortgage Group, Inc., 2600 West Big Beaver Road, Troy, Michigan 48084,
Attention: Karen Severn Jackson Vice President, or such other address as may
hereafter be furnished to the Depositor and the Trustee in writing by the
Servicer, (c) in the case of the Trustee, to the Corporate Trust Office, or such
other address as may hereafter be furnished to the Depositor and the Servicer in
writing by the Trustee, in each case Attention: Corporate Trust Department, (d)
in the case of S&P, to Standard & Poor's Rating Services, 55 Water Street, 41st
Floor, New York, New York 10041- 0003, Attention: Residential Mortgage
Surveillance Department, or such other address as may hereinafter be furnished
to the Depositor in writing by S&P and (e) in the case of Fitch, to Fitch, Inc.,
One State Street Plaza, 32nd Floor, New York, New York 10004, Attention: Alla
Sirotic, Residential Mortgage, or such other address as may hereinafter be
furnished to the Depositor in writing by Fitch and (f) in the case of MBIA, MBIA
Insurance Corporation, 113 King Street, Armonk, New York 10504, Attention:
Insured Portfolio Management--Structured Finance (AMAC 2001-3), or such other
address as may be hereafter furnished to the Trustee by MBIA. Any notice
required or permitted to be mailed to a Certificateholder shall be given by
first class mail, postage prepaid, at the address of such Holder as shown in the
Certificate Register. Any notice mailed or transmitted within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the addressee receives such notice; provided, that any
demand, notice or communication to or upon the Depositor, the Servicer or the
Trustee shall not be effective until received.

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

                                     -126-
<PAGE>

     Section 10.7 MBIA Rights.

     (a) All notices, statements, reports, certificates, lists or opinions
required by this Agreement to be sent to the parties hereto, the Rating Agencies
or the Class A-7 Certificateholders shall also be sent at such time to MBIA at
the notice address set forth in Section 10.5.

     (b) MBIA shall be an express third party beneficiary of this Agreement for
the purpose of enforcing the provisions hereof to the extent of MBIA's rights
explicitly specified herein as if a party hereto.

     (c) All references herein to the ratings assigned to the Certificates and
to the interests of any Certificateholders shall be without regard to the Class
A-7 Policy.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -127-
<PAGE>

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

                                            ABN AMRO MORTGAGE CORPORATION,
                                            as Depositor

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

                                                 Pooling and Servicing Agreement

                               S-1
<PAGE>

                                             THE CHASE MANHATTAN BANK,
                                             as Trustee

                                             By: /s/ Terry L. Stewart
                                                --------------------------------
                                             Name: Terry L. Stewart
                                             Its:  Vice President

                                                 Pooling and Servicing Agreement

                               S-2
<PAGE>

                                              ABN AMRO MORTGAGE GROUP, INC.,
                                              as Servicer

                                              By: /s/ Richard Geary
                                                 -------------------------------
                                              Name: Richard Geary
                                              Its:  Senior Vice President

                                                 Pooling and Servicing Agreement

                               S-3
<PAGE>

STATE OF ILLINOIS     )
                      )   ss.:
COUNTY OF COOK        )

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

     WITNESS my hand and official seal:

                                             Signature_________________________
                                                           (SEAL)

                                                 Pooling and Servicing Agreement

                                       S-4
<PAGE>

STATE OF TEXAS          )
                        )   ss.:
COUNTY OF HARRIS        )

     On the _____ day of June, 2001, before me, __________________________,
personally appeared Terry L. Stewart, known to me to be a Vice President of The
Chase Manhattan Bank, one of the institutions that executed the within
instrument and also known to me to be the person who executed it on behalf of
said institution, and acknowledged to me that such institution executed the
within instrument.

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

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

[NOTARIAL SEAL]

                                                 Pooling and Servicing Agreement

                                       S-5
<PAGE>

STATE OF MICHIGAN      )
                       )   ss.:
COUNTY OF OAKLAND      )

     On the ____ day of June, 2001, before me, Sally A. Raffler, personally
appeared Richard Geary, known to me to be a Senior Vice President of ABN AMRO
Mortgage Group, Inc., one of the corporations that executed the within
instrument and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the
within instrument.

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

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

[NOTARIAL SEAL]

                                                 Pooling and Servicing Agreement

                                       S-6
<PAGE>

                                    EXHIBIT A
                                    ---------

                              FORMS OF CERTIFICATES

<PAGE>
                                                                     Exhibit A-1
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-1

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-1 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-1 Remittance Rate:           6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-1 Principal Balance as of the Cut-Off Date:  $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-1-1
<PAGE>

                                                                     Exhibit A-2
                                                                   CUSIP________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-2

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.600% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-2 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-2 Remittance Rate:          6.600%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class A-2 Principal Balance as of the Cut-Off Date:    $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-2-1
<PAGE>

                                                                     Exhibit A-3
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-3

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
0.150% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-3 Notional Amount
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-3 Remittance Rate:            0.150%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class A-3 Notional Amount as of the Cut-Off Date:             $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-3-1
<PAGE>

                                                                     Exhibit A-4
                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-4

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-4 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-4 Remittance Rate:                6.750%

Cut-Off Date:                             June 1, 2001

First Distribution Date:                  July 25, 2001

Last Scheduled Distribution Date:

Class A-4 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-4-1
<PAGE>

                                                                     Exhibit A-5
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-5

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-5 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-5 Remittance Rate:                6.750%

Cut-Off Date:                             June 1, 2001

First Distribution Date:                  July 25, 2001

Last Scheduled Distribution Date:

Class A-5 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-5-1

<PAGE>

                                                                     Exhibit A-6
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-6

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-6 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-6 Remittance Rate:                6.750%

Cut-Off Date:                             June 1, 2001

First Distribution Date:                  July 25, 2001

Last Scheduled Distribution Date:

Class A-6 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-6-1
<PAGE>

                                                                     Exhibit A-7
                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-7

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.700% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-7 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-7 Remittance Rate:            6.700%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class A-7 Principal Balance as of the Cut-Off Date:  $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-7-1
<PAGE>

                                                                     Exhibit A-8
                                                                CUSIP___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-8

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.375% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-8 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-8 Remittance Rate:           6.375%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-8 Principal Balance as of the Cut-Off Date:  $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-8-1

<PAGE>

                                                                     Exhibit A-9
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-9

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.050% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                         Portion of the Class A-9 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-9 Remittance Rate:            6.050%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class A-9 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                      A-9-1

<PAGE>

                                                                    Exhibit A-10
                                                                     CUSIP______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-10

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-10 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-10 Remittance Rate:          6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-10 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-10-1

<PAGE>

                                                                    Exhibit A-11
                                                                   CUSIP________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-11

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                       Portion of the Class A-11 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class A-11 Remittance Rate:         6.750%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class A-11 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-11-1
<PAGE>
                                                                    Exhibit A-12
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-12

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                       Portion of the Class A-12 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class A-12 Remittance Rate:         6.750%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class A-12 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-12-1
<PAGE>
                                                                    Exhibit A-13
                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-13

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-13 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-1 Remittance Rate:           6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-13 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-13-1

<PAGE>

                                                                    Exhibit A-14
                                                                  CUSIP_________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-14

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

                          ABN AMRO MORTGAGE CORPORATION

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

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-14 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-14 Remittance Rate:          Variable

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-14 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-14-1
<PAGE>

                                                                    Exhibit A-15
                                                               CUSIP____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-15

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                        Portion of the Class A-15 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class A-15 Remittance Rate:          6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class A-15 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-15-1
<PAGE>

                                                                    Exhibit A-16
                                                               CUSIP____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-16

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                       Portion of the Class A-16 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class A-16 Remittance Rate:         6.750%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class A-16 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-16-1
<PAGE>

                                                                    Exhibit A-17
                                                                CUSIP___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-17

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                       Portion of the Class A-17 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class A-3 Remittance Rate:          6.750%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class A-17 Principal Balance as of the Cut-Off Date:          $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-17-1
<PAGE>

                                                                    Exhibit A-18
                                                              CUSIP____________-

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-18

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
0.050% per annum.

Series 2001-3                         Portion of the Class A-18 Notional Amount
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-3 Remittance Rate:            0.050%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class A-18 Notional Amount as of the Cut-Off Date:            $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-18-1
<PAGE>

                                                                    Exhibit A-19
                                                                CUSIP___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-P

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
0.000% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-2                         Portion of the Class A-P Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class A-P Remittance Rate:            0.000%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class A-P Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-19-1
<PAGE>

                                                                    Exhibit A-20
                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-X

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

Series 2001-3                           Portion of the Class A-X Notional Amount
                                        as of the Cut-Off Date evidenced by this
                                        Certificate:  $

Class A-X Remittance Rate:              6.750%

Cut-Off Date:                           June 1, 2001

First Distribution Date:                July 25, 2001

Last Scheduled Distribution Date:

Class A-X Notional Amount as of the Cut-Off Date:             $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-20-1
<PAGE>
                                                                    Exhibit A-21
                                                             CUSIP______________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     Class M

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is June __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

The Class M Certificates will be subordinate in right of payment to and provide
credit support to certain Classes of Certificates, as described in the Pooling
Agreement.

Series 2001-3                          Portion of the Class M Principal Balance
                                       as of the Cut-Off Date evidenced by this
                                       Certificate:  $

Class M Remittance Rate:               6.750%

Cut-Off Date:                          June 1, 2001

First Distribution Date:               July 25, 2001

Last Scheduled Distribution Date:

Class M Principal Balance as of the Cut-Off Date:             $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-21-1
<PAGE>

                                                                    Exhibit A-22
                                                              CUSIP_____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-1

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

The Class B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-3                        Portion of the Class B-1 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate: $

Class B-1 Remittance Rate:           6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class B-1 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-22-1
<PAGE>

                                                                    Exhibit A-23
                                                              CUSIP_____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-2

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is June __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.750% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

The Class B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-3                       Portion of the Class B-2 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class B-2 Remittance Rate:          6.750%

Cut-Off Date:                       June 1, 2001

First Distribution Date:            July 25, 2001

Last Scheduled Distribution Date:

Class B-2 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-23-1
<PAGE>

                                                                    Exhibit A-24
                                                                CUSIP___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-3

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is June __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.750% per annum.

     IN THE CASE OF ANY CLASS B-3 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
     NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
     TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
     1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE
     PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH
     PLAN, OR ANY OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO
     EFFECT SUCH ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE
     SUCH TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE
     OFFICER OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE
     COMPANY USING ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
     MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
     ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE
     REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60,
     WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
     CERTIFICATE ADMINISTRATOR, IF ANY, OR THE DEPOSITOR.

The Class B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-3                        Portion of the Class B-3 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $

Class B-3 Remittance Rate:           6.750%

Cut-Off Date:                        June 1, 2001

First Distribution Date:             July 25, 2001

Last Scheduled Distribution Date:

Class B-3 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-24-1
<PAGE>

                                                                    Exhibit A-24
                                                               CUSIP____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-4

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is June __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.750% per annum.

     IN THE CASE OF ANY CLASS B-4 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
     NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
     TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
     1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE
     PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH
     PLAN, OR ANY OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO
     EFFECT SUCH ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE
     SUCH TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE
     OFFICER OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE
     COMPANY USING ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
     MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
     ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE
     REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60,
     WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
     CERTIFICATE ADMINISTRATOR, IF ANY, OR THE DEPOSITOR

The Class B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-3                         Portion of the Class B-4 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $

Class B-4 Remittance Rate:            6.750%

Cut-Off Date:                         June 1, 2001

First Distribution Date:              July 25, 2001

Last Scheduled Distribution Date:

Class B-4 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-24-1
<PAGE>

                                                                    Exhibit A-25
                                                               CUSIP____________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-5

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

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is June 21, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.750% per annum.

     IN THE CASE OF ANY CLASS B-5 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
     NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
     TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
     1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE
     PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH
     PLAN, OR ANY OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO
     EFFECT SUCH ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE
     SUCH TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE
     OFFICER OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE
     COMPANY USING ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
     MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
     ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE
     REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60,
     WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
     CERTIFICATE ADMINISTRATOR, IF ANY, OR THE DEPOSITOR.

The Class B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-3                       Portion of the Class B-5 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $

Class B-5 Remittance Rate:                6.750%

Cut-Off Date:                             June 1, 2001

First Distribution Date:                  July 25, 2001

Last Scheduled Distribution Date:

Class B-5 Principal Balance as of the Cut-Off Date:           $

                            -------------------------
                                Registered Owner             Certificate No.___

                                     A-25-1
<PAGE>

                                    EXHIBIT B

                          FORM OF RESIDUAL CERTIFICATE

                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     Class R

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

                          ABN AMRO MORTGAGE CORPORATION

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

IN THE CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME OF
AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE FIDUCIARY RESPONSIBILITY
PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF ANY
SUBSEQUENT ENACTMENTS) (A "PLAN"), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER
PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION,
THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH TRANSFEREE STATING
THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND
SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III
OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE
TRUSTEE, THE CERTIFICATE ADMINISTRATOR, IF ANY, OR THE DEPOSITOR.

Solely for U.S. federal income tax purposes, this Certificate represents
"residual interests" in "real estate mortgage investment conduits," as those
terms are defined in Sections 860G and 860D, respectively, of the Internal
Revenue Code of 1986, as amended.

Series 2001-3                      Percentage Interest evidenced by this Class R
                                   Certificate
                                   in the distributions to be made with respect
                                   to the Class R Certificate: 100%

Class R Remittance Rate:  6.750%.           Additionally, the Class R
                                            Certificates are entitled to
                                   Excess Liquidation Proceeds and the Residual
                                   Distribution Amount as defined in the Pooling
                                   Agreement.

Cut-Off Date:             June 1, 2001

First Distribution Date:  July 25, 2001

                                      B-1

<PAGE>

Last Scheduled Distribution Date:  [           ], 20

Class R Principal Balance as of the Cut-Off Date:             $100

                            -------------------------
                                Registered Owner             Certificate No.___

                                       B-2
<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                       C-1
<PAGE>

                                    EXHIBIT D

                                SCHEDULE OF LOANS

 A copy of the Schedule of Loans may be obtained by contacting the Registrant.

                                       D-1

<PAGE>

                                    EXHIBIT E

                           FIELDS OF LOAN INFORMATION

Deal Name
Distribution Date
Loan Number
City
State
Zip Code
Property Type (SFR, CONDO, etc.)
Occupancy Status (Owner, Investor, etc.)
Loan Purpose (Purchase, Refi, etc.)
Loan Type
Loan Status (Current, Foreclosure, REO, Bankruptcy)
Original Term of Loan
Amortization Term
First Payment of Loan
Maturity Date
Appraisal Value
Original LTV
Original Principal Balance
Previous Month's Balance
Current Principal Balance
Prepay Date
Prepay Status (Loan has been prepaid, liquidated or repurchased by the Servicer)
Original Scheduled P&I
Current Scheduled P&I
Scheduled Interest Amount
Scheduled Principal Amount
Curtailment
Note Rate
Paid to Date
Payment Date

                                       E-1
<PAGE>

                                    EXHIBIT F

                       FORM OF TRANSFEROR CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

The Chase Manhattan Bank, as Trustee
600 Travis Street, 9th Floor
Houston, Texas 77002
Attn: Institutional Trust Services

[LaSalle Bank National Association, as Certificate Registrar
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attn: ABN AMRO Series 2001-3]

  Re:   Purchase of ABN AMRO Mortgage Corporation Mortgage Pass-Through
        Certificates Series 2001-3, Class [B-3] [B-4] [B-5] (the "Certificates")

Ladies and Gentlemen:

     In connection with our disposition of the above Certificates we certify
that (a) we understand the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act") and are being disposed by us in a
transaction that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, or taken any other action which would result in
a violation of Section 5 of the Act.

                                          Very truly yours,

                                          [Name of Transferor]

                                          By:
                                             ------------------------
                                                 Authorized Officer

                                       F-1
<PAGE>

                                    EXHIBIT G

                      FORM OF TRANSFEREE'S CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

The Chase Manhattan Bank
600 Travis Street, 9th Floor
Houston, Texas 77002
Attn: Institutional Trust Services

ABN AMRO Mortgage Corporation
181 West Madison, 32nd Floor
Chicago, IL 60602

[LaSalle Bank National Association, as Certificate Registrar
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attn: ABN AMRO Series 2001-3]

     The undersigned (the "Purchaser") proposes to purchase [Class B-3] [Class
B-4] [Class B-5] Certificates evidencing an undivided interest in ABN AMRO
Mortgage Corporation Mortgage Pass-Through Certificates, Series 2001-3 (the
"Purchased Certificates") in the principal amount of $__________. In doing so,
the Purchaser hereby acknowledges and agrees as follows:

     Section 1. Definitions. Each capitalized term used herein and not otherwise
defined herein shall have the meaning ascribed to it in the Pooling and
Servicing Agreement, dated as of June 1, 2001, between ABN AMRO Mortgage
Corporation ("AAMC"), ABN AMRO Mortgage Group, Inc., as servicer (the
"Servicer") and The Chase Manhattan Bank, as trustee (the "Trustee"), of the ABN
AMRO Mortgage Corporation Mortgage Pass-Through Certificates, Series 2001-3.

     Section 2. Representations and Warranties of the Purchaser. In connection
with the proposed transfer, the Purchaser represents and warrants to AAMC, the
Servicer, the Certificate Registrar and the Trustee that:

     (a) The Purchaser is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which the Purchaser is organized, is
authorized to invest in the Purchased Certificates, and to enter into this
Agreement, and duly executed and delivered this Agreement;

                                       G-1
<PAGE>

     (b) The Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view the distribution thereof, in whole or
in part;

     (c) The Purchaser is an "accredited investor" as such term is defined in
paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Section 501 of Regulation
D under the Securities Act of 1933, as amended (the "Act"), has knowledge of
financial and business matters and is capable of evaluating the merits and risks
of an investment in the Purchased Certificates; the Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an
informed investment decision; and the Purchaser is able to bear the economic
risk of an investment in the Purchased Certificates and can afford a complete
loss of such investment;

     (d) The Purchaser is not affiliated with the Trustee;

     (e) The Purchaser confirms that AAMC has made available to the Purchaser
the opportunity to ask questions of, and receive answers from AAMC concerning
the Trust, the purchase by the Purchaser of the Purchased Certificates and all
matters relating thereto that AAMC possesses or can acquire without unreasonable
effort or expense;

     (f) If applicable, the Purchaser has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 12 issued December 13, 1988,
by the Office of Regulatory Activities of the Federal Home Loan Bank System; and

     (g) The Purchaser will provide the Trustee and the Servicer with affidavits
substantially in the form of Exhibit A attached hereto.

     Section 3. Transfer of Purchased Certificates.

     (a) The Purchaser understands that the Purchased Certificates have not been
registered under the Act, or any state securities laws and that no transfer may
be made unless the Purchased Certificates are registered under the Act and under
applicable state law or unless an exemption from registration is available. The
Purchaser further understands that neither AAMC nor the Trust is under any
obligation to register the Purchased Certificates or make an exemption
available. In the event that such a transfer is to be made within two years from
the Closing Date without registration under the Act or applicable state
securities laws, (i) the Trustee or the Certificate Registrar shall require, in
order to assure compliance with such laws, that the Certificateholder's
prospective transferees each certify to AAMC, the Certificate Registrar and the
Trustee as to the factual basis for the registration or qualification exemption
relied upon, and (ii) the Trustee, the Certificate Registrar or AAMC may require
an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act and state securities laws, which Opinion of Counsel shall not be an
expense of the Trustee, the Certificate Registrar or AAMC. Any such
Certificateholder desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trustee and AAMC

                                     G-2
<PAGE>

against any liability that may result if the Transfer is not so exempt or is not
made in accordance with such federal and state laws.

     (b) No transfer of a Purchased Certificate shall be made unless the
transferee provides AAMC, the Certificate Registrar and the Trustee with (i) a
Transferee's Agreement, substantially in the form of this Agreement, and (ii) an
affidavit substantially in the form of Exhibit A hereto that the proposed
transferee (x) is not an employee benefit plan or other plan or arrangement
subject to the prohibited transaction provisions of ERISA or Section 4975 of the
Internal Revenue Code of 1986, as amended, or comparable provisions of any
subsequent enactments (a "Plan"), a trustee of any Plan, or any other Person who
is using the "plan assets" of any Plan to effect such acquisition or (y) is an
insurance company, the source of funds to be used by it to purchase the
Purchased Certificates is an "insurance company general account" (within the
meaning of Department of Labor Prohibited Transaction Class Exemption ("PTCE")
95-60), and is eligible for, and satisfies all the requirements for, exemptive
relief under Sections I and III of PTCE 95-60.

     (c) The Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on transfer.

     IN WITNESS WHEREOF, the undersigned has caused this Agreement to be validly
executed by its duly authorized representative as of the day and the year first
above written.

                                                [Purchaser]

                                                By:
                                                   ----------------------------
                                                   Its:

                                       G-3
<PAGE>

              Exhibit A to Form of Transferee Agreement (Exhibit G)

                             BENEFIT PLAN AFFIDAVIT

RE:        ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH CERTIFICATES,
           SERIES 2001-3 (THE "TRUST") [CLASS B-3] [CLASS B-4] [CLASS B-5]
           CERTIFICATES (THE "PURCHASED CERTIFICATES")

     Under penalties of perjury, I, ___________, declare that, to the best of my
knowledge and belief, the following representations are true, correct and
complete; and

     1. That I am the ____________ of ________ (the "Purchaser"), whose taxpayer
identification number is _______, and on behalf of which I have the authority to
make this affidavit.

     2. That the Purchaser is acquiring a Purchased Certificate representing an
interest in Trust.

     3. That the Purchaser (i) is not an employee benefit plan or other plan or
arrangement subject to the prohibited transaction provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of
the Internal Revenue Code of 1986, as amended (the "Code"), or comparable
provisions of any subsequent enactments (a "Plan"), a trustee of any Plan, or
any other Person who is using the "plan assets" of any Plan to effect such
acquisition, or (ii) has provided an Officer's Certificate signed by a
Responsible Officer of the Purchaser satisfactory to ABN AMRO Mortgage
Corporation (the "Depositor"), the Certificate Registrar, and the Trustee of the
Trust stating that the Purchaser is an insurance company using assets of an
"insurance company general account" (within the meaning of Department of Labor
Prohibited Transaction Class Exemption ("PTCE") 95-60) to effect such purchase
and is eligible for, and satisfies all of the requirements for exemptive relief
under Sections I and III of PTCE 95- 60, which Officer's Certificate shall not
be an expense of the Depositor or the Trustee.

     IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly
executed on its behalf, by its duly authorized officer this __ day of _________,
20__.

[Purchaser]

By:
  ----------------------------
Its:

                                      G-4
<PAGE>

     Personally appeared before me _________________, known or proved to me to
be the same person who executed the foregoing instrument and to be a
_________________________________________________ of the Purchaser, and
acknowledged to me that (s)he executed the same as his/her free act and deed and
as the free act and deed of the Purchaser.

     SUBSCRIBED and SWORN to before me this __day
of_________________________________, 20__ .

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

                                      G-5
<PAGE>

                                    EXHIBIT H

                                   [RESERVED]

                                       H-1
<PAGE>

                                    EXHIBIT I

                         FORM OF TRANSFEROR CERTIFICATE

                                     [Date]

THE CHASE MANHATTAN BANK, AS TRUSTEE
600 TRAVIS STREET, 9TH FLOOR
HOUSTON, TEXAS 77002
ATTN: INSTITUTIONAL TRUST SERVICES

[LASALLE BANK NATIONAL ASSOCIATION, AS CERTIFICATE REGISTRAR
135 SOUTH LASALLE STREET, SUITE 1625
CHICAGO, ILLINOIS 60603
ATTN: ABN AMRO SERIES 2001-3_________________________]

     RE:  ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH
          CERTIFICATES, SERIES 2001-3 CLASS R

     This letter is delivered to you in connection with the sale by ____________
(the "Seller") to _____________________ (the "Purchaser") of $__________________
initial Certificate Principal Balance of Mortgage Pass-Through Certificates,
Series 2001-3, Class R (the "Certificate"), pursuant to Section 5.1 of the
Pooling and Servicing Agreement (the "Pooling and Servicing Agreement"), dated
as of June 1, 2001 among ABN AMRO Mortgage Corporation, as depositor (the
"Company"), ABN AMRO Mortgage Group, Inc., as servicer (the "Servicer"), and The
Chase Manhattan Bank, as trustee (the "Trustee"). All terms used herein and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing
Agreement. The Seller hereby certifies, represents and warrants to, and
covenants with the Depositor, the Servicer, the Certificate Registrar and the
Trustee that:

     1. No purpose of the Seller relating to the sale of the Certificate by the
Seller to the Purchaser is or will be to enable the Seller to impede the
assessment or collection of tax.

     2. The Seller understands that the Purchaser has delivered to the Trustee,
the Servicer, the Certificate Registrar and the Depositor a transferee affidavit
and agreement in the form attached to the Pooling and Servicing Agreement as
Exhibit J. The Seller does not know or believe that any representation contained
therein is false.

     3. The Seller has no actual knowledge that the Proposed Transferee is not a
Permitted Transferee.

                                       I-1
<PAGE>

     4. The Seller has no actual knowledge that the Purchaser would be unwilling
or unable to pay taxes due on its share of the taxable income attributable to
the Certificates.

     5. At the time of this transfer (i) the Seller has conducted a reasonable
investigation of the financial condition of the Purchaser and, as a result of
the investigation, found that the Purchaser has historically paid its debts as
they came due, and found no significant evidence to indicate that the Purchaser
will not continue to pay its debts as they come due in the future and (ii)
either (A) the Seller both (1) has determined all of the following (I) at the
time of the transfer, and at the close of each of the Purchaser's two fiscal
years preceding the year of transfer, the Purchaser's gross assets for financial
reporting purposes exceed $100 million and its net assets for such purposes
exceed $10 million (disregarding, for purposes of determining gross or net
assets, the obligation of any person related to the Purchaser within the meaning
of section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Purchaser to satisfy this
minimum gross asset or net asset requirement), (II) the Purchaser is a domestic
C corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (III) there are no facts or circumstances on
or before the date of transfer (or anticipated) which would reasonably indicate
that the taxes associated with the Certificates will not be paid, (IV) the
Purchaser is not a foreign branch of a domestic corporation, and (V) the
transfer does not involve a transfer or assignment to a foreign branch of a
domestic corporation (or any other arrangement by which any Certificate is at
any time subject to net tax by a foreign country or U.S. possession) and the
Purchaser will not hereafter engage in any such transfer or assignment (or any
such arrangement), and (2) does not know or have reason to know that the
Purchaser will not honor the restrictions on subsequent transfers of any Class R
Certificate described in paragraph 12 and 13 of the Transferee's Transfer
Affidavit, or (B) the Seller has determined that the present value of the
anticipated tax liabilities associated with the holding of the Certificates do
not exceed the sum of (1) the present value of any consideration given to the
Purchaser to acquire the Certificates, (2) the present value of the expected
future distributions on the Certificates, and (3) the present value of the
anticipated tax savings associated with holding the Certificates as the REMIC
generates losses (having made such determination by (I) assuming that the
Purchaser pays tax at a rate equal to the highest rat of tax specified in
Section 11(b)(1) of the Code, and (II) utilizing a discount rate for present
valuation purposes equal to the applicable Federal rate prescribed by Section
1274(d) of the Code compounded semi-annually (or a lower discount rate based on
the Purchaser having demonstrated that it regularly borrows, in the course of
its trade or business, substantial funds at such lower rate from unrelated third
parties)).

                                       I-2
<PAGE>

     6. The Purchaser has represented to the Seller that, if the Certificates
constitute a noneconomic residual interest, it (i) understands that as holder of
a noneconomic residual interest it may incur tax liabilities in excess of any
cash flows generated by the interest, and (ii) intends to pay taxes associated
with its holding of the Certificates as they become due.

     7. The Seller understands that the transfer of the Certificates may not be
respected for United States income tax purposes (and the Seller may continue to
be liable for United States income taxes associated therewith) unless there is
compliance with the standards of paragraph 5. above as to any transfer.

                                               Very truly yours,

                                               [Seller]

                                               By:
                                                  -----------------------------
                                               Name:
                                                    ---------------------------
                                               Title:
                                                    ---------------------------

                                       I-3
<PAGE>

                                    EXHIBIT J

                   FORM OF TRANSFEREE AFFIDAVIT AND AGREEMENT

STATE OF       )
               )    ss:
COUNTY OF      )

          [NAME OF OFFICER], being first duly sworn, deposes and says:

     1. That he is [Title of Officer] of [Name of Owner] (record or beneficial
owner of the Class R Certificate (the "Owner")), a [savings institution]
[corporation] duly organized and existing under the laws of [the State of _____]
[the United States], on behalf of which he makes this affidavit and agreement.

     2. That the Owner (i) is not and will not be a "disqualified organization"
as of the [date of transfer] within the meaning of Section 860E(e)(5) of the
Internal Revenue Code of 1986, as amended (the "Code") and will endeavor to
remain other than a disqualified organization for so long as it retains its
ownership interest in the Class R Certificate, and (ii) is acquiring the Class R
Certificate for its own account or for the account of another Owner from which
it has received an affidavit and agreement in substantially the same form as
this affidavit and agreement. (For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, or any
agency or instrumentality of any of the foregoing (other than an instrumentality
all of the activities of which are subject to tax and, except for the Federal
Home Loan Mortgage Corporation, a majority of whose board of directors is not
selected by any such governmental entity, or any foreign government or
international organization, or any agency or instrumentality of such foreign
government or organization, any rural electric or telephone cooperative, or any
organization (other than certain farmers' cooperatives) that is generally exempt
from federal income tax unless such organization is subject to the tax on
unrelated business taxable income).

     3. That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificate; (ii) that such tax would be on the
transferor, or, if such transfer is through an agent (which person includes a
broker, nominee or middleman) for a disqualified organization, on the agent;
(iii) that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnished to such person an affidavit
that the transferee is not a disqualified organization and, at the time of
transfer, such person does not have actual knowledge that the affidavit is
false; and (iv) that the Class R Certificate may represent "noneconomic residual
interests" within the meaning of Treasury regulations promulgated pursuant to
the Code and that the transferor of a noneconomic residual interest will remain
liable for any taxes due with respect to the income on such residual interest,
if a significant purpose of the transfer was to enable the transferor to impede
the assessment or collection of tax.

                                       J-1
<PAGE>

     4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding the Class R Certificate if at any time during the taxable year of the
pass-through entity a disqualified organization is the record holder of an
interest in such entity. (For this purpose, a "pass-through entity" includes a
regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

     5. That the Owner is aware that the Trustee and the Certificate Registrar
will not register the transfer of the Class R Certificate unless the transferee,
or other transferee's agent, delivers to each of them an affidavit and
agreement, among other things, in substantially the same form as this affidavit
and agreement. The Owner expressly agrees that it will not consummate any such
transfer if it knows or believes that any of the representations contained in
such affidavit and agreement are false.

     6. That the Owner has reviewed the restrictions set forth on the face of
the Class R Certificate and the provisions of Section 5.1 of the Pooling and
Servicing Agreement under which the Class R Certificate was issued. The Owner
expressly agrees to be bound by and to comply with such restrictions and
provisions.

     7. That the Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that the Class R Certificate will only be owned, directly
or indirectly, by an Owner that is not a disqualified organization.

     8. The Owner's Taxpayer Identification Number is ________________.

     9. That no purpose of the Owner relating to the purchase of the Class R
Certificate by the Owner is or will be to enable the transferor to impede the
assessment or collection of tax.

     10. That the Owner has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

     11. That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Certificates remain outstanding.

     12. The Owner will, in connection with any transfer that it makes of the
Class R Certificate, deliver to the Certificate Registrar a representation
letter substantially in the form of Exhibt I to the Pooling and Servicing
Agreement. [The Owner hereby agrees that it will not make any transfer of any
Class R Certificate unless (i) the transfer is to an entity which is a domestic
C corporation (other than an exempt corporation, a regulated investment

                                       J-2
<PAGE>

company, a real estate investment trust, a REMIC, or a cooperative organization
to which part I of Subchapter T of theCode applies) for federal income tax
purposes, and (ii) the transfer is in compliance with the conditions set forth
in paragraph 5 of Exhibit I of the Pooling and Servicing Agreement.](1)

     13. The Owner (i) is a citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations) or
an estate whose income is subject to United States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more such U.S. Persons have the authority to control all substantial decisions
of the trust and (ii) if the Owner is a partnership for U.S. federal income tax
purposes, each person or entity which holds an interest (directly or indirectly,
through a pass-through entity) is a person or entity described in (i). To the
extent prescribed in regulations by the Secretary of the Treasury, which have
not yet been issued, a trust which was in existence on August 20, 1996 (other
than a trust treated as owned by the grantor under subpart E of part 1 of
subchapter J of chapter 1 of the Code), and which was treated as a U.S. Person
on August 20, 1996 may elect to continue to be treated as a U.S. Person
notwithstanding the previous sentence.

     14. The Owner hereby agrees to cooperate with the Depositor and to take any
action required of it by the Code or Treasury regulations thereunder (whether
now or hereafter promulgated) in order to create or maintain the REMIC status of
the REMIC I or the REMIC II.

     15. The Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the REMIC I or the REMIC II, as applicable, or
result in the imposition of tax on the REMIC I or the REMIC II unless counsel
for, or acceptable to, the Depositor has provided an opinion that such action
will not result in the loss of such REMIC status or the imposition of such tax,
as applicable.

     16. The Owner as transferee of the Class R Certificate has represented to
their transferor that, if the Class R Certificate represents noneconomic
residual interests, the Owner (i) understands that as holder of a noneconomic
residual interest it may incur tax liabilities in excess of any cash flows
generated by the interest, and (ii) intends to pay taxes associated with its
holding of the Class R Certificate as they become due.

--------
(1)/ Bracketed text to be included if the Owner is relying on the transferee's
compliance with the "Asset Test Safe Harbor" (which is generally described as
the second "safe harbor" in the Prospectus Supplement) rather then the "Formula
Test Safe Harbor" (which is generally described as the first "safe harbor" in
the Prospectus Supplement). See "Federal Income Tax Consequences - Special Tax
Considerations Applicable to the Residual Certificate" in the Prospectus
Supplement.

                                       J-3
<PAGE>

     [17. The Owner hereby represents to and for the benefit of the transferor
that (i) at the time of the transfer, and at the close of each of the Owners's
two fiscal years preceding the year of transfer, the Owners's gross assets for
financial reporting purposes exceed $100 million and its net assets for such
purposes exceed $10 million (disregarding, for purposes of determining gross or
net assets, the obligation of any person related to the Owner within the meaning
of section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Owner to satisfy this minimum
gross asset or net asset requirement), (ii) the Owner is a domestic C
corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (iii) there are no facts or circumstances on
or before the date of transfer (or anticipated) which would reasonably indicate
that the taxes associated with the Class R Certificate will not be paid, and
(iv) the Owner is not a foreign branch of a domestic corporation, the transfer
does not involve a transfer or assignment to a foreign branch of a domestic
corporation (or any other arrangement by which any Class R Certificate is at any
time subject to net tax by a foreign country or U.S. possession), and the Owner
will not hereafter engage in any such transfer or assignment (or any such
arrangement).](1)

     IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf, pursuant to the authority of its Board of Directors, by its [Title
of Officer] and its corporate seal to be hereunto attached, attested by its
[Assistant] Secretary, this         day of , 20    .

                                           [Name of Owner]

                                           By:
                                              --------------------------------
                                              [Name of Officer]
                                              [Title of Officer]

[Corporate Seal]

ATTEST:

---------------------------
[Assistant] Secretary

--------

(1)/Bracketed text to be included if the Owner is relying on the transferee's
compliance with the "Asset Test Safe Harbor" (which is generally described as
the second "safe harbor" in the Prospectus Supplement) rather then the "Formula
Test Safe Harbor" (which is generally described as the first "safe harbor" in
the Prospectus Supplement). See "Federal Income Tax Consequences - Special Tax
Considerations Applicable to the Residual Certificate" in the Prospectus
Supplement.

                                       J-4
<PAGE>

     Personally appeared before me the above-named [Name of Officer], known or
proved to me to be the same person who executed the foregoing instrument and to
be the [Title of Officer] of the Owner, and Acknowledged to me that he executed
the same as his free act and deed and free act and deed of the Owner.

     Subscribed and sworn before me this ___ day of ____________, 20__.

                                                  NOTARY PUBLIC

                                    COUNTY OF
                                    STATE OF
                                    My Commission expires the  day
                                    of           , 20

                                       J-5
<PAGE>

                                    EXHIBIT K

                     FORM OF ADDITIONAL MATTER INCORPORATED
                        INTO THE FORM OF THE CERTIFICATES

     This Certificate does not represent an obligation of or interest in ABN
AMRO Mortgage Corporation or any of its affiliates. Neither this Certificate nor
the underlying Loans are guaranteed by any agency or instrumentality of the
United States.

     This certifies that the above-mentioned Registered Owner is the registered
owner of certain interests in a trust fund (the "Certificate Trust Fund") whose
assets consist of, among other things, of a pool (the "Mortgage Pool") of
conventional one- to four-family mortgage loans (the "Loans"), formed by ABN
AMRO Mortgage Corporation (the "Depositor"). The Loans were originated or
acquired by various financial institutions and subsequently acquired by the
Depositor. The Mortgage Pool was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the "Pooling Agreement"),
between the Depositor, ABN AMRO Mortgage Group, Inc., as Servicer (the
"Servicer"), and The Chase Manhattan Bank, as Trustee (the "Trustee"), a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Pooling Agreement. Nothing herein shall be deemed inconsistent
with such meanings, and in the event of any conflict between the Pooling
Agreement and the terms of this Certificate, the Pooling Agreement shall
control. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling Agreement, to which Pooling Agreement
the Holder of this Certificate, by virtue of the acceptance hereof, assents and
by which such Holder is bound.

     Distributions will be made, pursuant to the Pooling Agreement, on the 25th
day of each month or, if such 25th day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last Business Day of the month
immediately preceding the month of such distribution (the "Record Date"), to the
extent of such Certificateholder's Percentage Interest represented by this
Certificate in the portion of the Certificate Distribution Amount for such
Distribution Date then distributable on the Certificates of this Class, as
specified in Section 4.1 of the Pooling Agreement.

     Distributions on this Certificate will be made by the Trustee or its Paying
Agent by wire transfer or by other means of payment acceptable to each
Certificateholder of record on the immediately preceding Record Date.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee or its Paying Agent of the pendency of such
distribution and only upon presentation and surrender of this Certificate to the
Certificate Registrar.

                                       K-1
<PAGE>

     Reference is hereby made to the further provisions of this Certificate set
forth below, which further provisions shall for all purposes have the same
effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling Agreement or be valid for any purpose.

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

                                      THE CHASE MANHATTAN BANK,
                                      as Trustee

                                      By:
                                         ------------------------------

                                       K-2
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Certificates referred to in the within-mentioned Pooling
Agreement.

THE CHASE MANHATTAN BANK,
as Trustee

By:
   -----------------------------
Dated:
      --------------------------

                                       K-3
<PAGE>

                          ABN AMRO MORTGAGE CORPORATION
                        MORTGAGE PASS-THROUGH CERTIFICATE

     This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series and Class
specified hereon (herein called the "Certificates") and representing certain
interests in the Certificate Trust Fund.

     The Certificates do not represent an obligation of, or an interest in, the
Depositor or any of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of payment to certain
collections and recoveries respecting the Loans, all as more specifically set
forth herein and in the Pooling Agreement. To the extent described in the
Pooling Agreement, the Servicer is obligated to advance its own funds to cover
certain shortfalls with respect to payments on the Loans. In the event Servicer
funds are advanced with respect to any Loan, such advance is reimbursable to the
Servicer from the related recoveries on such Loan or from other cash deposited
in the Custodial Account for P&I to the extent that such advance is not
otherwise recoverable.

     As provided in the Pooling Agreement, withdrawals from the Custodial
Account for P&I may be made by the Servicer from time to time for purposes other
than distributions to Certificateholders, such purposes including reimbursement
to the Servicer of advances made, or certain expenses incurred, by it.

     The Pooling Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Depositor and the Servicer, and the rights of the Certificateholders under the
Pooling Agreement at any time by the Depositor and the Trustee, with the consent
of the Holders of the Certificates aggregating not less than 66-2/3% of the
aggregate Percentage Interest evidenced by all of the Certificates of the Trust
Fund. For the purposes of such provision and except as provided below, voting
rights related to 100% of the Aggregate Certificate Principal Balance of any
Class will be allocated pro rata (by Certificate Principal Balance) among the
Certificates of such Class. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Pooling Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates.

     As provided in the Pooling Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office maintained by
the Trustee in the City and State of New York, duly endorsed by, or accompanied
by an assignment in the form below or other written instrument of transfer in
form satisfactory to the Trustee or any Authenticating Agent duly executed by,
the Holder

                                      K-4
<PAGE>

hereof or such Holder's attorney duly authorized in writing, and thereupon one
or more new Certificates of Authorized Denominations evidencing the same
Percentage Interest set forth hereinabove will be issued to the designated
transferee or transferees.

     No transfer of a Certificate will be made unless such transfer is exempt
from or is made in accordance with the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act") and any applicable
state securities laws. No transfer, sale, pledge or other disposition of a
Junior Subordinate Certificate shall be made unless such transfer, sale, pledge
or other disposition is made in accordance with Section 5.1(e) or Section 5.1(f)
of the Pooling Agreement. Each Person who, at any time, acquires any ownership
interest in any Junior Subordinate Certificate shall be deemed by the acceptance
or acquisition of such ownership interest to have agreed to be bound by the
provisions of such Section 5.1(e) and Section 5.1(f), as applicable. No transfer
of a Junior Subordinate Certificate shall be deemed to be made in accordance
with such Section 5.1(e) unless such transfer is made pursuant to an effective
registration statement under the Securities Act or unless the Trustee and the
Certificate Registrar are provided with the certificates and an Opinion of
Counsel, if required, on which the Trustee and the Certificate Registrar may
conclusively rely, which establishes or establish to the Trustee's and the
Certificate Registrar's satisfaction that such transfer is exempt from the
registration requirements under the Securities Act, as follows: In the event
that a transfer is to be made in reliance upon an exemption from the Securities
Act, the Trustee and the Certificate Registrar shall require, in order to assure
compliance with the Securities Act, that the Certificateholder desiring to
effect such transfer certify to the Trustee and the Certificate Registrar in
writing, in substantially the form attached as Exhibit F to the Pooling
Agreement, the facts surrounding the transfer, with such modifications to such
Exhibit F as may be appropriate to reflect the actual facts of the proposed
transfer, and that the Certificateholder's proposed transferee certify to the
Trustee and the Certificate Registrar in writing, in substantially the form
attached as Exhibit G to the Pooling Agreement, the facts surrounding the
transfer, with such modifications to such Exhibit G as may be appropriate to
reflect the actual facts of the proposed transfer. If such certificate of the
proposed transferee does not contain substantially the substance of Exhibit G,
the Trustee and the Certificate Registrar shall require an Opinion of Counsel
satisfactory to it that such transfer may be made without registration, which
Opinion of Counsel shall not be obtained at the expense of the Trustee, the
Certificate Registrar, the Trust Fund or the Depositor.

     Transfers of the Junior Subordinate Certificates may also be made in
accordance with Section 5.1(f) of the Pooling Agreement. To effectuate a
Certificate transfer in accordance with such Section 5.1(f), the proposed
transferee of such Certificate must provide the Trustee, the Certificate
Registrar and the Depositor with an investment letter substantially in the form
of Exhibit L attached to the Pooling Agreement, which investment letter shall
not be an expense of the Trustee, the Certificate Registrar or the Depositor,
and which investment letter states that, among other things, such transferee (i)
is a "qualified institutional buyer" as defined under Rule 144A, acting for its
own account or the accounts

                                       K-5
<PAGE>

of other "qualified institutional buyers" as defined under Rule 144A, and (ii)
is aware that the proposed transferor intends to rely on the exemption from
registration requirements under the Securities Act provided by Rule 144A.
Notwithstanding the foregoing, the proposed transferee of such Certificate shall
not be required to provide the Trustee, the Certificate Registrar or the
Depositor with Annex 1 or Annex 2 to the form of such Exhibit L if the Depositor
so consents prior to each such transfer. Such transfers shall be deemed to have
complied with the requirements of Section 5.1(f) of the Pooling Agreement. The
Holder of a Certificate desiring to effect such transfer does hereby agree to
indemnify the Trustee, and the Certificate Registrar, the Depositor, and the
Certificate Registrar against any liability that may result if transfer is not
made in accordance with the Pooling Agreement.

     The Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of Authorized
Denominations evidencing the same aggregate interest in the portion of the
Available Distribution Amount distributable on this Class of Certificate, as
requested by the Holder surrendering the same.

     A reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Certificate Registrar, the Certificate Administrator,
the Servicer, the Trustee and any agent of any of them may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Depositor, the Certificate Registrar, the Certificate
Administrator, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

     The respective obligations and responsibilities of the Servicer and the
Trustee created under the Pooling Agreement (other than the obligation to make
payments to Certificateholders as set forth therein) shall terminate upon the
earlier of (i) the later of the final payment or other liquidation (or any
Advance with respect thereto) of the last Loan remaining in the Trust Fund and
the disposition of all property acquired in respect of any Loan or (ii) the
purchase by the Class R Certificateholder of all Loans at a price established
pursuant to the Pooling Agreement; provided, however, that in no event shall the
trust created hereby continue beyond 21 years from the death of the survivor of
certain persons identified in the Pooling Agreement.

                                       K-6
<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and
transfer(s) unto

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

--------------------------------------------------------------------------------
(Please print or typewrite name and address, including postal zip code of
assignee. Please insert social security or other identifying number of
assignee.)

the within Mortgage Pass-Through Certificate and hereby irrevocably constitutes
and appoints____________________________________________________________________
Attorney to transfer said Certificate on the Certificate Register, with full
power of substitution in the premises.

Dated:
      -----------------------------        ---------------------------------
                                           Signature Guaranteed

                                           ---------------------------------
                                           NOTICE:

                               The signature to this assignment must correspond
                               with the name as written upon the face of the
                               within instrument in every particular, without
                               alteration or enlargement or any change whatever.

                                       K-7
<PAGE>

                                    EXHIBIT L

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

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

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

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

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

The undersigned seller, as registered holder (the "Seller"), intends to transfer
the Rule 144A Securities described above to the undersigned buyer (the "Buyer").

     1. In connection with such transfer and in accordance with the agreements
pursuant to which the Rule 144A Securities were issued, the Seller hereby
certifies the following facts: Neither the Seller nor anyone acting on its
behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule
144A Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or any
disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities in
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

     2. The Buyer warrants and represents to, and covenants with, the Seller,
the Trustee, the Certificate Registrar and the Servicer (as defined in the
Pooling and Servicing Agreement (the "Agreement") dated as of June 1, 2001
between ABN AMRO Mortgage Corporation, as Depositor, ABN AMRO Mortgage Group,
Inc., as Servicer, and The Chase Manhattan Bank, as Trustee) pursuant to Section
5.1(f) of the Agreement, as follows:

         (a) The Buyer understands that the Rule 144A Securities have not been
registered under the 1933 Act or the securities laws of any state.

         (b) The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of
investment in the Rule 144A Securities.

                                       L-1
<PAGE>

         (c) The Buyer has received and reviewed the Private Placement
Memorandum dated as of June __, 2001 relating to the Rule 144A Securities and
has been furnished with all information regarding the Rule 144A Securities that
it has requested from the Seller, the Trustee, the Depositor or the Servicer.

         (d) Neither the Buyer nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Rule 144A Securities,
any interest in the Rule 144A Securities or any other similar security to, or
solicited any offer to buy or accept a transfer, pledge or other disposition of
the Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security from, or otherwise approached or negotiated with respect to the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Rule 144A
Securities under the 1933 Act or that would render the disposition of the Rule
144A Securities a violation of Section 5 of the 1933 Act or require registration
pursuant thereto, nor will it act, nor has it authorized or will it authorize
any person to act, in such manner with respect to the Rule 144A Securities.

         (e) The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has (1) completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2, or
(2) obtained the waiver of the Depositor with respect to Annex 1 and Annex 2
pursuant to Section 5.1(f) of the Agreement. The Buyer is aware that the sale to
it is being made in reliance on Rule 144A. The Buyer is acquiring the Rule 144A
Securities for its own account or the accounts of other qualified institutional
buyers, understands that such Rule 144A Securities may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the 1933 Act.

         (f) The Buyer is not affiliated with (i) the Trustee or (ii) any Rating
Agency that rated the Rule 144A Securities.

         (g) If applicable, the Buyer has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 12 issued December 13, 1988,
by the Office of Regulatory Activities of the Federal Home Loan Bank System.

     [Required only in the case of a transfer of a Class B-3, Class B-4, or
Class B-5 Certificate][3. The Buyer warrants and represents to, and covenants
with, the Seller, the Servicer, the Certificate Registrar and the Depositor that
(1) the Buyer is not an employee benefit plan (within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), subject to the prohibited transaction provisions of ERISA ("Plan"),
or a plan (within the meaning of Section 4975(e)(1) of the Internal Revenue Code
of

                                      L-2
<PAGE>

1986 ("Code")) subject to Section 4975 of the Code (also a "Plan"), and the
Buyer is not directly or indirectly purchasing the Rule 144A Securities on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with "plan assets" of any Plan, or (2) the Buyer has provided the Seller, the
Servicer, the Certificate Registrar and the Depositor with an Officer's
Certificate signed by a Responsible Officer of the Buyer stating that the Buyer
is an insurance company using assets of an "insurance company general account"
(within the meaning of Department of Labor Prohibited Transaction Class
Exemption ("PTCE") 95- 60) to effect such purchase and is eligible for, and
satisfies all of the requirements for exemptive relief under Sections I and III
of PTCE 95-60, which Officer's Certificate shall not be an expense of the
Servicer or the Depositor.]

     3. This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

     IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.

------------------------------           -----------------------------------
    Print Name of Seller                        Print Name of Seller

By:                                      By:
  ----------------------------              --------------------------------
  Name:                                     Name:
  Title:                                    Title:

Taxpayer Identification                  Taxpayer Identification
No.:                                     No.:
    --------------------------               -------------------------------
Date:                                    Date:
     -------------------------                ------------------------------

                                       L-3
<PAGE>
                                                            Annex 1 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

     The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice-President or other executive officer of the Buyer.

     2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $_____ (2) in securities (except for the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year (such
amount being calculated in accordance with Rule 144A) and (ii) the Buyer
satisfies the criteria in the category marked below.

         -----      Corporation, etc. The Buyer is a corporation (other than a
                    bank, savings and loan association or similar institution),
                    Massachusetts or similar business trust, partnership, or
                    charitable organization described in Section 501(c)(3) of
                    the Internal Revenue Code.

         -----      Bank. The Buyer (a) is a national bank or banking
                    institution organized under the laws of any State, territory
                    or the District of Columbia, the business of which is
                    substantially confined to banking and is supervised by the
                    State or territorial banking commission or similar official
                    or is a foreign bank or equivalent institution, and (b) has
                    an audited net worth of at least $25,000,000 as demonstrated
                    in its latest annual financial statements, a copy of which
                    is attached hereto.

         -----      Savings and Loan. The Buyer (a) is a savings and loan
                    association, building and loan association, cooperative
                    bank, homestead association or similar institution, which is
                    supervised and examined by a State or Federal authority
                    having supervision over any such institutions or is a
                    foreign savings and loan association or equivalent
                    institution and (b) has an audited net worth of at least
                    $25,000,000 as demonstrated in its latest annual financial
                    statements.

--------
(2)        Buyer must own and/or invest on a discretionary basis at least
           $100,000,000 in securities unless Buyer is a dealer, and, in that
           case, Buyer must own and/or invest on a discretionary basis at least
           $10,000,000 in securities.

                                      L-1-1

<PAGE>

         -----      Broker-Dealer. The Buyer is a dealer registered pursuant to
                    Section 15 of the Securities Exchange Act of 1934.

         -----      Insurance Company. The Buyer is an insurance company whose
                    primary and predominant business activity is the writing of
                    insurance or the reinsuring of risks underwritten by
                    insurance companies and which is subject to supervision by
                    the insurance commissioner or a similar official or agency
                    of a State or territory or the District of Columbia.

         -----      State or Local Plan. The Buyer is a plan established and
                    maintained by a State, its political subdivisions, or any
                    agency or instrumentality of the State or its political
                    subdivisions, for the benefit of its employees.

         -----      ERISA Plan. The Buyer is an employee benefit plan within the
                    meaning of Section 3(3) of the Employee Retirement Income
                    Security Act of 1974, as amended ("ERISA") and is subject to
                    the fiduciary responsibility provisions of ERISA.

         -----      Investment Adviser. The Buyer is an investment adviser
                    registered under the Investment Advisers Act of 1940.

         -----      SBIC. The Buyer is a Small Business Investment Company
                    licensed by the U.S. Small Business Administration under
                    Section 301(c) or (d) of the Small Business Investment Act
                    of 1958.

         -----      Business Development Company. The Buyer is a business
                    development company as defined in Section 202(a)(22) of the
                    Investment Advisers Act of 1940.

         -----      Trust Fund. The Buyer is a trust fund whose trustee is a
                    bank or trust company and whose participants are exclusively
                    (a) plans established and maintained by a State, its
                    political subdivision, or any agency or instrumentality of
                    the State or its political subdivision, for the benefit of
                    its employees, or (b) employee benefit plans within the
                    meaning of Title I of the Employee Retirement Income
                    Security Act of 1974, but is not a trust fund that includes
                    as participants individual retirement accounts or H.R. 10
                    plans.

     3. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

                                      L-1-2
<PAGE>

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

           [ ]        [ ]        Will the Buyer be purchasing the Rule 144A
           Yes        No         Securities only for the Buyer's own account?

     6. If the answer to the foregoing question is "no", the Buyer agrees that,
in connection with any purchase of securities sold to the Buyer for the account
of a third party (including any separate account) in reliance on Rule 144A, the
Buyer will only purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of Rule 144A. In addition,
the Buyer agrees that the Buyer will not purchase securities for a third party
unless the Buyer has obtained a current representation letter from such third
party or taken other appropriate steps contemplated by Rule 144A to conclude
that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

     7. The Buyer will notify each of the parties to which this certification is
made of any changes in the information and conclusions herein. Until such notice
is given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.

                                           -------------------------------------
                                                    Print Name of Buyer

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                           Date:
                                                --------------------------------

                                      L-1-3
<PAGE>

                                                            Annex 2 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

     The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice-President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because Buyer is a part of a Family of Investment
Companies (as defined below), is such an officer the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used.

         -----      The Buyer owned $__________ in securities (other than the
                    excluded securities referred to below) as of the end of the
                    Buyer's most recent fiscal year (such amount being
                    calculated in accordance with Rule 144A).

         -----      The Buyer is part of a Family of Investment Companies which
                    owned in the aggregate $__________ in securities (other than
                    the excluded securities referred to below) as of the end of
                    the Buyer's most recent fiscal year (such amount being
                    calculated in accordance with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser in a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii)
loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

                                      L-2-1

<PAGE>

     5. The Buyer is familiar with Rule 144A and understands that each of the
parties to which this certification is made are relying and will continue to
rely on the statements made herein because one or more sales to the Buyer will
be reliance on Rule 144A. In addition, the Buyer will only purchase for the
Buyer's own account.

     6. The undersigned will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                         -------------------------------------
                                         Print Name of Buyer

                                                 By:
                                                    --------------------------
                                                    Name:
                                                    Title:

                                                 Date:
                                                      ------------------------

                                                 IF AN ADVISER

                                         -------------------------------------
                                         Print Name of Buyer

                                                 By:
                                                    --------------------------
                                                    Name:
                                                    Title:

                                                 Date:
                                                      ------------------------

(SEAL)

                                      L-2-2
<PAGE>

                                    EXHIBIT M

                           PLANNED PRINCIPAL BALANCES

                        PLANNED PRINCIPAL BALANCE TABLE*

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
June 25, 2001 ................          $   44,273,000.00       $   16,717,000.00       $   10,500,000.00       $   5,150,000.00
July 25, 2001 ................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2001 ..............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2001............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2001 .............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2001 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2001 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2002 .............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
February 25, 2002 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2002 ...............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2002 ...............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2002 .................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2002 ................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2002 ................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2002 ..............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2002............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2002 .............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2002 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2002 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2003 .............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
February 25, 2003 ............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2003 ...............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2003 ...............              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2003 .................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2003 ................              44,273,000.00           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2003 ................              43,346,260.59           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2003 ..............              42,393,191.22           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2003............              41,414,316.97           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2003 .............              40,410,178.46           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2003 ............              39,381,331.36           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2003 ............              38,359,277.17           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2004 .............              37,343,972.25           16,717,000.00           10,500,000.00           5,150,000.00
</TABLE>

*/   The aggregate principal balances for the PAC certificates on each
     distribution date were calculated assuming that (i) the Loans have the
     characteristics set forth in the Modeling Assumptions described under the
     heading "Prepayment and Yield Considerations-Prepayment Speed Assumption
     and Modeling Assumptions", and (ii) the Loans are prepaid at a constant
     rate within the range of 125% to 400% PSA.

                                      M-1
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
February 25, 2004 ............              36,335,373.25           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2004 ...............              35,333,437.10           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2004 ...............              34,338,121.01           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2004 .................              33,349,382.46           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2004 ................              32,367,179.23           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2004 ................              31,391,469.35           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2004 ..............              30,422,211.15           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2004............              29,459,363.22           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2004 .............              28,502,884.41           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2004 ............              27,552,733.86           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2004 ............              26,608,870.97           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2005 .............              25,671,255.38           16,717,000.00           10,500,000.00           5,150,000.00
February 25, 2005 ............              24,739,847.04           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2005 ...............              23,814,606.13           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2005 ...............              22,895,493.09           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2005 .................              21,982,468.64           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2005 ................              21,075,493.73           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2005 ................              20,174,529.60           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2005 ..............              19,279,537.70           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2005............              18,390,479.77           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2005 .............              17,507,317.78           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2005 ............              16,630,013.96           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2005 ............              15,758,530.77           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2006 .............              14,892,830.94           16,717,000.00           10,500,000.00           5,150,000.00
February 25, 2006 ............              14,032,877.43           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2006 ...............              13,178,633.45           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2006 ...............              12,330,062.43           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2006 .................              11,487,128.06           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2006 ................              10,649,794.27           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2006 ................               9,828,103.19           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2006 ..............               9,011,897.32           16,717,000.00           10,500,000.00           5,150,000.00
September 25, 2006............               8,201,141.17           16,717,000.00           10,500,000.00           5,150,000.00
October 25, 2006 .............               7,395,799.50           16,717,000.00           10,500,000.00           5,150,000.00
November 25, 2006 ............               6,595,837.29           16,717,000.00           10,500,000.00           5,150,000.00
December 25, 2006 ............               5,801,219.73           16,717,000.00           10,500,000.00           5,150,000.00
January 25, 2007 .............               5,011,912.25           16,717,000.00           10,500,000.00           5,150,000.00
February 25, 2007 ............               4,227,880.53           16,717,000.00           10,500,000.00           5,150,000.00
March 25, 2007 ...............               3,449,090.42           16,717,000.00           10,500,000.00           5,150,000.00
April 25, 2007 ...............               2,675,508.04           16,717,000.00           10,500,000.00           5,150,000.00
May 25, 2007 .................               1,907,099.71           16,717,000.00           10,500,000.00           5,150,000.00
June 25, 2007 ................               1,143,831.96           16,717,000.00           10,500,000.00           5,150,000.00
July 25, 2007 ................                 388,904.19           16,717,000.00           10,500,000.00           5,150,000.00
August 25, 2007 ..............                       0.00           16,356,027.59           10,500,000.00           5,150,000.00
</TABLE>

                                      M-2
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
September 25, 2007............                       0.00           15,611,169.36           10,500,000.00           5,150,000.00
October 25, 2007 .............                       0.00           14,871,296.95           10,500,000.00           5,150,000.00
November 25, 2007 ............                       0.00           14,136,378.00           10,500,000.00           5,150,000.00
December 25, 2007 ............                       0.00           13,406,380.36           10,500,000.00           5,150,000.00
January 25, 2008 .............                       0.00           12,681,272.11           10,500,000.00           5,150,000.00
February 25, 2008 ............                       0.00           11,961,021.52           10,500,000.00           5,150,000.00
March 25, 2008 ...............                       0.00           11,245,597.06           10,500,000.00           5,150,000.00
April 25, 2008 ...............                       0.00           10,542,549.97           10,500,000.00           5,150,000.00
May 25, 2008 .................                       0.00            9,856,701.25           10,500,000.00           5,150,000.00
June 25, 2008 ................                       0.00            9,187,644.42           10,500,000.00           5,150,000.00
July 25, 2008 ................                       0.00            8,553,764.95           10,500,000.00           5,150,000.00
August 25, 2008 ..............                       0.00            7,935,414.34           10,500,000.00           5,150,000.00
September 25, 2008............                       0.00            7,332,222.44           10,500,000.00           5,150,000.00
October 25, 2008 .............                       0.00            6,743,827.73           10,500,000.00           5,150,000.00
November 25, 2008 ............                       0.00            6,169,877.21           10,500,000.00           5,150,000.00
December 25, 2008 ............                       0.00            5,610,026.11           10,500,000.00           5,150,000.00
January 25, 2009 .............                       0.00            5,063,937.77           10,500,000.00           5,150,000.00
February 25, 2009 ............                       0.00            4,531,283.41           10,500,000.00           5,150,000.00
March 25, 2009 ...............                       0.00            4,011,741.95           10,500,000.00           5,150,000.00
April 25, 2009 ...............                       0.00            3,504,999.86           10,500,000.00           5,150,000.00
May 25, 2009 .................                       0.00            3,010,750.97           10,500,000.00           5,150,000.00
June 25, 2009 ................                       0.00            2,528,696.27           10,500,000.00           5,150,000.00
July 25, 2009 ................                       0.00            2,074,201.82           10,500,000.00          5,150,000.00
August 25, 2009 ..............                       0.00            1,630,780.25           10,500,000.00          5,150,000.00
September 25, 2009............                       0.00            1,198,166.87           10,500,000.00          5,150,000.00
October 25, 2009 .............                       0.00              776,103.21           10,500,000.00          5,150,000.00
November 25, 2009 ............                       0.00              364,336.92           10,500,000.00          5,150,000.00
December 25, 2009 ............                       0.00                    0.00           10,462,621.58          5,150,000.00
January 25, 2010 .............                       0.00                    0.00           10,070,716.61          5,150,000.00
February 25, 2010 ............                       0.00                    0.00            9,688,387.08          5,150,000.00
March 25, 2010 ...............                       0.00                    0.00            9,315,403.62          5,150,000.00
April 25, 2010 ...............                       0.00                    0.00            8,951,542.27          5,150,000.00
May 25, 2010 .................                       0.00                    0.00            8,596,584.36          5,150,000.00
June 25, 2010 ................                       0.00                    0.00            8,250,316.38          5,150,000.00
July 25, 2010 ................                       0.00                    0.00            7,924,861.76          5,150,000.00
August 25, 2010 ..............                       0.00                    0.00            7,607,141.44          5,150,000.00
September 25, 2010............                       0.00                    0.00            7,296,974.27          5,150,000.00
October 25, 2010 .............                       0.00                    0.00            6,994,183.28          5,150,000.00
November 25, 2010 ............                       0.00                    0.00            6,698,595.63          5,150,000.00
December 25, 2010 ............                       0.00                    0.00            6,410,042.46          5,150,000.00
January 25, 2011 .............                       0.00                    0.00            6,128,358.85          5,150,000.00
February 25, 2011 ............                       0.00                    0.00            5,853,383.70          5,150,000.00
March 25, 2011 ...............                       0.00                    0.00            5,584,959.65          5,150,000.00
</TABLE>

                                      M-3
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
April 25, 2011 ...............                       0.00                    0.00            5,322,933.00          5,150,000.00
May 25, 2011 .................                       0.00                    0.00            5,067,153.60          5,150,000.00
June 25, 2011 ................                       0.00                    0.00            4,817,474.80          5,150,000.00
July 25, 2011 ................                       0.00                    0.00            4,573,753.37          5,150,000.00
August 25, 2011 ..............                       0.00                    0.00            4,335,849.37          5,150,000.00
September 25, 2011............                       0.00                    0.00            4,103,626.14          5,150,000.00
October 25, 2011 .............                       0.00                    0.00            3,876,950.20          5,150,000.00
November 25, 2011 ............                       0.00                    0.00            3,655,691.15          5,150,000.00
December 25, 2011 ............                       0.00                    0.00            3,439,721.64          5,150,000.00
January 25, 2012 .............                       0.00                    0.00            3,228,917.26          5,150,000.00
February 25, 2012 ............                       0.00                    0.00            3,023,156.53          5,150,000.00
March 25, 2012 ...............                       0.00                    0.00            2,822,320.75          5,150,000.00
April 25, 2012 ...............                       0.00                    0.00            2,626,294.02          5,150,000.00
May 25, 2012 .................                       0.00                    0.00            2,434,963.11          5,150,000.00
June 25, 2012 ................                       0.00                    0.00            2,248,217.44          5,150,000.00
July 25, 2012 ................                       0.00                    0.00            2,065,949.01          5,150,000.00
August 25, 2012 ..............                       0.00                    0.00            1,888,052.31          5,150,000.00
September 25, 2012............                       0.00                    0.00            1,714,424.31          5,150,000.00
October 25, 2012 .............                       0.00                    0.00            1,544,964.37          5,150,000.00
November 25, 2012 ............                       0.00                    0.00            1,379,574.19          5,150,000.00
December 25, 2012 ............                       0.00                    0.00            1,218,157.78          5,150,000.00
January 25, 2013 .............                       0.00                    0.00            1,060,621.36          5,150,000.00
February 25, 2013 ............                       0.00                    0.00              906,873.36          5,150,000.00
March 25, 2013 ...............                       0.00                    0.00              756,824.32          5,150,000.00
April 25, 2013 ...............                       0.00                    0.00              610,386.89          5,150,000.00
May 25, 2013 .................                       0.00                    0.00              467,475.75          5,150,000.00
June 25, 2013 ................                       0.00                    0.00              328,007.56          5,150,000.00
July 25, 2013 ................                       0.00                    0.00              191,900.94          5,150,000.00
August 25, 2013 ..............                       0.00                    0.00               59,076.39          5,150,000.00
September 25, 2013............                       0.00                    0.00                    0.00          5,079,456.29
October 25, 2013 .............                       0.00                    0.00                    0.00          4,952,964.82
November 25, 2013 ............                       0.00                    0.00                    0.00          4,829,527.92
December 25, 2013 ............                       0.00                    0.00                    0.00          4,709,073.28
January 25, 2014 .............                       0.00                    0.00                    0.00          4,591,530.27
February 25, 2014 ............                       0.00                    0.00                    0.00          4,476,829.90
March 25, 2014 ...............                       0.00                    0.00                    0.00          4,364,904.81
April 25, 2014 ...............                       0.00                    0.00                    0.00          4,255,689.21
May 25, 2014 .................                       0.00                    0.00                    0.00          4,149,118.84
June 25, 2014 ................                       0.00                    0.00                    0.00          4,045,130.95
July 25, 2014 ................                       0.00                    0.00                    0.00          3,943,664.27
August 25, 2014 ..............                       0.00                    0.00                    0.00          3,844,658.93
September 25, 2014............                       0.00                    0.00                    0.00          3,748,056.49
October 25, 2014 .............                       0.00                    0.00                    0.00          3,653,799.88
</TABLE>

                                      M-4
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
November 25, 2014 ............                       0.00                    0.00                    0.00          3,561,833.35
December 25, 2014 ............                       0.00                    0.00                    0.00          3,472,102.46
January 25, 2015 .............                       0.00                    0.00                    0.00          3,384,554.04
February 25, 2015 ............                       0.00                    0.00                    0.00          3,299,136.19
March 25, 2015 ...............                       0.00                    0.00                    0.00          3,215,798.20
April 25, 2015 ...............                       0.00                    0.00                    0.00          3,134,490.57
May 25, 2015 .................                       0.00                    0.00                    0.00          3,055,164.93
June 25, 2015 ................                       0.00                    0.00                    0.00          2,977,774.08
July 25, 2015 ................                       0.00                    0.00                    0.00          2,902,271.91
August 25, 2015 ..............                       0.00                    0.00                    0.00          2,828,613.38
September 25, 2015............                       0.00                    0.00                    0.00          2,756,754.54
October 25, 2015 .............                       0.00                    0.00                    0.00          2,686,652.45
November 25, 2015 ............                       0.00                    0.00                    0.00          2,618,265.16
December 25, 2015 ............                       0.00                    0.00                    0.00          2,551,551.76
January 25, 2016 .............                       0.00                    0.00                    0.00          2,486,472.24
February 25, 2016 ............                       0.00                    0.00                    0.00          2,422,987.57
March 25, 2016 ...............                       0.00                    0.00                    0.00          2,361,059.63
April 25, 2016 ...............                       0.00                    0.00                    0.00          2,300,651.18
May 25, 2016 .................                       0.00                    0.00                    0.00          2,241,725.88
June 25, 2016 ................                       0.00                    0.00                    0.00          2,184,248.23
July 25, 2016 ................                       0.00                    0.00                    0.00          2,128,183.57
August 25, 2016 ..............                       0.00                    0.00                    0.00          2,073,498.05
September 25, 2016............                       0.00                    0.00                    0.00          2,020,158.63
October 25, 2016 .............                       0.00                    0.00                    0.00          1,968,133.03
November 25, 2016 ............                       0.00                    0.00                    0.00          1,917,389.74
December 25, 2016 ............                       0.00                    0.00                    0.00          1,867,898.01
January 25, 2017 .............                       0.00                    0.00                    0.00          1,819,627.79
February 25, 2017 ............                       0.00                    0.00                    0.00          1,772,549.74
March 25, 2017 ...............                       0.00                    0.00                    0.00          1,726,635.22
April 25, 2017 ...............                       0.00                    0.00                    0.00          1,681,856.27
May 25, 2017 .................                       0.00                    0.00                    0.00          1,638,185.59
June 25, 2017 ................                       0.00                    0.00                    0.00          1,595,596.51
July 25, 2017 ................                       0.00                    0.00                    0.00          1,554,063.00
August 25, 2017 ..............                       0.00                    0.00                    0.00          1,513,559.65
September 25, 2017............                       0.00                    0.00                    0.00          1,474,061.63
October 25, 2017 .............                       0.00                    0.00                    0.00          1,435,544.73
November 25, 2017 ............                       0.00                    0.00                    0.00          1,397,985.28
December 25, 2017 ............                       0.00                    0.00                    0.00          1,361,360.19
January 25, 2018 .............                       0.00                    0.00                    0.00          1,325,646.91
February 25, 2018 ............                       0.00                    0.00                    0.00          1,290,823.42
March 25, 2018 ...............                       0.00                    0.00                    0.00          1,256,868.22
April 25, 2018 ...............                       0.00                    0.00                    0.00          1,223,760.34
May 25, 2018 .................                       0.00                    0.00                    0.00          1,191,479.28
</TABLE>

                                      M-5
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
June 25, 2018 ................                       0.00                    0.00                    0.00          1,160,005.04
July 25, 2018 ................                       0.00                    0.00                    0.00          1,129,318.08
August 25, 2018 ..............                       0.00                    0.00                    0.00          1,099,399.35
September 25, 2018............                       0.00                    0.00                    0.00          1,070,230.22
October 25, 2018 .............                       0.00                    0.00                    0.00          1,041,792.54
November 25, 2018 ............                       0.00                    0.00                    0.00          1,014,068.54
December 25, 2018 ............                       0.00                    0.00                    0.00            987,040.93
January 25, 2019 .............                       0.00                    0.00                    0.00            960,692.78
February 25, 2019 ............                       0.00                    0.00                    0.00            935,007.59
March 25, 2019 ...............                       0.00                    0.00                    0.00            909,969.25
April 25, 2019 ...............                       0.00                    0.00                    0.00            885,562.02
May 25, 2019 .................                       0.00                    0.00                    0.00            861,770.55
June 25, 2019 ................                       0.00                    0.00                    0.00            838,579.85
July 25, 2019 ................                       0.00                    0.00                    0.00            815,975.29
August 25, 2019 ..............                       0.00                    0.00                    0.00            793,942.56
September 25, 2019............                       0.00                    0.00                    0.00            772,467.75
October 25, 2019 .............                       0.00                    0.00                    0.00            751,537.21
November 25, 2019 ............                       0.00                    0.00                    0.00            731,137.68
December 25, 2019 ............                       0.00                    0.00                    0.00            711,256.17
January 25, 2020 .............                       0.00                    0.00                    0.00            691,880.03
February 25, 2020 ............                       0.00                    0.00                    0.00            672,996.89
March 25, 2020 ...............                       0.00                    0.00                    0.00            654,594.68
April 25, 2020 ...............                       0.00                    0.00                    0.00            636,661.64
May 25, 2020 .................                       0.00                    0.00                    0.00            619,186.27
June 25, 2020 ................                       0.00                    0.00                    0.00            602,157.33
July 25, 2020 ................                       0.00                    0.00                    0.00            585,563.89
August 25, 2020 ..............                       0.00                    0.00                    0.00            569,395.25
September 25, 2020............                       0.00                    0.00                    0.00            553,640.98
October 25, 2020 .............                       0.00                    0.00                    0.00            538,290.89
November 25, 2020 ............                       0.00                    0.00                    0.00            523,335.03
December 25, 2020 ............                       0.00                    0.00                    0.00            508,763.72
January 25, 2021 .............                       0.00                    0.00                    0.00            494,567.47
February 25, 2021 ............                       0.00                    0.00                    0.00            480,737.04
March 25, 2021 ...............                       0.00                    0.00                    0.00            467,263.42
April 25, 2021 ...............                       0.00                    0.00                    0.00            454,137.79
May 25, 2021 .................                       0.00                    0.00                    0.00            441,351.56
June 25, 2021 ................                       0.00                    0.00                    0.00            428,896.36
July 25, 2021 ................                       0.00                    0.00                    0.00            416,763.98
August 25, 2021 ..............                       0.00                    0.00                    0.00            404,946.45
September 25, 2021............                       0.00                    0.00                    0.00            393,435.96
October 25, 2021 .............                       0.00                    0.00                    0.00            382,224.91
November 25, 2021 ............                       0.00                    0.00                    0.00            371,305.87
December 25, 2021 ............                       0.00                    0.00                    0.00            360,671.60
</TABLE>

                                      M-6
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
January 25, 2022 .............                       0.00                    0.00                    0.00            350,315.01
February 25, 2022 ............                       0.00                    0.00                    0.00            340,229.22
March 25, 2022 ...............                       0.00                    0.00                    0.00            330,407.48
April 25, 2022 ...............                       0.00                    0.00                    0.00            320,843.23
May 25, 2022 .................                       0.00                    0.00                    0.00            311,530.04
June 25, 2022 ................                       0.00                    0.00                    0.00            302,461.66
July 25, 2022 ................                       0.00                    0.00                    0.00            293,631.99
August 25, 2022 ..............                       0.00                    0.00                    0.00            285,035.05
September 25, 2022............                       0.00                    0.00                    0.00            276,665.04
October 25, 2022 .............                       0.00                    0.00                    0.00            268,516.28
November 25, 2022 ............                       0.00                    0.00                    0.00            260,583.24
December 25, 2022 ............                       0.00                    0.00                    0.00            252,860.50
January 25, 2023 .............                       0.00                    0.00                    0.00            245,342.79
February 25, 2023 ............                       0.00                    0.00                    0.00            238,024.98
March 25, 2023 ...............                       0.00                    0.00                    0.00            230,902.04
April 25, 2023 ...............                       0.00                    0.00                    0.00            223,969.08
May 25, 2023 .................                       0.00                    0.00                    0.00            217,221.30
June 25, 2023 ................                       0.00                    0.00                    0.00            210,654.06
July 25, 2023 ................                       0.00                    0.00                    0.00            204,262.80
August 25, 2023 ..............                       0.00                    0.00                    0.00            198,043.08
September 25, 2023............                       0.00                    0.00                    0.00            191,990.58
October 25, 2023 .............                       0.00                    0.00                    0.00            186,101.06
November 25, 2023 ............                       0.00                    0.00                    0.00            180,370.40
December 25, 2023 ............                       0.00                    0.00                    0.00            174,794.59
January 25, 2024 .............                       0.00                    0.00                    0.00            169,369.70
February 25, 2024 ............                       0.00                    0.00                    0.00            164,091.89
March 25, 2024 ...............                       0.00                    0.00                    0.00            158,957.45
April 25, 2024 ...............                       0.00                    0.00                    0.00            153,962.71
May 25, 2024 .................                       0.00                    0.00                    0.00            149,104.14
June 25, 2024 ................                       0.00                    0.00                    0.00            144,378.26
July 25, 2024 ................                       0.00                    0.00                    0.00            139,781.68
August 25, 2024 ..............                       0.00                    0.00                    0.00            135,311.12
September 25, 2024 ...........                       0.00                    0.00                    0.00            130,963.35
October 25, 2024 .............                       0.00                    0.00                    0.00            126,735.23
November 25, 2024 ............                       0.00                    0.00                    0.00            122,623.71
December 25, 2024 ............                       0.00                    0.00                    0.00            118,625.78
January 25, 2025 .............                       0.00                    0.00                    0.00            114,738.55
February 25, 2025 ............                       0.00                    0.00                    0.00            110,959.16
March 25, 2025 ...............                       0.00                    0.00                    0.00            107,284.85
April 25, 2025 ...............                       0.00                    0.00                    0.00            103,712.90
May 25, 2025 .................                       0.00                    0.00                    0.00            100,240.69
June 25, 2025 ................                       0.00                    0.00                    0.00             96,865.65
July 25, 2025 ................                       0.00                    0.00                    0.00             93,585.25
</TABLE>

                                      M-7
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
August 25, 2025 ..............                       0.00                    0.00                    0.00             90,397.06
September 25, 2025 ...........                       0.00                    0.00                    0.00             87,298.69
October 25, 2025 .............                       0.00                    0.00                    0.00             84,287.81
November 25, 2025 ............                       0.00                    0.00                    0.00             81,362.15
December 25, 2025 ............                       0.00                    0.00                    0.00             78,519.50
January 25, 2026 .............                       0.00                    0.00                    0.00             75,757.70
February 25, 2026 ............                       0.00                    0.00                    0.00             73,074.64
March 25, 2026 ...............                       0.00                    0.00                    0.00             70,468.28
April 25, 2026 ...............                       0.00                    0.00                    0.00             67,936.60
May 25, 2026 .................                       0.00                    0.00                    0.00             65,477.66
June 25, 2026 ................                       0.00                    0.00                    0.00             63,089.55
July 25, 2026 ................                       0.00                    0.00                    0.00             60,770.42
August 25, 2026 ..............                       0.00                    0.00                    0.00             58,518.46
September 25, 2026 ...........                       0.00                    0.00                    0.00             56,331.89
October 25, 2026 .............                       0.00                    0.00                    0.00             54,209.01
November 25, 2026 ............                       0.00                    0.00                    0.00             52,148.13
December 25, 2026 ............                       0.00                    0.00                    0.00             50,147.62
January 25, 2027 .............                       0.00                    0.00                    0.00             48,205.87
February 25, 2027 ............                       0.00                    0.00                    0.00             46,321.35
March 25, 2027 ...............                       0.00                    0.00                    0.00             44,492.52
April 25, 2027 ...............                       0.00                    0.00                    0.00             42,717.91
May 25, 2027 .................                       0.00                    0.00                    0.00             40,996.09
June 25, 2027 ................                       0.00                    0.00                    0.00             39,325.63
July 25, 2027 ................                       0.00                    0.00                    0.00             37,705.19
August 25, 2027 ..............                       0.00                    0.00                    0.00             36,133.41
September 25, 2027 ...........                       0.00                    0.00                    0.00             34,609.00
October 25, 2027 .............                       0.00                    0.00                    0.00             33,130.69
November 25, 2027 ............                       0.00                    0.00                    0.00             31,697.25
December 25, 2027 ............                       0.00                    0.00                    0.00             30,307.46
January 25, 2028 .............                       0.00                    0.00                    0.00             28,960.15
February 25, 2028 ............                       0.00                    0.00                    0.00             27,654.18
March 25, 2028 ...............                       0.00                    0.00                    0.00             26,388.43
April 25, 2028 ...............                       0.00                    0.00                    0.00             25,161.81
May 25, 2028 .................                       0.00                    0.00                    0.00             23,973.26
June 25, 2028 ................                       0.00                    0.00                    0.00             22,821.75
July 25, 2028 ................                       0.00                    0.00                    0.00             21,706.26
August 25, 2028 ..............                       0.00                    0.00                    0.00             20,625.83
September 25, 2028 ...........                       0.00                    0.00                    0.00             19,579.49
October 25, 2028 .............                       0.00                    0.00                    0.00             18,566.30
November 25, 2028 ............                       0.00                    0.00                    0.00             17,585.37
December 25, 2028 ............                       0.00                    0.00                    0.00             16,635.80
January 25, 2029 .............                       0.00                    0.00                    0.00             15,716.73
February 25, 2029 ............                       0.00                    0.00                    0.00             14,827.33
</TABLE>

                                      M-8
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                           CLASS A-9               CLASS A-10              CLASS A-11          COMPONENT A-14-1
-----------------                           ---------               ----------              ----------          ----------------
<S>                                     <C>                     <C>                     <C>                     <C>
March 25, 2029 ...............                       0.00                    0.00                    0.00             13,966.76
April 25, 2029 ...............                       0.00                    0.00                    0.00             13,134.24
May 25, 2029 .................                       0.00                    0.00                    0.00             12,328.99
June 25, 2029 ................                       0.00                    0.00                    0.00             11,550.25
July 25, 2029 ................                       0.00                    0.00                    0.00             10,797.27
August 25, 2029 ..............                       0.00                    0.00                    0.00             10,069.35
September 25, 2029 ...........                       0.00                    0.00                    0.00              9,365.78
October 25, 2029 .............                       0.00                    0.00                    0.00              8,685.87
November 25, 2029 ............                       0.00                    0.00                    0.00              8,028.97
December 25, 2029 ............                       0.00                    0.00                    0.00              7,394.43
January 25, 2030 .............                       0.00                    0.00                    0.00              6,781.60
February 25, 2030 ............                       0.00                    0.00                    0.00              6,189.89
March 25, 2030 ...............                       0.00                    0.00                    0.00              5,618.69
April 25, 2030 ...............                       0.00                    0.00                    0.00              5,067.42
May 25, 2030 .................                       0.00                    0.00                    0.00              4,535.51
June 25, 2030 ................                       0.00                    0.00                    0.00              4,022.40
July 25, 2030 ................                       0.00                    0.00                    0.00              3,527.57
August 25, 2030 ..............                       0.00                    0.00                    0.00              3,050.47
September 25, 2030 ...........                       0.00                    0.00                    0.00              2,590.61
October 25, 2030 .............                       0.00                    0.00                    0.00              2,147.49
November 25, 2030 ............                       0.00                    0.00                    0.00              1,720.62
December 25, 2030 ............                       0.00                    0.00                    0.00              1,309.53
January 25, 2031 .............                       0.00                    0.00                    0.00                913.75
February 25, 2031 ............                       0.00                    0.00                    0.00                532.86
March 25, 2031 ...............                       0.00                    0.00                    0.00                166.39
April 25, 2031 and thereafter.                       0.00                    0.00                    0.00                  0.00
</TABLE>

                                      M-9
<PAGE>

                                   EXHIBIT N

                           TARGETED PRINCIPAL BALANCES

                       TARGETED PRINCIPAL BALANCES TABLE*

<TABLE>
<CAPTION>
DISTRIBUTION DATE                 CLASS A-8          COMPONENT A-14-2       COMPONENT A-14-3          CLASS A-12
-----------------                 ---------          ----------------       ----------------          ----------
<S>                           <C>                     <C>                    <C>                    <C>
June 25, 2001 ..............   $54,296,000.00          $6,117,000.00          $4,878,000.00          $3,398,000.00
July 25, 2001 ..............    53,946,075.26           6,151,408.12           4,905,438.75           3,417,113.75
August 25, 2001 ............    53,535,909.05           6,186,009.80           4,933,031.84           3,436,335.01
September 25, 2001..........    53,065,567.93           6,220,806.10           4,960,780.15           3,455,664.40
October 25, 2001 ...........    52,535,186.47           6,255,798.14           4,988,684.54           3,475,102.51
November 25, 2001 ..........    51,944,967.52           6,290,987.00           5,016,745.89           3,494,649.96
December 25, 2001 ..........    51,295,182.37           6,326,373.80           5,044,965.08           3,514,307.37
January 25, 2002 ...........    50,586,170.67           6,361,959.65           5,073,343.01           3,534,075.35
February 25, 2002 ..........    49,818,340.39           6,397,745.68           5,101,880.56           3,553,954.52
March 25, 2002 .............    48,992,167.50           6,433,733.00           5,130,578.64           3,573,945.52
April 25, 2002 .............    48,108,195.63           6,469,922.74           5,159,438.15           3,594,048.96
May 25, 2002 ...............    47,167,035.50           6,506,316.06           5,188,459.99           3,614,265.49
June 25, 2002 ..............    46,169,364.28           6,542,914.09           5,217,645.07           3,634,595.73
July 25, 2002 ..............    45,115,924.84           6,579,717.98           5,246,994.33           3,655,040.33
August 25, 2002 ............    44,007,524.79           6,616,728.89           5,276,508.67           3,675,599.93
September 25, 2002..........    42,845,035.45           6,653,947.99           5,306,189.03           3,696,275.18
October 25, 2002 ...........    41,629,390.70           6,691,376.45           5,336,036.35           3,717,066.73
November 25, 2002 ..........    40,361,585.64           6,729,015.44           5,366,051.55           3,737,975.23
December 25, 2002 ..........    39,042,675.19           6,766,866.16           5,396,235.59           3,759,001.34
January 25, 2003 ...........    37,673,772.53           6,804,929.78           5,426,589.42           3,780,145.72
February 25, 2003 ..........    36,256,047.47           6,843,207.51           5,457,113.98           3,801,409.04
March 25, 2003 .............    34,790,724.61           6,881,700.55           5,487,810.25           3,822,791.97
April 25, 2003 .............    33,279,081.49           6,920,410.12           5,518,679.18           3,844,295.17
May 25, 2003 ...............    31,722,446.58           6,959,337.42           5,549,721.75           3,865,919.33
June 25, 2003 ..............    30,122,197.15           6,998,483.70           5,580,938.93           3,887,665.13
July 25, 2003 ..............    29,406,496.52           7,037,850.17           5,612,331.72           3,909,533.25
August 25, 2003 ............    28,676,403.41           7,077,438.07           5,643,901.08           3,931,524.37
September 25, 2003..........    27,932,902.87           7,117,248.66           5,675,648.03           3,953,639.19
October 25, 2003 ...........    27,177,003.81           7,157,283.19           5,707,573.55           3,975,878.42
November 25, 2003 ..........    26,409,736.99           7,197,542.90           5,739,678.65           3,998,242.73
December 25, 2003 ..........    25,655,756.00           7,238,029.08           5,771,964.34           4,020,732.85
January 25, 2004 ...........    24,914,846.25           7,278,743.00           5,804,431.64           4,043,349.47
</TABLE>

--------
*/   The targeted principal balances for the TAC schedules above on each
     distribution date were calculated assuming that (i) the Loans have the
     characteristics set forth in the Modeling Assumptions described under the
     heading "Prepayment and Yield Considerations--Prepayment Speed Assumption
     and Modeling Assumptions", and (ii) the Loans are prepaid at a constant
     rate of 225% PSA.

                                      N-1
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                 CLASS A-8          COMPONENT A-14-2       COMPONENT A-14-3          CLASS A-12
-----------------                 ---------          ----------------       ----------------          ----------
<S>                           <C>                     <C>                    <C>                    <C>
February 25, 2004 ..........    24,186,795.91           7,319,685.93           5,837,081.57           4,066,093.31
March 25, 2004 .............    23,471,395.89           7,360,859.16           5,869,915.15           4,088,965.08
April 25, 2004 .............    22,768,439.82           7,402,263.99           5,902,933.42           4,111,965.51
May 25, 2004 ...............    22,077,723.98           7,443,901.73           5,936,137.42           4,135,095.32
June 25, 2004 ..............    21,399,047.29           7,485,773.67           5,969,528.20           4,158,355.23
July 25, 2004 ..............    20,732,211.27           7,527,881.15           6,003,106.79           4,181,745.98
August 25, 2004 ............    20,077,020.02           7,570,225.48           6,036,874.27           4,205,268.30
September 25, 2004..........    19,433,280.16           7,612,808.00           6,070,831.69           4,228,922.93
October 25, 2004 ...........    18,800,800.81           7,655,630.05           6,104,980.11           4,252,710.63
November 25, 2004 ..........    18,179,393.57           7,698,692.96           6,139,320.63           4,276,632.12
December 25, 2004 ..........    17,568,872.49           7,741,998.11           6,173,854.31           4,300,688.18
January 25, 2005 ...........    16,969,053.99           7,785,546.85           6,208,582.24           4,324,879.55
February 25, 2005 ..........    16,379,756.91           7,829,340.55           6,243,505.51           4,349,207.00
March 25. 2005 .............    15,800,802.40           7,873,380.59           6,278,625.23           4,373,671.29
April 25, 2005 .............    15,232,013.94           7,917,668.36           6,313,942.50           4,398,273.19
May 25, 2005 ...............    14,673,217.30           7,962,205.24           6,349,458.42           4,423,013.47
June 25, 2005 ..............    14,124,240.50           8,006,992.65           6,385,174.13           4,447,892.92
July 25, 2005 ..............    13,584,913.78           8,052,031.98           6,421,090.73           4,472,912.32
August 25, 2005 ............    13,055,069.59           8,097,324.66           6,457,209.37           4,498,072.45
September 25, 2005..........    12,534,542.55           8,142,872.11           6,493,531.17           4,523,374.11
October 25. 2005 ...........    12,023,169.41           8,188,675.77           6,530,057.28           4,548,818.09
November 25, 2005 ..........    11,520,789.04           8,234,737.07           6,566,788.86           4,574,405.19
December 25, 2005 ..........    11,027,242.39           8,281,057.47           6,603,727.04           4,600,136.22
January 25, 2006 ...........    10,542,372.49           8,327,638.41           6,640,873.01           4,626,011.99
February 25. 2006 ..........    10,066,024.38           8,374,481.38           6,678,227.92           4,652,033.31
March 25, 2006 .............     9,598,045.11           8,421,587.84           6,715,792.95           4,678,200.99
April 25, 2006 .............     9,138,283.73           8,468,959.27           6,753,569.29           4,704,515.87
May 25, 2006 ...............     8,686,591.21           8,516,597.17           6,791,558.11           4,730,978.78
June 25, 2006 ..............     8,242,820.48           8,564,503.02           6,829,760.63           4,757,590.53
July 25, 2006 ..............     7,815,443.42           8,612,678.35           6,868,178.03           4,784,351.98
August 25, 2006 ............     7,395,631.11           8,661,124.67           6,906,811.53           4,811,263.96
September 25, 2006..........     6,983,242.29           8,709,843.50           6,945,662.35           4,838,327.32
October 25, 2006 ...........     6,578,137.53           8,758,836.37           6,984,731.70           4,865,542.91
November 25, 2006 ..........     6,180,179.21           8,808,104.82           7,024,020.81           4,892,911.59
December 25. 2006 ..........     5,789,231.51           8,857,650.41           7,063,530.93           4,920,434.22
January 25, 2007 ...........     5,405,160.34           8,907,474.69           7,103,263.29           4,948,111.66
February 25, 2007 ..........     5,027,833.35           8,957,579.24           7,143,219.15           4,975,944.79
March 25, 2007 .............     4,657,119.92           9,007,965.62           7,183,399.76           5,003,934.48
April 25, 2007 .............     4,292,891.11           9,058,635.43           7,223,806.38           5,032,081.61
May 25, 2007 ...............     3,935,019.65           9,109,590.25           7,264,440.29           5,060,387.07
June 25, 2007 ..............     3,583,379.90           9,160,831.70           7,305,302.77           5,088,851.74
July 25, 2007 ..............     3,240,493.22           9,212,361.38           7,346,395.09           5,117,476.53
August 25, 2007 ............     2,903,550.16           9,264,180.91           7,387,718.57           5,146,262.34
</TABLE>

                                      N-2
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                 CLASS A-8          COMPONENT A-14-2       COMPONENT A-14-3          CLASS A-12
-----------------                 ---------          ----------------       ----------------          ----------
<S>                           <C>                     <C>                    <C>                    <C>
September 25. 2007..........     2,572,430.23           9,316,291.93           7,429,274.48           5,175,210.06
October 25, 2007 ...........     2,247,014.52           9,368,696.07           7,471,064.15           5,204,320.62
November 25, 2007 ..........     1,927,185.65           9,421,394.98           7,513,088.89           5,233,594.93
December 25, 2007 ..........     1,612,827.75           9,474,390.33           7,555,350.01           5,263,033.90
January 25, 2008 ...........     1,303,826.47           9,527,683.78           7,597,848.86           5,292,638.46
February 25, 2008 ..........     1,000,068.91           9,581,277.00           7,640,586.76           5,322,409.55
March 25, 2008 .............       701,443.65           9,635,171.68           7,683,565.06           5,352,348.11
April 25, 2008 .............       400,258.15           9,689,369.52           7,726,785.11           5,382,455.07
May 25, 2008 ...............        91,551.74           9,743,872.23           7,770,248.28           5,412,731.38
June 25, 2008 ..............             0.00           9,574,274.33           7,813,955.92           5,443,177.99
July 25, 2008 ..............             0.00           9,298,572.71           7,857,909.43           5,473,795.87
August 25, 2008 ............             0.00           9,016,757.87           7,902,110.17           5,504,585.97
September 25, 2008..........             0.00           8,729,069.79           7,946,559.54           5,535,549.26
October 25, 2008 ...........             0.00           8,435,741.33           7,991,258.93           5,566,686.73
November 25, 2008 ..........             0.00           8,136,998.40           8,036,209.77           5,597,999.34
December 25, 2008 ..........             0.00           7,833,060.09           8,081,413.45           5,629,488.09
January 25, 2009 ...........             0.00           7,524,138.89           8,126,871.40           5,661,153.96
February 25, 2009 ..........             0.00           7,210,440.86           8,172,585.05           5,692,997.95
March 25, 2009 .............             0.00           6,892,165.77           8,218,555.84           5,725,021.06
April 25, 2009 .............             0.00           6,569,507.26           8,264,785.22           5,757,224.31
May 25, 2009 ...............             0.00           6,242,653.01           8,311,274.63           5,789,608.69
June 25, 2009 ..............             0.00           5,911,784.92           8,358,025.55           5,822,175.24
July 25, 2009 ..............             0.00           5,571,249.07           8,405,039.45           5,854,924.98
August 25, 2009 ............             0.00           5,227,394.53           8,452,317.79           5,887,858.93
September 25, 2009..........             0.00           4,880,375.49           8,499,862.08           5,920,978.14
October 25, 2009 ...........             0.00           4,530,341.21           8,547,673.80           5,954,283.64
November 25, 2009 ..........             0.00           4,177,436.12           8,595,754.47           5,987,776.48
December 25, 2009 ..........             0.00           3,821,799.94           8,644,105.59           6,021,457.73
January 25, 2010 ...........             0.00           3,463,567.81           8,692,728.68           6,055,328.43
February 25, 2010 ..........             0.00           3,102,870.40           8,741,625.28           6,089,389.65
March 25, 2010 .............             0.00           2,739,834.07           8,790,796.92           6,123,642.47
April 25, 2010 .............             0.00           2,374,580.92           8,840,245.16           6,158,087.95
May 25, 2010 ...............             0.00           2,007,228.95           8,889,971.53           6,192,727.20
June 25, 2010 ..............             0.00           1,637,892.14           8,939,977.62           6,227,561.29
July 25, 2010 ..............             0.00           1,262,930.08           8,990,265.00           6,262,591.32
August 25, 2010 ............             0.00             886,528.31           9,040,835.24           6,297,818.40
September 25, 2010..........             0.00             508,775.57           9,091,689.94           6,333,243.63
October 25, 2010 ...........             0.00             129,757.44           9,142,830.69           6,368,868.12
November 25, 2010 ..........             0.00                   0.00           8,943,815.56           6,404,693.00
December 25, 2010 ..........             0.00                   0.00           8,614,228.92           6,440,719.40
January 25, 2011 ...........             0.00                   0.00           8,283,906.45           6,476,948.45
February 25, 2011 ..........             0.00                   0.00           7,952,923.57           6,513,381.28
March 25, 2011 .............             0.00                   0.00           7,621,352.93           6,550,019.05
</TABLE>

                                      N-3
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                 CLASS A-8          COMPONENT A-14-2       COMPONENT A-14-3          CLASS A-12
-----------------                 ---------          ----------------       ----------------          ----------
<S>                           <C>                     <C>                    <C>                    <C>
April 25, 2011 .............             0.00                   0.00           7,289,264.55           6,586,862.91
May 25, 2011 ...............             0.00                   0.00           6,956,725.79           6,623,914.02
June 25, 2011 ..............             0.00                   0.00           6,623,801.52           6,661,173.53
July 25. 2011 ..............             0.00                   0.00           6,290,554.13           6,698,642.63
August 25, 2011 ............             0.00                   0.00           5,957,043.61           6,736,322.50
September 25, 2011..........             0.00                   0.00           5,623,327.63           6,774,214.31
October 25, 2011 ...........             0.00                   0.00           5,289,461.58           6,812,319.27
November 25, 2011 ..........             0.00                   0.00           4,955,498.65           6,850,638.56
December 25, 2011 ..........             0.00                   0.00           4,621,489.88           6,889,173.40
January 25, 2012 ...........             0.00                   0.00           4,287,484.22           6,927,925.01
February 25, 2012 ..........             0.00                   0.00           3,953,528.61           6,966,894.58
March 25, 2012 .............             0.00                   0.00           3,619,667.98           7,006,083.37
April 25, 2012 .............             0.00                   0.00           3,285,945.38           7,045,492.58
May 25, 2012 ...............             0.00                   0.00           2,952,401.96           7,085,123.48
June 25, 2012 ..............             0.00                   0.00           2,619,077.09           7,124,977.30
July 25, 2012 ..............             0.00                   0.00           2,286,008.34           7,165,055.30
August 25. 2012 ............             0.00                   0.00           1,953,231.60           7,205,358.73
September 25, 2012..........             0.00                   0.00           1,620,781.06           7,245,888.88
October 25, 2012 ...........             0.00                   0.00           1,288,689.33           7,286,647.00
November 25, 2012 ..........             0.00                   0.00             956,987.40           7,327,634.39
December 25, 2012 ..........             0.00                   0.00             625,704.77           7,368,852.33
January 25, 2013 ...........             0.00                   0.00             294,869.43           7,410,302.13
February 25, 2013 ..........             0.00                   0.00                   0.00           7,416,493.03
March 25, 2013 .............             0.00                   0.00                   0.00           7,128,547.96
April 25, 2013 .............             0.00                   0.00                   0.00           6,841,361.47
May 25, 2013 ...............             0.00                   0.00                   0.00           6,554,957.36
June 25, 2013 ..............             0.00                   0.00                   0.00           6,269,358.13
July 25, 2013 ..............             0.00                   0.00                   0.00           5,984,585.07
August 25, 2013 ............             0.00                   0.00                   0.00           5,700,658.24
September 25, 2013..........             0.00                   0.00                   0.00           5,417,596.54
October 25, 2013 ...........             0.00                   0.00                   0.00           5,135,417.75
November 25, 2013 ..........             0.00                   0.00                   0.00           4,854,138.53
December 25, 2013 ..........             0.00                   0.00                   0.00           4,573,774.47
January 25, 2014 ...........             0.00                   0.00                   0.00           4,294,340.14
February 25, 2014 ..........             0.00                   0.00                   0.00           4,015,849.09
March 25, 2014 .............             0.00                   0.00                   0.00           3,738,313.90
April 25, 2014 .............             0.00                   0.00                   0.00           3,461,746.20
May 25, 2014 ...............             0.00                   0.00                   0.00           3,186,156.72
June 25, 2014 ..............             0.00                   0.00                   0.00           2,911,555.27
July 25, 2014 ..............             0.00                   0.00                   0.00           2,637,950.82
August 25, 2014 ............             0.00                   0.00                   0.00           2,365,351.49
September 25, 2014..........             0.00                   0.00                   0.00           2,093,764.61
October 25, 2014 ...........             0.00                   0.00                   0.00           1,823,196.70
</TABLE>

                                      N-4
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE                 CLASS A-8          COMPONENT A-14-2       COMPONENT A-14-3          CLASS A-12
-----------------                 ---------          ----------------       ----------------          ----------
<S>                           <C>                     <C>                    <C>                    <C>
November 25, 2014 ..........             0.00                   0.00                   0.00           1,553,653.53
December 25, 2014 ..........             0.00                   0.00                   0.00           1,285,140.14
January 25, 2015 ...........             0.00                   0.00                   0.00           1,017,660.85
February 25, 2015 ..........             0.00                   0.00                   0.00             751,219.28
March 25, 2015 .............             0.00                   0.00                   0.00             485,818.40
April 25. 2015 .............             0.00                   0.00                   0.00             221,460.51
May 25, 2015 and
thereafter..................             0.00                   0.00                   0.00                   0.00
</TABLE>

                                      N-5
<PAGE>

                                   EXHIBIT O
                                   ---------

                  FORM OF CERTIFICATE GUARANTY INSURANCE POLICY

OBLIGATIONS:     ABN AMRO Mortgage Corporation         POLICY NUMBER: 35618
                 Multi-Class Mortgage Pass-Through
                 Certificates, Series 2001-3
                 $16,721,000 Class A-7 Certificates

         MBIA Insurance Corporation (the "Insurer"), in consideration of the
payment of the premium and subject to the terms of this Certificate Guaranty
Insurance Policy (this "Policy"), hereby unconditionally and irrevocably
guarantees to any Owner that an amount equal to each full and complete Insured
Payment will be received from the Insurer by The Chase Manhattan Bank or its
successors, as trustee for the Owners (the "Trustee"), on behalf of the Owners,
for distribution by the Trustee to each Owner of each Owner's proportionate
share of the Insured Payment. The Insurer's obligations hereunder with respect
to a particular Insured Payment shall be discharged to the extent funds equal to
the applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only
at the time set forth in this Policy, and no accelerated Insured Payments shall
be made regardless of any acceleration of the Obligations, unless such
acceleration is at the sole option of the Insurer.

         Notwithstanding the foregoing paragraph, this Policy does not cover
shortfalls, if any, attributable to the liability of the Trust, any REMIC or the
Trustee for withholding taxes, if any (including interest and penalties in
respect of any such liability). This Policy will not provide credit enhancement
for any Class of Certificates other than the Class A-7 Certificates.

         The Insurer will pay any Insured Payment that is a Preference Amount on
the Business Day following receipt on a Business Day by the Fiscal Agent (as
described below) of (a) a certified copy of the order requiring the return of a
preference payment, (b) an opinion of counsel satisfactory to the Insurer that
such order is final and not subject to appeal, (c) an assignment in such form as
is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations
against the debtor which made such preference payment or otherwise with respect
to such preference payment and (d) appropriate instruments to effect the
appointment of the Insurer as agent for such Owner in any legal proceeding
related to such preference payment, such instruments being in a form
satisfactory to the Insurer, provided that if such documents are received after
12:00 noon, New York City time, on such Business Day, they will be deemed to be
received on the following Business Day. Such payments shall be disbursed to the
receiver or trustee in bankruptcy named in the final order of the court
exercising jurisdiction on behalf of the Owner and not to any Owner directly
unless such

                                      O-1
<PAGE>

Owner has returned principal or interest paid on the Obligations to such
receiver or trustee in bankruptcy, in which case such payment shall be disbursed
to such Owner.

         The Insurer will pay any other amount payable hereunder no later than
12:00 noon, New York City time, on the later of the Distribution Date on which
the related Deficiency Amount is due or the third Business Day following receipt
in New York, New York on a Business Day by State Street Bank and Trust Company,
N.A., as Fiscal Agent for the Insurer or any successor fiscal agent appointed by
the Insurer (the "Fiscal Agent") of a Notice (as described below), provided that
if such Notice is received after 12:00 noon, New York City time, on such
Business Day, it will be deemed to be received on the following Business Day. If
any such Notice received by the Fiscal Agent is not in proper form or is
otherwise insufficient for the purpose of making claim hereunder, it shall be
deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall
promptly so advise the Trustee, and the Trustee may submit an amended Notice.

         Insured Payments due hereunder unless otherwise stated herein will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire
transfer of immediately available funds in the amount of the Insured Payment
less, in respect of Insured Payments related to Preference Amounts, any amount
held by the Trustee for the payment of such Insured Payment and legally
available therefor.

         The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent
shall in no event be liable to Owners for any acts of the Fiscal Agent or any
failure of the Insurer to deposit or cause to be deposited sufficient funds to
make payments due under this Policy.

         As used herein, the following terms shall have the following meanings:

         "Agreement" means the Pooling and Servicing Agreement, dated as of June
1, 2001, among ABN AMRO Mortgage Corporation, as Depositor, ABN AMRO Mortgage
Group, Inc., as Servicer, and the Trustee, as trustee, without regard to any
amendment or supplement thereto, unless such amendment or supplement has been
approved in writing by the Insurer.

         "Business Day" means any day other than (a) a Saturday or a Sunday, (b)
a day on which the Insurer is closed or (c) a day on which banking institutions
in New York City or in the city in which the corporate trust office of the
Trustee under the Agreement is located are authorized or obligated by law or
executive order to close.

         "Class A-7 Coverage Payments" means, as of any Distribution Date, all
amounts available to be distributed to the Class A-7 Certificates on such
Distribution Date from the Reserve Fund.

                                      O-2
<PAGE>

         "Deficiency Amount" means, as of any Distribution Date, the excess, if
any, of (i) the sum of (A) the Net Interest Shortfall allocated to the Class A-7
Certificates on such Distribution Date and (B) the principal portion of any
Realized Loss, including any Excess Loss, allocated to the Class A-7
Certificates on such Distribution Date over (ii) the Class A-7 Coverage
Payments.

         "Insured Payment" means (a) as of any Distribution Date, any Deficiency
Amount and (b) any Preference Amount.

         "Notice" means the telephonic or telegraphic notice, promptly confirmed
in writing by facsimile substantially in the form of Exhibit A attached hereto,
the original of which is subsequently delivered by registered or certified mail,
from the Trustee specifying the Insured Payment which shall be due and owing on
the applicable Distribution Date.

         "Owner" means each Class A-7 Certificateholder (as defined in the
Agreement) (other than the Trustee, the Seller or the Servicer) who, on the
applicable Distribution Date, is entitled under the terms of the applicable
Class A-7 Certificates to payment thereunder.

         "Preference Amount" means any amount previously distributed to a Class
A-7 Certificateholder on the Class A-7 Certificates that is recoverable and
sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time
to time, in accordance with a final nonappealable order of a court having
competent jurisdiction.

         Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Agreement as of the date of
execution of this Policy, without giving effect to any subsequent amendment to
or modification of the Agreement unless such amendment or modification has been
approved in writing by the Insurer.

         Any notice hereunder or service of process on the Fiscal Agent may be
made at the address listed below for the Fiscal Agent or such other address as
the Insurer shall specify in writing to the Trustee.

         The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New
York, New York 10006 Attention: Municipal Registrar and Paying Agency, or such
other address as the Fiscal Agent shall specify to the Trustee in writing.

         This Policy is being issued under and pursuant to, and shall be
construed under, the laws of the State of New York, without giving effect to the
conflict of laws principles thereof.

         The insurance provided by this Policy is not covered by the
Property/Casualty Insurance Security Fund specified in Article 76 of the New
York Insurance Law.

                                      O-3
<PAGE>

         This Policy is not cancelable for any reason. The premium on this
Policy is not refundable for any reason, including payment, or provision being
made for payment, prior to maturity of the Obligations.

         IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed
and attested this 25th day of June, 2001.

                                       MBIA INSURANCE CORPORATION

                                       By
                                          ----------------------------------
                                          President

                                       Attest:

                                       By
                                          ----------------------------------
                                          Assistant Secretary

                                      O-4
<PAGE>

                                    EXHIBIT A

                    TO CERTIFICATE GUARANTY INSURANCE POLICY

                                  NUMBER: 35618

                        NOTICE UNDER CERTIFICATE GUARANTY
                         INSURANCE POLICY NUMBER: 35618

State Street Bank and Trust Company, N.A., as Fiscal Agent
  for MBIA Insurance Corporation
15th Floor
61 Broadway
New York, NY  10006
Attention:  Municipal Registrar and Paying Agency

MBIA Insurance Corporation
113 King Street
Armonk, NY  10504

         The undersigned, a duly authorized officer of [NAME OF TRUSTEE], as
trustee (the "Trustee"), hereby certifies to State Street Bank and Trust
Company, N.A. (the "Fiscal Agent") and MBIA Insurance Corporation (the
"Insurer"), with reference to Certificate Guaranty Insurance Policy Number:
35618 (the "Policy") issued by the Insurer in respect of the ABN AMRO Mortgage
Corporation Multi-Class Mortgage Pass-Through Certificates, Series 2001-3
$16,721,000 Class A-7 Certificates (the "Obligations"), that:

              (a) the Trustee is the trustee under the Pooling and Servicing
         Agreement, dated as of June 1, 2001, among ABN AMRO Mortgage
         Corporation, as Depositor, ABN AMRO Mortgage Group, Inc. as Servicer,
         and the Trustee, as trustee for the Owners;

              (b) the Class A-7 Coverage Payments for the Distribution Date
         occurring on ________ (the "Applicable Distribution Date") is $
         _______;

              (c) the sum of (i) the Net Interest Shortfall allocated to the
         Class A-7 Certificates on such Distribution Date and (ii) the principal
         portion of any Realized Loss, including any Excess Loss, allocated to
         the Class A-7 Certificates on such Distribution Date is
         $________________;

                                      O-1
<PAGE>

              (d) the excess, if any, of the amount in (c) over the amount in
         (b) is $_____ (the "Deficiency Amount");

              (e) the amount of previously distributed payments on the
         Obligations that is recoverable and sought to be recovered as a
         voidable preference by a trustee in bankruptcy pursuant to the
         Bankruptcy Code in accordance with a final nonappealable order of a
         court having competent jurisdiction is $ ________ (the "Preference
         Amount");

              (f) the total Insured Payment due is $ ________, which amount
         equals the sum of the Deficiency Amount and the Preference Amount;

              (g) the Trustee is making a claim under and pursuant to the terms
         of the Policy for the dollar amount of the Insured Payment set forth in
         (d) above to be applied to the payment of the Deficiency Amount for the
         Applicable Distribution Date in accordance with the Agreement and for
         the dollar amount of the Insured Payment set forth in (e) above to be
         applied to the payment of any Preference Amount; and

              (h) the Trustee directs that payment of the Insured Payment be
         made to the following account by bank wire transfer of federal or other
         immediately available funds in accordance with the terms of the Policy:
         [TRUSTEE'S ACCOUNT NUMBER].

         Any capitalized term used in this Notice and not otherwise defined
herein shall have the meaning assigned thereto in the Policy.

         Any Person Who Knowingly And With Intent To Defraud Any Insurance
Company Or Other Person Files An Application For Insurance Or Statement Of Claim
Containing Any Materially False Information, Or Conceals, For The Purpose Of
Misleading, Information Concerning Any Fact Material Thereto, Commits A
Fraudulent Insurance Act, Which Is A Crime, And Shall Also Be Subject To A Civil
Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of The Claim
For Each Such Violation.

         IN WITNESS WHEREOF, the Trustee has executed and delivered this Notice
under the Policy as of the [___________] day of [___________], [___________].

                                       [NAME OF TRUSTEE], as Trustee

                                       By
                                         ---------------------------------------
                                       Title
                                            ------------------------------------

                                      O-2
<PAGE>

                                    EXHIBIT P

                                   [RESERVED]

                                      P-1
<PAGE>

                                    EXHIBIT Q

                                 BLOOMBERG DATA

Loan Number
Property Type
Owner Occupied
Loan Purpose
Loan Type
Current Interest Rate
Original Balance
Current Balance
First Payment Date
Maturity Date
Current PNI
Servicing Fee
Loan Term
Foreclosure/REO
Loan to Value Ratio
State Code
Interest Paid to Date
Zip Code
PIF Data
Amortized Remaining Term

                                       Q-1
<PAGE>

                                   EXHIBIT R

                       FORM OF SPECIAL SERVICING AGREEMENT

       This SPECIAL SERVICING AGREEMENT (the "Agreement") is made and entered
into as of ____________ 1, 20__, between _______________, as seller and master
servicer (the "Company"), _______________, as holder of the Class B Certificates
identified on Schedule I (the "Class B Holder") and _______________, [an
affiliate of the Class B Holder,] as special servicer (the "Special Servicer").

                              PRELIMINARY STATEMENT

       WHEREAS, the Class B Holder is the holder of at least 75% of each the
classes of Mortgage Pass-Through Certificates (each a "Class B Certificate") of
the series of issuances (each a "Series") issued by the Company identified on
Schedule I attached hereto (such Schedule I, as may be modified or amended to
reflect (i) the purchase from time to time by the Class B Holder of interests in
any class of Class B Certificates of a Series such that the Class B Holder owns
not less than 75% of the then outstanding Certificate Principal Balance of such
Class B Certificates and (ii) the sale from time to time of the Class B Holder
of interests in any class of Class B Certificates of a Series such that the
Class B Holder owns less than 75% of the then outstanding Certificate Principal
Balance of such Class B Certificates, the "Schedule I").

       WHEREAS, each of the Class B Certificates was issued by the Company
pursuant to the Pooling and Servicing Agreement or Agreements (each a "Pooling
and Servicing Agreement") identified on Schedule I and evidences an ownership
interest in a pool of Mortgage Loans.

       WHEREAS, the Company is the Master Servicer of the Mortgage Loans related
to each Series and the Mortgage Loans are serviced in accordance with the
applicable Pooling and Servicing Agreement [and the Company's [Servicer Guide]
(the "Servicer Guide")].

       WHEREAS, in connection with the purchase by Class B Holder of a Series of
Class B Certificates (whether owned by the Class B Holder on the date hereof or
purchased by the Class B Holder at any time in the future), the Class B Holder
and the Company have agreed that (i) the Class B Holder, if it owns 75% of the
most subordinate outstanding class of Class B Certificates of a Series
(calculated by dividing the then outstanding Certificate Principal Balance of
such Class B Certificates by the then outstanding Certificate Principal Balance
of all certificates of the same class) may elect to have certain Mortgage Loans
with respect to the related Series that become 90 or more days delinquent (each
such Mortgage Loan, a "Delinquent Mortgage Loan") serviced by the Special
Servicer (each such Delinquent Mortgage Loan, a "Specially Serviced Mortgage
Loan"), and (ii) with respect to Delinquent Mortgage Loans other than Specially
Serviced Mortgage Loans, the Company will provide to the Class B Holder such
information as is generated [pursuant to the terms of the Servicer Guide] by the
Company or a subservicer with respect to such Delinquent Loan.

                                      R-1
<PAGE>

       NOW THEREFORE, in consideration of the premises and mutual agreements
hereinafter set forth, the Company, the Class B Holder and the Special Servicer
hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01 Definitions Incorporated by Reference.

       Capitalized terms used but not otherwise defined in this Agreement shall
have the respective meaning ascribed thereto as set forth in the related Pooling
and Servicing Agreement [or the Servicer Guide, as the context may require].

                                   ARTICLE II

          DESIGNATION OF SPECIALLY SERVICED MORTGAGE LOANS AND SPECIAL
                              SERVICING PROCEDURES

         Section 2.01 [Approval of _______________ as an Approved Servicer under
the Servicer Guide.

         The Company hereby approves _______________ as an approved servicer for
all purposes under the terms of the Servicer Guide.]

         Section 2.02 Specially Serviced Mortgage Loans.

         To the extent and for so long as the Class B Certificates of a Series
are outstanding and the Class B Holder owns at least 75% of the most subordinate
outstanding class of the Class B Certificates of such Series (calculated by
dividing the then outstanding Certificate Principal Balance of such Class B
Certificates by the then outstanding Certificate Principal Balance of all
certificates of the same class), Delinquent Mortgage Loans of the related Series
may, at the option of the Class B Holder, be designated in writing by the Class
B Holder as Specially Serviced Mortgage Loans and transferred to the Special
Servicer for servicing. The Special Servicer shall service the Specially
Serviced Mortgage Loans in accordance with the terms of the related Pooling and
Servicing Agreement [and the Servicer Guide].

         Following the designation of a Delinquent Mortgage Loan as a Specially
Serviced Loan, the Company shall transfer servicing of such Delinquent Mortgage
Loan to the Special Servicer substantially in the manner set forth herein and in
Schedule II hereto. [The parties hereto agree that any fees resulting from the
transfer of the servicing of a Delinquent Mortgage Loan from the Company or a
subservicer to the Special Servicer (or any successor thereto) shall be the
obligation of the Company.]

                                      R-2
<PAGE>

         As of the Effective Date (as defined below) of each Specially Serviced
Mortgage Loan, the Special Servicer shall succeed to and undertake all rights,
duties and obligations of the prior servicer (including, without limitation, the
making of advances, any right to purchase such Specially Serviced Mortgage Loan
at the purchase price set forth in the related Pooling and Servicing Agreement
and the right to receive the servicing fee with respect to such Specially
Serviced Mortgage Loan) pursuant to and in accordance with the terms of the
related Pooling and Servicing Agreement [and the terms and conditions of the
Servicer Guide].

         With respect to each Specially Serviced Mortgage Loan, the effective
date (the "Effective Date") shall be the first day of the month immediately
following the month of designation of such Specially Serviced Mortgage Loan as
such, provided that such written designation is received by the Company on or
prior to the 15th calendar day of such month.

         Once a Delinquent Mortgage Loan becomes a Specially Serviced Mortgage
Loan, such Delinquent Mortgage Loan shall remain a Specially Serviced Mortgage
Loan, and shall continue to be serviced by the Special Servicer, until the
earlier of the liquidation or other disposition of such Specially Serviced
Mortgage Loan or the termination of this Agreement, regardless of delinquency
status, whether the related Mortgaged Property becomes an REO Property or
otherwise; provided, however, that if the Company exercises its right as Master
Servicer to purchase all of the Mortgage Loans in a Trust Fund pursuant to an
optional termination provision under the related Pooling and Servicing
Agreement, the servicing of any related Specially Serviced Mortgage Loans with
respect to which foreclosure proceedings have not been commenced shall be
transferred promptly by the Special Servicer in accordance with written
instructions from the Company.

       If the Class B Holder (i) transfers such percentage interest in any Class
B Certificates of a Series such that the Class B Holder owns less than 75% of
the then outstanding Certificate Principal Balance of such class, or (ii)
purchases such percentage interest in any Class B Certificates of a Series such
that the Class B Holder owns 75% or more of the then outstanding Certificate
Principal Balance of such class, the Class B Holder shall promptly notify the
Company and the Special Servicer in writing of any such transfer or acquisition.
Upon receipt of written notice from the Class B Holder, the Company or the Class
B Holder shall revise Schedule I hereto to reflect any such transfer or
acquisition and shall forward promptly a copy of such revised schedule to the
Company or the Class B Holder, as applicable, and the Special Servicer. With
respect to the purchase of at least 75% of the Class B Certificates of any
Series by the Class B Holder after the date hereof, this Agreement shall be
effective as of the date such written notice of acquisition is received by the
Company.

       If and to the extent the Company is permitted to purchase Delinquent
Mortgage Loans under the related Pooling and Servicing Agreement, the Class B
Holder may direct the Company to purchase any Specially Serviced Mortgage Loan
and to promptly resell such Mortgage Loan to the Class B Holder at the price and
on the terms set forth in such Pooling and Servicing Agreement. In the event the
Class B Holder directs the Company to purchase a Specially Serviced Mortgage
Loan as permitted under this Section, the Company shall promptly take all action
necessary under the terms of the related Pooling and Servicing Agreement in

                                      R-3
<PAGE>

order to accomplish such purchase (i.e. provide notification to the Trustee
and/or Custodian) and to resell such Specially Serviced Mortgage Loan to the
Class B Holder. The Class B Holder, and not the Company, shall be required to
remit the purchase price for such Specially Serviced Mortgage Loan to the
related Trustee. The Company will inform the Trustee in writing of the purchase
of such Specially Serviced Mortgage Loan by the Class B Holder and further shall
promptly take all actions necessary or desirable to effect the conveyance of
such Mortgage Loan and the related servicing rights to the Class B Holder or its
designee, time being of the essence.

       Notwithstanding any provision herein to the contrary, the Special
Servicer shall (i) in no event be obligated to effect any cure or remedy in
connection with a deficiency in the documentation for any Specially Serviced
Mortgage Loan to the extent such deficiency existed at the time such Mortgage
Loan became a Specially Serviced Mortgage Loan or (ii) have any responsibility
for any obligations, duties, or liabilities of the Company with respect to the
servicing of a Specially Serviced Mortgage Loan that arose prior to the related
Effective Date for such Specially Serviced Mortgage Loan, other than those which
would customarily be assumed after the Effective Date.

       Section 2.03 Termination of Special Servicer for Default.

       The Company shall have the right, immediately upon written notice, to
terminate the Special Servicer's right and obligation to subservice all of the
Specially Serviced Mortgage Loans hereunder in the event (each such event, an
"Event of Default") of:

       (i) any failure by the Special Servicer to remit to the Company for
distribution to the Certificateholders of a Series any payment (including
without limitation, any failure to make any required Advance) required to be
made under the terms of this Agreement or the related Pooling and Servicing
Agreement which continues unremedied for a period of one day after the date upon
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Special Servicer by the Company; or

       (ii) any failure on the part of the Special Servicer duly to observe or
perform in any material respect any other of the covenants or agreements on the
part of the Special Sub-Servicer contained in this Agreement (including any
breach of the Special Servicer's representations and warranties contained in
Section 4.03 hereof, which materially and adversely affects the interests of the
Certificateholders of a Series) which continues unremedied for a period of 30
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Special Servicer by the Company; or

       (iii) a decree or order of a court or agency or supervisory authority
having jurisdiction in an involuntary case under any present or future federal
or state bankruptcy, insolvency or similar law or the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Special Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 consecutive days; or

                                      R-4
<PAGE>

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

       (v) the Special Servicer shall admit in writing its inability to pay its
debts generally as they become due, file a petition to take advantage of or
otherwise voluntarily commence a case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of
its obligations.

       If an Event of Default shall occur, then, and in each and every such
case, upon receipt of written notice from the Company, the Special Servicer
shall immediately remit to the Company all amounts in the Collection Accounts
and the Escrow Accounts and all rights of the Special Servicer to service the
Specially Serviced Mortgage Loans shall terminate. Following the receipt of
written notice from the Company as provided above, all authority and power of
the Special Sub-Servicer to subservice all the Specially Serviced Mortgage Loans
shall pass to and be vested in the Company pursuant to and under this Section
2.03, and the Special Servicer shall do all things necessary to effect a
transfer of the servicing rights back to the Company. In this regard, the
Company is hereby authorized and empowered to execute and deliver, on behalf of
the Special Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement or assignment of the affected
Specially Serviced Mortgage Loans and related documents, or otherwise. The
Special Servicer agrees to cooperate with the Company in implementing the
termination of the Special Servicer's responsibilities and rights hereunder,
including, without limitation, the transfer to the Company or its appointed
agent for administration by it of all amounts in the possession of the Special
Servicer or thereafter be received with respect to the Specially Serviced
Mortgage Loans and the transfer of the] servicing rights back to the Company.

       Section 2.04 Appointment of Successor Special Servicer.

       The Class B Holder shall have the right, upon 90 days prior written
notice to the Company and the Special Servicer appoint a successor special
servicer having the characteristics set forth in clauses (i), (ii) and (iii)
below, and which shall succeed to all rights and assume all of the
responsibilities, duties and liabilities of the Special Servicer under this
Agreement simultaneously with the termination of the Special Servicer's
responsibilities, duties and liabilities under this Agreement. In the event that
the Special Servicer's duties, responsibilities and liabilities under this
Agreement should be terminated pursuant to the foregoing, the Special Servicer
shall discharge such duties and responsibilities during the period from the date
it acquires knowledge of such termination until the effective date thereof with
the same degree of diligence and prudence which it is obligated to exercise
under this Agreement, and shall take no action whatsoever that might impair or
prejudice the rights or financial condition of its successor. The removal of the
Special Servicer shall not become effective until a successor

                                       R-5
<PAGE>

shall be appointed pursuant to this Section and shall in no event relieve the
Special Servicer of the representations and warranties made pursuant to Section
4.03 and the remedies available to the Class B Holder and/or the Company under
Sections 4.04 and 5.01, it being understood and agreed that the provisions of
such Sections 4.04 and 5.01 shall be applicable to the Special Servicer
notwithstanding any such termination of it, or the termination of this
Agreement.

       Any successor special servicer shall (i) [be an institution having a net
worth of not less than $1,000,000][meet the eligibility requirements of an
approved servicer under the Company's Servicer Guide], (ii) the appointment of
such successor servicer will not result in the downgrading in any rating by any
applicable rating agency of any security issued in connection with the
applicable Pooling and Servicing Agreements, and (iii) have and keep in full
effect its existence, rights and franchises as a corporation (or such other
corporate form), and shall obtain its qualification to do business as a foreign
corporation (or such other corporate form) in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Specially Serviced Mortgage Loans
and to perform its duties under this Agreement. Any successor appointed as
provided herein shall execute, acknowledge and deliver to the Class B Holder and
the Company an instrument accepting such appointment, wherein the successor
shall make the representations and warranties set forth in Section 4.03,
whereupon such successor shall become fully vested with all the rights, powers,
duties, responsibilities, obligations and liabilities of the Special Servicer,
with like effect as if originally named as a party to this Agreement.

       Within 30 days of the appointment of a successor special servicer by the
Class B Holder, the Special Servicer shall prepare, execute and deliver to the
successor entity any and all documents and other instruments, place in such
successor's possession all servicing files related to the Specially Serviced
Mortgage Loans, and do or cause to be done all other acts or things necessary or
appropriate to effect the purposes of such notice of termination [, including
but not limited to the transfer and endorsement of the related Mortgage Notes
and other documents, and the Class B Holder shall do or cause to be done the
preparation and recordation of Assignments of Mortgage and Deeds at the Class B
Holder's sole expense].

       The Special Servicer shall cooperate with the Class B Holder and such
successor in effecting the termination of the Special Servicer's
responsibilities and rights hereunder and the transfer of servicing
responsibilities to the successor special servicer, including without
limitation, the transfer to such successor of all amounts received by it with
respect to the Specially Serviced Mortgage Loans. Further, the Special Servicer
shall execute and deliver such instruments and do such other things as may
reasonably be required to more fully and definitively vest in the successor all
such rights, powers, duties, responsibilities, obligations and liabilities of
the Special Servicer.

                                      R-6
<PAGE>

                                   ARTICLE III

             DELINQUENT MORTGAGE LOANS OTHER THAN SPECIALLY SERVICED
                                 MORTGAGE LOANS

       Section 3.01 Reporting of Delinquent Mortgage Loans.

       (a) To the extent and for so long as the Class B Certificates of a Series
are outstanding and any interest in such Class B Certificates is held by the
Class B Holder, the Company, as Master Servicer of the Mortgage Loans related to
each Series, hereby agrees to provide to the Class B Holder the following
notices and reports:

       Within three (3) Business Days after each Distribution Date (or included
in or with the monthly statements to Certificateholders pursuant to the related
Pooling and Servicing Agreement), the Company shall provide to the Class B
Holder a report, in tape format, containing the following information:

       (1)      With respect to each Series, the number and aggregate Principal
                Balance of the Mortgage Loans delinquent one, two and three
                months or more, together with the Principal Balance of each
                Mortgage Loan delinquent, one, two and three months or more;

       (2)      With respect to each Series, the (i) number and aggregate
                Principal Balance of Mortgage Loans with respect to which
                foreclosure proceedings have been initiated, and (ii) the number
                and aggregate book value of Mortgaged Properties acquired
                through foreclosure, deed in lieu of foreclosure or other
                exercise of rights respecting the Trustee's security interest in
                the Mortgage Loans, and with respect to each Mortgage Loan, the
                (i) Principal Balance of each such Mortgage Loan with respect to
                which foreclosure proceedings have been initiated, and (ii) the
                book value of each Mortgaged Property acquired through
                foreclosure, deed in lieu of foreclosure or other exercise of
                rights respecting the Trustee's security interest in the related
                Mortgage Loan; and

       (3)      With respect to each Series, the amount of Realized Losses
                allocable to the Certificates on the related Distribution Date
                and the cumulative amount of Realized Losses allocated to such
                Certificates since the Cut-off Date, and with respect to each
                Mortgage Loan, the amount of Realized Losses attributable to
                such Mortgage Loan on the related Distribution Date and the
                cumulative amount of Realized Losses attributable to such
                Mortgage Loan since the Cut-off Date.

       In addition, the Company, as Master Servicer of the Mortgage Loans, shall
send, or shall cause the related servicer to send, to the Class B Holder all
other written reports, documentation, instruments, certificates and
correspondences provided by a servicer under the terms of the Servicer Guide
with respect to any Mortgage Loan that becomes sixty (60) days or more
delinquent.

                                      R-7
<PAGE>

       (b) If requested by the Class B Holder, the Company shall make its
servicing personnel available to respond to reasonable inquiries, by phone or in
writing by facsimile, electronic, or overnight mail transmission, in connection
with any Mortgage Loan identified in any report or document provided pursuant to
clause (a) above; provided, that the Company shall only be required to provide
information that is reasonably accessible to its servicing personnel (or its
subservicers).

       (c) In addition to the information described above, the Company shall
provide to the Class B Holder such information as the Class B Holder may
reasonably request; provided, however, that the Mortgage Loans are Delinquent
Mortgage Loans or the Mortgaged Property has been foreclosed upon. The Class B
Holder will reimburse the Company for any reasonable out-of-pocket expenses
incurred by it in providing such information.

       Section 3.02 Servicing of Delinquent Mortgage Loans.

       (a) Prior to the Commencement of Foreclosure of any Mortgage Loan, the
Company shall provide, or cause the related servicer to provide, the Class B
Holder with a notice (sent by telecopier) of such proposed and imminent
foreclosure, stating the loan number and the aggregate amount due under the
Mortgage Note.

       For purposes of this Agreement, "Commencement of Foreclosure" shall mean
the first official action required under local law in order to commence
foreclosure proceedings or to schedule a trustee's sale under a deed of trust,
including (i) in the case of a mortgage, any filing or service of process
necessary to commence an action to foreclosure, or (ii) in the case of a deed of
trust, posting, the publishing, filing or delivery of a notice of sale, but not
including in either case (x) any notice of default, notice of intent to
foreclose or sell or any other action prerequisite to the actions specified in
(i) or (ii) above, (y) the acceptance of a deed-in-lieu of foreclosure (whether
in connection with a sale of the related property or otherwise) or (z)
initiation and completion of a short pay-off.

       (b) In connection with any Delinquent Mortgage Loan with respect to which
a notice under clause (a) above has been delivered to the Class B Holder, the
Class B Holder shall provide the Company with written direction as to the action
to be taken with respect to such Delinquent Mortgage Loan, including, without
limitation, to proceed with foreclosure, to accept a deed-in-lieu of
foreclosure, to consent to a pre-foreclosure sale of Mortgaged Property at a
loss, or, if permitted under the terms of the related Pooling and Servicing
Agreement, to purchase Delinquent Mortgage Loans. Such written direction must be
received by the Company within two (2) Business Days of transmission of the
notice provided by the Company under clause (a) above. Such two (2) Business Day
period shall be extended for no longer than an additional three (3) Business
Days after the receipt of additional information requested if the Class B Holder
requests additional information related to such Delinquent Mortgage Loan;
provided, however that the Class B Holder will have at least one Business Day to
provide written direction after receipt of any requested additional information.
Any such additional information shall be provided only to the extent it is
obtainable by the Company from existing reports, certificates or statements or
otherwise be reasonably accessible to its servicing

                                      R-8
<PAGE>

personnel (or subservicing personnel). The Company shall as promptly as
practicable carry out, or cause the relevant servicer to carry out, the
instruction of the Class B Holder in the manner prescribed in such written
direction. The Class B Holder agrees that it has no right to negotiate directly
with the Mortgagor during such period.

       In the event the Class B Holder fails to provide any written direction as
provided above, the Company may take any such action as would be consistent with
customary servicing practices of prudent mortgage loan servicers and the
Company's normal policies and practice.

       (c) With respect to any Delinquent Mortgage Loan for which the Company
has not provided a notice as contemplated in clause (a) above, the Class B
Holder may, at any time, provide the Company with written direction as to the
action to be taken with respect to such Delinquent Mortgage Loan, including,
without limitation, to commence foreclosure proceedings, to accept a
deed-in-lieu of foreclosure, to consent to a sale of Mortgaged Property at a
loss, or, if permitted under the terms of the related Pooling and Servicing
Agreement, to purchase Delinquent Mortgage Loans. To the extent such action is
not inconsistent with the terms of the related Pooling and Servicing Agreement
or the Company's duties thereunder as master servicer, the Company shall as
promptly as practicable carry out, or cause the relevant servicer to carry out,
the instruction of the Class B Holder in the manner prescribed in such written
direction.

       (d) Any foreclosure of a Delinquent Mortgage Loan that has been initiated
in accordance with clauses (b) or (c) above may be discontinued if (i) the
Mortgage Loan has been brought current or if a refinancing or prepayment occurs
with respect to the Mortgage Loan (including by means of a short payoff approved
by the Class B Holder), (ii) the Company has agreed to the terms of a
forbearance agreement with the Mortgagor and such forbearance agreement has been
approved by the Class B Holder, or (iii) if and to the extent permitted under
the related Pooling and Servicing Agreement, Class B Holder directs the Company
to purchase such Delinquent Mortgage Loan at the price and on the terms set
forth in the related Pooling and Servicing Agreement.

       (e) In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under Sections 2.02 and 3.02 (b), (c) and
(d), the Class B Holder may direct the Company to purchase any Delinquent
Mortgage Loan and to promptly resell such Mortgage Loan to the Class B Holder at
the price and on the terms set forth in the applicable Pooling and Servicing
Agreement. In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under this Section, the Company shall
promptly take all action necessary under the terms of the related Pooling and
Servicing Agreement in order to accomplish such purchase (i.e. provide
notification to the Trustee and/or Custodian) and to resell such Delinquent
Mortgage Loan to the Class B Holder. The Class B Holder, and not the Company,
shall be required to remit the purchase price for such Delinquent Mortgage Loan
to the related Trustee. The Company will inform the Trustee in writing of the
purchase of such Delinquent Mortgage Loan by the Class B Holder and further
shall promptly take all actions necessary or desirable to effect the conveyance
of such Mortgage Loan and the related servicing rights to the Class B Holder or
its designee, time being of the essence. [The

                                      R-9
<PAGE>

parties hereto agree that, in connection with a purchase of a Delinquent
Mortgage Loan as provided above, any fees resulting from the transfer of the
servicing of such purchased Delinquent Mortgage Loan from the Company or a
subservicer to a servicer designated by the Class B Holder shall be the
obligation of the Company.]

       Section 3.03 Review of the Company's Procedures.

       The Company and the Class B Holder hereby agree that the Class B Holder
shall have the right, at its own expense and during normal business hours, to
review any and all of the books, records, or other information of the Company
which may be relevant to the Company's direct collection, loss mitigation
foreclosure and REO management procedures currently in place in order to confirm
that the procedures used by the Company and its subservicers are in accordance
with the customary servicing practices of prudent mortgage loan servicers. In
order to discuss such books, records or other information, the Company shall
make personnel available who are knowledgeable about such matters.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

       Section 4.01 Organizational and Other Related Warranties of the Class B
Holder. The Class B Holder hereby makes the following representations and
warranties to the Company and the Special Servicer:

                (i) Organization and Good Standing. The Class B Holder is an
entity duly organized, validly existing, and in good standing under the laws of
its state of incorporation or formation or the laws of the United States.

                (ii) No Violation. Neither the execution and delivery by the
Class B Holder of this Agreement, nor the consummation by the Class B Holder of
the transactions contemplated hereby, nor the performance of and compliance by
the Class B Holder with the provisions of this Agreement, will conflict with or
result in a breach or violation of, or constitute a default (or an event which,
with notice or the lapse of time, or both, would constitute a default) under,
the organizational documents (its articles of incorporation or charter or
by-laws) of the Class B Holder, or any of the provisions of any law, rule,
regulation, judgment, decree, demand, or order (of any federal, state, or local
governmental or regulatory authority or court) binding on the Class B Holder, or
any of its respective properties, or any of the provisions of any indenture,
mortgage, contract, instrument, or other document to which the Class B Holder is
a party or by which it is bound, or result in the creation or imposition of any
lien, charge, or encumbrance upon any of their respective properties pursuant to
the terms of any indenture, mortgage, contract, instrument, or other document.
The Class B Holder is not otherwise in violation of any law, rule, regulation,
judgment, decree, demand, or order (of any federal, state or local governmental
or regulatory authority or court), which violation, in the Class B Holder's,
good faith and reasonable judgment, is likely to affect materially and adversely
its ability to perform its obligations hereunder.

                                      R-10
<PAGE>

                (iii) Authorization and Enforceability. The execution and
delivery by the Class B Holder of this Agreement, the consummation of the
transactions contemplated hereby, and the performance and compliance by the
Class B Holder with the terms hereof are within the powers of the Class B
Holder, and have been duly authorized by all necessary action on the part of the
Class B Holder. All organizational resolutions and consents necessary for the
Class B Holder to enter into and consummate all transactions contemplated hereby
have been obtained. This Agreement has been duly executed and delivered by the
Class B Holder and constitutes the legal, valid and binding obligation of the
Class B Holder, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium, and other similar
laws affecting creditors' rights generally, and to general principles of equity,
regardless of whether such enforcement is considered in a proceeding in equity
or at law. The Class B Holder has not failed to obtain any consent, approval,
authorization, or order of, or failed to cause any registration or qualification
with, any court or regulatory authority or other governmental body having
jurisdiction over it, which consent, approval, authorization, order,
registration, or qualification is required for, and the absence of which would
materially adversely affect, the legal and valid execution, delivery, and
performance of this Agreement by the Class B Holder.

                (iv) No Litigation or Adverse Conditions. No litigation is
pending or, to the best of the Class B Holder's knowledge, threatened against
it, which, if determined adversely to the Class B Holder would prohibit the
Class B Holder from entering into this Agreement or, in the good faith and
reasonable judgment of the Class B Holder, is likely to materially and adversely
affect either the ability of the Class B Holder to perform its obligations
hereunder.

       Section 4.02 Organizational and Other Related Warranties of the Company.
The Company hereby makes the following representations and warranties to the
Class B Holder and the Special Servicer:

                (i) Organization and Good Standing. The Company is an entity
duly organized, validly existing, and in good standing under the laws of its
state of incorporation or formation or the laws of the United States, and is in
compliance with the laws of each state in which any property is located to the
extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder and the Pooling and Servicing Agreement.

                (ii) No Violation. Neither the execution and delivery by Company
of this Agreement, nor the consummation by it of the transactions contemplated
hereby, nor the performance of and compliance by the Company with the provisions
hereof or of the Pooling and Servicing Agreement, will conflict with or result
in a breach or violation of, or constitute a default (or an event which, with
notice or the lapse of time, or both, would constitute a default) under, the
organizational documents (its articles of incorporation or charter or by-laws)
of the Company, or any of the provisions of any law, rule, regulation, judgment,
decree, demand, or order (of any federal, state, or local governmental or
regulatory authority or court) binding on the Company, or any of its properties,
or any of the provisions of any indenture, mortgage, contract, instrument, or
other document (including, without limitation, any Pooling and

                                      R-11
<PAGE>

Servicing Agreement) to which the Company is a party or by which it is bound, or
result in the creation or imposition of any lien, charge, or encumbrance upon
any of their respective properties pursuant to the terms of any indenture,
mortgage, contract, instrument, or other document. The Company is not otherwise
in violation of any law, rule, regulation, judgment, decree, demand, or order
(of any federal, state or local governmental or regulatory authority or court),
which violation, in the Company's good faith and reasonable judgment, is likely
to affect materially and adversely either its ability to perform its obligations
hereunder or under the Pooling and Servicing Agreements, or the financial
condition of the Company.

                (iii) Authorization and Enforceability. The execution and
delivery by the Company of this Agreement, the consummation of the transactions
contemplated hereby, and the performance and compliance by the Company with the
terms hereof and of the Pooling and Servicing Agreements are within the powers
of the Company, and have been duly authorized by all necessary action on the
part of the Company. All organizational resolutions and consents necessary for
the Company to enter into and consummate all transactions contemplated hereby
have been obtained. This Agreement has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligation of the Company,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium, and other similar laws
affecting creditors' rights generally, and to general principles of equity,
regardless of whether such enforcement is considered in a proceeding in equity
or at law. The Company has not failed to obtain any consent, approval,
authorization, or order of, or failed to cause any registration or qualification
with, any court or regulatory authority or other governmental body having
jurisdiction over the Company, which consent, approval, authorization, order,
registration, or qualification is required for, and the absence of which would
materially adversely affect, the legal and valid execution, delivery, and
performance of this Agreement by the Company.

                (iv) Approvals and Permits. The Company possesses such
certificates, authorizations, licenses, and permits issued by the appropriate
state, federal, and foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, and the Company has not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Company.

                (v) No Litigation or Adverse Conditions. No litigation is
pending or, to the best of the Company's knowledge, threatened against it,
which, if determined adversely to the Company would prohibit the Company from
entering into this Agreement or, in the good faith and reasonable judgment of
the Company, is likely to materially and adversely affect either its ability to
perform its obligations hereunder or under the Pooling and Servicing Agreements
or the financial condition of the Company. The Company has no knowledge of any
recent adverse financial condition or event with respect to itself that, in its
good faith and reasonable judgment, is likely to materially and adversely affect
its ability to perform its obligations hereunder or under the Pooling and
Servicing Agreements.

                                      R-12
<PAGE>

                (vi) Fidelity Bond: Errors and Omission Insurance. Each officer,
director, employee, consultant and advisor of the Company with responsibilities
concerning the servicing and administration of the Mortgage Loans is covered by
errors and omissions insurance and fidelity bond insurance in the amounts and
with the coverage required under the related Pooling and Servicing Agreement for
it to maintain. Neither the Company nor any of its officers, directors,
employees, consultants, or advisors involved in the servicing or administration
of the Mortgage Loans has been refused such coverage or insurance.

       Section 4.03 Organizational and Other Related Warranties of the Special
Servicer. The Special Servicer hereby makes the following representations and
warranties to the Company and the Class B Holder:

                (i) Organization and Good Standing. The Special Servicer is an
entity duly organized, validly existing, and in good standing under the laws of
its state of incorporation or formation or the laws of the United States, and is
in compliance with the laws of each state in which any property is located to
the extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder.

                (ii) No Violation. Neither the execution and delivery by Special
Servicer of this Agreement, nor the consummation by it of the transactions
contemplated hereby, nor the performance of and compliance by the Special
Servicer with the provisions hereof , will conflict with or result in a breach
or violation of, or constitute a default (or an event which, with notice or the
lapse of time, or both, would constitute a default) under, the organizational
documents (its articles of incorporation or charter or by-laws) of the Special
Servicer, or any of the provisions of any law, rule, regulation, judgment,
decree, demand, or order (of any federal, state, or local governmental or
regulatory authority or court) binding on the Special Servicer, or any of its
properties, or any of the provisions of any indenture, mortgage, contract,
instrument, or other document to which the Special Servicer is a party or by
which it is bound, or result in the creation or imposition of any lien, charge,
or encumbrance upon any of their respective properties pursuant to the terms of
any indenture, mortgage, contract, instrument, or other document. The Special
Servicer is not otherwise in violation of any law, rule, regulation, judgment,
decree, demand, or order (of any federal, state or local governmental or
regulatory authority or court), which violation, in the Special Servicer's good
faith and reasonable judgment, is likely to affect materially and adversely
either its ability to perform its obligations hereunder, or the financial
condition of the Special Servicer.

                (iii) Authorization and Enforceability. The execution and
delivery by the Special Servicer of this Agreement, the consummation of the
transactions contemplated hereby, and the performance and compliance by the
Special Servicer with the terms hereof are within the powers of the Special
Servicer, and have been duly authorized by all necessary action on the part of
the Special Servicer. All organizational resolutions and consents necessary for
the Special Servicer to enter into and consummate all transactions contemplated
hereby have been obtained. This Agreement has been duly executed and delivered
by the Special Servicer and constitutes the legal, valid and binding obligation
of the Special Servicer, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization,

                                      R-13
<PAGE>

moratorium, and other similar laws affecting creditors' rights generally, and to
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law. The Special Servicer has not
failed to obtain any consent, approval, authorization, or order of, or failed to
cause any registration or qualification with, any court or regulatory authority
or other governmental body having jurisdiction over the Special Servicer, which
consent, approval, authorization, order, registration, or qualification is
required for, and the absence of which would materially adversely affect, the
legal and valid execution, delivery, and performance of this Agreement by the
Special Servicer.

                (iv) Approvals and Permits. The Special Servicer possesses such
certificates, authorizations, licenses, and permits issued by the appropriate
state, federal, and foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, and its has not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Special Servicer.

                (v) No Litigation or Adverse Conditions. No litigation is
pending or, to the best of the Special Servicer's knowledge, threatened against
it, which, if determined adversely to the Special Servicer would prohibit the
Special Servicer from entering into this Agreement or, in the good faith and
reasonable judgment of the Special Servicer, is likely to materially and
adversely affect either its ability to perform its obligations hereunder or the
financial condition of the Special Servicer. The Special Servicer has no
knowledge of any recent adverse financial condition or event with respect to
itself that, in its good faith and reasonable judgment, is likely to materially
and adversely affect its ability to perform its obligations hereunder.

                (vi) Fidelity Bond, Errors and Omission Insurance. Each officer,
director, employee, consultant and advisor of the Special Servicer with
responsibilities concerning the servicing and administration of the Mortgage
Loans is covered by errors and omissions insurance and fidelity bond insurance
in the amounts and with the coverage required under the related Pooling and
Servicing Agreement to be maintained by the Company as master servicer. Neither
the Special Servicer nor any of its officers, directors, employees, consultants,
or advisors involved in the servicing or administration of the Mortgage Loans
has been refused such coverage or insurance.

                (vii) Approved Seller/Servicer. The Special Servicer is approved
as a seller/servicer of single-family mortgage loans by the Department of
Housing and Urban Development.

       Section 4.04 Remedies for Breach of Representation and Warranty.

       Upon discovery by any of the Company, the Class B Holder or the Special
Servicer of a breach of any of the representations and warranties contained in
Article IV which materially and adversely affects the value of the Specially
Serviced Mortgage Loans or Delinquent Mortgage Loans, the party discovering such
breach shall give prompt written notice to the others.

                                      R-14
<PAGE>

       Each of the parties hereto shall indemnify the others and hold each of
them harmless against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and other
costs and expenses resulting from any claim, demand, defense or assertion based
on or grounded upon, or resulting from, a breach of such party's representations
and warranties contained in Article IV. It is understood and agreed that the
obligations to indemnify as provided in this Section 4.04 constitute the sole
remedies of each of the Company, Class B Holder and Special Servicer respecting
a breach of any other party's representations and warranties.

                                    ARTICLE V

                            MISCELLANEOUS PROVISIONS

       Section 5.01 Indemnification.

       Each of the Company, the Class B Holder and the Special Servicer (each as
such, an "Indemnifying Party") shall indemnify the other parties hereto (each as
such, an "Indemnified Party") and hold them harmless against any and all claims,
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and any other costs, fees and expenses
(individually and collectively, the "Claims") that such Indemnified Party may
sustain in any way related to the failure of the Indemnifying Party to perform
its duties in compliance with the terms of this Agreement; provided, that none
of the Company, the Class B Holder or the Special Servicer or any of the
directors, officers, employees or agents of the Depositor or the Servicer shall
be liable for any action taken or for refraining from the taking of any action
in good faith pursuant to this Agreement, or for errors in judgment; provided,
however, that this provision shall not protect the Company, the Class B Holder
or the Special Servicer against any material breach of warranties,
representations or covenants made herein, or against any specific liability
imposed on such party pursuant hereto, or against any liability which would
otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder.

                                      R-15
<PAGE>

       Section 5.02 Amendment.

       This Agreement may be amended from time to time by written agreement
signed by each of the parties hereto.

       Section 5.03 Counterparts.

       This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original and
such counterparts shall constitute but one and the same instrument.

       Section 5.04 Governing Law.

       This Agreement shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.

       Section 5.05 Notices.

       All demands, notices and direction hereunder shall be in writing or by
telecopy and shall be deemed effective upon receipt to:

       (i) in the case of the Company,

       Company

       Address: ____________________
       Attention:___________________
       Telephone:___________________
       Facsimile:___________________

       or such other address as may hereafter be furnished to the Class
       B Holder and the Special Servicer in writing.

       (ii) in the case of the Class B Holder,

       Address: ____________________
       Attention:___________________
       Telephone:___________________
       Facsimile:___________________

       or such other address as may hereafter be furnished to the Company
       in writing.

                                      R-16
<PAGE>

       (iii) in the case of the Special Servicer,

       Address: ____________________
       Attention:___________________
       Telephone:___________________
       Facsimile:___________________

       or such other address as may hereafter be furnished to the Company in
       writing.

       Section 5.06 Termination.

       This Agreement shall terminate (i) at such time as the Principal Balance
of the Class B Certificates has been reduced to zero or (ii) if mutually agreed
to by the parties hereto.

       Section 5.07 Severability of Provisions.

       If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be held invalid for any reason whatsoever, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement. If the invalidity of any part, provision, representation or warranty
of this Agreement shall deprive any party of the economic benefit intended to be
conferred by this Agreement, the parties shall negotiate in good faith to
develop a structure the economic effect of which is nearly as possible the same
as the economic effect of this Agreement without regard to such invalidity.

       Section 5.08 Successors and Assigns.

       This Agreement may not be assigned by any party hereto without the prior
written consent of each of the other parties hereto. The provisions of this
Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the parties hereto.

       Section 5.09 Article and Section Headings.

       The article and section headings herein are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

       Section 5.10 Confidentiality.

       The Class B Holder agrees that all information supplied by or on behalf
of the Company pursuant to Sections 2.02 or 3.01, including individual account
information, is the property of the Company and the Class B Holder agrees to use
such information only for the purposes contemplated by this Agreement and
otherwise hold such information confidential and not to disclose such
information, except to the extent such information is made publicly available by
or on behalf of the Company or the relevant Trustee.

                                      R-17
<PAGE>

       Section 5.11 Publicly Registered Certificates.

       The Class B Holder agrees, that without the prior written consent of the
Company, so long as Class B Holder is a party to this Agreement and a holder of
any Class B Certificates of a Series, it will not purchase, sell or trade any
publicly registered Certificates of the same Series.

       Section 5.12 No Partnership.

       Nothing herein shall be deemed or construed to create a partnership or
joint venture between the parties hereto and the services of the Company shall
be rendered as an independent contractor and not as an agent for the Company.

       Section 5.13 Rights of the Class B Holder. Notwithstanding anything
herein to the contrary, it is agreed by the parties hereto that the rights of
the Class B Holder set forth under Article II and Section 3.02(e) of this
Agreement shall relate to, and be exercisable with respect to, the related
Mortgage Loans of any Series to the extent that and for so long as, the Class B
Holder owns at least 75% of the most subordinate outstanding class of Class B
Certificates of the related Series (calculated by dividing the then outstanding
Certificate Principal Balance of such Class B Certificates by the then
outstanding Certificate Principal Balance of all certificates of the same
class).

                                      R-18
<PAGE>

IN WITNESS WHEREOF, each of the parties hereto have caused its name to be signed
hereto by its respective officer thereunto duly authorized, all as of the day
and year first above written.

                                             COMPANY

                                             By: _____________________________
                                             Name: ___________________________
                                             Title: __________________________

                                             By: _____________________________
                                             Name: ___________________________
                                             Title: __________________________

                                             By: _____________________________
                                             Name: ___________________________
                                             Title: __________________________

                                      R-19
<PAGE>

                                                                      SCHEDULE I

Describe each Series of Class B Certificates and the related Pooling and
Servicing Agreement

                                      R-20

<PAGE>

                                                                     SCHEDULE II

                      SPECIAL SERVICING TRANSFER PROCEDURES

         Any transfer of servicing with respect to a Specially Serviced Mortgage
Loan shall be effected substantially in accordance with the following example.
All dates set forth below are for illustrative purposes only. Capitalized terms
used in this Exhibit shall have the meanings ascribed thereto in the Agreement.

                                    Timeline

Last Business Day of Month One

         Mortgagor is 89 Days Delinquent.

3rd Business Day of Month Two

         The Company receives an electronic file from its Collections Department
on all 90+delinquent loans.

4th Business Day of Month Two

         The Company sends the electronic file to Class B Holder/Special
         Servicer of all 90+ delinquent loans with information designating those
         loans where a forbearance plan or workout is in progress and those
         loans where there is no plan in place. The Company and the Special
         Servicer have a discussion. The loans to be transferred are determined
         by the Class B Holder/Special Servicer.

6th Business Day of Month Two

         The Special Servicer informs the Company of the loans designated as
         Specially Serviced Mortgage Loans. The Company and the Special Servicer
         coordinate the transfer of servicing of the Specially Serviced Mortgage
         Loans. The Company prepares and mails the mortgagor notification no
         later than the 13th calendar day of the month. If a loan reinstates to
         a current or less than 90 days delinquent status before the mortgagor
         notification (i.e., the "goodbye letter") is sent, such loan will be
         removed from the transfer, and the Company will notify the Special
         Servicer thereof. The borrower will be instructed to send the payment
         due on the effective date of transfer and any past due payments to the
         Special Servicer.

7th Business Day of Month Two

         Relevant Trustee receives monthly electronic data file from the
         Company. The subject loan is included in the Company's report as an
         active loan serviced by the Company. The Company reports scheduled P&I
         on the subject loan.

On or prior to 15th Calendar Day of Month Two

         The Company sends a foreclosure referral letter to the Special
         Servicer's foreclosure counsel with a corresponding foreclosure
         package.

                                      R-21
<PAGE>

18th Calendar Day (or Business day immediately preceding the 18th) of Month Two

         The Company makes its monthly remittance, including advancing scheduled
         P&I payment due for current month for the subject loan.

Last business Day of Month Two
         Month-end cut-off.

1st Business Day of Month Three
         Effective Date.

On       or Before 3rd Business Day of Month Three In accordance with the
         Servicing Transfer Instructions:

         Company sends Special Servicer final transfer data (e.g., trial
         balance, loan files, current and previous 2 years' history records (if
         applicable), all default-related correspondence, and all collection,
         foreclosure and bankruptcy files);

         Company provides Special Servicer with detailed reimbursement request
         relating to advances; and

         Company sends Special Servicer a check or wire for the net escrow and
unapplied funds.

On or before the 6th Business Day of Month Three

         In accordance with the Servicing Transfer Instructions, Special Service
         reimburses Company for all outstanding advances, and the scheduled
         mortgage payment due on the Effective Date.

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

Note:

1.       If the loan has been transferred to Special Servicer and it cures,
         Special Servicer continues to service the loan and report it to Company
         as herein provided.

2.       If the Class B Certificates of the related Series are reduced to zero,
         Special Servicer will continue to service the mortgage loans until they
         payoff or are liquidated. No other Delinquent Mortgage Loans of a
         Series will be transferred to Special Servicer after the Class B
         Certificates of such Series are reduced to zero.

                                      R-22
<PAGE>

                         Servicing Transfer Instructions

I. NOTIFICATION OF LOANS TO TRANSFER

A. Company will coordinate and provide a listing of all loans past 90 days
delinquent. The list will be provided to Special Servicer for review and
discussion on the 4th Business day of each month.

B. Class B Holder and Special Servicer to agree upon the loans to be transferred
at month-end. The list must be provided via Facsimile or E-mail by the 6th
business day of the month to:

                               [COMPANY]

                               [Address and contact]

II. CONVERSION DATA

Dependent upon the volume of loans transferring each month, the loans will be
transferred effective the first of each month based on the prior month-end cut
off by one of the following mutually agreed upon conversion methods.

A.       Manual conversion

         1.   Company to provide a "master file data record" (COMPANY reference
              for master file data record?) for each loan (accompanied by a
              listing of all code definitions).

         2.   Company to provide a trial balance containing all the loans.

B.       Electronic conversion

         1.   Information will be provided in a Microsoft Excel spreadsheet (or
              such other mutually agreeable format) containing mutually agreed
              upon fields.

         2.   Company to provide a trial balance containing all the loans.

Preliminary information for either a manual or electronic conversion will be
provided within 3 business days of receipt of the List of Loans to Transfer to
provide time for Special Servicer to verify and load the information, with the
exception of the specific data that is determined at the transfer date.

III. HOMEOWNER NOTIFICATION

A. Company will mail the mortgagor notification (good-bye letter) fifteen days
prior to the transfer date. Company will forward a copy of its good-bye letter
to Special Servicer c/o [Dept.] (fax number ___-___-____) for approval prior to
mailing.

                                      R-23
<PAGE>

B. Copies of Company's mortgagor notification letters will be provided to
Special Servicer.

C. Company to receive a sample of Special Servicer's mortgagor notification
(welcome letter) for approval prior to mailing.

IV. HAZARD/FLOOD INSURANCE

A.       Company to prepare a change to the mortgagee clause as follows:

         Address:              ___________________
         Attention:            ___________________
         Telephone:            ___________________
         Facsimile:            ___________________

B. Copies of the mortgagee clause change requests will be provided to Special
Servicer.

C. Any unpaid policies, expiration notices, cancellation notices, loans with
expired policies will be properly identified, sorted and marked for special
handling.

D. Company to provide a list of loans under "force place coverage" program.
Force place hazard insurance policies with ASG will be canceled upon transfer of
the loans. WNC force place flood policy coverage will stay in place after
transfer until the expiration date.

V. FHA LOANS

A. Company to provide screen prints to include the following items on FHA Loans
with a monthly premium.

         1. Loan number
         2. FHA case number
         3. Anniversary date
         4. Annual premium
         5. Monthly amount
         6. Total MIP paid to date
         7. Next month the premium is due

B. Company to provide screen prints to include the following items on FHA loans
that the full premium was paid up front.

         1. Loan number
         2. FHA case number
         3. Insuring date
         4. Amount of prepaid premium

                                      R-24
<PAGE>

C. Company to prepare HUD Form 92080 with Special Servicer's HUD mortgagee
number (72313) and forward to HUD electronically. Proof of submission will be
forwarded to Special Servicer.

VI. CONVENTIONAL LOANS

A.       Individual loan PMI certificates will be retained in the Servicing File

B. Company to prepare notifications to the PMI companies requesting a change of
servicer to Special Servicer. Copies will be forwarded to Special Servicer.

C. Company to provide screen prints of all loans with PMI to include:

         1. Loan number
         2. PMI company
         3. PMI certificate number
         4. Next due date
         5. Last amount paid

VII. REAL ESTATE TAXES

A. Company to forward individual loan tax records showing payee, due dates,
frequency of payment, next due date, last paid date and last paid amount.

B. Company to provide copies of the notifications to the individual tax
authorities and the Tax Service requests for a change of servicer to Special
Servicer under the following contract numbers (Transamerica-2489 Pinnacle - 119)

C. All property taxes due and payable will be paid prior to the transfer date.

D. All tax bills received after the transfer date will be forwarded to Special
Servicer for payment.

E. Company to provide a listing of any loans with delinquent taxes containing
the pertinent information as of the transfer date.

VIII. OPTIONAL INSURANCE

A. Company to provide a list of loans with A&H, life insurance, accidental death
insurance, etc., which will include the following information.

         1. Loan number
         2. Insurance company
         3. Type of coverage
         4. Amount of monthly premium

                                      R-25
<PAGE>

         5. Last monthly premium paid

B. Company to provide copies of the master and/or individual policies for the
insurance coverage.

C. Company to provide copies of the notification sent to the insurance
companies.

IX. INVESTOR REPORTS

A. Company to provide a copy of the final remittance report to the investor
including a trial balance as of cutoff date.

B. Company to provide ending loan scheduled balance at transfer date.

C. Company to provide a report detailing advanced delinquent net interest
monthly by due date.

D. Company to provide a report detailing advanced delinquent principal monthly
by due date.

X. OTHER

A. Company to provide hardcopies of the last 24 months history for each loan
accompanied by an explanation of transaction codes.

B. Company to provide copies of the last escrow analysis for each loan with an
explanation of analysis method (cushion, etc.).

C. Company to provide the loan servicing file in hardcopy or microfiche format.

D. Company to provide the currently active collection records and pertinent
information on delinquent loans.

E. Net escrow and unapplied funds as of the transfer date will be sent to
Special Servicer via check or wire within three business days of the transfer,
accompanied by an explanation of Unapplied Funds codes.

F. The advances (exclusive of escrow advances, which will be handled in Section
X (E) above) incurred by Company will be billed to Special Servicer accompanied
by appropriate documentation. Special Servicer to reimburse Company via check or
wire for all advances (exclusive of escrow advances, which will be handled in
Section X (E) above) on the subject loans within three business days of receipt
of billing.

G. Company to provide a listing containing the mortgagor name, co-mortgagor
name, property address and mailing address for preparation of Special Servicer's
Notification Letters.

                                      R-26
<PAGE>

H. Company to provide the following items, sorted and clearly marked for special
handling.

         1.   Active foreclosure and bankruptcy files should have the status
              shown on the front of each file.

         2.   Insurance loss drafts should provide all documentation on the
              current status.

         3.   Unprocessed payoff funds should be accompanied by a copy of the
              payoff quotation.

         4.   Information should be furnished on any pending payoff or
              assumption.

         5.   Information on any incomplete partial releases should be provided.

I. Loan payments received after the cutoff will be endorsed to __________ and
forwarded by overnight service to the following address within twenty-four
hours, properly identified with Company's loan number.

         [Address]

Returned Items received after the transfer date will be forwarded to Special
Servicer for reimbursement. Special Servicer to reimburse Company within 10
business days of receipt.

J. Company to ship all loan files and documentation related to the individual
transfers by the 3rd business day after the cut-off. Any information, such as
preliminary trial balances, master file data records, delinquency information,
etc. will be furnished as early as possible prior to the transfer date.

All shipments to be sent to:

         [Address]

K. Company to furnish all required IRS reporting statements for the current year
up to the transfer date, both to the mortgagors and to the appropriate
government agencies. Special Servicer to furnish all required year-end reporting
commencing on the effective date of transfer through the year-end.

                                      R-27
<PAGE>

                                                        EXHIBIT A to Schedule II

                   LOAN INFORMATION TO BE PROVIDED TO COMPANY

                                      R-28

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