Document:

EXHIBIT 10.34

                   MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 1 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  1 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$1,680,003.80 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 1 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1.   Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

<PAGE>

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

          TO HAVE AND TO HOLD the same unto  Assignee,  and its  successors  and
     assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

                                      -2-
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          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been obtained,  (ii) contravene the articles of
     incorporation  or  by-laws  of the  Assignor,  any  applicable  laws or any
     agreement or restriction  binding on or affecting Assignor or its property,
     or (iii)  result in or require the  creation or  imposition  of any lien or
     right of others upon or with  respect to any  property now or in the future
     owned  by  Assignor   (other  than  liens  created  in  favor  of  Assignee
     hereunder).  No  authorization  which has not been obtained is required for
     the  assignment  hereunder or the  enforcement  by Assignee of its remedies
     under this Assignment.  This Assignment,  when executed and delivered, will
     constitute the legal, valid and binding obligation of Assignor  enforceable
     against Assignor in accordance with its terms, except as enforcement may be
     limited by  bankruptcy,  insolvency  or other  similar laws  affecting  the
     rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the

                                      -3-
<PAGE>

     purposes  contemplated  herein and therein,  including the right, power and
     authority  to  exercise  any and all of the  rights,  remedies  and options
     reserved  to  Assignee  or its  agents  in,  or given by law or  equity  to
     Assignee or it agents as holder of the Mortgage Loan Documents,  to enforce
     the  Mortgage  Loan  Documents,  and to take  such  other  actions  for the
     protection and  preservation of the lien of the Mortgages,  and protect and
     preserve  all  property  described  therein  should  Assignee or its agents
     become the owner  thereof by  foreclosure  or otherwise as may be necessary
     and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

                                      -4-
<PAGE>

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -5-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such action or proceeding may be heard and determined in any such

                                      -6-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
     to the fullest  extent it may legally and  effectively do so, any objection
     that it may now or  hereafter  have to the  laying  of venue  of any  suit,
     action or proceeding  arising out of or relating to this  Assignment in any
     Bermuda court. Each of the parties hereto hereby irrevocably waives, to the
     fullest extent  permitted by law, the defense of an  inconvenient  forum to
     the  maintenance  of such action or proceeding in any such court.  Assignee
     hereby irrevocably appoints Codan Services Limited, Clarendon House, Church
     Street,  Hamilton HM CX, Bermuda ("Assignee's Process Agent"), as its agent
     to  receive,  on behalf of  Assignee,  service of copies of the summons and
     complaint  and any other  process which may be served in any such action or
     proceeding. Any such service may be made by mailing or delivering a copy of
     such  process,  if to  Assignee,  in care of  Assignee's  Process  Agent at
     Assignee's  Process  Agent's above  address.  Assignee  hereby  irrevocably
     authorizes and directs its respective  process agent to accept such service
     on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references to paragraphs or subparagraphs of

                                      -7-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -8-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -9-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -10-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -11-
<PAGE>

                   MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 2 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  2 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$9,272,550.01 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 2 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1. Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

                                      -12-
<PAGE>

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

     TO HAVE AND TO HOLD the same unto Assignee, and its successors and assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been

                                      -13-
<PAGE>

     obtained,  (ii) contravene the articles of  incorporation or by-laws of the
     Assignor, any applicable laws or any agreement or restriction binding on or
     affecting  Assignor  or its  property,  or (iii)  result in or require  the
     creation or  imposition of any lien or right of others upon or with respect
     to any property  now or in the future  owned by Assignor  (other than liens
     created in favor of Assignee  hereunder).  No  authorization  which has not
     been obtained is required for the assignment  hereunder or the  enforcement
     by Assignee of its remedies under this Assignment.  This  Assignment,  when
     executed  and  delivered,  will  constitute  the legal,  valid and  binding
     obligation of Assignor  enforceable against Assignor in accordance with its
     terms,  except as enforcement  may be limited by bankruptcy,  insolvency or
     other similar laws affecting the rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the purposes contemplated herein and
     therein,  including the right,  power and authority to exercise any and all
     of the rights,  remedies and options reserved to Assignee or its agents in,
     or given by law or  equity  to  Assignee  or it  agents  as  holder  of the
     Mortgage

                                      -14-
<PAGE>

     Loan Documents,  to enforce the Mortgage Loan  Documents,  and to take such
     other  actions  for the  protection  and  preservation  of the  lien of the
     Mortgages,  and protect and preserve all property  described therein should
     Assignee or its agents become the owner thereof by foreclosure or otherwise
     as may be necessary and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

                                      -15-
<PAGE>

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -16-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such action or proceeding may be heard and determined in any such

                                      -17-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
     to the fullest  extent it may legally and  effectively do so, any objection
     that it may now or  hereafter  have to the  laying  of venue  of any  suit,
     action or proceeding  arising out of or relating to this  Assignment in any
     Bermuda court. Each of the parties hereto hereby irrevocably waives, to the
     fullest extent  permitted by law, the defense of an  inconvenient  forum to
     the  maintenance  of such action or proceeding in any such court.  Assignee
     hereby irrevocably appoints Codan Services Limited, Clarendon House, Church
     Street,  Hamilton HM CX, Bermuda ("Assignee's Process Agent"), as its agent
     to  receive,  on behalf of  Assignee,  service of copies of the summons and
     complaint  and any other  process which may be served in any such action or
     proceeding. Any such service may be made by mailing or delivering a copy of
     such  process,  if to  Assignee,  in care of  Assignee's  Process  Agent at
     Assignee's  Process  Agent's above  address.  Assignee  hereby  irrevocably
     authorizes and directs its respective  process agent to accept such service
     on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references to paragraphs or subparagraphs of

                                      -18-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -19-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -20-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -21-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -22-
<PAGE>

                  MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 3 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  3 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$9,873,441.06 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 3 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1.   Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

                                      -23-
<PAGE>

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

     TO HAVE AND TO HOLD the same unto Assignee, and its successors and assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been

                                      -24-
<PAGE>

     obtained,  (ii) contravene the articles of  incorporation or by-laws of the
     Assignor, any applicable laws or any agreement or restriction binding on or
     affecting  Assignor  or its  property,  or (iii)  result in or require  the
     creation or  imposition of any lien or right of others upon or with respect
     to any property  now or in the future  owned by Assignor  (other than liens
     created in favor of Assignee  hereunder).  No  authorization  which has not
     been obtained is required for the assignment  hereunder or the  enforcement
     by Assignee of its remedies under this Assignment.  This  Assignment,  when
     executed  and  delivered,  will  constitute  the legal,  valid and  binding
     obligation of Assignor  enforceable against Assignor in accordance with its
     terms,  except as enforcement  may be limited by bankruptcy,  insolvency or
     other similar laws affecting the rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the purposes contemplated herein and
     therein,  including the right,  power and authority to exercise any and all
     of the rights,  remedies and options reserved to Assignee or its agents in,
     or given by law or  equity  to  Assignee  or it  agents  as  holder  of the
     Mortgage

                                      -25-
<PAGE>

     Loan Documents,  to enforce the Mortgage Loan  Documents,  and to take such
     other  actions  for the  protection  and  preservation  of the  lien of the
     Mortgages,  and protect and preserve all property  described therein should
     Assignee or its agents become the owner thereof by foreclosure or otherwise
     as may be necessary and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

                                      -26-
<PAGE>

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -27-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such action or proceeding may be heard and determined in any such

                                      -28-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
     to the fullest  extent it may legally and  effectively do so, any objection
     that it may now or  hereafter  have to the  laying  of venue  of any  suit,
     action or proceeding  arising out of or relating to this  Assignment in any
     Bermuda court. Each of the parties hereto hereby irrevocably waives, to the
     fullest extent  permitted by law, the defense of an  inconvenient  forum to
     the  maintenance  of such action or proceeding in any such court.  Assignee
     hereby irrevocably appoints Codan Services Limited, Clarendon House, Church
     Street,  Hamilton HM CX, Bermuda ("Assignee's Process Agent"), as its agent
     to  receive,  on behalf of  Assignee,  service of copies of the summons and
     complaint  and any other  process which may be served in any such action or
     proceeding. Any such service may be made by mailing or delivering a copy of
     such  process,  if to  Assignee,  in care of  Assignee's  Process  Agent at
     Assignee's  Process  Agent's above  address.  Assignee  hereby  irrevocably
     authorizes and directs its respective  process agent to accept such service
     on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references to paragraphs or subparagraphs of

                                      -29-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -30-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -31-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -32-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -33-
<PAGE>

                   MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 4 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  4 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$29,215,591.54 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 4 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1. Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

                                      -34-
<PAGE>

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

     TO HAVE AND TO HOLD the same unto Assignee, and its successors and assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been

                                      -35-
<PAGE>

     obtained,  (ii) contravene the articles of  incorporation or by-laws of the
     Assignor, any applicable laws or any agreement or restriction binding on or
     affecting  Assignor  or its  property,  or (iii)  result in or require  the
     creation or  imposition of any lien or right of others upon or with respect
     to any property  now or in the future  owned by Assignor  (other than liens
     created in favor of Assignee  hereunder).  No  authorization  which has not
     been obtained is required for the assignment  hereunder or the  enforcement
     by Assignee of its remedies under this Assignment.  This  Assignment,  when
     executed  and  delivered,  will  constitute  the legal,  valid and  binding
     obligation of Assignor  enforceable against Assignor in accordance with its
     terms,  except as enforcement  may be limited by bankruptcy,  insolvency or
     other similar laws affecting the rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the purposes contemplated herein and
     therein,  including the right,  power and authority to exercise any and all
     of the rights,  remedies and options reserved to Assignee or its agents in,
     or given by law or  equity  to  Assignee  or it  agents  as  holder  of the
     Mortgage

                                      -36-
<PAGE>

     Loan Documents,  to enforce the Mortgage Loan  Documents,  and to take such
     other  actions  for the  protection  and  preservation  of the  lien of the
     Mortgages,  and protect and preserve all property  described therein should
     Assignee or its agents become the owner thereof by foreclosure or otherwise
     as may be necessary and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

                                      -37-
<PAGE>

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -38-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such action or proceeding may be heard and determined in any such

                                      -39-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
     to the fullest  extent it may legally and  effectively do so, any objection
     that it may now or  hereafter  have to the  laying  of venue  of any  suit,
     action or proceeding  arising out of or relating to this  Assignment in any
     Bermuda court. Each of the parties hereto hereby irrevocably waives, to the
     fullest extent  permitted by law, the defense of an  inconvenient  forum to
     the  maintenance  of such action or proceeding in any such court.  Assignee
     hereby irrevocably appoints Codan Services Limited, Clarendon House, Church
     Street,  Hamilton HM CX, Bermuda ("Assignee's Process Agent"), as its agent
     to  receive,  on behalf of  Assignee,  service of copies of the summons and
     complaint  and any other  process which may be served in any such action or
     proceeding. Any such service may be made by mailing or delivering a copy of
     such  process,  if to  Assignee,  in care of  Assignee's  Process  Agent at
     Assignee's  Process  Agent's above  address.  Assignee  hereby  irrevocably
     authorizes and directs its respective  process agent to accept such service
     on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references to paragraphs or subparagraphs of

                                      -40-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -41-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -42-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -43-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -44-
<PAGE>

                   MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 5 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  5 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$15,704,323.03 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 5 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1.   Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

                                      -45-
<PAGE>

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

     TO HAVE AND TO HOLD the same unto Assignee, and its successors and assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been

                                      -46-
<PAGE>

     obtained,  (ii) contravene the articles of  incorporation or by-laws of the
     Assignor, any applicable laws or any agreement or restriction binding on or
     affecting  Assignor  or its  property,  or (iii)  result in or require  the
     creation or  imposition of any lien or right of others upon or with respect
     to any property  now or in the future  owned by Assignor  (other than liens
     created in favor of Assignee  hereunder).  No  authorization  which has not
     been obtained is required for the assignment  hereunder or the  enforcement
     by Assignee of its remedies under this Assignment.  This  Assignment,  when
     executed  and  delivered,  will  constitute  the legal,  valid and  binding
     obligation of Assignor  enforceable against Assignor in accordance with its
     terms,  except as enforcement  may be limited by bankruptcy,  insolvency or
     other similar laws affecting the rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the purposes contemplated herein and
     therein,  including the right,  power and authority to exercise any and all
     of the rights,  remedies and options reserved to Assignee or its agents in,
     or given by law or  equity  to  Assignee  or it  agents  as  holder  of the
     Mortgage

                                      -47-
<PAGE>

     Loan Documents,  to enforce the Mortgage Loan  Documents,  and to take such
     other  actions  for the  protection  and  preservation  of the  lien of the
     Mortgages,  and protect and preserve all property  described therein should
     Assignee or its agents become the owner thereof by foreclosure or otherwise
     as may be necessary and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

                                      -48-
<PAGE>

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -49-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such action or proceeding may be heard and determined in any such

                                      -50-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
     to the fullest  extent it may legally and  effectively do so, any objection
     that it may now or  hereafter  have to the  laying  of venue  of any  suit,
     action or proceeding  arising out of or relating to this  Assignment in any
     Bermuda court. Each of the parties hereto hereby irrevocably waives, to the
     fullest extent  permitted by law, the defense of an  inconvenient  forum to
     the  maintenance  of such action or proceeding in any such court.  Assignee
     hereby irrevocably appoints Codan Services Limited, Clarendon House, Church
     Street,  Hamilton HM CX, Bermuda ("Assignee's Process Agent"), as its agent
     to  receive,  on behalf of  Assignee,  service of copies of the summons and
     complaint  and any other  process which may be served in any such action or
     proceeding. Any such service may be made by mailing or delivering a copy of
     such  process,  if to  Assignee,  in care of  Assignee's  Process  Agent at
     Assignee's  Process  Agent's above  address.  Assignee  hereby  irrevocably
     authorizes and directs its respective  process agent to accept such service
     on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references to paragraphs or subparagraphs of

                                      -51-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -52-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -53-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -54-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -55-
<PAGE>

                   MAY 2003 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (May 2003 Series 6 Loan)

     THIS MORTGAGE LOAN ASSIGNMENT  AGREEMENT (this "Assignment") made as of May
27, 2003, constitutes an assignment from NB FINANCE, LTD., a Bermuda corporation
(the  "Assignor"),  to NB  CAPITAL  CORPORATION,  a Maryland  corporation,  (the
"Assignee"),  and an agreement by and among Assignor, Assignee and NATIONAL BANK
OF CANADA,  a Canadian  chartered  bank,  as custodian and servicer on behalf of
Assignee (the "Bank").

                              W I T N E S S E T H :
                               - - - - - - - - - -

     WHEREAS,  Assignor and Assignee have entered into a certain Loan Agreement,
as of May 27, 2003 (such Loan  Agreement,  as it may be amended or modified from
time to time,  the "Loan  Agreement"),  under the terms of which  Assignee  has,
subject to the terms and conditions  thereof,  lent with respect to the May 2003
Series  6 Loan  (as  defined  in the  Loan  Agreement)  a  principal  amount  of
US$4,674,226.02 to Assignor, as of May 27, 2003.

     WHEREAS,  to evidence  and secure its  obligations  with respect to the May
2003 Series 6 Loan under the Loan Agreement,  Assignor shall execute and deliver
certain Loan Documents (as defined in the Loan Agreement).

     WHEREAS,  Assignee has required and Assignor has agreed that Assignor shall
assign all of its right,  title and interest in, to and under the mortgage loans
listed on Exhibit A attached hereto (the "Mortgage  Loans"),  each such Mortgage
Loan evidenced by certain agreements,  deeds and proceedings (the "Mortgage Loan
Document") to Assignee and permit Assignee or its agents, to administer, perform
and enforce the Mortgage  Loans upon the terms and  conditions  hereinafter  set
forth.

     NOW, THEREFORE, in consideration of the transactions hereinabove described,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     1. Assignment.

          (a) Assignor as beneficial owner hereby assigns, charges and sets over
     to Assignee, and its successors and assigns,  without recourse to Assignor,
     all of Assignor's right,  title and interest now or hereafter  acquired in,
     to and under the Mortgage Loans and all of the real property (together with
     any proceeds  (including,  but not limited to, any insurance,  casualty and
     mortgage  insurance  proceeds),  products,   substitutions,   additions  or
     replacements  of any  collateral  mortgaged,  assigned or pledged under the
     Mortgage Loans) described therein (collectively, the "Collateral").

          (b) Assignee  hereby  accepts the foregoing  assignment,  on behalf of
     itself and its respective successors and assigns.

                                      -56-
<PAGE>

          (c)   Assignor   hereby   appoints   Assignee   the  true  and  lawful
     attorney-in-fact of Assignor,  with full power of substitution,  in its own
     name, both before and/or after any Event of Default (as defined in the Loan
     Agreement),  to take any action  under or in  connection  with the Mortgage
     Loans.  This power shall be deemed to be coupled with an interest and shall
     be irrevocable.

          (d) Assignor  agrees that the assignment  herein  provided is absolute
     and from and after the date hereof,  subject to Section 16,  Assignee shall
     obtain legal title to the Mortgage  Loans and Assignor  shall not have, and
     shall not exercise, any rights in and to the Collateral, including, without
     limitation,  any rights as payee,  mortgagee  or assignee  under any of the
     Mortgage  Loan  Documents,  or any rights to  receive  any  payments  or to
     exercise or omit to exercise,  waive,  compromise or make any other actions
     or determinations or give or receive any notices under or in respect of the
     Mortgage  Loan  Documents,  except such as Assignee  may direct in order to
     better  effectuate  the rights,  remedies and security  herein  provided or
     contemplated.

          (e) Assignee, as payee under the Mortgage Loans, shall have the right,
     both  before  and  after  an  Event  of  Default  (as  defined  in the Loan
     Agreement)  to collect and receive all payments of  principal  and interest
     and any other amounts due and payable under the Mortgage Loan Documents. On
     each  Interest  Payment Date (as defined in the Loan  Agreement),  Assignee
     shall apply the US Dollar  Equivalent (as defined in the Loan Agreement) of
     the funds  collected  under the Mortgage Loan  Documents (i) first,  to the
     payment of any  interest  due and payable  under the Loan  Documents,  (ii)
     second, to the payment of any scheduled or unscheduled  principal  payments
     due and payable under the Loan  Documents,  (iii) third,  to the payment of
     any Excess Loan Amount (as defined in the Loan  Agreement) and (iv) fourth,
     to any other amounts due and payable under the Loan Documents and shall, to
     the extent  available  after  payment of the amounts in clauses (i),  (ii),
     (iii) and (iv) above,  remit the balance of any  collections or payments to
     Assignor.

     TO HAVE AND TO HOLD the same unto Assignee, and its successors and assigns.

     2.  Representations  and  Warranties of Assignor.  Assignor  represents and
warrants as follows:

          (a)  Assignor  (i) is the sole  owner of the  Mortgage  Loans and such
     ownership  is free  and  clear  of any  lien,  security  interest  or other
     encumbrance,  (ii) has not granted any  participation  or other interest or
     assignment,  other  option or rights to the Mortgage  Loans,  other than to
     Assignee,  and (iii) has not  pledged,  collaterally  assigned or otherwise
     hypothecated  any  interest  therein  or  agreed  to do so,  other  than to
     Assignee.

          (b) The  registered  office and  principal  place of  business  of the
     Assignor is located in Hamilton, Bermuda.

          (c) The  execution,  delivery and  performance  of this  Assignment by
     Assignor  are  within  Assignor's  power  and  authority,  have  been  duly
     authorized by all necessary  action and do not and will not (i) require any
     authorization which has not been

                                      -57-
<PAGE>

     obtained,  (ii) contravene the articles of  incorporation or by-laws of the
     Assignor, any applicable laws or any agreement or restriction binding on or
     affecting  Assignor  or its  property,  or (iii)  result in or require  the
     creation or  imposition of any lien or right of others upon or with respect
     to any property  now or in the future  owned by Assignor  (other than liens
     created in favor of Assignee  hereunder).  No  authorization  which has not
     been obtained is required for the assignment  hereunder or the  enforcement
     by Assignee of its remedies under this Assignment.  This  Assignment,  when
     executed  and  delivered,  will  constitute  the legal,  valid and  binding
     obligation of Assignor  enforceable against Assignor in accordance with its
     terms,  except as enforcement  may be limited by bankruptcy,  insolvency or
     other similar laws affecting the rights of creditors generally.

          (d) The originals (including  duplicate originals,  if any) of all the
     Mortgage Loan Documents, have been simultaneously herewith delivered to the
     Bank as custodian for Assignee  (except for any loan  documents  which have
     been or will be submitted to public  officials  for filing or recording and
     policies of title or other  insurance  which have not yet been  received by
     Assignor,  which in either case will be  delivered  directly to the Bank or
     forthwith turned over to the Bank as and when received by the Assignor).

     3. Servicing. Until the satisfaction in full of all obligations of Assignor
under the Loan Agreement shall have occurred:

          (a) Assignee or its agents, shall have the sole power and authority to
     do or refrain from doing any act under or in  connection  with the Mortgage
     Loan Documents and the property  described  therein and/or this Assignment,
     including,  without  limitation,  the sole power and  authority in its sole
     discretion,  to (i)  advance  funds  thereunder,  (ii)  determine  that all
     conditions to the advance of funds  thereunder  have been  satisfied (or to
     waive  some or all of the  conditions  to  advance  thereunder),  and (iii)
     determine that a default or event of default has occurred thereunder and to
     give any notice, demand or protest in respect thereof;

          (b)  Assignor  acknowledges  that (i) the Bank,  as agent of Assignee,
     shall be named as mortgagee and loss payee on all fire,  extended  coverage
     and other  hazard  insurance  policies  required  under the  Mortgage  Loan
     Documents,  to the  extent  set forth  therein  and (ii)  Assignor  and any
     mortgage and all other  parties  obligated  to Assignor  under the Mortgage
     Loan  Documents  shall  deal  solely  with the  Bank,  acting  on behalf of
     Assignee,  under the Mortgage Loan Documents and this Assignment,  Assignor
     and all other  parties  so  obligated  shall be  entitled  to rely on their
     actions so taken with  respect to the Bank and upon the action taken by the
     Bank,  acting  on  behalf  of  Assignee,  with  respect  to them  until the
     satisfaction  in  full  of all  obligations  of  Assignor  under  the  Loan
     Agreement or until  Assignee  shall  appoint  another  person to act on its
     behalf  (or  otherwise  revoke  the  Bank's  authority  to act on behalf of
     Assignee);

          (c)  Assignor  agrees that  Assignee or it agents  shall have the full
     power and authority, in its discretion,  to take, or defer from taking, any
     and all actions with respect to the  administration  and enforcement of the
     Loan Documents, in order to effectuate the purposes contemplated herein and
     therein,  including the right,  power and authority to exercise any and all
     of the rights,  remedies and options reserved to Assignee or its agents in,
     or given by law or  equity  to  Assignee  or it  agents  as  holder  of the
     Mortgage

                                      -58-
<PAGE>

     Loan Documents,  to enforce the Mortgage Loan  Documents,  and to take such
     other  actions  for the  protection  and  preservation  of the  lien of the
     Mortgages,  and protect and preserve all property  described therein should
     Assignee or its agents become the owner thereof by foreclosure or otherwise
     as may be necessary and/or appropriate.

     4. Event of Default: Remedies. If an event of default shall occur under any
Mortgage Loan (an "Event of Default"), Assignee or its agents shall have all the
rights  and  remedies  which  would  be  available  to  Assignor  (but  for this
Assignment)  under the  Mortgage  Loan  Documents  as set forth  therein  and as
permitted   thereunder  or  otherwise   available  to  Assignor  (but  for  this
Assignment)  in law or in  equity,  including,  without  limitation  but in each
instance  to the extent  provided in and as  conditioned  by the  Mortgage  Loan
Documents, the right:

          (a) To  accelerate  the maturity of such  Mortgage  Loan and all other
     amounts due under the applicable Mortgage Loan Documents and to declare the
     same to be or  become  immediately  due and  payable  and  enforce  payment
     thereof upon the happening of any Event of Default by the  mortgagor  under
     such  Mortgage  Loan,  as  permitted  therein,  after  the  giving  of such
     applicable notice and/or the passage of such time as may be provided for in
     such Mortgage Loan;

          (b) To take such  steps,  institute  and  prosecute  such  actions and
     proceedings and do or omit such acts which, in its judgment,  are advisable
     in order to enforce  payment of all  amounts  due under the  Mortgage  Loan
     Documents  and realize  upon the  security  provided  therefor,  including,
     without  limitation,  (i) to select any of the remedies available under the
     Mortgage Loan Documents or otherwise available at law or in equity, (ii) to
     enter into or consent to any amendment,  modification  and/or  extension of
     the Mortgage Loan Documents, (iii) to enter into or consent to any release,
     substitution  or  exchange  of all or any  part of any  security  for  such
     Mortgage Loan,  (iv) to waive any claim against the mortgagor or any person
     or entity  obligated  under the Loan  Documents  and (v) to defer,  extend,
     increase or decrease  any payment,  instalment  or other sum required or on
     account  of  such  Mortgage  Loan  and/or  the  applicable   Mortgage  Loan
     Documents;

          (c) To discontinue any such action or proceeding commenced as provided
     in subsection 4(b) above or to stay, delay, defer,  discontinue or withdraw
     the same;

          (d) To enter or cause to be entered a bid at any  foreclosure  sale of
     the  property  mortgaged  securing  such  Mortgage  Loan  pursuant  to  the
     applicable  Mortgage  Loan  Documents  (each  such  property  a  "Mortgaged
     Property") or any portion thereof;

          (e) To acquire title in and to any  Mortgaged  Property or any portion
     thereof  in any  foreclosure  proceeding  in its  name  or the  name of its
     nominee or designee;

          (f) To accept a deed to any Mortgaged  Property or any portion thereof
     in lieu of foreclosure  and to release the mortgagor  from its  obligations
     under  the  Mortgage  Loan  in  consideration  of  such  deed  in  lieu  of
     foreclosure;

                                      -59-
<PAGE>

          (g) To  operate,  manage  and/or  develop,  or hire agents to operate,
     manage and/or develop, any foreclosed or acquired Mortgaged Property and to
     lease all or any portion thereof upon such terms and conditions as it deems
     to be in the best interests of Assignee;

          (h) To sell any  foreclosed  or  acquired  Mortgaged  Property  or any
     portion thereof, upon such terms as it may deem to be in the best interests
     of Assignee,  including,  without limitation, the right to take back one or
     more purchase money notes and mortgages;

          (i) To make  advances for the payment for taxes,  assessments,  water,
     sewer and vault charges, and all interest and penalties thereon,  insurance
     premiums and other  similar or dissimilar  items  relating to any Mortgaged
     Property,   to  the  extent  permitted  by  the  applicable  Mortgage  Loan
     Documents;

          (j) To make  advances  for the  account  of the  mortgagor  under such
     Mortgage  Loan,  to the extent  permitted by the  applicable  Mortgage Loan
     Documents;

          (k) To collect, sue for, receive and, subject to applicable provisions
     of law,  settle or  compromise  any  claims  for loss or damage  covered by
     insurance  and/or  condemnation  of  all or any  portion  of any  Mortgaged
     Property  and to exercise  its  discretion  in the proper  application  and
     disposition  of the net  proceeds  of such  insurance  and/or  condemnation
     award;

          (l) To sell the Mortgage Loan at a fair market value; and

          (m) Generally to do and take any and all actions  which,  but for this
     Assignment,  the  Assignor  would be  entitled to do and take under or with
     respect to the applicable Mortgage Loan Documents;  it being understood and
     agreed that this  Assignment  does not confer upon the Assignee any greater
     rights with respect to the Mortgage Loan Documents than granted to Assignor
     or expand or extend  such  rights,  the purpose of this  Assignment  being,
     inter alia, to assign,  transfer and allocate such rights and not to create
     new rights against any mortgagor under the applicable  Mortgage Loan, or to
     limit the rights or expand the  obligations of any such  mortgagor,  and in
     the event of any conflict between the provisions of this Assignment and the
     provisions of the Mortgage Loan  Documents,  the provisions of the Mortgage
     Loan Documents, shall control.

     5. Possession of Mortgage Loan  Documents.  From and after the date of this
Assignment,  the Bank shall no longer hold the duly  executed  originals  of the
Mortgage  Loan  Documents on its own behalf or as custodian  for  Assignor,  but
shall hold the same as custodian for Assignee,  pursuant to the terms of (i) the
custodial  agreement  dated  as of May 27,  2003 by and  between  the  Bank  and
Assignee and (ii) the Amended and Restated Servicing  Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

                                      -60-
<PAGE>

     6. Further Assurances.

          (a)  Assignor  agrees  that at any time and from time to time,  at the
     expense of Assignor, Assignor will promptly execute and deliver all further
     instruments  and  documents,  and  take  all  further  action,  that may be
     necessary  or  desirable,  or that  Assignee  may  reasonably  request,  to
     effectuate  the purpose or provisions  of this  Assignment or to confirm or
     perfect  any  transaction  described  or  contemplated  herein or to enable
     Assignee  or its agents to exercise  and  enforce  its rights and  remedies
     hereunder with respect to any Mortgage Loan Document. Assignor and Assignee
     agree that Assignor shall reasonably cooperate (i) in preparing, executing,
     delivering  or having  prepared,  delivered and executed by January 1, 2004
     such documents or instruments  which are necessary or desirable to register
     legal  title  to  each  Mortgage  Loan  in  the  name  of  Assignee  in the
     appropriate  land  registry or other office of public  record,  and (ii) in
     registering  legal title to each  Mortgage  Loan in the name of Assignee in
     the event the credit  rating of the Bank (or such  other  agent as may hold
     the Mortgage  Loans on behalf of Assignee) will fall below either "BBB-" by
     Standard & Poor's  Rating  Services or "Baa" by Moody's  Investor  Service,
     Inc.

          (b)  Assignor  hereby  authorizes  Assignee  or its agents to file and
     record one or more  financing or  continuation  statements  and  amendments
     thereto,  relative  to all or any part of the Loan  Documents  without  the
     signature of Assignor where permitted by the law.

     7. Assignment. This Assignment shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

     8.  Notices.  All notices and other  communications  provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed,  telegraphed,  telecopied,  telexed or delivered, if to Assignor, at its
address  at c/o  Codan  Services  Limited,  Clarendon  House,  2 Church  Street,
Hamilton, HM 11, Bermuda,  Attention:  Roger Burgess; and if to Assignee, at its
address at 125 West 55th  Street,  New York,  New York 10019,  Attention:  Chief
Financial Officer;  or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor.  All such
notices and  communications  shall,  when  mailed,  telegraphed,  telecopied  or
telexed,  be effective when  deposited in the mails,  delivered to the telegraph
company,   transmitted   by  telecopier   or  confirmed  by  telex   answerback,
respectively.

     9.  Governing Law. This  Assignment and Agreement  shall be governed by and
construed in accordance with the laws of Bermuda.

     10. Jurisdiction.

          (a) Each of the parties hereto hereby irrevocably and  unconditionally
     submits, for itself and its property,  to the nonexclusive  jurisdiction of
     any court  sitting in Bermuda,  and any  appellate  court  thereof,  in any
     action or proceeding arising out of or relating to this Assignment,  or for
     recognition or enforcement of any judgment,  and each of the parties hereto
     hereby irrevocably and unconditionally agrees that all claims in respect of
     any such  action  or  proceeding  may be heard and  determined  in any such

                                      -61-
<PAGE>

     Bermuda  court.  Each of the parties hereto agrees that a final judgment in
     any such action or proceeding  shall be  conclusive  and may be enforced in
     other jurisdictions by suit on the judgment or in any other manner provided
     by law.  Nothing in this  Assignment  shall affect any right that any party
     may  otherwise  have to bring any  action or  proceeding  relating  to this
     Assignment in the courts of any jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("Assignee's Process Agent"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

     11.  Counterparts.   This  Assignment  may  be  executed  in  one  or  more
counterparts,  each of which shall be  considered  an  original.  Delivery of an
executed  counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed  counterpart of this Assignment.
Any  delivery of a  counterpart  signature  by  telecopier  shall,  however,  be
promptly followed by delivery of a manually executed counterpart.

     12.  Change  and  Modifications.   This  Assignment  may  not  be  changed,
terminated  or modified  orally or in any manner  other than by an  agreement in
writing signed by the party sought to be charged therewith.

     13. No Waiver.  No waiver by any party of any provision of this  Assignment
or any right,  remedy or option  hereunder  shall be  controlling,  nor shall it
prevent or estop such party from  thereafter  enforcing such  provision,  right,
remedy or option,  and the  failure or refusal of any party  hereto to insist in
any one or more  instances  upon the strict  performance  of any of the terms or
provisions  of this  Assignment by any other party hereto shall not be construed
as a waiver or relinquishment for the future of any such term or provision,  but
the same shall continue in full force and effect, it being understood and agreed
that the  rights,  remedies  and  options  of  Assignee  or the Bank,  acting as
servicer on behalf of Assignee,  hereunder  are and shall be  cumulative  and in
addition  to all other  rights,  remedies  and  options of Assignee or the Bank,
acting as servicer on behalf of Assignee, in law or in equity or under any other
agreement.

     14. Recitals. All of the recitals hereinabove set forth are incorporated in
this Assignment by reference.

     15. Paragraph Headings,  etc. The headings of paragraphs  contained in this
Assignment  are  provided  for  convenience  only.  They  form  no  part of this
Assignment  and  shall  not  affect  its  construction  or  interpretation.  All
references  to  paragraphs  or  subparagraphs  of

                                      -62-
<PAGE>

this Assignment refer to the corresponding  paragraphs and subparagraphs of this
Assignment.  All words used herein  shall be  construed  to be of such gender or
number as the  circumstances  require.  This  "Assignment"  shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import,  refer to this Assignment as a whole
and not to any particular paragraph,  clause or other subdivision hereof, unless
otherwise specifically noted.

     16.  Termination.  Upon satisfaction in full of all obligations of Assignor
under the Loan Documents,  this Assignment  shall terminate and be of no further
force and effect and Assignee shall execute documents  evidencing the assignment
of any  outstanding  Mortgage  Loans to Assignor  (without  recourse),  provided
however,  that in the event an Event of Default  under any Mortgage Loan occurs,
Assignee's obligation to assign such defaulted Mortgage Loan back to Assignor as
provided in this Section shall terminate,  provided,  further,  however, that to
the extent any amounts  collected  by Assignee  with  respect to such  defaulted
Mortgage  Loan exceed an amount  equal to the sum of (i) the amount by which the
principal amount of the Loan secured by such defaulted Mortgage Loan was reduced
pursuant to Section 2.04(b)(B) of the Loan Agreement,  (ii) any interest accrued
on  such  amount  at the  applicable  Interest  Rate  (as  defined  in the  Loan
Agreement)  compounded monthly,  and (iii) the amount of any collection expenses
(including  legal fees),  such excess  shall be applied  against the Excess Loan
Amount and any remaining amount shall be remitted to Assignor.

     17. Partial  Invalidity.  In case any provision in this Assignment shall be
invalid, illegal or unenforceable,  the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     18.  National  Housing  Act.  Subject  to the terms and  provisions  of the
Servicing  Agreement  referred to above, the Mortgage Loans hereby assigned will
be  administered  and serviced by the Bank, as agent of Assignee,  in accordance
with  the  National  Housing  Act  (Canada)  and  National  Housing  Regulations
(Canada).

     IN WITNESS  WHEREOF,  the  Assignor  and each other  party  hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-seventh  (27th)
day of May, Two thousand and three (2003).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             ---------------------------------
                                             Sophie Clermont

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                      -63-
<PAGE>

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             ---------------------------------
                                             Jean Dagenais

                                        By:
                                             ---------------------------------
                                             Johanne Dupont

                                      -64-
<PAGE>

PROVINCE OF QUEBEC                   )
                                     )  ss.:
DISTRICT OF MONTREAL                 )

     On the fourth (4th) day of November,  Two thousand and three (2003), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose  and say  that  she  resides  at 383  Claremont  Street,  in the  City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance,  Ltd.,  the  corporation  described in and which executed the foregoing
instrument;  and that she signed her name  thereto by  authority of the board of
directors of said corporation.

                                             ----------------------------------
                                             NICOLE NOBERT, attorney

                                      -65-
<PAGE>

                                    Exhibit A

                                 Mortgage Loans

                                      -66-Exhibit 10.35

                                 PROMISSORY NOTE
                                  (this "Note")

US$1,680,003.80                                                     May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate  in writing,  the  principal  sum of one  million  six hundred  eighty
thousand  three  dollars  and  eighty  cents  (US$1,680,003.80)  (the  "Original
Principal Amount") in lawful money of the United States of America with interest
on the principal  amount  outstanding  from time to time to be computed from the
date hereof until such principal  amount is paid in full at an annual rate equal
to the lesser of (i) the maximum  non-usurious  rate permitted by applicable law
and (ii) eight percent and eight hundred  twenty-five  thousandths  of a percent
(8.825%)  calculated monthly on a semi-annual basis (the "Interest Rate"),  said
Original Principal Amount and interest to be paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan Agreement"), on June 15, 2012 (the "Maturity Date") in whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition  to, and not in lieu of, any other  remedy  Lender may have

                                      -2-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -3-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -4-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -5-
<PAGE>

                                 PROMISSORY NOTE
                                  (this "Note")

US$9,272,550.01                                                    May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate in writing,  the principal sum of nine million two hundred seventy-two
thousand  five  hundred  fifty  dollars  and  one  cent  (US$9,272,550.01)  (the
"Original  Principal  Amount") in lawful  money of the United  States of America
with  interest  on the  principal  amount  outstanding  from  time to time to be
computed from the date hereof until such principal  amount is paid in full at an
annual rate equal to the lesser of (i) the maximum  non-usurious  rate permitted
by applicable law and (ii) seven percent and nine hundred  eighteen  thousandths
of a percent (7.918%)  calculated  monthly on a semi-annual basis (the "Interest
Rate"), said Original Principal Amount and interest to be paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan  Agreement"),  on  December  15, 2011 (the  "Maturity  Date") in
     whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

                                      -6-
<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition to, and not in lieu of, any other remedy Lender may have

                                      -7-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -8-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -9-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -10-
<PAGE>

                                 PROMISSORY NOTE
                                  (this "Note")

US$9,873,441.06                                                     May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate  in  writing,   the  principal  sum  of  nine  million  eight  hundred
seventy-three   thousand   four   hundred   forty-one   dollars  and  six  cents
(US$9,873,441.06)  (the  "Original  Principal  Amount")  in lawful  money of the
United States of America with interest on the principal amount  outstanding from
time to time to be computed from the date hereof until such principal  amount is
paid  in  full  at an  annual  rate  equal  to the  lesser  of (i)  the  maximum
non-usurious  rate  permitted by applicable  law and (ii) eight percent and nine
hundred  twenty-four  thousandths of a percent (8.924%)  calculated monthly on a
semi-annual  basis (the "Interest  Rate"),  said Original  Principal  Amount and
interest to be paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan Agreement"), on June 15, 2011 (the "Maturity Date") in whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

                                      -11-
<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition to, and not in lieu of, any other remedy Lender may have

                                      -12-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -13-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -14-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -15-
<PAGE>

                                 PROMISSORY NOTE
                                  (this "Note")

US$29,215,591.54                                                    May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate  in writing,  the  principal  sum of  twenty-nine  million two hundred
fifteen   thousand  five  hundred   ninety-one   dollars  and  fifty-four  cents
(US$29,215,591.54)  (the  "Original  Principal  Amount") in lawful  money of the
United States of America with interest on the principal amount  outstanding from
time to time to be computed from the date hereof until such principal  amount is
paid  in  full  at an  annual  rate  equal  to the  lesser  of (i)  the  maximum
non-usurious  rate  permitted  by  applicable  law and  (ii)  nine  percent  and
fifty-two  thousandths of a percent (9.052%) calculated monthly on a semi-annual
basis (the "Interest Rate"),  said Original  Principal Amount and interest to be
paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan  Agreement"),  on  December  15, 2010 (the  "Maturity  Date") in
     whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

                                      -16-
<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition to, and not in lieu of, any other remedy Lender may have

                                      -17-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -18-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -19-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -20-
<PAGE>

                                 PROMISSORY NOTE
                                  (this "Note")

US$15,704,323.03                                                   May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate in writing,  the principal  sum of fifteen  million seven hundred four
thousand three hundred twenty-three  dollars and three cents  (US$15,704,323.03)
(the  "Original  Principal  Amount")  in lawful  money of the  United  States of
America with interest on the principal  amount  outstanding from time to time to
be computed from the date hereof until such principal  amount is paid in full at
an  annual  rate  equal  to the  lesser  of (i) the  maximum  non-usurious  rate
permitted by applicable law and (ii) nine percent and eighty-six  thousandths of
a percent  (9.086%)  calculated  monthly on a semi-annual  basis (the  "Interest
Rate"), said Original Principal Amount and interest to be paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan Agreement"), on June 15, 2010 (the "Maturity Date") in whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

                                      -21-
<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition to, and not in lieu of, any other remedy Lender may have

                                      -22-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -23-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -24-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -25-
<PAGE>

                                 PROMISSORY NOTE
                                  (this "Note")

US$4,674,226.02                                                     May 27, 2003

FOR VALUE  RECEIVED,  NB  FINANCE,  LTD.,  a  Bermuda  corporation,  having  its
registered  office  in  Clarendon  House,  2 Church  Street,  Hamilton,  Bermuda
(hereinafter  referred  to as  "Borrower"),  promises  to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation,  at its principal place of business
at 125 West 55th Street,  New York, New York 10019  (hereinafter  referred to as
"Lender"),  or at such other  place as the holder  thereof may from time to time
designate in writing, the principal sum of four million six hundred seventy-four
thousand two hundred  twenty-six  dollars and two cents  (US$4,674,226.02)  (the
"Original  Principal  Amount") in lawful  money of the United  States of America
with  interest  on the  principal  amount  outstanding  from  time to time to be
computed from the date hereof until such principal  amount is paid in full at an
annual rate equal to the lesser of (i) the maximum  non-usurious  rate permitted
by applicable law and (ii) seven percent and eight hundred forty  thousandths of
a percent  (7.840%)  calculated  monthly on a semi-annual  basis (the  "Interest
Rate"), said Original Principal Amount and interest to be paid as follows:

(i)  With respect to each Interest  Period,  interest  payments shall be paid in
     arrears on the  fifteenth  (15th) day of each  calendar  month  immediately
     following such Interest Period; provided,  however, that if such day is not
     a  Business  Day,  interest  payments  shall  be  made  on the  immediately
     succeeding  Business Day (the "Interest  Payment Date").  "Interest Period"
     means each calendar  month or portion  thereof  during the term of the Note
     or, in the case of the initial  Interest  Period,  the date hereof  through
     June 15,  2003.  "Business  Day" means a day of the year on which banks are
     not required or authorized by law to close in Maryland, Bermuda and Quebec.

(ii) The Original  Principal  Amount shall be due and payable,  unless otherwise
     accelerated  or  prepaid in  accordance  with the terms of this Note or the
     Loan  Agreement  dated as of the date hereof,  between  Borrower and Lender
     (the "Loan  Agreement"),  on  December  15, 2009 (the  "Maturity  Date") in
     whole.

     Section 1.  Incorporation  by  Reference.  All of the terms,  covenants and
conditions  contained in the Mortgage  Loan  Assignment  Agreement  and the Loan
Agreement  with  respect to the  indebtedness  evidenced by this Note are hereby
made a part of this Note to the same  extent  and with the same force as if they
were fully set forth herein.

     Section 2.  Security.  The  indebtedness  evidenced by this Note is secured
pursuant  to that  certain  mortgage  loan  assignment  agreement  of even  date
herewith (the  "Mortgage  Loan  Assignment  Agreement"),  assigning the mortgage
loans more particularly  described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "Mortgage Loans") as security to
Lender,  subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

                                      -26-
<PAGE>

     Section 3.  Prepayment.  The Original  Principal Amount of this Note is not
subject to optional  prepayment but is subject to mandatory  prepayment prior to
the Maturity Date upon the terms and conditions specified in the Loan Agreement.

     Section 4. Default and Acceleration.  If an Event of Default (as defined in
the Loan Agreement),  other than an Event of Default described in Section 6.1(g)
of the Loan Agreement has occurred and is continuing, Lender may at any time, in
addition to any other rights or remedies  available to it pursuant to this Note,
the Loan Agreement and the Mortgage Loan Assignment  Agreement,  or at law or in
equity, take such action,  without notice or demand, that Lender deems advisable
to protect and enforce its rights against  Borrower and in any of the Collateral
(as defined in the Loan Agreement),  including, without limitation, by notice to
Borrower,  declare the Debt to be forthwith due and payable, whereupon such Debt
shall become and be  forthwith  due and payable,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby  expressly waived
by  Borrower,  and may enforce or avail  itself of any or all rights or remedies
provided in this Note,  the Loan  Agreement  and the  Mortgage  Loan  Assignment
Agreement against Borrower and/or the Collateral (including selling the Mortgage
Loans);  and upon an Event of Default  described  in Section  6.1(g) of the Loan
Agreement,  the Debt shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by Borrower. "Debt" means (a) the outstanding principal balance
of this Note, (b) interest,  default  interest at the Default Rate, late charges
and other sums,  as provided in this Note,  the Loan  Agreement  or the Mortgage
Loan Assignment Agreement, (c) all other monies agreed or provided to be paid by
Borrower  in this Note,  the Loan  Agreement  or the  Mortgage  Loan  Assignment
Agreement,  and (d) all sums advanced and costs and expenses  incurred by Lender
in connection  with the Debt or any part  thereof,  any renewal,  extension,  or
change of or substitution of the Debt or any part thereof, or the acquisition or
perfection of the security therefor,  whether made or incurred at the request of
Borrower or Lender.

     Section 5. Savings Clause. It is expressly  stipulated and agreed to be the
intent of Borrower and Lender that this Note complies with the applicable  usury
and other laws  relating to this Note now or  hereafter  in effect.  If any such
applicable  laws  render  usurious  any amount  called  for under this Note,  or
contracted  for,  charged or  received  with  respect  to this  Note,  or if the
acceleration  of the  maturity  of this Note or if any  prepayment  by  Borrower
results in Borrower  having paid any  interest  in excess of that  permitted  by
applicable  law,  then it is the express  intent of the parties  that all excess
amounts  theretofore  collected  by  Lender be  refunded  to  Borrower,  and the
provisions  of  this  Note  immediately  be  deemed  reformed  and  the  amounts
thereafter  collected  under this Note  reduced,  without the  necessity  of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest  amount  otherwise  called for under
this Note.

     Section 6. Late Charges; Mortgage Default Interest Rate.

     (a) Subject to Section 5, in the event that any  installment of interest or
principal  shall become overdue for a period in excess of five (5) days, a "late
charge" in an amount  equal to five percent (5%) of the amount so overdue may be
charged to Borrower by Lender for the purpose of defraying the expenses incident
to handling  such  delinquent  payments.  Subject to Section 5, such late charge
shall be in addition to, and not in lieu of, any other remedy Lender may have

                                      -27-
<PAGE>

and is in addition to Lender's right to collect  reasonable  fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

     (b) If Borrower  shall default in any payment of principal or interest,  or
any other  amount owed by Borrower  under this Note,  the Loan  Agreement or the
Mortgage Loan  Assignment  Agreement,  Borrower shall pay interest on the unpaid
principal amount of this Note,  payable in arrears on each Interest Payment Date
and on demand,  at a rate per annum  equal at all times to the lesser of (x) the
maximum  non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the  applicable  Interest Rate until such  defaulted  amount has
been paid by  Borrower,  together  with  interest  thereon at the Default  Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted  alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note,  the Loan Agreement
or the Mortgage Loan Assignment  Agreement and shall not otherwise  prejudice or
limit any rights or remedies of Lender.

     Section 7. No Oral Change. This Note may not be modified,  amended, waived,
extended,  changed,  discharged or terminated orally or by act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by
the party  against whom  enforcement  of any  modification,  amendment,  waiver,
extension, change, discharge or termination is sought.

     Section 8. Waivers.  Except for any notices expressly  provided for in this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, Borrower and
all others who may become  liable for the payment of all or any part of the Debt
do  hereby  severally  waive  presentment  and  demand  for  payment,  notice of
dishonor, protest and notice of protest and non-payment and all other notices of
any kind.  No  release of any  security  for the Debt or  extension  of time for
payment of this Note or any installment hereof, and no alteration,  amendment or
waiver of any  provision of this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement between Lender or any other person or party shall release,
modify,  amend,  waive,  extend,  change,  discharge,  terminate  or affect  the
liability of Borrower,  and any other person or entity who may become liable for
the payment of all or any part of the Debt,  under this Note, the Loan Agreement
or the Mortgage Loan  Assignment  Agreement.  No notice to or demand on Borrower
shall be deemed to be a waiver of the  obligation of Borrower or of the right of
Lender to take further action  without  further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement.  Any
failure of Lender to insist  upon strict  performance  by Borrower of any of the
provisions  of this Note,  the Loan  Agreement or the Mortgage  Loan  Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment  Agreement,  and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

     Section 9. Non Recourse.  Except as otherwise  provided herein and the Loan
Agreement and the Mortgage Loan Assignment  Agreement,  Lender shall not enforce
the liability and obligation of Borrower to perform and observe the  obligations
contained in this Note,  the Loan  Agreement  and the Mortgage  Loan  Assignment
Agreement by any action or proceeding  wherein a money  judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

                                      -28-
<PAGE>

Loan Agreement and the Mortgage Loan Assignment  Agreement,  and the interest in
the  Mortgage  Loans and in any  Collateral  (as defined in the Loan  Agreement)
given to Lender  created by this Note,  the Loan  Agreement or the Mortgage Loan
Assignment  Agreement,  provided,  however,  that any  judgment in any action or
proceeding  shall  be  enforceable  against  Borrower  only  to  the  extent  of
Borrower's  interest in the Mortgage Loans and other Collateral given to Lender.
The  provisions  of this  Section  shall not  however (i)  constitute  a waiver,
release or impairment of any  obligation  evidenced or secured by this Note, the
Loan  Agreement  or the  Mortgage  Loan  Assignment  Agreement,  (ii) affect the
validity or  enforceability  of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan  Assignment  Agreement,  or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

     Section 10.  Authority.  Borrower (and the  undersigned  representative  of
Borrower,  if any) represents that Borrower has full power,  authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment  Agreement  and that this Note,  the Loan  Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

     Section 11. Applicable Law. This Note shall be governed, construed, applied
and enforced in accordance with the laws of Bermuda.

     Section 12.  Counsel Fees. In the event that it should become  necessary to
employ  counsel to collect  the Debt or to protect  or  foreclose  the  security
therefor,  Borrower  also  agrees to pay all  reasonable  fees and  expenses  of
Lender,  including,  without  limitation,  reasonable  attorney's  fees  for the
services of such counsel whether or not suit be brought.

     Section 13.  Notices.  All notices and other  communications  provided  for
hereunder  shall  be  in  writing  (including  telegraphic,  telecopy  or  telex
communication) and mailed, telegraphed,  telecopied, telexed or delivered, if to
Borrower,  at its address c/o Codan Services Limited,  Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda,  Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention:  Chief
Executive  Officer;  with a copy to  National  Bank of Canada,  as  servicer  of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party,  at such other  address as shall be designated by
such party in a written  notice to  Borrower  and Lender.  All such  notices and
communications  shall,  when  mailed,  telegraphed,  telecopied  or telexed,  be
effective  when  deposited  in the mails,  delivered to the  telegraph  company,
transmitted by telecopier or confirmed by telex answerback, respectively.

     Section 14. Payment. Borrower shall make each payment,  irrespective of any
right of counterclaim or set-off,  not later than 11:00 a.m.  (Eastern  Standard
time) on each  Interest  Payment Date in United  States  dollars to Lender at an
account or accounts  Lender may  designate  from time to time in same day funds.
All  computations of interest and fees shall be made by Lender on the basis of a
year of 360 days consisting of twelve (12) months of thirty (30) days each. Each
determination  by Lender of interest or fees  hereunder  shall be conclusive and
binding for all purposes, absent manifest error.

     IN WITNESS WHEREOF, Borrower has caused this instrument to be duly executed
as of the date in the year first above written.

                                      -29-
<PAGE>

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                           -------------------------------------
                                           Sophie Clermont

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                           -------------------------------------
                                           Jean Dagenais

                                      -30-

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