Document:

EXHIBIT 4.2

                                Dated 26 May 2004
                                -----------------

                                NORTHERN ROCK PLC
                   as Seller, Cash Manager, and a Beneficiary

                         GRANITE FINANCE FUNDING LIMITED
                          as Funding and a Beneficiary

                        GRANITE FINANCE TRUSTEES LIMITED
                              as Mortgages Trustee

                                     - and -

                              THE BANK OF NEW YORK
                               as Security Trustee

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

                              MORTGAGES TRUST DEED
                             NINTH DEED OF AMENDMENT

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

                           SIDLEY AUSTIN BROWN & WOOD
                                WOOLGATE EXCHANGE
                              25 BASINGHALL STREET
                                 LONDON EC2V 5HA
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937

<PAGE>

THIS DEED is made on 26 May 2004

BETWEEN:

(1)  NORTHERN ROCK PLC (registered number 03273685), a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Seller, and in its capacity as Cash Manager and in its capacity
     as a Beneficiary;

(2)  GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
     limited company incorporated under the laws of Jersey, but acting out of
     its office established in England (registered overseas company number
     FC022999 and branch number BR005916) at 69 Park Lane, Croydon CR9 1TQ in
     its capacity as a Beneficiary;

(3)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
     limited company incorporated under the laws of Jersey whose registered
     office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
     Islands in its capacity as the Mortgages Trustee; and

(4)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL United Kingdom,
     in its capacity as Security Trustee.

WHEREAS:

(A)  On 26 March 2001 (the "Initial Closing Date"), the Mortgages Trustee
     declared the following trusts in respect of the Trust Property (being on
     the Initial Closing Date, the sum of (GBP)100 which monies have been
     received by, are presently beneficially owned by and are held by the
     Mortgages Trustee or to its order).

(B)  On the Initial Closing Date, the Mortgages Trustee (acting as principal and
     not as agent of any party) agreed, in accordance with the Mortgages Trust
     Deed dated 26 March 2001 among the parties hereto (the "Mortgages Trust
     Deed") to hold the Trust Property as bare trustee for Funding and the
     Seller (each a Beneficiary and together, the "Beneficiaries") upon, with
     and subject to the trusts, powers and provisions of the Mortgages Trust
     Deed. The Mortgages Trustee receives amounts arising from the Trust
     Property and distributes such amounts for the benefit of the Beneficiaries
     of the Mortgages Trust. It delegates certain tasks in relation to the
     Mortgages Trust to the Administrator and the Cash Manager.

(C)  The Seller carries on the business of, inter alia, originating residential
     first mortgage loans to individual Borrowers in England, Wales and Scotland
     and of managing and administering such mortgage loans. The Seller has sold
     and assigned and intends to sell and assign from time to time portfolios of
     such mortgage loans to the Mortgages Trustee pursuant to the Mortgage Sale
     Agreement entered into on the Initial Closing Date, which mortgage loans
     shall be held by the Mortgages Trustee as bare trustee for the
     Beneficiaries upon, with and subject to the trusts, powers and provisions
     of the Mortgages Trust Deed.

<PAGE>

(D)  The parties have agreed to amend and restate the Mortgages Trust Deed (the
     "First Amended and Restated Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 23 July
     2001 (the "First Deed of Amendment and Restatement").

(E)  The parties have agreed to amend and restate the First Amended and Restated
     Mortgages Trust Deed (the "Second Amended and Restated Mortgages Trust
     Deed") pursuant to the provisions set out in a deed of amendment and
     restatement dated 28 September 2001 (the "Second Deed of Amendment and
     Restatement").

(F)  The parties have agreed to amend and restate the Second Amended and
     Restated Mortgages Trust Deed (the "Third Amended and Restated Mortgages
     Trust Deed") pursuant to the provisions set out in a deed of amendment and
     restatement dated 20 March 2002 (the "Third Deed of Amendment and
     Restatement").

(G)  The parties have agreed to amend and restate the Third Amended Mortgages
     Trust Deed (the "Fourth Amended Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 23
     September 2002 (the "Fourth Deed of Amendment and Restatement").

(H)  The parties have agreed to amend and restate the Fourth Amended Mortgages
     Trust Deed (the "Fifth Amended Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 27 January
     2003 (the "Fifth Deed of Amendment and Restatement").

(I)  The parties have agreed to amend and restate the Fifth Amended Mortgages
     Trust Deed (the "Sixth Amended Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 21 May 2003
     (the "Sixth Deed of Amendment and Restatement").

(J)  The parties have agreed to amend and restate the Sixth Amended Mortgages
     Trust Deed (the "Seventh Amended Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 24
     September 2003 (the "Seventh Deed of Amendment and Restatement").

(K)  The parties have agreed to amend and restate the Seventh Amended Mortgages
     Trust Deed (the "Eighth Amended Mortgages Trust Deed") pursuant to the
     provisions set out in a deed of amendment and restatement dated 26 January
     2004 (the "Eighth Deed of Amendment and Restatement").

(L)  The parties now wish to amend and restate the Eighth Amended and Restated
     Mortgages Trust Deed.

(M)  With effect from the date hereof, the provisions of the Mortgages Trust
     Deed, the First Amended and Restated Mortgages Trust Deed, the Second
     Amended and Restated Mortgages Trust Deed, the Third Amended and Restated
     Mortgages Trust Deed, the Fourth Amended and Restated Mortgages Trust Deed,
     the Fifth Amended and Restated Mortgages Trust Deed, the Sixth Amended and
     Restated Mortgages Trust Deed, the Seventh Amended and Restated

                                       2
<PAGE>

     Mortgages Trust Deed, the Eighth Amended and Restated Mortgages Trust Deed
     and this Deed shall be read and construed as one document.

NOW IT IS HEREBY AGREED as follows:

1.   INTERPRETATION

1.1  The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule Eighth
     Amendment Deed made on 26 May 2004 between, among others, the parties
     hereto (as the same have been and may be amended, varied or supplemented
     from time to time with the consent of the parties hereto) are expressly and
     specifically incorporated into and shall apply to this Deed.

1.2  The Mortgages Trust Deed as amended and restated pursuant to the First Deed
     of Amendment and Restatement, the Second Deed of Amendment and Restatement,
     the Third Deed of Amendment and Restatement, the Fourth Deed of Amendment
     and Restatement, the Fifth Deed of Amendment and Restatement, the Sixth
     Deed of Amendment and Restatement, the Seventh Deed of Amendment and
     Restatement, the Eighth Deed of Amendment and Restatement and pursuant
     hereto shall be referred to herein as the "Amended and Restated Mortgages
     Trust Deed".

1.3  As used in the Amended and Restated Mortgages Trust Deed the terms
     "Mortgages Trust Deed", "this Mortgages Trust Deed", "Trust Deed", "this
     Trust Deed", "Deed", "this Deed", "herein", "hereinafter", "hereof",
     "hereto" and other words of similar import shall mean or refer to the
     Amended and Restated Mortgages Trust Deed, unless the context otherwise
     specifically requires.

2.   AMENDMENTS TO THE EIGHTH AMENDED AND RESTATED MORTGAGES TRUST DEED

     Upon execution of this Deed by the parties hereto, the Eighth Amended and
     Restated Mortgages Trust Deed shall be and hereby is amended and restated
     in the form of Appendix I hereto.

3.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

     No person shall have any right to enforce any provision of this Deed or any
     provision of the Amended and Restated Mortgages Trust Deed under the
     Contract (Rights of Third Parties) Act 1999 but this shall not affect any
     right or remedy of a third party which exists apart from that Act.

4.   Security Trustee

     The Security Trustee, for the purposes of Clause 15.2 (Negative Covenants)
     of the Funding Deed of Charge, hereby consents to the amendments to the
     Eighth Amended and Restated Mortgages Trust Deed and is party to this Deed
     solely for the purposes of providing such consent.

                                       3
<PAGE>

5.   COUNTERPARTS

     This Deed may be executed in any number of counterparts, and has the same
     effect as if the signatures and/or seals on the counterparts were on a
     single copy of this Deed.

6.   GOVERNING LAW

6.1  This Deed is governed by, and shall be construed in accordance with,
     English law.

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

                                       4
<PAGE>

                                 EXECUTION PAGE

IN WITNESS WHEREOF this Deed has been executed as a deed and delivered by the
parties hereto on the day and year first above written.

<TABLE>
<CAPTION>
<S>                                                           <C>
Executed by
NORTHERN ROCK PLC
as its deed as follows:
Signed for and on its behalf by one of its duly
authorised attorneys/signatories                                By
                                                                  ----------------------------------------------
                                                                  Duly Authorised Attorney/Signatory
                                                              Name
                                                                  ----------------------------------------------
Signature
           ----------------------------------------------
           Witness
Full name
           ----------------------------------------------
Occupation
           ----------------------------------------------
Address
           ----------------------------------------------

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

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

Executed by                                                     By
GRANITE FINANCE FUNDING LIMITED                                     ----------------------------------------------
as its deed as follows:                                             Director
Signed for and on its behalf by one of its directors            Name
and by another of its directors/its secretary                       ----------------------------------------------

                                                                  By
                                                                    ----------------------------------------------
                                                                    Director/Secretary
                                                                Name
                                                                    ----------------------------------------------

Executed by                                                     By
GRANITE FINANCE TRUSTEES LIMITED                                    ----------------------------------------------
as its deed as follows:                                             Director
Signed for and on its behalf by one of its directors            Name
and by another of its directors/its secretary                       ----------------------------------------------
                                                                  By
                                                                    ----------------------------------------------
                                                                    Director/Secretary
                                                                Name
                                                                    ----------------------------------------------

                                       5
<PAGE>

<CAPTION>
<S>                                                             <C>
Executed by
THE BANK OF NEW YORK                                              By
as its deed as follows:                                             ----------------------------------------------
Signed for and on its behalf by one of its duly                     Duly Authorised Attorney/Signatory
authorised attorneys/signatories                                Name
                                                                    ----------------------------------------------
</TABLE>

                                       6
<PAGE>

                                   Appendix I
                    Amended and Restated Mortgages Trust Deed

<PAGE>

                                Dated 26 May 2004
                                -----------------

                                NORTHERN ROCK PLC
                    as Seller, Cash Manager and a Beneficiary

                         GRANITE FINANCE FUNDING LIMITED
                          as Funding and a Beneficiary

                                     - and -

                        GRANITE FINANCE TRUSTEES LIMITED
                              as Mortgages Trustee

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

                                  NINTH AMENDED
                              MORTGAGES TRUST DEED

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

                           SIDLEY AUSTIN BROWN & WOOD
                                WOOLGATE EXCHANGE
                              25 BASINGHALL STREET
                                 LONDON EC2V 5HA
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                             REF:30507-30020/655932

<PAGE>

                                    CONTENTS

Clause                                                                  Page No.

1.   Definitions and Construction..............................................2

2.   Creation of Mortgages Trust...............................................2

3.   Conditions Precedent......................................................3

4.   Consideration.............................................................5

5.   Increasing and Decreasing the Seller Share of the Trust Property..........8

6.   Increasing the Funding Share of the Trust Property........................9

7.   Initial Funding Share and Initial Seller Share...........................11

8.   Adjustment of Funding Share Percentage and Seller Share Percentage.......11

9.   Minimum Seller Share.....................................................24

10.  Distribution of Revenue Receipts.........................................26

11.  Distribution of Principal Receipts.......................................29

12.  Allocation of Losses.....................................................33

13.  Overpayments.............................................................34

14.  Arrears..................................................................35

15.  Ledgers..................................................................35

16.  Fees and Expenses of the Mortgages Trustee...............................36

17.  Directions from Beneficiaries............................................36

18.  Early Termination of the Mortgages Trust.................................38

19.  Audit of Mortgage Loans constituting the Trust Property..................38

20.  Transfers................................................................38

21.  Representations and Covenants............................................39

22.  Power to Delegate........................................................40

23.  Powers of Investment.....................................................40

24.  Other Provisions regarding the Mortgages Trustee.........................41

25.  No retirement of Mortgages Trustee.......................................42

                                       i
<PAGE>

26.  Termination..............................................................43

27.  Further Assurances.......................................................43

28.  No Partnership or Agency.................................................43

29.  Calculations.............................................................43

30.  Confidentiality..........................................................43

31.  Perpetuity Period........................................................44

32.  Non Petition Covenant; Limited Recourse..................................44

33.  Amendments and Waiver....................................................46

34.  Notices..................................................................46

35.  Third Party Rights.......................................................47

36.  Execution in Counterparts; Severability..................................47

37.  Governing Law and Submission to Jurisdiction.............................48

SCHEDULE 1 REPRESENTATIONS AND WARRANTIES.....................................49

                                       ii

<PAGE>

THIS NINTH AMENDED MORTGAGES TRUST DEED DATED 26 MAY 2004 FURTHER AMENDS AND
RESTATES THE MORTGAGES TRUST DEED DATED 26 MARCH 2001 BETWEEN:

(1)  NORTHERN ROCK PLC (registered number 03273685), a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Seller, and in its capacity as Cash Manager and in its capacity
     as a Beneficiary;

(2)  GRANITE FINANCE FUNDING LIMITED (registered number 79308) a private limited
     company incorporated under the laws of Jersey, but acting out of its office
     established in England (registered overseas company number FC022999 and
     branch number BR005916) at 69 Park Lane, Croydon, CR9 1TQ in its capacity
     as a Beneficiary; and

(3)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309) a private
     limited company incorporated under the laws of Jersey whose registered
     office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
     Islands in its capacity as Mortgages Trustee.

WHEREAS:

(A)  The Mortgages Trustee wishes to declare the following trusts in respect of
     the Trust Property (being on the date of this Deed, the sum of (GBP)100
     which monies have been received by, are presently held by the Mortgages
     Trustee or to its order).

(B)  The Mortgages Trustee (acting as principal and not as agent of any party)
     has agreed to hold the Trust Property as bare trustee for the Beneficiaries
     upon, with and subject to the trusts, powers and provisions of this Deed.
     The Mortgages Trustee will receive amounts arising from the Trust Property
     and will distribute such amounts for the benefit of the Beneficiaries of
     the Mortgages Trust. It will delegate certain tasks in relation to the
     Mortgages Trust to the Administrator and the Cash Manager.

(C)  The Seller carries on the business of, inter alia, originating residential
     mortgage loans to individual Borrowers in England and Wales and Scotland
     and of managing and administering such mortgage loans. The Seller intends
     to sell and assign from time to time portfolios of such mortgage loans to
     the Mortgages Trustee pursuant to the Mortgage Sale Agreement entered into
     on or about 26 March 2001, which mortgage loans shall be held by the
     Mortgages Trustee as bare trustee for the Beneficiaries upon, with and
     subject to the trusts, powers and provisions of this Deed.

<PAGE>

NOW THIS DEED WITNESSES:

1.   Definitions and Construction

1.1. The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule Eighth
     Amendment and Restatement Deed made on 26 May 2004 between, amongst others,
     the Seller, Funding and the Mortgages Trustee (as the same have been and
     may be amended, varied or supplemented from time to time with the consent
     of the parties hereto) are expressly and specifically incorporated into and
     shall apply to this Deed.

2.   Creation of Mortgages Trust

2.1  Initial Trust Property: The Mortgages Trustee hereby declares itself as
     trustee of the Trust Property, being, upon execution of this Deed, the sum
     of (GBP)100 (one hundred pounds) (the "Initial Trust Property") which sum
     shall be held on trust by the Mortgages Trustee absolutely as to both
     capital and income for the benefit, as tenants in common (holding undivided
     beneficial interests), of the Seller as to the Initial Seller Share
     Percentage and Funding as to the Initial Funding Share Percentage. The
     Initial Trust Property shall be held by the Mortgages Trustee on the
     Mortgages Trust upon due execution of this Deed by all parties to it.

2.2  Closing Trust Property: Pursuant to the provisions of the Mortgage Sale
     Agreement, the Seller intends to sell and assign the Initial Mortgage
     Portfolio to the Mortgages Trustee on the Initial Closing Date, which
     Initial Mortgage Portfolio including all related rights and benefits shall
     form part of the Trust Property (the "Closing Trust Property").

2.3  New Trust Property: From time to time and pursuant to the Mortgage Sale
     Agreement, the Seller intends to sell and assign New Mortgage Portfolios to
     the Mortgages Trustee, which New Mortgage Portfolios including all related
     rights and benefits shall form part of the Trust Property (the "New Trust
     Property").

2.4  Other Trust Property:

     (a)  In accordance with this Deed, from time to time Funding and the Seller
          shall, subject to and in accordance with Clause 4 (Consideration),
          Clause 5 (Increasing the Seller Share of the Trust Property) and/or
          Clause 6 (Increasing the Funding Share of the Trust Property) provide
          consideration to the Mortgages Trustee in the form of Contributions to
          be applied by the Mortgages Trustee as set out in this Deed. Any

                                       2
<PAGE>

          Contribution so provided to the Mortgages Trustee shall, on receipt by
          the Mortgages Trustee and until it has been applied by the Mortgages
          Trustee in accordance with the terms of this Deed, form part of the
          Trust Property.

     (b)  Any Re-draws made under a Flexible Mortgage Loan which is included in
          the Trust Property will form part of the Trust Property.

     (c)  Amounts on deposit (and interest earned on such amounts) from time to
          time in the Mortgages Trustee Bank Accounts will form part of the
          Trust Property.

     (d)  (If the Seller subsequently decides to retain any Mortgage Loan which
          is the subject of a Further Advance within the Trust Property and/or
          to sell and assign the Further Advance to the Mortgages Trustee in
          accordance with the Mortgage Sale Agreement) any Further Advance made
          in respect of a Mortgage Loan in the Trust Property will also form
          part of the Trust Property.

     (e)  Any Permitted Replacement Mortgage Loan and its Related Security
          (including the rights under any related MIG Policy and other insurance
          policies arranged by the Seller, but excluding any Early Repayment
          Charge Receipts paid to the Seller) relating to a Permitted Product
          Switch effected in relation to a Mortgage Loan which forms part of the
          Trust Property will also form part of the Trust Property.

     (f)  The proceeds of sale of any Mortgage Loan and its Related Security
          forming part of the Trust Property pursuant to the Mortgage Sale
          Agreement or other proceeds of sale of any Trust Property will form
          part of the Trust Property.

     (g)  Any Further Draws under a Personal Secured Loan which is included in
          the Trust Property will also form part of the Trust Property.

2.5  Payments of Early Repayment Charges: Subject to and in accordance with the
     Mortgage Sale Agreement, the Mortgages Trustee will agree to pay to the
     Seller any Early Repayment Charge Receipts received by the Mortgage Trustee
     in respect of any Mortgage Loan included in the Initial Mortgage Portfolio
     or any New Mortgage Portfolio which the Seller sells and assigns to the
     Mortgages Trustee. Upon any such payment to the Seller, the benefit of such
     Early Repayment Charges will no longer form part of the Trust Property.

3.   Conditions Precedent

3.1  Trust Property: Subject to this Clause 3 (Conditions Precedent), the
     Mortgages Trustee shall hold the Trust Property as to both capital and
     income on trust absolutely for Funding (as to

                                       3
<PAGE>

     the Funding Share) and for the Seller (as to the Seller Share) as tenants
     in common upon, with and subject to all the trusts, powers and provisions
     of this Deed (such that each Beneficiary shall have an undivided beneficial
     interest in the Trust Property). As used herein, "Trust Property" means the
     Initial Trust Property, the Closing Trust Property, any New Trust Property,
     (but excludes any Early Repayment Charge Receipts which have been paid to
     the Seller and any Mortgage Loans which have been repurchased by the Seller
     pursuant to the Mortgage Sale Agreement) and all other Trust Property
     referred to under Clause 2 (Creation of Mortgages Trust) less (a) any
     actual Losses in relation to Mortgage Loans and any actual redemptions
     occurring in respect of the Mortgage Loans as described in Clause 8.5
     (Adjustments to Trust Property) and (b) distributions of principal made
     from time to time to the Beneficiaries.

3.2  Closing Trust Property: The Closing Trust Property shall be held by the
     Mortgages Trustee on the Mortgages Trust subject to satisfaction of the
     following conditions precedent:

     (a)  the due execution and delivery of the Mortgage Sale Agreement by all
          parties to it;

     (b)  the due execution and delivery of this Deed by all parties to it;

     (c)  the satisfaction or waiver in accordance with the terms of the
          Mortgage Sale Agreement of the conditions to the sale and assignment
          of the Initial Mortgage Portfolio as set out in Clause 2 (Sale and
          Purchase of Initial Mortgage Portfolio) and Clause 3 (Initial Closing
          Date) of the Mortgage Sale Agreement;

     (d)  the payment by Funding to the Mortgages Trustee of Funding's Initial
          Contribution for the Initial Funding Share Percentage in accordance
          with Clause 4 (Consideration); and

     (e)  the payment by the Mortgages Trustee to the Seller of the Initial
          Purchase Price for the sale and assignment to the Mortgages Trustee of
          the Initial Mortgage Portfolio.

3.3  New Trust Property: Any New Trust Property shall be held by the Mortgages
     Trustee on the Mortgages Trust subject to the satisfaction or waiver in
     accordance with the terms of the Mortgage Sale Agreement of the conditions
     referred to in Clause 4 (Sale and Purchase of New Mortgage Loan Portfolios)
     of the Mortgage Sale Agreement for the transfer of New Mortgage Loan
     Portfolios to the Mortgages Trustee.

                                       4
<PAGE>

4.   Consideration

4.1  Consideration provided by Seller: The Seller in its capacity as a
     Beneficiary shall provide consideration to the Mortgages Trustee for the
     Seller Share in the Trust Property:

     (a)  on the Initial Closing Date, by selling and assigning to the Mortgages
          Trustee the Initial Mortgage Portfolio upon payment by the Mortgages
          Trustee to the Seller of the Initial Purchase Price for the Initial
          Mortgage Portfolio in accordance with the terms of the Mortgage Sale
          Agreement;

     (b)  on each date after the Initial Closing Date on which (i) New Mortgage
          Loans are acquired by the Mortgages Trustee from the Seller in
          accordance with the Mortgage Sale Agreement and (ii) the consideration
          provided to the Seller for that sale is or includes the covenant of
          the Mortgages Trustee to hold the Trust Property on trust for Funding
          (as to the Funding Share) and the Seller (as to the Seller Share) in
          accordance with the terms of this Deed, by the sale on such date by
          the Seller of such New Mortgage Loans either for the payment by the
          Mortgages Trustee of the Initial Purchase Price paid on such date or
          (if no Initial Purchase Price is paid) without payment on such date;
          and

     (c)  on each date on which the Seller increases the Seller Share of the
          Trust Property in accordance with Clause 5 (Increasing and Decreasing
          the Seller Share of the Trust Property) below, the Seller will pay the
          consideration to the Mortgages Trustee specified in that Clause.

4.2  Consideration provided by Funding: Funding in its capacity as a Beneficiary
     shall provide consideration to the Mortgages Trustee for the Funding Share
     in the Trust Property:

     (a)  on the Initial Closing Date, by paying to the Mortgages Trustee the
          Initial Contribution in respect of the Closing Trust Property which
          shall be equal to (and from which the Mortgages Trustee shall or shall
          procure that the Cash Manager on its behalf shall pay) the Initial
          Purchase Price in respect of the Initial Mortgage Portfolio payable by
          the Mortgages Trustee to the Seller pursuant to the Mortgage Sale
          Agreement on such date;

     (b)  on each Distribution Date, by paying to the Mortgages Trustee a
          Deferred Contribution equal to the amount (if any) of:

                                       5
<PAGE>

          (i)  Mortgages Trustee Available Revenue Receipts to which Funding is
               entitled on such date in accordance with paragraph (d) of Clause
               10.2 (Distribution of Mortgages Trustee Available Revenue
               Receipts); and

          (ii) the amount of any Early Repayment Charge Receipts payable by the
               Mortgage Trustee to the Seller under the Mortgage Sale Agreement,

          (together the "Relevant Distribution") which shall be equal to (and
          from which the Mortgages Trustee shall or shall procure that the Cash
          Manager on its behalf shall pay) such amount of Deferred Purchase
          Price as is payable by the Mortgages Trustee to the Seller pursuant to
          the Mortgage Sale Agreement on such date. The parties to this Deed
          agree that on any Distribution Date the Relevant Distribution and the
          Deferred Contribution payable by Funding to the Mortgages Trustee
          shall be set off against each other such that as between the Mortgages
          Trustee and Funding no amount shall be payable in respect of such
          Relevant Distribution or such Deferred Contribution on such date and
          the Cash Manager on behalf of the Mortgages Trustee shall pay to the
          Seller (in satisfaction of the Mortgages Trustee's obligation to pay
          Deferred Purchase Price to the Seller under the Mortgage Sale
          Agreement) those funds which, were it not for such set-off, would have
          been payable to Funding as the Relevant Distribution;

     (c)  unless Funding has given notice to each relevant Previous Issuer of
          its intention to use the proceeds of a New Intercompany Loan to repay
          one or more of the Intercompany Loans from the Previous Issuers, and
          subject to Clause 6 (Increasing the Funding Share of the Trust
          Property) below, on each date after the Initial Closing Date on which
          (i) an amount of Initial Purchase Price is payable in respect of New
          Mortgage Loans which are sold and assigned by the Seller to the
          Mortgages Trustee on such date and (ii) Funding receives the net
          proceeds of a New Intercompany Loan from a New Issuer, by paying to
          the Mortgages Trustee an Initial Contribution in respect of such New
          Trust Property which shall be equal to (and from which the Mortgages
          Trustee shall or shall procure that the Cash Manager on its behalf
          shall pay) the Initial Purchase Price in respect of such New Mortgage
          Loans payable by the Mortgages Trustee to the Seller pursuant to the
          Mortgage Sale Agreement on such date;

     (d)  unless Funding has given notice to each relevant Previous Issuer of
          its intention to use the proceeds of a New Intercompany Loan to repay
          one or more of the

                                       6
<PAGE>

          Intercompany Loans from the Previous Issuers subject to Clause 6
          (Increasing the Funding Share of the Trust Property) below, on each
          other date after the Initial Closing Date on which Funding receives
          the net proceeds of a New Intercompany Loan from a New Issuer, by
          paying to the Mortgages Trustee a Further Contribution in respect of
          the Funding Share of the Trust Property which shall be equal to (and
          from which the Mortgages Trustee shall or shall procure that the Cash
          Manager on its behalf shall pay) the Initial Consideration payable to
          the Seller in accordance with Clause 6.3 (Initial Consideration); and

     (e)  following the Final Repayment Date of the latest maturing Intercompany
          Loan made by any Issuer to Funding and provided that there are no
          further claims outstanding under any Intercompany Loan or on such
          earlier date provided that all Intercompany Loans have either been
          repaid in full or there are no further claims outstanding under any
          Intercompany Loan, Funding will make a final payment of Deferred
          Contribution to the Mortgages Trustee (the "Final Deferred
          Contribution") in an amount equal to the aggregate amount standing to
          the credit of the Funding Bank Accounts (including any account
          established for the purposes of the Issuer Reserve Fund and/or the
          Issuer Liquidity Reserve Fund of any Issuer) after making any payments
          ranking in priority thereto, subject to and in accordance with the
          relevant Funding Priority of Payments. The Final Deferred Contribution
          shall be in an amount equal to (and from that Final Deferred
          Contribution the Mortgages Trustee shall or shall procure that the
          Cash Manager shall on its behalf pay) the final amount of Deferred
          Purchase Price payable by the Mortgages Trustee to the Seller pursuant
          to and in accordance with the Mortgage Sale Agreement.

4.3  Application by Mortgages Trustee:

     (a)  If the Mortgages Trustee receives any Initial Contribution, Deferred
          Contribution or the Final Deferred Contribution from Funding, the
          parties hereto direct the Mortgages Trustee to, and the Mortgages
          Trustee covenants that it shall, or shall procure that the Cash
          Manager on its behalf shall, pay such funds to the Seller in
          satisfaction of the Mortgages Trustee's obligation to make payment of
          the Initial Purchase Price or, as the case may be, Deferred Purchase
          Price in respect of the Initial Mortgage Portfolio or any New Mortgage
          Loans which are sold and assigned to the Mortgages Trustee by the
          Seller pursuant to the Mortgage Sale Agreement.

                                       7
<PAGE>

     (b)  If the Mortgages Trustee receives a Further Contribution from any
          Beneficiary, the parties hereto direct the Mortgages Trustee to, and
          the Mortgages Trustee covenants that it shall, or shall procure that
          the Cash Manager on its behalf shall, distribute such funds to a
          Beneficiary or the Beneficiaries as required at the time and in the
          manner and otherwise in accordance with the terms of this Deed.

5.   Increasing and Decreasing the Seller Share of the Trust Property

5.1  Re-draws under Flexible Mortgage Loans:

     (a)  If, in respect of any Flexible Mortgage Loan which is in the Trust
          Property, the relevant Borrower requests a Cash Re-draw and the
          Administrator (on behalf of the Mortgages Trustee) grants such request
          pursuant to and in accordance with the terms of the Administration
          Agreement, the Seller as Beneficiary shall fund that Cash Re-draw in
          the Mortgages Trust by making payment to the Borrower, in accordance
          with the terms and conditions of the relevant Mortgage Loan, of the
          Cash Re-draw Amount. Upon payment by the Seller to the relevant
          Borrower of the Cash Re-draw Amount, the aggregate Current Balance of
          the Mortgage Loans constituting the Trust Property and the amount of
          the Seller Share of the Trust Property shall be increased by an amount
          equal to the Cash Re-draw Amount.

     (b)  If, in respect of any Flexible Mortgage Loan which is in the Trust
          Property, the relevant Borrower requests a Non-Cash Re-draw and the
          Administrator grants such request or the Administrator otherwise
          permits the relevant Borrower to take a Non-Cash Re-draw pursuant to
          and in accordance with the terms of the Administration Agreement, the
          Seller as Beneficiary shall fund such Non-Cash Re-draw in the
          Mortgages Trust by making payment to the Mortgages Trustee of a
          Further Contribution in an amount equal to the Unpaid Interest Amount
          in respect of such Non-Cash Re-draw. Upon payment by the Seller to the
          Mortgages Trustee of such Further Contribution, the aggregate Current
          Balance of the Mortgage Loans constituting the Trust Property and the
          Seller Share of the Trust Property shall be increased by an amount
          equal to the amount of the Further Contribution so made to the
          Mortgages Trustee. The parties agree that any such Further
          Contribution received by the Mortgages Trustee from the Seller will be
          treated as Revenue Receipts and will be distributed to the
          Beneficiaries on the immediately succeeding Distribution Date in
          accordance with Clause 10 (Distribution of Revenue Receipts) below.

5.2  Further Advances: If at a future date the Seller elects not to purchase any
     Mortgage Loan

                                       8
<PAGE>

     which becomes the subject of a Further Advance from the Mortgages Trustee,
     the Seller will be solely responsible for funding any such Further Advance
     and, subject to the provisions of this Deed, upon the making of such
     Further Advance by the Seller, the aggregate Current Balance of the
     Mortgage Loans constituting the Trust Property and the Seller Share of the
     Trust Property shall be increased by an amount equal to the amount of the
     Further Advance paid to the relevant Borrower.

5.3  Together Connections Mortgage Loans and Connections Mortgage Loans: If, in
     respect of any Together Connections Mortgage Loan or any Connections
     Mortgage Loan which is in the Trust Property, there has been a reduction in
     the outstanding balance of such Mortgage Loan from the relevant Borrower
     being allocated a portion of the Together Connections Mortgage Benefit or
     Connections Benefit (as the case may be) under such Mortgage Loan, the
     aggregate Current Balance of the Mortgage Loans constituting the Trust
     Property and the amount of the Seller Share of the Trust Property shall be
     decreased by an amount equal to the portion of the Together Connections
     Benefit or Connections Benefit (as the case may be) allocated to such
     Mortgage Loan.

5.4  Further Draws under Personal Secured Loans: If, in respect of any Personal
     Secured Loan in the Trust Property which permits Further Draws, the
     relevant Borrower requests a Further Draw and the Administrator grants such
     request, the Seller will as Beneficiary fund such Further Draw in the
     Mortgages Trust by making payment to the Borrower of the Further Draw in
     accordance with the terms and conditions of the relevant Personal Secured
     Loan. Upon payment by the Seller to the relevant Borrower of such Further
     Draw, the aggregate Current Balance of the Mortgage Loans constituting the
     Trust Property and the amount of the Seller Share of the Trust Property
     shall be increased by an amount equal to the amount of the Further Draw
     paid to the relevant Borrower.

6.   Increasing the Funding Share of the Trust Property

6.1  Conditions precedent: Subject as provided below, Funding may increase the
     Funding Share (as defined in Clause 7.1 (Initial Funding Share) below) of
     the Trust Property, subject to satisfaction of the following conditions
     precedent:

     (a)  no Event of Default under the Transaction Documents shall have
          occurred which is continuing at the relevant date;

     (b)  no Intercompany Loan Enforcement Notice has been served in respect of
          any Intercompany Loan;

                                       9
<PAGE>

     (c)  the Rating Agencies have confirmed in writing to the Mortgages
          Trustee, the Security Trustee and each Issuer that the proposed
          increase in the Funding Share of the Trust Property would not
          adversely affect the then-current ratings by the Rating Agencies (or
          any of them) of the Notes issued by any Issuer;

     (d)  the New Notes have been issued by the New Issuer, the subscription
          proceeds received on behalf of such New Issuer and advanced by such
          Issuer to Funding pursuant to an Intercompany Loan Agreement (which
          proceeds Funding will pay to the Mortgages Trustee to increase the
          Funding Share of the Trust Property on the relevant date in accordance
          with Clause 6.2 (Completion));

     (e)  if necessary, each Issuer, including any New Issuer (if any) has
          entered into appropriate hedging arrangements;

     (f)  as of the last day of the immediately preceding Trust Calculation
          Period the aggregate Current Balance of Mortgage Loans in the Trust
          Property which were at such time in arrears for at least 3 months is
          less than 4 per cent. of the aggregate Current Balance of all Mortgage
          Loans in the Trust Property at such time unless the Rating Agencies
          have confirmed that the then-current ratings of the Notes will not be
          adversely affected;

     (g)  as of the last day of the immediately preceding Trust Calculation
          Period the weighted average LTV ratio of Mortgage Loans in the Trust
          Property (after application of the LTV Test) on such date does not
          exceed the LTV ratio (based on the LTV Test) of Mortgage Loans in the
          Trust Property on the Initial Closing Date plus 0.25 per cent.;

     (h)  each Issuer Reserve Fund is fully funded on the relevant date up to
          the relevant Issuer Reserve Required Amount; and

     (i)  as at the most recent Payment Date no deficiency was recorded on the
          Issuer Principal Deficiency Ledger of any Issuer,

     provided always that Funding shall not be entitled to increase the Funding
     Share after the Payment Date falling in January 2008 if the option to
     redeem the First Issuer Notes on the Payment Date in January 2008 pursuant
     Condition 5 of the First Issuer Notes is not exercised.

6.2  Completion: Subject to satisfaction of the conditions precedent set out in
     Clause 6.1 (Conditions precedent) above, Funding shall pay to the Mortgages
     Trustee the consideration for such increase in the Funding Share in
     accordance with Clause 4 (Consideration).

                                       10
<PAGE>

6.3  Initial Consideration: The parties hereto agree that Principal Receipts
     received by the Mortgages Trustee from Funding in payment of a Further
     Contribution in accordance with Clause 4 (Consideration) on any date on
     which Funding increases the Funding Share of the Trust Property shall be
     allocable and payable by the Mortgages Trustee to the Seller (in its
     capacity as a Beneficiary of the Mortgages Trust) as an Initial
     Consideration on such date whether or not such date is a Distribution Date.
     Any such Initial Consideration shall reduce the Seller Share of the Trust
     Property by the amount of the Initial Consideration.

7.   Initial Funding Share and Initial Seller Share

7.1  Initial Funding Share: The "Initial Funding Share" of the Trust Property
     shall be (GBP)86.61 at the date of this Deed and (GBP)1,500,000,000 at the
     Initial Closing Date and the "Initial Funding Share Percentage" shall be
     the Initial Funding Share expressed as a percentage of the Trust Property
     at such date, that is to say, 86.61 per cent. References herein to the
     "Funding Share" shall mean, prior to the first Distribution Date, the
     Initial Funding Share and thereafter shall mean the Current Funding Share
     (as defined below).

7.2  Initial Seller Share: The "Initial Seller Share" of the Trust Property
     shall be the sum which remains of the Trust Property after deduction of the
     Initial Funding Share. The Initial Seller Share of the Trust Property will
     be (GBP)13.39 at the date of this Deed and (GBP)232,000,000 at the Initial
     Closing Date and the "Initial Seller Share Percentage" shall be equal to
     100 per cent. minus the Initial Funding Share Percentage, that is to say,
     13.39 per cent. The amount of the Initial Seller Share and the Initial
     Seller Share Percentage on the Initial Closing will be determined
     immediately after the Initial Closing Date. References herein to the
     "Seller Share" shall mean, prior to the first Distribution Date, the
     Initial Seller Share and thereafter shall mean the Current Seller Share (as
     defined below).

7.3  Rounding of percentage shares: Except for the Initial Closing Date on which
     the Funding Share Percentage and the Seller Share Percentage shall be
     calculated to two decimal places, and unless otherwise agreed by the
     Beneficiaries, the Current Funding Share Percentage and the Current Seller
     Share Percentage shall be calculated to five decimal places.

8.   Adjustment of Funding Share Percentage and Seller Share Percentage

8.1  Effective Periods:

     (a)  Subject to Clause 8.1(b) below, the Cash Manager will (on behalf of
          the Mortgages Trustee and the Beneficiaries) recalculate the Funding
          Share, the Funding Share

                                       11
<PAGE>
          Percentage, the Seller Share and the Seller Share Percentage in
          respect of each Trust Calculation Period on the Distribution Date
          occurring in such Trust Calculation Period, based on the aggregate
          Current Balance of the Mortgage Loans constituting the Trust Property
          (as adjusted from time to time) on the last day of the Trust
          Calculation Period immediately preceding such Distribution Date.

     (b)  Notwithstanding Clause 8.1(a) above, if during any Trust Calculation
          Period the Seller sells and assigns New Mortgage Loans to the
          Mortgages Trustee or if Funding pays a Further Contribution to the
          Mortgages Trustee to increase the Funding Share of the Trust Property,
          the recalculation of the Funding Share, the Funding Share Percentage,
          the Seller Share and the Seller Share Percentage made by the Cash
          Manager on the Distribution Date occurring in such Trust Calculation
          Period will be effective only in respect of the period beginning on
          (and including) the first day of such Trust Calculation Period and
          ending on (but excluding) the first Assignment Date or Funding
          Contribution Date, as applicable, to occur during such Trust
          Calculation Period (such period in respect of such Distribution Date,
          an "Interim Calculation Period"), based on the aggregate Current
          Balance of the Mortgage Loans constituting the Trust Property (as
          adjusted from time to time) on the last day of the Trust Calculation
          Period immediately preceding such Distribution Date.

     (c)  In addition to the foregoing, if during any Trust Calculation Period
          the Seller sells and assigns New Mortgage Loans to the Mortgages
          Trustee or if Funding pays a Further Contribution to the Mortgages
          Trustee to increase the Funding Share of the Trust Property, the Cash
          Manager will (on behalf of the Mortgages Trustee and the
          Beneficiaries) recalculate the Funding Share, the Funding Share
          Percentage, the Seller Share and the Seller Share Percentage on such
          Assignment Date or Funding Contribution Date, as applicable, in
          respect of the period beginning on (and including) such Assignment
          Date or Funding Contribution Date, as applicable, and ending on the
          last day of such Trust Calculation Period (and including such last day
          of such Trust Calculation Period) (each such period in respect of each
          Assignment Date or Funding Contribution Date, as applicable, an
          "Interim Calculation Period"), based on the aggregate Current Balance
          of the Mortgage Loans constituting the Trust Property (as adjusted
          from time to time) on such Assignment Date or Funding Contribution
          Date, as applicable.

The parties acknowledge and agree that the Mortgage Sale Agreement provides that
(a) the Seller may not sell and assign New Mortgage Loans to the Mortgages
Trustee during any Trust Calculation

                                       12
<PAGE>

Period prior to the Distribution Date in such Trust Calculation Period, and (b)
the Seller may only make one sale and assignment of New Mortgage Loans to the
Mortgages Trustee during any Trust Calculation Period.

8.2  Current Funding Share Percentage:

     (a)  On each Distribution Date (the "Relevant Distribution Date"), the
          "Current Funding Share Percentage" will be calculated by the Cash
          Manager in respect of the then-current Trust Calculation Period or
          related Interim Calculation Period, as applicable, for the purpose of
          calculating the distributions to be made from the Trust Property on
          the immediately succeeding Distribution Date, and such Current Funding
          Share Percentage will be an amount, expressed as a percentage
          (calculated to an accuracy of five decimal places (rounded upwards)),
          equal to:

                                    A-B-C+D
                                    ------- x 100
                                       G

          where,

     A    =    the Current Funding Share as calculated (a) on the later of the
               Distribution Date, the Assignment Date or Funding Contribution
               Date (if any) immediately preceding such Relevant Distribution
               Date, or (b) in the case of the first Distribution Date, the
               Initial Funding Share as at the Initial Closing Date;

     B    =    the amount of any Principal Receipts distributed to Funding on
               such Relevant Distribution Date in accordance with the provisions
               described in Clause 11 (Distribution of Principal Receipts)
               below;

     C    =    the amount of any Losses sustained on the Mortgage Loans during
               the Trust Calculation Period immediately preceding such Relevant
               Distribution Date and the amount of any reductions occurring in
               respect of the Mortgage Loans as described in paragraphs (a)
               through (e) of Clause 8.5 (Adjustments to Trust Property)
               (inclusive) below which have been allocated to Funding in the
               Trust Calculation Period ending on the Relevant Distribution Date
               (based on (a) the Funding Share Percentage thereof calculated on
               the Distribution Date immediately preceding such Relevant
               Distribution Date (provided that the Seller had not sold and
               assigned New Mortgage Loans to the Mortgages

                                       13
<PAGE>

               Trustee or that Funding had not paid a Further Contribution to
               the Mortgages Trustee in the Trust Calculation Period immediately
               preceding such Relevant Distribution Date), or (b) to the extent
               that the Seller had sold and assigned New Mortgage Loans to the
               Mortgages Trustee or that Funding had paid a Further Contribution
               to the Mortgages Trustee during the Trust Calculation Period
               immediately preceding such Relevant Distribution Date, the
               Weighted Average Funding Share Percentage (as defined below)
               thereof calculated on such Relevant Distribution Date prior to
               the distribution to be made on such Relevant Distribution Date,
               or (c) in the case of the first Distribution Date, the Initial
               Funding Share Percentage);

     D    =    an amount equal to any Capitalised Arrears which have been
               allocated to Funding during the Trust Calculation Period
               immediately preceding such Relevant Distribution Date (based on
               the Funding Share Percentage thereof calculated on the
               Distribution Date immediately preceding such Relevant
               Distribution Date or, in the case of the first Distribution Date,
               the Initial Funding Share Percentage);

     G    =    the amount of the Mortgages Trustee Retained Principal Receipts
               (if any) plus the aggregate Current Balance of all the Mortgage
               Loans in the Trust Property as at the last day of the Trust
               Calculation Period immediately preceding such Relevant
               Distribution Date or, if applicable, on the relevant Assignment
               Date or Funding Contribution Date, after making the
               distributions, allocations and additions referred to in (B), (C)
               and (D) above and after taking account of the following (being
               "Trust Property Calculation Adjustments") (i) any distribution of
               Principal Receipts to the Seller and to Funding, (ii) the amount
               of any Losses allocated to the Seller and to Funding, (iii) the
               adjustments referred to in paragraphs (a) through (e) of Clause
               8.5 (Adjustments to Trust Property) (inclusive) below; (iv) the
               amount of any other additions to or removals from the Trust
               Property during such Trust Calculation Period, including without
               limitation, any additions to the Trust Property resulting from
               Cash Re-draws, Non-Cash Redraws and Further Draws by Borrowers
               under Flexible Mortgage Loans which are in the Trust Property or
               (if the Seller subsequently elects not to repurchase Mortgage
               Loans which are the subject of Further Advances from the
               Mortgages Trustee) Further Advances sold and assigned by the
               Seller; but excluding the addition of mortgage loans on an
               Assignment Date and any

                                       14
<PAGE>

               Initial Contribution or Further Contribution made by Funding
               during such Trust Calculation Period and (v) any reduction in the
               outstanding principal balances of Together Connections Mortgage
               Loans and Connections Mortgage Loans resulting from Borrowers
               being allocated a portion of the related Together Connections
               Benefit and Connections Benefit, respectively under such Mortgage
               Loans.

     (b)  If during any Trust Calculation Period the Seller sells and assigns
          New Mortgage Loans to the Mortgages Trustee, the Cash Manager will
          recalculate the Current Funding Share Percentage on each such
          Assignment Date which is not also a Funding Contribution Date (the
          "Relevant Assignment Date") in respect of the related Interim
          Calculation Period, for the purposes of calculating the distributions
          to be made from the Trust Property on the immediately succeeding
          Distribution Date and determining the amount of losses to be allocated
          to Funding, and such Current Funding Share Percentage will be an
          amount, expressed as a percentage (calculated to an accuracy of five
          decimal places (rounded upwards)), equal to:

                                      A+E
                                      --- x 100
                                       H

         where,

     A    =    the Current Funding Share as calculated on the Distribution Date
               immediately preceding such Relevant Assignment Date;

     E    =    an amount equal to any Initial Contribution paid by Funding to
               the Mortgages Trustee on such Relevant Assignment Date in
               relation to the Funding Share of any New Mortgage Loans assigned
               to the Mortgages Trustee on such Relevant Assignment Date (which
               amount the Mortgages Trustee is required pursuant to Clause 4.3
               (Application by Mortgages Trustee) to pay to the Seller in
               satisfaction of the Mortgages Trustee's obligation to pay to the
               Seller the Initial Purchase Price in respect of New Mortgage
               Loans sold and assigned to the Mortgages Trustee on such Relevant
               Assignment Date); and

     H    =    the amount of the Mortgages Trustee Retained Principal Receipts
               (if any), plus the aggregate Current Balance of all the Mortgage
               Loans in the Trust Property as at the Distribution Date
               immediately preceding such Relevant Assignment Date (after making
               the distributions, allocations and additions on that preceding
               Distribution Date), plus the aggregate Current Balance of the New
               Mortgage Loans sold and

                                       15
<PAGE>

               assigned to the Mortgages Trustee on such Relevant Assignment
               Date and after taking account of Trust Property Calculation
               Adjustments.

     (c)  If during any Trust Calculation Period Funding pays a Further
          Contribution to the Mortgages Trustee to increase the Funding Share of
          the Trust Property, the Cash Manager will recalculate the Current
          Funding Share Percentage on each such Funding Contribution Date (the
          "Relevant Funding Contribution Date") in respect of the related
          Interim Calculation Period, for the purposes of calculating the
          distributions to be made from the Trust Property and determining the
          amount of losses to be allocated to Funding on the immediately
          succeeding Distribution Date, and such Current Funding Share
          Percentage will be an amount, expressed as a percentage (calculated to
          an accuracy of five decimal places (rounded upwards)), equal to:

                                A+E+F
                                ----- x 100
                                  J

         where,

     A    =    the Current Funding Share as calculated on the Distribution Date
               immediately preceding such Relevant Funding Contribution Date;

     E    =    (1) if that Relevant Funding Contribution Date is also an
               Assignment Date, the amount of any Initial Contribution paid by
               Funding to the Mortgages Trustee on that Funding Contribution
               Date in respect of the Funding Share of any New Trust Property,
               and (2) in all other cases, zero;

     F    =    an amount equal to any Further Contribution paid by Funding to
               the Mortgages Trustee on such Relevant Funding Contribution Date
               to increase Funding's beneficial interest in the Trust Property;
               and

     J    =    the amount of the Mortgages Trustee Retained Principal Receipts
               (if any) plus the aggregate Current Balance of all the Mortgage
               Loans in the Trust Property as at the Distribution Date
               immediately preceding such Relevant Funding Contribution Date
               (after making the distributions, allocations and additions on
               that preceding Distribution Date) plus the aggregate Current
               Balance of the New Mortgage Loans sold and assigned to the
               Mortgages Trustee on that Relevant Assignment Date and after
               taking account of Trust Property Calculation Adjustments.

8.3  Weighted Average Funding Share Percentage: On any Distribution Date in
     respect to which

                                       16
<PAGE>

     (i) the Seller had sold and assigned New Mortgage Loans to the Mortgages
     Trustee, or (ii) Funding had paid a Further Contribution to the Mortgages
     Trustee to increase the Funding Share of the Trust Property, during the
     Trust Calculation Period immediately preceding such Distribution Date, the
     Cash Manager (on behalf of the Beneficiaries) will calculate (for the sole
     purpose of making the distributions to be made on such Distribution Date)
     the weighted average of the Current Funding Share Percentages that were
     calculated previously in respect of each Interim Calculation Period
     occurring in such immediately preceding Trust Calculation Period based on
     the amount of Revenue Receipts and Principal Receipts received and Losses
     sustained during each such Interim Calculation Period. The "Weighted
     Average Funding Share Percentage" for any such Distribution Date will be
     equal to:

     (a)  in respect of the distribution of Revenue Receipts to be made on such
          Distribution Date, an amount determined in accordance with the formula
          set forth below:

                                   (AxB)+(CxD)

     where,

     A    =    the related Current Funding Share Percentage for Interim
               Calculation Period 1;

     B    =    the number of days in Interim Calculation Period 1 divided by the
               number of days in the Trust Calculation Period;

     C    =    the related Funding Share Percentage for Interim Calculation
               Period 2; and

     D    =    the number of days in Interim Calculation Period 2 divided by the
               number of days in the Trust Calculation Period;

     (b)  in respect of the distribution of Principal Receipts to be made on
          such Distribution Date, an amount determined in accordance with the
          formula set forth below:

                                   (AxB)+(CxD)

     where,

     A    =    the related Current Funding Share Percentage for Interim
               Calculation Period 1;

     B    =    the number of days in Interim Calculation Period 1 divided by the
               number of days in the Trust Calculation Period;

                                       17
<PAGE>

     C    =    the related Funding Share Percentage for Interim Calculation
               Period 2; and

     D    =    the number of days in Interim Calculation 2 Period divided by the
               number of days in the Trust Calculation Period;

     (c)  in respect of the allocation of Losses to be made on such Distribution
          Date, an amount determined in accordance with the formula set forth
          below:

                                (A x B) + (C x D)

     where,

     A    =    the Related Current Funding Share Percentage for Interim
               Calculation Period 1;

     B    =    the number of days in Interim Calculation Period 1 divided by the
               number of days in the Trust Calculation Period;

     C    =    the related Funding Share Percentage for Interim Calculation
               Period 2; and

     D    =    the number of days in Interim Calculation Period 2 divided by the
               number of days in the Trust Calculation Period;

8.4  Current Funding Share:

     (a)  On each Distribution Date, the "Current Funding Share" will be
          calculated by the Cash Manager in respect of the then-current Trust
          Calculation Period or the related Interim Calculation Period, as
          applicable, and will be an amount equal to:

                                  A - B - C + D

          where "A", "B", "C" and "D" have the meanings specified in Clause
          8.2(a) above.

     (b)  On each Assignment Date (which is not also a Funding Contribution
          Date), the Current Funding Share will be calculated by the Cash
          Manager in respect of the related Interim Calculation Period and will
          be an amount equal to:

                                     A + E

          where "A" and "E" have the meanings specified in Clause 8.2(b) above.

                                       18
<PAGE>

     (c)  On each Funding Contribution Date, the Current Funding Share will be
          calculated by the Cash Manager in respect of the related Interim
          Calculation Period and will be an amount equal to:

                                   A + E + F

          where "A", "E" and "F" have the meanings specified in Clause 8.2(c)
          above.

8.5  Adjustments to Trust Property: If any of the following events has occurred
     during a Trust Calculation Period, then (subject to the Cash Manager
     receiving notice or otherwise being aware of the occurrence of the event)
     for the purposes of making the Trust Property Calculation Adjustments, the
     aggregate Current Balance of the Mortgage Loans constituting the Trust
     Property shall be reduced or, as the case may be, deemed to be reduced:

     (a)  any Borrower exercises a right of set-off in relation to any Mortgage
          Loan in the Trust Property so that the amount of principal and/or
          interest owing under such Mortgage Loan is reduced but no
          corresponding payment is received by the Mortgages Trustee, in which
          event the aggregate Current Balance of the Mortgage Loans constituting
          the Trust Property shall be reduced by an amount equal to the amount
          so set-off by such Borrower; and/or

     (b)  a Mortgage Loan or (as applicable) its Related Security (i) is in
          breach of the Representations and Warranties in the Mortgage Sale
          Agreement as at the Initial Closing Date or, as the case may be, the
          relevant Assignment Date or (ii) is the subject of a Product Switch or
          a Further Advance or in respect of which the Borrower has accepted an
          offer by the Seller of a Personal Secured Loan in respect of which the
          Seller has elected to purchase the relevant Mortgage Loan or Mortgage
          Loans and Related Security, and in the case of (i) above the Seller
          fails to repurchase and in the case of (ii) above the Seller fails to
          purchase, the relevant Mortgage Loan or Mortgage Loans under the
          relevant Mortgage Account and their Related Security as required by
          the terms of the Mortgage Sale Agreement; in which event the aggregate
          Current Balance of the Mortgage Loans constituting the Trust Property
          shall be deemed to be reduced for the purposes of making the Trust
          Property Calculation Adjustments by an amount equal to the Current
          Balance of the relevant Mortgage Loan or Mortgage Loans under the
          relevant Mortgage Account (together with Arrears of Interest and
          Accrued Interest) which the Seller has failed to repurchase or
          purchase, as applicable; and/or

                                       19
<PAGE>

     (c)  the Security Trustee is notified that a Flexible Mortgage Loan or part
          thereof has been determined by a court judgment on the point or as a
          result of a determination by a relevant regulatory authority (whether
          or not in relation to an analogous flexible mortgage loan product of
          another UK mortgage lender):

          (i)  to be unenforceable; and/or

          (ii) not to fall within the first ranking charge by way of legal
               mortgage or first ranking standard security over the relevant
               Mortgaged Property,

          and, in either case, such Flexible Mortgage Loan is not otherwise
          subject to the repurchase obligation under the Mortgage Sale
          Agreement, in which event, the aggregate Current Balance of the
          Mortgage Loans constituting the Trust Property shall be deemed to be
          reduced for the purposes of making the Trust Property Calculation
          Adjustments by an amount equal to that portion of the Current Balance
          of the Flexible Mortgage Loan which is so determined to be
          unenforceable or not to fall within the first ranking charge by way of
          legal mortgage or first ranking standard security over the relevant
          Mortgaged Property; and/or

     (d)  (i) in respect of breaches of Representations and Warranties in the
          Mortgage Sale Agreement, the Seller would be required to repurchase a
          Mortgage Loan and its Related Security and (ii) in respect of a
          Mortgage Loan subject to a Further Advance or a Product Switch or in
          respect of which the Borrower has accepted an offer by the Seller of a
          Personal Loan, the Seller elects to purchase the relevant Mortgage
          Loan or Mortgage Loans under the relevant Mortgage Account and their
          Related Security in accordance with the terms of the Mortgage Sale
          Agreement, but such Mortgage Loan and its Related Security are not
          capable of being repurchased or purchased, as applicable; in which
          event the aggregate Current Balance of the Mortgage Loans constituting
          the Trust Property shall be deemed to be reduced for the purposes of
          making the Trust Property Calculation Adjustments by an amount equal
          to the Current Balance of the relevant Mortgage Loan (together with
          Arrears of Interest and Accrued Interest) which is not capable of
          being repurchased or purchased, as applicable; and/or

     (e)  the Seller breaches any other material warranty under the Mortgage
          Sale Agreement and/or (for so long as it is the Administrator) the
          Administration Agreement, in which event the aggregate Current Balance
          of Mortgage Loans constituting the Trust Property shall be deemed for
          the purposes of making the Trust Property Calculation

                                       20
<PAGE>

          Adjustments to be reduced by an amount equivalent to all losses,
          costs, liabilities, claims, expenses and damages incurred by the
          Beneficiaries as a result of such breach.

     The reductions and deemed reductions set out in paragraphs (a), (b), (c),
     (d) and (e) of this Clause and any resulting loss shall, subject to Clause
     9.1 (Initial Minimum Seller Share), be allocated on the relevant
     Distribution Date, Assignment Date or Funding Contribution Date (as
     applicable) first to the Seller Share of the Trust Property (or for the
     purposes of calculating the Seller Share of the Trust Property as the case
     may be) until the Seller Share is zero and thereafter shall be allocated to
     the Funding Share of the Trust Property. If at, or any time after the
     Initial Closing Date the Mortgages Trustee holds, or there is held to its
     order, or it receives, or there is received to its order, any property,
     interest, right or benefit relating to the whole or that portion of any
     Mortgage Loan and its Related Security which is or has been subject to any
     matter described in paragraphs (a) through (e) above and in respect of
     which the Seller Share of the Trust Property has been reduced or deemed
     reduced such property, interest, right or benefit will constitute a Revenue
     Receipt and the Mortgages Trustee will remit, assign or transfer the same
     to Funding (but only if and to the extent that the related reductions or
     deemed reductions were applied against the Funding Share of the Trust
     Property) and thereafter to the Seller, as the case may require, and until
     it does so or to the extent that the Mortgage Trustee is unable to effect
     such remittance, assignment or transfer, the Mortgages Trustee will hold
     such property, interest, right or benefit and/or the proceeds thereof upon
     trust absolutely for Funding and/or the Seller (separate from the Mortgages
     Trust), as the case may require.

8.6  Current Seller Share Percentage:

     (a)  On each Distribution Date, the "Current Seller Share Percentage" will
          be calculated by the Cash Manager in respect of the then-current Trust
          Calculation Period or the related Interim Calculation Period, as
          applicable, and the distributions to be made from the Trust Property
          on the immediately succeeding Distribution Date, and will be a
          percentage equal to:

                    100% - Current Funding Share Percentage

          where the Current Funding Share Percentage is calculated on such
          Distribution Date in accordance with Clause 8.2(a) above.

                                       21
<PAGE>

     (b)  On each Assignment Date, the Cash Manager will recalculate the Current
          Seller Share Percentage in respect of the related Interim Calculation
          Period and the distributions to be made from the Trust Property on the
          immediately succeeding Distribution Date and will be a percentage
          equal to:

                    100% - Current Funding Share Percentage

          where the Current Funding Share Percentage is as calculated on such
          Assignment Date in accordance with Clause 8.2(b) above.

     (c)  On each Funding Contribution Date, the Cash Manager will recalculate
          the Current Seller Share Percentage in respect of the related Interim
          Calculation Period and the distributions to be made from the Trust
          Property on the immediately succeeding Distribution Date and will be a
          percentage equal to:

                    100% - Current Funding Share Percentage

          where the Current Funding Share Percentage is as calculated on such
          Funding Contribution Date in accordance with Clause 8.2(c) above.

8.7  Weighted Average Seller Share Percentage: On any Distribution Date in
     respect to which (i) the Seller had sold and assigned New Mortgage Loans to
     the Mortgages Trustee, or (ii) Funding had paid a Further Contribution to
     the Mortgages Trustee to increase the Funding Share of the Trust Property,
     during the Trust Calculation Period immediately preceding such Distribution
     Date, the Cash Manager will calculate (for the sole purpose of making the
     distributions to be made on such Distribution Date) the weighted average of
     the Seller Share Percentages that were calculated previously in respect of
     the Revenue Receipts and Principal Receipts received, and Losses sustained,
     during each Interim Calculation Period occurring in such immediately
     preceding Trust Calculation Period and will be a percentage equal to:

     (a)  in respect of the distribution of Revenue Receipts to be made on such
          Distribution Date:

                100% - Weighted Average Funding Share Percentage

          where such Weighted Average Funding Share Percentage is as calculated
          in Clause 8.3(a) above;

                                       22
<PAGE>

     (b)  in respect of the distribution of Principal Receipts to be made on
          such Distribution Date:

                100% - Weighted Average Funding Share Percentage

          where such Weighted Average Funding Share Percentage is as calculated
          in Clause 8.3(b) above; and

     (c)  in respect of the allocation of Losses to be made on such Distribution
          Date:

                100% - Weighted Average Funding Share Percentage

          where such Weighted Average Funding Share Percentage is as calculated
          in Clause 8.3(c) above.

8.8  Current Seller Share:

     (a)  On each Distribution Date, the "Current Seller Share" will be
          calculated by the Cash Manager in respect of the then-current Trust
          Calculation Period or the related Interim Calculation Period, as
          applicable, and will be an amount equal to:

 The aggregate amount of the Trust Property as at the Relevant Distribution Date
                            - Current Funding Share

          where "Current Funding Share" has the meaning given in Clause 8.4(a)
          above.

     (b)  On each Assignment Date, the Current Seller Share will be calculated
          by the Cash Manager in respect of the related Interim Calculation
          Period and will be an amount equal to:

 The aggregate amount of the Trust Property as at the Relevant Assignment Date -
                             Current Funding Share

          where "Current Funding Share" has the meaning given in Clause 8.4(b)
          above.

     (c)  On each Funding Contribution Date, the Current Seller Share will be
          calculated by the Cash Manager in respect of the Interim Calculation
          Period and will be an amount equal to:

      The aggregate amount of the Trust Property as at the Relevant Funding
                    Contribution Date - Current Funding Share

          where "Current Funding Share" has the meaning given in Clause 8.4(c)
          above.

                                       23
<PAGE>

8.9  Funding Share/Seller Share: Neither the Funding Share nor the Seller Share
     may be reduced below zero. At all times the Funding Share Percentage and
     the Seller Share Percentage shall be equal to 100 per cent. of the Trust
     Property.

9.   Minimum Seller Share

9.1  Initial Minimum Seller Share: The Seller Share of the Trust Property
     includes an amount equal to the Minimum Seller Share. Unless and until the
     Funding Share of the Trust Property is in an amount equal to zero, or
     following the occurrence of an Asset Trigger Event, the Seller will not be
     entitled to receive Mortgages Trustee Principal Receipts which would reduce
     the Seller Share of the Trust Property to an amount less than the Minimum
     Seller Share and the Seller consents and directs the Mortgages Trustee
     accordingly.

9.2  Fluctuation of Minimum Seller Share on each Distribution Date:

     At the Initial Closing Date, the Minimum Seller Share will be
     (GBP)50,000,000. The amount of the Minimum Seller Share will be
     recalculated on each Distribution Date in accordance with the following
     formula:

                                  W + X + Y + Z

          where:

          W    =    100% of the sum of the average cleared credit balance of all
                    applicable accounts linked to Together Connections Mortgage
                    Loans and Connections Mortgage Loans in respect of each
                    calendar month or any part of any such calendar month.

          X    =    2.0% of the aggregate Current Balance of all Mortgage Loans
                    comprised in the Trust Property as at the last day of the
                    immediately preceding Trust Calculation Period;

          Y    =    the product of: p x q x r where:

               p    =    8%;

               q    =    the sum of (i) the "Flexible Cash Re-Draw Capacity",
                         being an amount equal to the difference between (1) the
                         maximum amount of Cash Re-draws that Borrowers may draw
                         under Flexible Mortgage Loans included in the Trust

                                       24
<PAGE>

                         Property (whether or not drawn) as at the last day of
                         the immediately preceding Trust Calculation Period and
                         (2) the aggregate Current Balance of Cash Re-draws
                         which form part of the Trust Property as at the last
                         day of the immediately preceding Trust Calculation
                         Period; and (ii) the "Further Draw Capacity", being an
                         amount equal to the difference between (1) the maximum
                         amount of Further Draws that Borrower may make under
                         Personal Secured Loans included in the Trust Property
                         (whether or not drawn) as at the last day of the
                         immediately preceding Trust Calculation Period and (2)
                         the aggregate Current Balance of Personal Secured Loans
                         which form part of the Trust Property as at the last
                         day of the immediately preceding Trust Calculation
                         Period; and

               r    =    3; and

          Z    =    the aggregate Current Balance of (i) Re-Draws and (ii)
                    Personal Secured Loans in the Trust Property as at the
                    last day of the immediately preceding Trust Calculation
                    Period.

9.3  Recalculation of Minimum Seller Share following occurrence of exceptional
     events: The calculation of the Minimum Seller Share in accordance with
     Clause 9.2 (Fluctuation of Minimum Seller Share on each Distribution Date)
     above will be recalculated by the Cash Manager with the agreement of the
     parties hereto subject to the approval of the Rating Agencies if the Seller
     merges or otherwise combines its business with another bank or other
     financial institution so as to increase the risks associated with Borrowers
     holding deposits in Northern Rock accounts.

                                       25
<PAGE>

10.  Distribution of Revenue Receipts

10.1 Distribution of Third Party Amounts: Pursuant to the Cash Management
     Agreement, the Cash Manager (at the direction of the Mortgages Trustee
     acting on behalf of the Beneficiaries at their direction and with their
     consent which is hereby given) will deduct, as and when identified, Third
     Party Amounts from the Revenue Receipts standing to the credit of the
     Mortgages Trustee GIC Account or other Mortgages Trustee Bank Account, and
     pay over the same to the proper recipients thereof. The Mortgages Trustee
     and the Beneficiaries hereby consent to such deductions.

10.2 Distribution of Mortgages Trustee Available Revenue Receipts: Subject as
     provided in Clause 8.8 (Adjustments on Distribution Dates), on each
     Distribution Date the Cash Manager (at the direction of the Mortgages
     Trustee acting on behalf of the Beneficiaries at their direction and with
     their consent which is hereby given) will distribute Mortgages Trustee
     Available Revenue Receipts as follows:

     (a)  firstly, in no order of priority between them but in or towards
          satisfaction pro rata according to the respective amounts due of:

          (i)  any fees, costs, charges, liabilities and expenses then due or to
               become due to the Mortgages Trustee under the provisions of this
               Deed together with (if applicable) VAT thereon (to the extent not
               already included) as provided herein; and

          (ii) any amounts due and payable by the Mortgages Trustee to third
               parties in respect of the Mortgages Trust but only if incurred
               without breach by the Mortgages Trustee of the documents to which
               it is a party and payment has not been provided for elsewhere;

     (b)  secondly, in no order of priority between them but in or towards
          satisfaction pro rata according to the respective amounts due of:

          (i)  any remuneration then due and payable to the Administrator and
               any costs, charges, liabilities and expenses then due or to
               become due to the Administrator under the provisions of the
               Administration Agreement prior to the immediately succeeding
               Distribution Date, in each case together with (if applicable) VAT
               thereon (to the extent not already included) as provided therein;
               and

                                       26
<PAGE>

          (ii) any remuneration then due and payable to the Cash Manager and any
               costs, charges, liabilities and expenses then due or to become
               due to the Cash Manager under the provisions of the Cash
               Management Agreement prior to the immediately succeeding
               Distribution Date, in each case together with (if applicable) VAT
               thereon (to the extent not already included) as provided therein;

     (c)  thirdly, in no order of priority between them but in proportion to the
          respective amounts due, and subject to the proviso below, to allocate
          and pay Mortgages Trustee Available Revenue Receipts to:

          (i)  (subject as provided in Clause 8.8 (Adjustments on Distribution
               Dates)) the Seller in an amount determined by multiplying the
               total amount of the remaining Mortgages Trustee Available Revenue
               Receipts by the Current Seller Share Percentage of the Trust
               Property, as determined on the immediately preceding Distribution
               Date or, in the case of the first Distribution Date, immediately
               following the relevant Closing Date, as of such Closing Date; and

          (ii) (subject as provided in Clause 8.8 (Adjustments on Distribution
               Dates)) Funding in an amount which is equal to the lesser of:

               (A)  an amount determined by multiplying the total amount of the
                    remaining Mortgages Trustee Available Revenue Receipts by
                    the Current Funding Share Percentage of the Trust Property,
                    as determined on the immediately preceding Distribution Date
                    or, in the case of the first Distribution Date, the Initial
                    Funding Share Percentage); and,

               (B)  the aggregate of the amounts to be applied on the
                    immediately succeeding Payment Date for Group 1 Issuers and
                    the immediately succeeding Payment Date for Group 2 Issuers
                    as set forth under the Funding Pre-Enforcement Revenue
                    Priority of Payments or the Funding Post-Enforcement
                    Priority of Payments (but excluding any principal amount due
                    under any Intercompany Loan (save that, for the avoidance of
                    doubt, such exclusion shall not apply in respect of any
                    Funding Available Revenue Receipts which are applied by an
                    Issuer to credit that Issuer's Principal Deficiency Ledger
                    and thereby

                                       27
<PAGE>

                    reduce the principal payable under that Issuer's
                    Intercompany Loan) and any of Deferred Contribution amount
                    due under Item (P) of the Funding Pre-Enforcement Revenue
                    Priority of Payments and/or Item (F) of the Funding
                    Post-Enforcement Priority of Payments), less all other
                    amounts (not derived from the distribution of Mortgages
                    Trustee Available Revenue Receipts under this Deed) which
                    will constitute Funding Available Revenue Receipts on the
                    immediately succeeding Payment Date such amount not to be
                    less than zero; and

     (d)  finally, to allocate to Funding but pay at the direction of Funding to
          the Seller an amount equal to YY - ZZ, where "YY" is the amount of the
          Mortgages Trustee Available Revenue Receipts and "ZZ" is the amount of
          such Mortgages Trustee Available Revenue Receipts applied and/or
          allocated under items (a) to (c) above, such amount to be in
          satisfaction of amounts of Deferred Purchase Price due to the Seller
          under the terms of the Mortgage Sale Agreement;

PROVIDED THAT if an Assignment Date or a Funding Contribution Date has occurred
during the Trust Calculation Period immediately preceding such Distribution
Date, then the Cash Manager will use (i) the Weighted Average Seller Share
Percentage (instead of the Current Seller Share Percentage) as calculated
pursuant to Clause 8.7(a) above in determining the amount of Mortgages Trustee
Available Revenue Receipts to distribute to the Seller pursuant to Clause
10.2(c)(i) above, and (ii) the Weighted Average Funding Share Percentage
(instead of the Current Funding Share Percentage) as calculated pursuant to
Clause 8.3(a) above in determining the amount of Mortgages Trustee Available
Revenue Receipts to distribute to Funding pursuant to Clause 10.2(c)(ii)(A)
above.

                                       28
<PAGE>

11.  Distribution of Principal Receipts

11.1 Distribution of Principal Receipts prior to the occurrence of a Trigger
     Event: Subject as provided in Clause 8.8 (Adjustments on Distribution
     Dates), prior to the occurrence of a Trigger Event (and whether or not
     there has been an enforcement of the Funding Security or any Issuer
     Security), on each Distribution Date (or, in respect of any Initial
     Consideration, on any Funding Contribution Date), the Cash Manager (at the
     direction of the Mortgages Trustee acting on behalf of the Beneficiaries at
     their direction and with their consent which is hereby given) shall,
     subject to the provisos below, allocate and distribute Mortgages Trustee
     Principal Receipts as follows:

     (a)  first, to the Seller an amount in respect of any Initial Consideration
          (if any) which is then allocable and payable to the Seller under
          Clause 6.3 (Initial Consideration) above;

     (b)  second, to Funding an amount in respect of each Issuer which is equal
          to the lesser of:

          (i)  (1)  prior to the occurrence of an ACA Trigger Event, the
                    principal amount due on the Intercompany Loan of such Issuer
                    equal to the Controlled Amortisation Amounts due, if any, on
                    such Issuer's Payment Date immediately succeeding such
                    Distribution Date (in each case determined on the assumption
                    that the Issuer Reserve Requirement, the Issuer Arrears Test
                    and the Subordinated Principal Test (as applicable) are
                    satisfied on such date; that the Controlled Amortisation
                    Amount is the relevant amount as set forth in the tables
                    contained in Schedule 4 to the Current Issuer Cash
                    Management Agreement; and that the proviso appearing at the
                    end of such tables does not apply); and

               (2)  upon and after the occurrence of an ACA Trigger Event, (x)
                    in respect of each Issuer that is not an ACA Issuer, an
                    amount as set forth in (i)(1) above; and (y) in respect of
                    each ACA Issuer, up to an amount equal to the ACA Limit
                    Amount in respect of such ACA Issuer; and

          (ii) an amount in respect of each Issuer equal to:

                                       29
<PAGE>

<TABLE>
<CAPTION>
<S>                                       <C>                                  <C>
                                              Current Funding Share               Outstanding Principal Balance
                                          Percentage as calculated on the      on such Issuer's Intercompany Loan
                                               immediately preceding           -----------------------------------
                    Mortgages Trustee      Distribution Date (or, in the               Aggregate Outstanding
                   Principal Receipts  x   case of the first Distribution   x         Principal Balance on all
                                          Date following the Closing Date                Intercompany Loans
                                           in respect of such Issuer, as
                                           of the relevant Closing Date)
</TABLE>

     (c)  third,

          (i)  prior to the occurrence of an ACA Trigger Event, to Funding an
               amount in respect of each Issuer towards any principal amount
               remaining which will be due and payable (following the payment to
               Funding set forth in (b) above) on such Issuer's immediately
               succeeding Payment Date under such Issuer's Intercompany Loan (in
               each case determined on the assumption that the Issuer Reserve
               Requirement, the Issuer Arrears Test and the Subordinated
               Principal Test (as applicable) are satisfied on such date; that
               the Controlled Amortisation Amount is the relevant amount as set
               forth in the tables contained in Schedule 4 to the Current Issuer
               Cash Management Agreement; and that the proviso appearing at the
               end of such tables does not apply) plus an amount equal to the
               amount which Funding will be required to apply on that Payment
               Date under item (1)(A) or (2)(A) of the Funding Pre-Enforcement
               Principal Priority of Payments (to the extent not already funded
               under (B)(1) of such priority of payments); and

          (ii) upon and after the occurrence of an ACA Trigger Event, to Funding
               (x) in respect of an Issuer that is not an ACA Issuer, an amount
               as set forth in (c)(i) above and (y) in respect of each ACA
               Issuer (following the payment to Funding set forth in (b) above)
               up to an amount equal to the ACA Limit Amount in respect of such
               ACA Issuer plus an amount equal to the amount which Funding will
               be required to apply on that Payment Date under item (1)(A) or
               (2)(A) of the Funding Pre-Enforcement Principal Priority of
               Payments; and

     (d)  last, if such Distribution Date is not a Seller Share Event
          Distribution Date, all remaining Mortgages Trustee Principal Receipts
          to the Seller (as Beneficiary),

PROVIDED THAT in relation to (a) through (d) above the following rules (the
"Rules for the application of Mortgages Trustee Principal Receipts") shall
apply:

(1)  If the Notes of any Issuer have become immediately due and payable as a
     result of the service of a Note Enforcement Notice or if the Intercompany
     Loan of any Issuer (and the other Intercompany Loans of any other Issuers)
     have become immediately due and payable as a result of the service of an
     Intercompany Loan Enforcement Notice, principal payments in respect of the
     Intercompany Loan of that Issuer may be made in excess of any Controlled

                                       30
<PAGE>

     Amortisation Amount and paragraph (b)(i) above shall no longer apply in
     relation to that Issuer and, except following a Non-Asset Trigger Event,
     the amount of Mortgages Trustee Principal Receipts to be distributed to
     Funding in respect of that Issuer on that Distribution Date may not exceed
     the amount determined under paragraph (b)(ii) above.

(2)  If the Notes of any Issuer have become immediately due and payable as a
     result of the service of a Note Enforcement Notice or if the Intercompany
     Loan of any Issuer (and the other Intercompany Loans of any other Issuers)
     have become immediately due and payable as a result of the service of an
     Intercompany Loan Enforcement Notice, then for the purpose of calculating
     the amount in respect of that Issuer under paragraph (b)(ii) above, that
     amount may be reduced to the extent of any remaining amounts standing to
     the credit of the Issuer Reserve Ledger and/or the Issuer Liquidity Reserve
     Ledger (if any) for that Issuer which are to be utilised on the immediately
     succeeding Payment Date to repay principal on that Issuer's Intercompany
     Loan, but only to the extent that those amounts would not otherwise be
     payable on that Intercompany Loan on that Payment Date.

(3)  The amount of Mortgages Trustee Principal Receipts payable to Funding in
     respect of each Issuer on a Distribution Date will be reduced in proportion
     to the aggregate of the Issuer Available Revenue Receipts of that Issuer
     which are to be applied on the immediately succeeding Payment Date in
     reduction of deficiencies recorded on the Issuer Principal Deficiency
     Ledger of that Issuer, but only to the extent that the Issuer Available
     Revenue Receipts which are to be so applied on that Payment Date would not
     otherwise be payable as principal on the relevant Notes on that Payment
     Date.

(4)  For the purpose of determining the Mortgages Trustee Principal Receipts to
     be distributed to Funding in respect of the amount due on the Intercompany
     Loan of any Issuer under (b) and (c) above, the Outstanding Principal
     Balance of that Intercompany Loan shall be deemed to be reduced by the
     amount of:

     (a)  any deficiency recorded on the Issuer Principal Deficiency Ledger of
          that Issuer as at that Distribution Date, but only to the extent that
          such deficiency has arisen under a result of (i) Losses on the
          Mortgage Loans allocated by Funding to that Issuer and/or (ii) the
          application of Funding Available Principal Receipts to fund the Issuer
          Liquidity Reserve Fund of that Issuer but not as a result of any other
          principal deficiency of that Issuer; and

     (b)  the Outstanding Principal Balance as at such Distribution Date of any
          Special Repayment Notes issued by that Issuer.

                                       31
<PAGE>

(5)  Funding will not be entitled to receive and the Cash Manager shall procure
     that Funding does not receive any amount of Mortgages Trustee Principal
     Receipts from the Mortgages Trustee on a Distribution Date which is not
     required by Funding to repay principal falling due on any Intercompany Loan
     on the immediately succeeding Payment Date in order to fund payments of
     principal falling due on any Notes issued by any Issuer on that Payment
     Date.

(6)  The Mortgages Trustee will not distribute any Overpayment (other than a
     Capital Payment) in respect of any Non-Flexible Mortgage Loan until the
     first Distribution Date following December 31 of the year in which such
     Overpayment is received; provided that if a Borrower has made an
     Underpayment of principal in respect of such Non-Flexible Mortgage Loan
     following the Overpayment then the Mortgages Trustee will distribute
     principal in an amount up to the amount of such Underpayment (but not
     exceeding the amount of the Overpayment previously made) on the immediately
     succeeding Distribution Date.

(7)  If an Assignment Date or a Funding Contribution Date has occurred during
     the Trust Calculation Period immediately preceding a Distribution Date,
     then the Cash Manager shall use the Weighted Average Funding Share
     Percentage (instead of the Current Funding Share Percentage) as calculated
     pursuant to Clause 8.3(b) above in determining the amount of Mortgages
     Trustee Principal Receipts to be distributed to Funding in respect of each
     Issuer pursuant to Clause 11.1(b)(ii) above.

(8)  On a Seller Share Event Distribution Date, the Cash Manager shall not
     distribute the remaining Mortgages Trustee Principal Receipts to the Seller
     and shall deposit all Mortgages Trustee Retained Principal Receipts in the
     Mortgages Trustee GIC Account and make a corresponding credit to the
     Mortgages Trustee Principal Ledger.

11.2 Distribution of Mortgages Trustee Principal Receipts on or after the
     occurrence of an Asset Trigger Event: On or after the occurrence of an
     Asset Trigger Event, the Cash Manager (at the direction of the Mortgages
     Trustee acting on behalf of the Beneficiaries at their direction and with
     their consent which is hereby given) shall, on each Distribution Date
     (including, if applicable, any Distribution Date on which an Asset Trigger
     Event occurs), allocate and distribute all Mortgages Trustee Principal
     Receipts as follows:

     (a)  if the immediately preceding Distribution Date was a Seller Share
          Event Distribution Date, all of the Mortgages Trustee Retained
          Principal Receipts to Funding; and then

     (b)  between Funding and the Seller, in no order of priority between them
          and pro rata according to the Funding Share Percentage of the Trust
          Property and the Seller Share

                                       32
<PAGE>

          Percentage of the Trust Property, respectively, until the Funding
          Share of the Trust Property is zero (and, for the avoidance of doubt,
          such payments may reduce the Seller Share to an amount less than the
          Minimum Seller Share),

     PROVIDED THAT if an Assignment Date or a Funding Contribution Date has
     occurred in the Trust Calculation Period immediately preceding any such
     Distribution Date, the Cash Manager will apply all Mortgages Trustee
     Principal Receipts after (a) above between Funding and the Seller pro rata
     according to the Weighted Average Funding Share Percentage (as calculated
     pursuant to Clause 8.3 above) and Weighted Average Seller Share Percentage
     (as calculated pursuant to Clause 8.7 above) for such Distribution Date
     until the Funding Share of the Trust Property is zero.

11.3 Distribution of Principal Receipts on or after the occurrence of a
     Non-Asset Trigger Event: On or after the occurrence of a Non-Asset Trigger
     Event and until the occurrence of an Asset Trigger Event, the Cash Manager
     (at the direction of the Mortgages Trustee acting on behalf of the
     Beneficiaries at their direction and with their consent which is hereby
     given) shall, on each Distribution Date (including, if applicable, any
     Distribution Date on which a Non-Asset Trigger Event occurs), apply all
     Mortgages Trustee Principal Receipts to Funding until the Funding Share of
     the Trust Property has been reduced to zero and shall thereafter, on each
     Distribution Date, apply all Mortgages Trustee Principal Receipts to the
     Seller.

12.  Allocation of Losses

12.1 Subject as provided otherwise herein (including Clause 8.4 (Adjustments to
     Trust Property) of this Deed), all Losses sustained on the Mortgage Loans
     (other than Personal Secured Loans) during a Trust Calculation Period shall
     be applied in reducing pro rata both the Funding Share and the Seller Share
     of the Trust Property on the Distribution Date immediately succeeding such
     Trust Calculation Period by multiplying the Losses sustained in such
     relevant Trust Calculation Period by the Current Funding Share Percentage
     (as calculated on the Distribution Date immediately preceding such Trust
     Calculation Period), until the Funding Share of the Trust Property is zero,
     PROVIDED THAT, if during the Trust Calculation Period immediately preceding
     a Distribution Date the Seller had sold and assigned New Mortgage Loans to
     the Mortgages Trustee, or if Funding paid a Further Contribution to the
     Mortgages Trustee to increase the Funding Share of the Trust Property such
     Losses shall be multiplied by the Weighted Average Funding Share Percentage
     (as calculated on such Distribution Date pursuant to Clause 8.3(c) above)
     rather than the Current Funding Share Percentage. The remainder of such
     Losses shall be allocated to the Seller.

                                       33
<PAGE>

12.2 All losses sustained during a Trust Calculation Period on Personal Secured
     Loans forming part of the Trust Property shall be applied to reduce the
     Seller Share of the Trust Property (including, for the avoidance of doubt,
     that portion of the Seller Share which represents the Minimum Seller Share)
     on the Distribution Date immediately succeeding such Trust Calculation
     Period until the Seller Share is zero and thereafter shall be applied to
     reduce the Funding Share of the Trust Property.

13.  Overpayments

13.1 Non-Flexible Mortgage Loans: The Mortgages Trustee shall not distribute to
     the Beneficiaries any Overpayment in respect of any Non-Flexible Mortgage
     Loan which does not constitute a Capital Payment until the first
     Distribution Date following 31st December of the year in which such
     Overpayment is received, save to the extent that any such Overpayment by a
     Borrower is applied in reduction of an Underpayment by such Borrower in
     respect of such Mortgage Loan prior to such date. Any such Overpayment
     shall be retained in the Mortgages Trustee GIC Account and the Cash Manager
     will maintain a separate ledger to record its receipt and subsequent
     payment from time to time. Where any such Overpayment has been made in
     error the Cash Manager and/or the Administrator will be authorised to
     refund the amount of such Overpayment to the relevant Borrower at any time
     prior to 31st December of the year in which such Overpayment was made.

13.2 Flexible Mortgage Loans: Overpayments in respect of any Flexible Mortgage
     Loan (including the amount of any Together Connections Benefit applied to
     the related Together Connections Mortgage Loans or any Connections Benefit
     applied to the related Connections Mortgage Loans) will not be retained in
     the Mortgages Trustee GIC Account but will be distributed to the
     Beneficiaries on the immediately succeeding Distribution Date as Principal
     Receipts.

                                       34
<PAGE>

14.  Arrears

     The aggregate Current Balance of the Mortgage Loans in the Mortgages Trust
     will be increased at any time by the amount in which the Mortgage Loans
     that have been sold and assigned to the Mortgages Trust are in arrears and
     those arrears have been capitalised. Such increase shall be allocated to
     the Beneficiaries at any time in proportion to their respective percentage
     shares in the Trust Property as determined in respect of the Trust
     Calculation Period or Interim Calculation Period, as the case may be, in
     which the arrears occur.

15.  Ledgers

     The Mortgages Trustee shall maintain, or shall procure that the Cash
     Manager shall maintain, the following Mortgages Trustee Ledgers:

     (a)  the Principal Ledger, which shall record (i) all receipts of Principal
          Receipts and distribution of the same to Funding and the Seller and
          (ii) any Mortgages Trustee Retained Principal Receipts;

     (b)  the Revenue Ledger, which shall record all receipts of Revenue
          Receipts and distribution of the same in accordance with this Deed;

     (c)  the Losses Ledger, which shall record Losses in relation to the
          Mortgage Loans;

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

     (e)  the Overpayments Ledger; which shall be divided into sub ledgers to
          record (i) Overpayments on Non-Flexible Mortgage Loans received into
          and paid out of the Mortgages Trustee GIC Account from time to time
          and (ii) Overpayments on Flexible Mortgage Loans;

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

     (g)  the Re-Draw Ledger, which shall be divided into sub ledgers to record
          (i) Cash Re-Draws made in respect of Flexible Mortgage Loans and (ii)
          Non-Cash Re-Draws made in respect of Flexible Mortgage Loans;

                                       35
<PAGE>

     (h)  the Contributions Ledger, which will be divided into sub ledgers to
          record (i) the making by Funding of Contributions to the Mortgages
          Trust, (ii) the making by the Seller of Contributions to the Mortgages
          Trust and the application of such Contributions by the Mortgages
          Trustee in payment to the Seller of (a) amounts of Initial Purchase
          Price for the sale of any New Mortgage Portfolio which is acquired by
          the Mortgages Trustee from the Seller under the provisions of the
          Mortgage Sale Agreement or (b) amounts of Deferred Purchase Price in
          accordance with the Mortgage Sale Agreement or (c) any Initial
          Consideration in accordance with this Deed; and

     (i)  the Further Draw Ledger, which shall record all Further Draws in
          relation to Personal Secured Loans.

16.  Fees and Expenses of the Mortgages Trustee

16.1 Remuneration: The Mortgages Trustee shall be entitled to charge and be
     remunerated for the work undertaken by it as trustee of the trusts created
     by this Deed. The remuneration shall be on such terms (if any) as the
     Mortgages Trustee may from time to time agree with the Beneficiaries in
     writing.

16.2 Expenses and Liabilities: Each Beneficiary shall indemnify the Mortgages
     Trustee from time to time with such regularity as is reasonably agreed
     between the parties, in respect of the Funding Share and the Seller Share,
     respectively, of the documentable costs, expenses and/or liabilities
     directly and properly incurred by the Mortgages Trustee in performing its
     obligations hereunder or otherwise in acting as trustee in accordance with
     the terms of this Deed and the other Transaction Documents to which the
     Mortgages Trustee is a party inclusive (if applicable) of any amounts in
     respect of Irrecoverable VAT incurred in respect of such costs and
     expenses.

17.  Directions from Beneficiaries

17.1 Administration Agreement and Cash Management Agreement: On the Initial
     Closing Date the Mortgages Trustee shall enter into the Administration
     Agreement and the Cash Management Agreement.

17.2 Directions from Beneficiaries: Subject to Clause 17.3 (No Breach) below,
     the Mortgages Trustee covenants with the Beneficiaries that the Mortgages
     Trustee shall take all necessary steps and do everything which both Funding
     and the Seller (acting together) may reasonably

                                       36
<PAGE>

     request or direct it to do in order to give effect to the terms of this
     Deed or the other Transaction Documents to which the Mortgages Trustee is a
     party; provided that at any time after the Funding Share has been reduced
     to zero the Mortgages Trustee shall not be required to act at the direction
     of both Funding and the Seller (acting together) and shall instead act in
     accordance with any direction given solely by the Seller.

17.3 No breach: Each of Funding and the Seller covenant with each other and with
     the Mortgage Trustee that neither shall direct or request the Mortgages
     Trustee to do any act or thing which breaches the terms of, or is otherwise
     expressly dealt with (such that the Mortgages Trustee has no discretion)
     under any of the Transaction Documents.

17.4 No requirement to act: The Mortgages Trustee will not be bound and shall
     have no power to take any proceedings, actions or steps under or in
     connection with any of this Deed or the other Transaction Documents to
     which it is a party unless:

     (a)  it shall have been directed to do so by the Beneficiaries or it is
          required to do so under any express provision of this Deed or the
          other Transaction Documents (but subject to Clause 17.2 (Directions
          from Beneficiaries) in respect of conflict of directions); and

     (b)  it shall have been indemnified to its satisfaction against all
          liabilities, proceedings, claims and demands to which it may be or
          become liable and all costs, charges and expenses which may be
          incurred by it in connection therewith and the terms of such indemnity
          may include the provision of a fighting fund, non-recourse loan or
          other similar arrangement.

17.5 Covenant of the Mortgages Trustee: Subject to Clause 17.2 (Directions from
     Beneficiaries) the Mortgages Trustee covenants with each of the Seller and
     Funding to exercise all of its rights arising under or in respect of the
     Trust Property (including without limitation any rights of enforcement) for
     the benefit of and on behalf of the Beneficiaries.

                                       37
<PAGE>

18.  Early Termination of the Mortgages Trust

     Prior to its termination in accordance with Clause 26 (Termination),
     provided that all amounts due from Funding to the Funding Secured Creditors
     have been repaid in full and the Funding Share of the Trust Property has
     been reduced to zero, the Mortgages Trust constituted by this Deed may be
     terminated at the option of the Seller, following a request in writing by
     the Seller to the Mortgages Trustee (which shall be copied to Funding and
     the Cash Manager) at any time on or after the date on which all of the
     Intercompany Loans have been repaid in full or there is no further claim
     under any Intercompany Loan or such other date as may be agreed in writing
     between the Mortgages Trustee, Funding and the Seller.

19.  Audit of Mortgage Loans constituting the Trust Property

     If the long term, unsecured, unguaranteed and unsubordinated debt
     obligations of the Seller fall below A3 by Moody's then, if required by
     Moody's, the Beneficiaries shall appoint a firm of independent auditors
     (approved by the Rating Agencies) to determine whether the Mortgage Loans
     and their Related Security (or any part of them) constituting the Trust
     Property complied with the representations and warranties set out in
     Schedule 1 (Representations and Warranties) of the Mortgage Sale Agreement
     as at the date such Mortgage Loans were sold and assigned to the Mortgages
     Trustee. The costs of such independent auditors shall be borne by the
     Beneficiaries pro rata according to their respective current percentage
     shares in the Trust Property.

20.  Transfers

20.1 Funding shall not assign: Subject to the right of Funding to assign by way
     of security its right, title, benefit and interest in the Trust Property
     and/or under this Deed to the Security Trustee under the Funding Deed of
     Charge and subject to the right of the Security Trustee or a Receiver to
     sell the Funding Share of the Trust Property and/or such right and interest
     under this Deed following the service of an Intercompany Loan Enforcement
     Notice (which right is hereby conferred), Funding covenants with the Seller
     that it shall not, and shall not purport to, sell, assign, transfer,
     convey, charge, declare a trust over, create any beneficial interest in, or
     otherwise dispose of the Funding Share in the Trust Property, or any of
     Funding's rights, title, interest or benefit in any of the Mortgage
     Portfolio or the Trust Property.

20.2 Seller shall not assign: The Seller covenants with Funding that it shall
     not, and shall not purport to, sell, assign, transfer, convey, charge,
     declare a trust over, create any beneficial interest in, or otherwise
     dispose of the Seller Share in the Trust Property or any of the Seller's

                                       38
<PAGE>

     rights, title, interest or benefit in the Trust Property, other than
     pursuant to the Transaction Documents.

21.  Representations and Covenants

21.1 Representations: On the date hereof, each of the parties to this Deed makes
     the representations and warranties set out in Schedule 1 (Representation
     and Warranties) to this Deed to each of the other parties hereto.

21.2 Covenants of the Mortgages Trustee: Save with the prior written consent of
     or at the direction of the Beneficiaries or as provided in or envisaged by
     this Deed and/or the other Transaction Documents, the Mortgages Trustee
     shall not, so long as it is acting as Mortgages Trustee hereunder:

     (a)  Negative Pledge: create or permit to subsist any mortgage, standard
          security, pledge, lien, charge or other security interest whatsoever
          (unless arising by operation of law), upon the whole or any part of
          its assets (including any uncalled capital) or its undertakings
          (present or future) or (to the extent that it is within the control of
          the Mortgages Trustee) upon the whole or any part of the Trust
          Property;

     (b)  Disposal: transfer, sell, lend, part with or otherwise dispose of, or
          deal with, or grant any option or present or future right to acquire
          any of its assets or undertakings or (to the extent that it is within
          the control of the Mortgages Trustee) the Trust Property or any
          interest, estate, right, title or benefit therein or thereto or agree
          or attempt or purport to do so;

     (c)  Equitable Interest: knowingly permit any person other than the
          Beneficiaries to have any equitable or beneficial interest in any of
          its assets or undertakings or (to the extent that it is within the
          control of the Mortgages Trustee) the Trust Property or any interest,
          estate, right, title or benefit therein;

     (d)  Bank Accounts: have an interest in any bank account, other than as set
          out in the Transaction Documents.

     (e)  Restrictions on Activities: carry on any business other than as
          described in this Deed and the Transaction Documents;

     (f)  Borrowings: incur any indebtedness in respect of borrowed money
          whatsoever or give any guarantee or indemnity in respect of any such
          indebtedness;

                                       39
<PAGE>

     (g)  Merger: consolidate or merge with any other person or convey or
          transfer its properties or assets substantially or as an entirety to
          any other person;

     (h)  Premises or Employees: have any premises or employees or subsidiaries;
          or

     (i)  Further shares: issue any further shares;

     (j)  United States activities: engage in any activities in the United
          States (directly or through agents) or derive any income from United
          States sources as determined under United States income tax principles
          or hold any property if doing so would cause it to be engaged or
          deemed to be engaged in a trade or business within the United States
          as determined under United States tax principles;

     (k)  Conduct of affairs: take any management decisions or direct the
          conduct of its affairs in any Member State of the European Union,
          including holding any board meetings in any Member State of the
          European Union.

22.  Power to Delegate

22.1 Power to delegate: Subject to Clause 22.2 (No further appointments), the
     Mortgages Trustee may (notwithstanding any rule of law or equity to the
     contrary) delegate (revocably or irrevocably and for a limited or unlimited
     period of time) the performance of all or any of its obligations and the
     exercise of all or any of its powers under this Deed or imposed or
     conferred on it by law or otherwise to any person or body of persons
     fluctuating in number selected by it and any such delegation may be by
     power of attorney or in such other manner as the Mortgages Trustee may
     think fit and may be made upon such terms and conditions (including the
     power to sub-delegate) as the Mortgages Trustee may think fit.

22.2 No further appointments: Notwithstanding the provisions of Clause 22.1
     (Power to delegate), the Mortgages Trustee shall not appoint any agent,
     attorney or other delegate having power to act in respect of the Trust
     Property unless it is directed in writing to do so by the Beneficiaries.
     The appointment of any agent, attorney or other delegate hereunder above
     shall terminate immediately upon the occurrence of a Trigger Event.

23.  Powers of Investment

     The Mortgages Trustee may invest, and may appoint the Cash Manager to
     invest on its behalf, any amounts standing to the credit of the Mortgages
     Trustee Transaction Account in Authorised Investments. Save as expressly
     provided in this Deed, the Mortgages Trustee

                                       40
<PAGE>

     Guaranteed Investment Contract and the Bank Account Agreement, the
     Mortgages Trustee shall have no further or other powers of investment with
     respect to the Trust Property and (to the extent permitted by applicable
     law) the Trustee Act 2000 shall not nor shall any other provision relating
     to trustee powers of investment implied by statute or general law shall
     apply to the Mortgages Trust.

24.  Other Provisions regarding the Mortgages Trustee

24.1 No action to impair Trust Property: Except for actions expressly authorised
     by this Deed, the Mortgages Trustee shall take no action reasonably likely
     to impair the interests of the Beneficiaries in any Trust Property now
     existing or hereafter created or to impair the value of any Mortgage Loan
     or its Related Security subject to the Mortgages Trust.

24.2 Litigation: The Mortgages Trustee must not prosecute or defend any legal or
     other proceedings anywhere in the world (at the cost of the Trust Property)
     unless it obtains legal or other advice that it is in the interests of the
     Beneficiaries to do so.

24.3 No Implied Duties: The duties and obligations of the Mortgages Trustee
     under the Mortgages Trust shall be determined solely by the express
     provisions of this Deed (but without prejudice to the duties and
     obligations of the Mortgages Trustee under any of the other Transaction
     Documents). The Mortgages Trustee shall not be liable under this Deed
     except for the performance of such duties and obligations as shall be
     specifically set forth in this Deed. No implied covenants or obligations
     shall be read into this Deed against the Mortgages Trustee, and the
     permissible right of the Mortgages Trustee to do things set out in this
     Deed shall not be construed as a duty.

24.4 No Liability: Neither the Mortgages Trustee, Funding (in its capacity as a
     Beneficiary hereunder) nor the Seller (in its capacity as a Beneficiary
     hereunder) shall be liable to each other, in the absence of wilful default,
     gross negligence or breach of the terms of this Deed, in respect of any
     loss or damage which arises out of the exercise or attempted or purported
     exercise or failure to exercise any of their respective powers.

24.5 Reliance on Certificates: The Mortgages Trustee may rely on and shall be
     protected in acting on, or in refraining from acting in accordance with,
     any resolution, officer's certificate, certificate of auditors or any other
     certificate, statement, instrument, opinion, report, notice, request,
     consent, order, appraisal, bond or other paper or document believed by it
     to be genuine and to have been signed or presented to it pursuant to the
     Transaction Documents by the proper party or parties.

                                       41
<PAGE>

24.6 Reliance on Third Parties: The Mortgages Trustee may, in relation to these
     presents, act on the opinion or advice of or a certificate or any
     information obtained from any lawyer, banker, valuer, broker, accountant,
     financial adviser, securities dealer, merchant bank, computer consultant or
     other expert in the United Kingdom or elsewhere and shall not, provided
     that it shall not have acted fraudulently or in breach of any of the
     provisions of the Transaction Documents, be responsible for any loss
     occasioned by so acting. Any such opinion, advice, certificate or
     information may be sent or obtained by letter, telemessage, telex, cable or
     facsimile device and the Mortgages Trustee shall not be liable for acting
     on any opinion, advice, certificate or information purporting to be so
     conveyed although the same shall contain some error or shall not be
     authentic, provided that such error or lack of authenticity shall not be
     manifest.

24.7 MIG Policies: The Mortgages Trustee is not required to maintain any MIG
     Policy with the then-current insurer and may contract for mortgage
     indemnity guarantee protection from any insurer then providing MIG
     insurance policies, subject to prior agreement with the Rating Agencies and
     confirmation that the then-current ratings by the Rating Agencies (or any
     of them) of the Notes issued by any Issuer would not be adversely affected.

25.  No retirement of Mortgages Trustee

25.1 No Retirement: The Mortgages Trustee shall not, and shall not purport to,
     retire as the trustee of the Mortgages Trust or appoint any additional
     trustee of the Mortgages Trust and shall have no power to retire or appoint
     any additional trustee under the Trustee Act 1925 or otherwise.

25.2 No Replacement: Neither the Seller nor Funding shall at any time remove or
     purport to remove and/or replace the Mortgages Trustee as the trustee of
     the Mortgages Trust.

25.3 No Termination: Prior to the payment by Funding of all amounts owing under
     the Intercompany Loan Agreements and under the Transaction Documents,
     neither the Seller nor Funding shall at any time, except in accordance with
     the provisions of Clause 18 (Early Termination of the Mortgages Trust) and
     Clause 26 (Termination), terminate or purport to terminate the Mortgages
     Trust and, in particular, but without prejudice to the generality of the
     foregoing, the Seller and Funding shall not in reliance on their absolute
     beneficial interests in the Trust Property call for the transfer to them or
     vesting in them of the legal estate in all or any part of the Trust
     Property.

                                       42
<PAGE>

26.  Termination

     Subject to Clause 18 (Early Termination of the Mortgages Trust), the
     Mortgages Trust hereby constituted shall terminate upon the date upon which
     the Trust Property is zero.

27.  Further Assurances

     The parties agree that they will co-operate fully to do all such further
     acts and things and execute any further documents as may be necessary or
     desirable to give full effect to the arrangements contemplated by this
     Deed.

28.  No Partnership or Agency

     Nothing in this Deed shall be taken to constitute or create a partnership
     between any of the parties to this Deed or to make or appoint the Seller
     the agent of Funding (or vice versa).

29.  Calculations

     In the absence of manifest error, any determination or calculation by or on
     behalf of the Mortgages Trustee in connection with the provisions of this
     Deed shall be deemed to be conclusive.

30.  Confidentiality

30.1 General Obligation of Confidentiality: Unless otherwise required by
     applicable law, and subject to Clause 30.2 (Exceptions) below, each of the
     parties agrees to maintain the confidentiality of this Deed in its
     communications with third parties and otherwise. None of the parties shall
     disclose to any person any information relating to the business, finances
     or other matters of a confidential nature of or relating to any other party
     to this Deed or any of the Transaction Documents which it may have obtained
     as a result of having entered into this Deed or otherwise.

30.2 Exceptions: The provisions of Clause 30.1 (General Obligation of
     Confidentiality) above shall not apply:

     (a)  to the disclosure of any information to any person who is a party to
          any of the Transaction Documents as expressly permitted by the
          Transaction Documents;

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

                                       43
<PAGE>

     (c)  to the extent that the recipient is required to disclose the same
          pursuant to any law or order of any court or pursuant to any direction
          or requirement (whether or not having the force of law) of any central
          bank or any governmental or other regulatory or Taxation authority;

     (d)  to the disclosure of any information to professional advisers who
          receive the same under a duty of confidentiality;

     (e)  to the disclosure of any information with the consent of the parties
          hereto;

     (f)  to the disclosure to the Rating Agencies or any of them of such
          information as may be requested by any of them for the purposes of
          setting or reviewing the rating assigned to the Notes (or any of
          them), provided that no information which would disclose the identity
          of a Borrower shall be disclosed to the Rating Agencies or any of
          them;

     (g)  to the disclosure of any information disclosed to a prospective
          assignee of Funding (provided that it is disclosed on the basis that
          the recipient will hold it confidential); or

     (h)  to any disclosure for the purposes of collecting in or enforcing the
          Trust Property or any of it.

31.  Perpetuity Period

     The perpetuity period for the purposes of this Mortgages Trust Deed shall
     be the period of 80 years commencing on the date hereof.

32.  Non Petition Covenant; Limited Recourse

32.1 Non Petition Covenant: Each of the parties hereto hereby agrees that it
     shall not institute against either Funding or the Mortgages Trustee any
     winding-up, administration, insolvency or similar proceedings so long as
     any sum is outstanding under any Intercompany Loan Agreement of any Issuer
     or for two years plus one day since the last day on which any such sum was
     outstanding.

32.2 Limited Recourse: Each of the parties hereto agrees that:

     (a)  in relation to the Mortgages Trustee, any amount payable by the
          Mortgages Trustee to any other party to this Deed under this Deed not
          being an amount payable out of the Trust Property in accordance with
          the terms of this Deed shall only be payable to the

                                       44
<PAGE>

     extent that on that date the Mortgages Trustee has sufficient funds to pay
     such amount out of fees paid to it under this Deed; and

(b)  in relation to Funding:

     (i)  only the Security Trustee may enforce the security created in favour
          of the Security Trustee under the Funding Deed of Charge in accordance
          with the provisions thereof;

     (ii) notwithstanding any other provision of this Deed or any other
          Transaction Document, no sum due or owing to any party to this Deed
          from or by Funding under this Deed shall be payable by Funding except
          to the extent that Funding has sufficient funds available or
          (following enforcement of the Funding Security) the Security Trustee
          has realised sufficient funds from the Funding Security to pay such
          sum subject to and in accordance with the relevant Funding Priority of
          Payments and provided that all liabilities of Funding required to be
          paid in priority thereto or pari passu therewith pursuant to such
          Funding Priority of Payments have been paid, discharged and/or
          otherwise provided for in full; and

     (iii) it shall not take any steps for the purpose of recovering any amount
           payable by Funding or enforcing any rights arising out of this Deed
           against Funding otherwise than in accordance with the Funding Deed of
           Charge.

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

                                       45
<PAGE>

33.  Amendments and Waiver

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

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

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

34.  Notices

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

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

     (b)  in the case of the Mortgages Trustee, to Granite Finance Trustees
          Limited, 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
          Islands (facsimile number 01534-609333) for the attention of the
          Company Secretary (with a copy to the Seller in accordance with (a)
          above);

                                       46
<PAGE>

     (c)  in the case of Funding, to Granite Finance Funding Limited 69 Park
          Lane, Croydon, CR9 1TQ (facsimile number 020 8409 8911) for the
          attention of the Company Secretary (with a copy to the Seller in
          accordance with (a) above);

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

     (e)  in the case of the Fitch Ratings Ltd, to Fitch Ratings Ltd, Eldon
          House, 2 Eldon Street, London EC2M 7UA (facsimile number 020 7417
          6262) for the attention of European Structured Finance Surveillance;

     (f)  in the case of Moody's, to Moody's, 1st Floor, 2 Minster Court,
          Mincing Lane, London EC3R 7XB (facsimile number 020 7772 5400) for the
          attention of Head of Monitoring Group, Structured Finance (with a copy
          to the Seller in accordance with (a) above);

     (g)  in the case of Standard & Poor's, to Standard & Poor's, 20 Cannon
          Square, Canary Wharf, London E14 5LH (facsimile number 020 7826 3598)
          for the attention of Structured Finance Surveillance Group (with a
          copy to the Seller in accordance with (a) above),

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party to
     the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 34.

35.  Third Party Rights

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

36.  Execution in Counterparts; Severability

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

36.2 Severability: Where any provision in or obligation under this Deed shall be
     invalid, illegal or

                                       47
<PAGE>

     unenforceable in any jurisdiction, the validity, legality and
     enforceability of the remaining provisions or obligations under this Deed,
     or of such provision or obligation in any other jurisdiction, shall not be
     affected or impaired thereby.

37.  Governing Law and Submission to Jurisdiction

37.1 Governing Law: This Deed is governed by, and shall be construed in
     accordance with, English law.

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

37.3 Process Agent: The Mortgages Trustee irrevocably and unconditionally
     appoints Mourant & Co. Capital (SPV) Limited at 69 Park Lane, Croydon CR9
     1TQ or otherwise at its registered office for the time being as its agent
     for service of process in England in respect of any proceedings in respect
     of this Agreement and undertakes that in the event of Mourant & Co. Capital
     (SPV) Limited ceasing so to act it will appoint another person with a
     registered office in London as its agent for service of process.

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

                                       48
<PAGE>

                                   SCHEDULE 1
                         REPRESENTATIONS AND WARRANTIES

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

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

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

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

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

     (b)  conflict with its constitutional documents; or

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

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

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

                                       49EXHIBIT 4.3

                               Dated 26 May 2004

                          GRANITE MORTGAGES 04-2 PLC

                               as Current Issuer

                             THE BANK OF NEW YORK

                                as Note Trustee

                                    - and -

                                    OTHERS

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

                             ISSUER DEED OF CHARGE

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

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

                                   CONTENTS

1.     Interpretation......................................................2

2.     Covenant to Pay and to Perform......................................3

3.     Current Issuer Security.............................................4

4.     Release of Current Issuer Charged Property..........................9

5.     Declaration of Trust...............................................10

6.     Restrictions on Exercise of Certain Rights.........................10

7.     Enforcement........................................................14

8.     Upon Enforcement...................................................16

9.     Receiver...........................................................19

10.    Further Assurance and Power of Attorney............................23

11.    Crystallisation....................................................24

12.    Provisions relating to the Security................................25

13.    Protection of Third Parties........................................26

14.    Set-Off............................................................27

15.    Representations and Covenants......................................27

16.    Note Trustee Provisions............................................32

17.    Modification and Waiver............................................33

18.    Miscellaneous Provisions...........................................34

19.    Rights cumulative..................................................35

20.    Assignment.........................................................35

21.    Non Petition Covenant; Corporate Obligations.......................36

22.    Notices............................................................36

23.    Third Party Rights.................................................37

24.    Execution in Counterparts; Severability............................37

25.    Governing Law and Jurisdiction; Appropriate Forum..................38

EXECUTION PAGE............................................................39

                                      i
<PAGE>

SCHEDULE 1................................................................42

SCHEDULE 2................................................................45

SCHEDULE 3................................................................50

                                      ii
<PAGE>

THIS DEED OF CHARGE is made on 26 May 2004

BETWEEN:

(1)  GRANITE MORTGAGES 04-2 PLC (registered number 5057377) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as Current
     Issuer;

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at 48th Floor, One Canada Square, London E14 5AL, United
     Kingdom, in its capacity as Note Trustee;

(3)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Principal Paying Agent;

(4)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Agent Bank;

(5)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Registrar;

(6)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Transfer Agent;

(7)  CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
     EC4Y 0PA, in its capacity as Account Bank;

(8)  CITIBANK, N.A., acting through its office at 111 Wall Street, 14th Floor,
     Zone 3, New York, N.Y. 10043, U.S.A., in its capacity as US Paying Agent;

(9)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Current Issuer Cash Manager;

(10) NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office
     is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as Basis Rate Swap Provider;

(11) BANQUE AIG acting through its office at 5th Floor, One Curzon Street,
     London W1J 5RT in its capacity as Dollar Currency Swap Provider;

(12) ABN AMRO BANK N.V. acting through its office at 199 Bishopsgate, London
     EC2M 3XW, in its capacity as Euro Currency Swap Provider;

(13) LAW DEBENTURE CORPORATE SERVICES LIMITED (registered number 3388362) a
     private limited company incorporated under the laws of England and Wales
     whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
     7EX as the Corporate Services Provider.

                                      1
<PAGE>

WHEREAS:

(A)  This Deed secures and will secure, inter alia, the Current Issuer Secured
     Obligations.

(B)  The Current Issuer will on the date of this Current Issuer Deed of Charge
     issue the Current Issuer Notes pursuant to the Current Issuer Trust Deed.

(C)  The Paying Agents, the Agent Bank, the Registrar and the Transfer Agent
     have agreed to provide certain agency services on behalf of the Current
     Issuer for the benefit of the Noteholders on the terms set out in the
     Current Issuer Paying Agent and Agent Bank Agreement.

(D)  The Current Issuer Cash Manager has agreed to act as cash manager and to
     provide certain administration and cash management services to the
     Current Issuer on the terms set out in the Current Issuer Cash Management
     Agreement.

(E)  The Account Bank has agreed to provide certain bank account services to
     the Current Issuer on the terms set out in the Current Issuer Bank
     Account Agreement.

(F)  The Dollar Currency Swap Provider has agreed to enter into
     dollar/sterling currency swaps with the Current Issuer in relation to
     Dollar Notes on the terms set out in the Current Issuer Dollar Currency
     Swap Agreements.

(G)  The Euro Currency Swap Provider has agreed to enter into euro/sterling
     currency swaps with the Current Issuer in relation to the Euro Notes on
     the terms set out in the Current Issuer Euro Currency Swap Agreements.

(H)  The Basis Rate Swap Provider has agreed to enter into an interest rate
     swap with the Current Issuer on the terms set out in the Current Issuer
     Basis Rate Swap Agreement.

(I)  The Corporate Services Provider has agreed to act as corporate services
     provider to, inter alios, the Current Issuer on the terms set out in the
     Current Issuer Corporate Services Agreement.

(J)  This Current Issuer Deed of Charge is supplemental to the Current Issuer
     Trust Deed of even date herewith and made between the Current Issuer and
     the Note Trustee relating to the issuance of the Current Issuer Notes.

NOW THIS DEED WITNESSES AS FOLLOWS:

1.   Interpretation

1.1  Definitions: The provisions of:

     (a)  the Master Definitions Schedule as amended and restated by (and
          appearing as Appendix 1 to) the Master Definitions Schedule Eighth
          Amendment Deed made on 26 May 2004 between, among others, the
          Seller, Funding and the Mortgages Trustee, and

     (b)  the Issuer Master Definitions Schedule signed for the purposes of
          identification by Sidley Austin Brown & Wood and Allen & Overy LLP
          on 26 May 2004,

                                      2
<PAGE>

     (as the same have been and may be amended, varied or supplemented from
     time to time with the consent of the parties hereto) are expressly and
     specifically incorporated into and shall apply to this Agreement.

     The Issuer Master Definitions Schedule specified above shall prevail to
     the extent that it conflicts with the Master Definitions Schedule.

1.2  Construction: In this Current Issuer Deed of Charge, except where the
     context otherwise requires:

     (a)  the terms of the Current Issuer Trust Deed and of any agreement in
          existence at the date hereof between the parties hereto are
          incorporated in this Current Issuer Deed of Charge but (unless
          otherwise expressly provided for herein) only to the extent required
          to ensure that any proposed disposition of the Current Issuer
          Charged Property contained in this Current Issuer Deed of Charge is
          a valid disposition in accordance with Section 2(1) of the Law of
          Property (Miscellaneous Provisions) Act 1989;

     (b)  a reference in this Current Issuer Deed of Charge to any property,
          assets, undertakings or rights includes, unless the context
          otherwise requires, present and future property, assets,
          undertakings or rights; and

     (c)  "this Current Issuer Deed of Charge" means this Current Issuer Deed
          of Charge and all the Schedules hereto (as from time to time
          modified and/or supplemented in accordance with the provisions set
          out herein) and each other document or deed entered into pursuant
          hereto (as from time to time modified/and or supplemented as
          aforesaid) and expressed to be supplemental hereto.

2.   Covenant to Pay and to Perform

     Subject to the provisions of the Current Issuer Transaction Documents
     (including, in the case of the Current Issuer Notes, to Clause 2
     (Covenant to Repay etc.) of the Current Issuer Trust Deed), the Current
     Issuer covenants with and undertakes to the Note Trustee for itself and
     as trustee for the Current Issuer Secured Creditors that it will:

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether
          before or after demand) become due and payable by the Current Issuer
          to the Note Trustee (whether for its own account or as trustee for
          the Current Issuer Secured Creditors) or to any of the other Current
          Issuer Secured Creditors, whether actually or contingently, under
          this Current Issuer Deed of Charge and/or any of the other Current
          Issuer Transaction Documents (including without limitation the
          Current Issuer Notes); and

     (b)  observe, perform and satisfy all its other obligations and
          liabilities under this Current Issuer Deed of Charge and/or any of
          the other Current Issuer Transaction Documents (including without
          limitation the Current Issuer Notes),

                                      3
<PAGE>

     PROVIDED THAT every payment in respect of any Current Issuer Transaction
     Document made to the relevant Current Issuer Secured Creditor in the
     manner provided in such Current Issuer Transaction Document shall operate
     in satisfaction pro tanto of the relative covenant and undertaking by the
     Current Issuer in this Clause 2 (Covenant to Pay and Perform).

3.   Current Issuer Security

3.1  Funding Charged Property:

     (a)  The Current Issuer, by way of first fixed security for the payment
          or discharge of the Current Issuer Secured Obligations, subject to
          Clause 4 (Release of Current Issuer Charged Property), hereby
          assigns to the Note Trustee, save to the extent that any of the
          Current Issuer's rights and claims in respect thereof derive from
          property which is situated in Jersey at any relevant time, all of
          its right, title, benefit and interest and all claims, present and
          future, in and to, the security and all property, assets and rights
          and claims held on trust by the Security Trustee for the payment or
          discharge of the relevant Funding Secured Obligations pursuant to
          the Funding Deed of Charge including all rights to receive payment
          of any amount which may become payable to the Current Issuer
          thereunder and all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause
          payments to become due and payable thereunder and all rights of
          action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely;
          and

     (b)  To the intent that the Note Trustee shall have a security interest
          in accordance with the Security Interests (Jersey) Law 1983 (the
          "Jersey Security Law") (and as secured party for the purposes of
          such law) for payment or discharge of the Current Issuer Secured
          Obligations, subject to Clause 4 (Release of Current Issuer Charged
          Property), the Current Issuer (as debtor for the purposes of the
          Jersey Security Law) hereby assigns to the extent that the same may
          be situate in Jersey at any relevant time to the Note Trustee all of
          its right, title, benefit and interest and all claims, present and
          future, in and to, the security and all property, assets and rights
          and claims held on trust by the Security Trustee for the payment or
          discharge of the relevant Funding Secured Obligations pursuant to
          the Funding Deed of Charge including all rights to receive payment
          of any amount which may become payable to the Current Issuer
          thereunder and all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause
          payments to become due and payable thereunder and all rights of
          action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.2  Contractual rights:

     (a)  The Current Issuer, by way of first fixed security for the payment
          or discharge of the Current Issuer Secured Obligations, subject to
          Clause 4 (Release of Current Issuer Charged Property), hereby
          assigns to the Note Trustee, save to

                                      4
<PAGE>

          the extent that any of the Current Issuer's rights and claims in
          respect thereof derive from property which is situated in Jersey at
          any relevant time, all of its right, title, benefit and interest,
          present and future, in, to and under:

          (i)  the Current Issuer Intercompany Loan Agreement;

          (ii) (to the extent not assigned pursuant to Clause 3.1(a)) the
               Funding Deed of Charge (including, for the avoidance of doubt,
               the Current Issuer Deed of Accession);

         (iii) the Current Issuer Swap Agreements;

          (iv) the Current Issuer Bank Account Agreement;

          (v)  the Current Issuer Cash Management Agreement;

          (vi) the Current Issuer Paying Agent and Agent Bank Agreement;

         (vii) the Current Issuer Trust Deed;

        (viii) the Current Issuer Notes;

          (ix) the Current Issuer Underwriting Agreement;

          (x)  the Current Issuer Subscription Agreement;

          (xi) the Current Issuer Post-Enforcement Call Option Agreement;

         (xii) the Current Issuer Corporate Services Agreement;

        (xiii) any Swap Collateral Ancillary Document; and

         (xiv) each other Current Issuer Transaction Document (other than
               this Current Issuer Deed of Charge) entered into or to be
               entered into by the Current Issuer pursuant to or in connection
               with any of the documents set out in paragraphs (i) through
               (xii) above (including any agreement entered into by the
               Current Issuer as a replacement of any of the above agreements
               upon the termination of such agreement),

          including, without limitation, all rights to receive payment of any
          amounts which may become payable to the Current Issuer thereunder
          and all payments received by the Current Issuer thereunder
          including, without limitation, all rights to serve notices and/or
          make demands thereunder and/or to take such steps as are required to
          cause payments to become due and payable thereunder and all rights
          of action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

     (b)  To the intent that the Note Trustee shall have a security interest
          in accordance with the Jersey Security Law (and as secured party for
          the purposes of such law) for payment or discharge of the Current
          Issuer Secured Obligations, subject to Clause 4 (Release of Current
          Issuer Charged Property), the Current

                                      5
<PAGE>

          Issuer (as debtor for the purposes of the Jersey Security Law)
          hereby assigns to the extent that the same may be situate in Jersey
          at any relevant time to the Note Trustee all of its right, title,
          benefit and interest, present and future, in, to and under:

          (i)  the Current Issuer Intercompany Loan Agreement;

          (ii) (to the extent not assigned pursuant to Clause 3.1(a)) the
               Funding Deed of Charge (including, for the avoidance of doubt,
               the Current Issuer Deed of Accession);

         (iii) the Current Issuer Swap Agreements;

          (iv) the Current Issuer Bank Account Agreement;

          (v)  the Current Issuer Cash Management Agreement;

          (vi) the Current Issuer Paying Agent and Agent Bank Agreement;

         (vii) the Current Issuer Trust Deed;

        (viii) the Current Issuer Notes;

          (ix) the Current Issuer Underwriting Agreement;

          (x)  the Current Issuer Subscription Agreement;

          (xi) the Current Issuer Post-Enforcement Call Option Agreement;

         (xii) the Current Issuer Corporate Services Agreement;

        (xiii) any Swap Collateral Ancillary Document; and

         (xiv) each other Current Issuer Transaction Document (other than
               this Current Issuer Deed of Charge) entered into or to be
               entered into by the Current Issuer pursuant to or in connection
               with any of the documents set out in paragraphs (i) through
               (xii) above (including any agreement entered into by the
               Current Issuer as a replacement of any of the above agreements
               upon the termination of such agreement),

          including, without limitation, all rights to receive payment of any
          amounts which may become payable to the Current Issuer thereunder
          and all payments received by the Current Issuer thereunder
          including, without limitation, all rights to serve notices and/or
          make demands thereunder and/or to take such steps as are required to
          cause payments to become due and payable thereunder and all rights
          of action in respect of any breach thereof and all rights to receive
          damages or obtain relief in respect thereof and the proceeds of any
          of the foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.3  Accounts: The Current Issuer, by way of first fixed security for the
     payment or discharge of the Current Issuer Secured Obligations, subject
     to Clause 4 (Release of Current Issuer Charged Property), hereby assigns
     in favour of the Note Trustee all of

                                      6
<PAGE>

     its rights, title, benefit and interest, present and future, in and to:

     (a)  the Current Issuer Transaction Accounts;

     (b)  any Swap Collateral Accounts; and

     (c)  each other account (if any) in which the Current Issuer may at any
          time have or acquire any right, title, benefit or interest,

     and all monies or securities now or at any time hereafter standing to the
     credit thereof and the debts represented by them together with all rights
     and claims relating or attached thereto including, without limitation,
     the right to interest or other income or distributions and the proceeds
     of any of the foregoing, TO HOLD the same unto the Note Trustee
     absolutely.

3.4  Authorised Investments and Swap Collateral: The Current Issuer, by way of
     first fixed charge for the payment or discharge of the Current Issuer
     Secured Obligations, subject to Clause 4 (Release of Current Issuer
     Charged Property), hereby charges in favour of the Note Trustee all of
     its right, title, benefit and interest, present and future in, to and
     under:

     (a)  any Authorised Investment purchased using monies standing to the
          credit of any Current Issuer Bank Account; and

     (b)  any Swap Collateral in the form of securities,

     for the time being owned by it and all rights in respect of or ancillary
     to such Authorised Investments and such Swap Collateral, including the
     right to income and distributions and the proceeds of any of the
     foregoing, TO HOLD the same unto the Note Trustee absolutely.

3.5  Floating Charge: The Current Issuer, by way of first floating charge for
     the payment or discharge of the Current Issuer Secured Obligations,
     subject to Clause 4 (Release of Current Issuer Charged Property), hereby
     charges in favour of the Note Trustee the whole of its undertaking and
     all its property, assets and rights, whatsoever and wheresoever, both
     present and future, including without limitation its uncalled capital,
     other than any property or assets for the time being the subject of a
     fixed charge or effectively assigned pursuant to any of the foregoing
     provisions of this Clause 3 (Current Issuer Security).

3.6  Title Guarantee: Each of the dispositions of, assignments of and charges
     over property effected in or pursuant to this Clause 3 (Current Issuer
     Security) is made with full title guarantee.

3.7  Further Acquired Items: For the avoidance of doubt, it is hereby
     confirmed that the Security Interests (including the Jersey Security
     Interests) created under or pursuant to Clauses 3.1 (Funding Charged
     Property) to Clause 3.4 (Authorised Investments and Swap Collateral)
     (inclusive) are intended to be specific and fixed assignments, or
     specific and fixed charges over (as the case may be) the property and
     assets to which they relate, both present and future, including property
     and assets which are acquired after the date hereof.

                                      7
<PAGE>

3.8  No Transfer of Obligations: Notwithstanding anything else in this Current
     Issuer Deed of Charge, it is hereby agreed that dispositions of property
     effected in or pursuant to this Clause 3 (Current Issuer Security) do not
     transfer obligations, and nothing herein shall be construed as a transfer
     of obligations to, the Note Trustee.

3.9  Notice and Acknowledgement:

     (a)  The execution of this Current Issuer Deed of Charge by any Current
          Issuer Secured Creditor shall constitute express notice to such
          Current Issuer Secured Creditor of the assignments, charges and
          Security Interests (including the Jersey Security Interests) made by
          the Current Issuer pursuant to this Clause 3 (Current Issuer
          Security).

     (b)  By its execution of this Current Issuer Deed of Charge each Current
          Issuer Secured Creditor acknowledges and consents to the
          assignments, charges and Security Interests (including the Jersey
          Security Interests) made or granted by the Current Issuer under this
          Clause 3 (Current Issuer Security) and also acknowledges that as at
          the date hereof it has not received from any other person notice of
          any assignment or charge of any property the subject of such
          Security Interests.

     (c)  Notwithstanding the assignments, charges and Security Interests
          granted under or pursuant to this Clause 3 (Current Issuer Security)
          and subject as provided otherwise in this Current Issuer Deed of
          Charge, each of the parties hereto acknowledges that:

          (i)  each Current Issuer Secured Creditor and each other party to
               any Current Issuer Transaction Document may continue to make
               all payments becoming due to the Current Issuer under any
               Current Issuer Transaction Document in the manner envisaged by
               such Current Issuer Transaction Document until the receipt of
               written notice from the Note Trustee or any Receiver requiring
               payments to be made otherwise; and

          (ii) until the Current Issuer Security becomes enforceable in
               accordance with Clause 7.2 (Enforceable), the Current Issuer
               shall be entitled to exercise its rights, powers and
               discretions and perform its obligations in relation to the
               Current Issuer Charged Property and under the Current Issuer
               Transaction Documents in accordance with the provisions of the
               Current Issuer Transaction Documents.

3.10 Note Trustee's Discretion in relation to Current Issuer Charged Property:

     Without prejudice to any other rights of the Note Trustee after the
     security created under this Current Issuer Deed of Charge has become
     enforceable and subject to the terms of the Current Issuer Transaction
     Documents, the Note Trustee may from time to time at any time after any
     part or parts of the Current Issuer Security becomes enforceable:

     (a)  enter into, make, execute, sign, deliver and do all such contracts,
          agreements, deeds, receipts, payments, assignments, transfers,
          conveyances, assurances and things and bring, prosecute, enforce,
          defend and abandon all such actions,

                                      8
<PAGE>

          suits and proceedings in relation to the Current Issuer Charged
          Property as it may think expedient;

     (b)  exercise or refrain from exercising, in such manner as in its
          absolute discretion the Note Trustee shall think fit, all or any of
          the rights, powers, authorities, discretions or remedies of the
          Current Issuer under or in relation to the Current Issuer Charged
          Property or incidental to the ownership thereof and, in particular
          but without limiting the generality of the foregoing, exercise all
          rights to vote or to give any consent or notification or make any
          declaration in relation to such Current Issuer Charged Property. For
          the avoidance of doubt, the Note Trustee shall not be required to
          have regard to the interests of the Current Issuer in the exercise
          or non-exercise of any such rights, powers, authorities, discretions
          and remedies or to comply with any direction given by the Current
          Issuer in relation thereto; and

     (c)  demand, sue for and take any advice or institute any proceedings to
          recover or obtain payment of any amounts which may then be due and
          payable to the Current Issuer but which remains unpaid under or in
          respect of the Current Issuer Charged Property or any part thereof
          either in its own name or in the name of the Current Issuer.

4.   Release of Current Issuer Charged Property

4.1  Release, Reassignment or Discharge: Upon the irrevocable and
     unconditional payment in full or discharge (or any combination of the
     foregoing) of all the Current Issuer Secured Obligations and upon the
     Note Trustee being satisfied that the Current Issuer is under no further
     actual or contingent obligation under this Current Issuer Deed of Charge
     or any other Current Issuer Transaction Document, the Note Trustee shall,
     at the request and cost of the Current Issuer, release, reassign and/or
     discharge from the Security Interests (including the Jersey Security
     Interests) all of the Current Issuer Charged Property to, or to the order
     of, the Current Issuer; provided that where any such release,
     re-assignment or discharge is made in whole or in part on the faith of
     any payment, security or other disposition which is avoided or which must
     be repaid on bankruptcy, liquidation or otherwise, the security
     constituted by this Current Issuer Deed of Charge and the liability of
     the Current Issuer hereunder shall continue as if there had been no such
     release, re-assignment or discharge.

4.2  Disposal of Authorised Investments and Swap Collateral: On the making at
     any time by the Current Issuer Cash Manager on behalf of the Current
     Issuer of a disposal of any Authorised Investment or Swap Collateral in
     the form of securities charged pursuant to Clause 3.4 (Authorised
     Investments and Swap Collateral), the Note Trustee shall, if so requested
     by and at the sole cost and expense of the Current Issuer, but without
     the Note Trustee being responsible for any loss, costs, claims or
     liabilities whatsoever occasioned by so acting upon such request,
     release, reassign or discharge from the Security Interests constituted by
     or pursuant to this Current Issuer Deed of Charge the relevant Authorised
     Investments or Swap Collateral, provided that in the case of a disposal
     of an Authorised Investment, the proceeds of such disposal are paid by
     the Current Issuer into the Current Issuer Bank Accounts from which the
     monies to make such Authorised Investment were originally drawn and, that
     in the case of Swap Collateral, the proceeds of such disposal are paid by
     the Current Issuer into the relevant Swap Collateral Cash Account or
     Current Issuer Bank Account (as

                                      9
<PAGE>

     appropriate in accordance with the Cash Management Agreement) subject to
     and in accordance with the provisions of this Current Issuer Deed of
     Charge and the Current Issuer Transaction Documents.

4.3  Withdrawals from Current Issuer Bank Accounts and Swap Collateral
     Accounts: Subject to and in accordance with this Current Issuer Deed of
     Charge and the other Current Issuer Transaction Documents, the Current
     Issuer Cash Manager, on behalf of the Current Issuer and the Note
     Trustee, is permitted pursuant to Clause 6 (Restrictions on Exercise of
     Certain Rights) from time to time to withdraw amounts from the Current
     Issuer Bank Accounts in order to apply such amounts in accordance with
     the relevant Current Issuer Priority of Payments and from time to time to
     withdraw amounts or securities from the Swap Collateral Accounts in order
     to apply such amounts or securities in accordance with the Current Issuer
     Cash Management Agreement. Any amount or securities so withdrawn shall be
     released from the Security Interests (including the Jersey Security
     Interests) created under this Current Issuer Deed of Charge provided that
     any amount withdrawn from the Current Issuer Bank Accounts is applied in
     accordance with and subject to the relevant Current Issuer Priority of
     Payments.

5.   Declaration of Trust

     Each of the Current Issuer Secured Creditors declares the Note Trustee as
     trustee of, and the Note Trustee hereby declares that it holds on trust
     for the Current Issuer Secured Creditors, upon and subject to the terms
     and conditions of this Current Issuer Deed of Charge, all of the
     covenants, undertakings and representations made to the Note Trustee
     under this Current Issuer Deed of Charge and any other Current Issuer
     Transaction Document and all of the charges, assignments, security and
     Security Interests made or given to the Note Trustee or to be made or
     given to it for the purpose of securing the Current Issuer Secured
     Obligations under or pursuant to this Current Issuer Deed of Charge or
     any other Current Issuer Transaction Document.

6.   Restrictions on Exercise of Certain Rights

6.1  Payments to Current Issuer Bank Accounts and Swap Collateral Accounts: At
     all times prior to the release, re-assignment and/or discharge of the
     Current Issuer Security pursuant to Clause 4 (Release of the Current
     Issuer Charged Property), the Current Issuer shall save as otherwise
     provided in the Current Issuer Transaction Documents or unless the Note
     Trustee otherwise agrees in writing (and then only on such terms and in
     such manner as the Note Trustee may require) procure that:

     (a)  the Current Issuer Bank Accounts shall from time to time be credited
          with all amounts (excluding Swap Collateral Excluded Amounts)
          received by the Current Issuer under or in respect of the Current
          Issuer Transaction Documents, including without limitation the
          following payments:

          (i)  amounts received by the Current Issuer from or on behalf of
               Funding pursuant to the provisions of the Current Issuer
               Intercompany Loan Agreement;

          (ii) interest received on the Current Issuer Bank Accounts;

                                      10
<PAGE>

         (iii) amounts received by the Current Issuer from the Basis Rate
               Swap Provider under the Current Issuer Basis Rate Swap
               Agreement and any Swap Collateral Available Revenue Amounts and
               Swap Collateral Available Principal Amounts;

          (iv) amounts received by the Current Issuer from the Dollar Currency
               Swap Provider under the Current Issuer Dollar Currency Swap
               Agreements and any Swap Collateral Available Revenue Amounts
               and Swap Collateral Available Principal Amounts;

          (v)  amounts received by the Current Issuer from the Euro Currency
               Swap Provider under the Current Issuer Euro Currency Swap
               Agreements and any Swap Collateral Available Revenue Amounts
               and Swap Collateral Available Principal Amounts;

          (vi) income received by the Current Issuer in respect of the
               proceeds of any Authorised Investments;

         (vii) amounts received by the Current Issuer from the Security
               Trustee or a Receiver following the service of an Intercompany
               Loan Enforcement Notice;

        (viii) such other payments received by the Current Issuer as are, or
               ought in accordance with this Current Issuer Deed of Charge to
               be, comprised in the Current Issuer Charged Property; and

     (b)  any Swap Collateral Accounts shall from time to time be credited
          with any Swap Collateral Excluded Amounts received by the Current
          Issuer pursuant to the relevant Current Issuer Swap Agreement.

6.2  No withdrawal from Current Issuer Bank Accounts and Swap Collateral
     Accounts: At all times during the subsistence of the Current Issuer
     Security, the Current Issuer shall not be entitled to withdraw or
     transfer from any Current Issuer Bank Account or Swap Collateral Account
     any monies or securities standing to the credit thereof or direct any
     payment to be made therefrom to any person save to the extent expressly
     permitted under this Current Issuer Deed of Charge without the Note
     Trustee's prior written consent.

6.3  Permitted Withdrawals from Current Issuer Bank Accounts and Swap
     Collateral Accounts; Authorised Investments:

(a)  The Current Issuer covenants with the Note Trustee that the amounts
     standing to the credit of the Current Issuer Bank Accounts and any Swap
     Collateral standing to the credit of a Swap Collateral Account may only
     be withdrawn in accordance with this Clause 6.3 or otherwise with the
     Note Trustee's prior written consent.

     (b)  On any day during an Interest Period prior to the security becoming
          enforceable pursuant to Clause 7.2 (Enforceable), the Current Issuer
          and the Note Trustee hereby authorise the Current Issuer Cash
          Manager to withdraw such monies from the Current Issuer Transaction
          Accounts as are to be applied on such date to meet any amounts then
          due and payable by the Current Issuer

                                      11
<PAGE>

          to third parties in accordance with item (C) of the Current Issuer
          Pre-Enforcement Revenue Priority of Payments provided that such
          monies are applied in making such payments on behalf of the Current
          Issuer. For the purpose of this paragraph (b), the remaining
          provisions of this Clause 6.3, Clause 6.4 (Current Issuer
          Pre-Enforcement Revenue Priority of Payments) and Clause 6.5
          (Current Issuer Pre-Enforcement Principal Priority of Payments), the
          Current Issuer Cash Manager shall be entitled to assume that the
          Current Issuer Security is not enforceable pursuant to Clause 7.2
          (Enforceable) unless it has received notice from the Current Issuer
          or the Note Trustee or is otherwise aware that the Current Issuer
          Security has become so enforceable and shall not be liable to the
          Note Trustee, the Current Issuer or any other Current Issuer Secured
          Creditor for making payments based on this assumption.

     (c)  The Note Trustee hereby authorises the Current Issuer Cash Manager,
          prior to the security becoming enforceable pursuant to Clause 7.2
          (Enforceable), to make withdrawals from:

          (i)  the relevant Current Issuer Bank Account for the purposes of
               acquiring Authorised Investments provided that all amounts
               received in respect of the Authorised Investments (including
               earnings thereon) shall be deposited into the relevant Current
               Issuer Bank Account from which they were originally drawn; and

          (ii) the relevant Swap Collateral Account for the purpose of (1)
               transferring or paying Swap Collateral to a Current Issuer Swap
               Provider pursuant to the terms of the relevant Current Issuer
               Swap Agreement; or (2) transferring Swap Collateral Available
               Revenue Amounts and/or Swap Collateral Available Principal
               Amounts to the relevant Current Issuer Transaction Account.

6.4  Current Issuer Pre-Enforcement Revenue Priority of Payments: On each
     Payment Date, prior to the Current Issuer Security becoming enforceable
     pursuant to Clause 7.2 (Enforceable), the Note Trustee hereby authorises
     the Current Issuer or the Current Issuer Cash Manager in its place to
     withdraw Current Issuer Available Revenue Receipts standing to the credit
     of the Current Issuer Transaction Accounts and to apply such monies in
     accordance with the provisions and the order of priority of the Current
     Issuer Pre-Enforcement Revenue Priority of Payments (as the same may be
     amended or varied from time to time) as set out in Schedule 2 (Cash
     Management and Maintenance of Ledgers) to the Current Issuer Cash
     Management Agreement.

6.5  Current Issuer Pre-Enforcement Principal Priority of Payments: On each
     Payment Date prior to the Current Issuer Security becoming enforceable
     pursuant to Clause 7.2 (Enforceable), the Note Trustee hereby authorises
     the Current Issuer or the Current Issuer Cash Manager in its place to
     withdraw Current Issuer Available Principal Receipts standing to the
     credit of the Current Issuer Transaction Accounts and to apply such
     monies in accordance with the order of priority of the Current Issuer
     Pre-Enforcement Principal Priority of Payments (as the same may be
     amended or varied from time to time) as set out in Schedule 2 (Cash
     Management and Maintenance of Ledgers) to the Current Issuer Cash
     Management Agreement.

                                      12
<PAGE>

6.6  No Enforcement by Current Issuer Secured Creditors: Each of the Current
     Issuer Secured Creditors (other than the Note Trustee acting on behalf of
     the Noteholders and any Receiver) hereby agrees with the Current Issuer
     and the Note Trustee that:

     (a)  only the Note Trustee may enforce the security created in favour of
          the Note Trustee by this Current Issuer Deed of Charge in accordance
          with the provisions hereof;

     (b)  notwithstanding any other provision of this Current Issuer Deed of
          Charge or any other Current Issuer Transaction Document no sum due
          or owing to any Current Issuer Secured Creditor or to the Note
          Trustee (whether for itself or on behalf of the Current Issuer
          Secured Creditors) from or by the Current Issuer under this Current
          Issuer Deed of Charge or any other Current Issuer Transaction
          Document shall be payable by the Current Issuer except to the extent
          that the Current Issuer or (following enforcement of the Current
          Issuer Security) the Note Trustee has sufficient funds available to
          it (and, in the case of the Note Trustee, as a result of the
          realisation of that security) to pay such sum subject to and in
          accordance with the relevant Current Issuer Priority of Payments and
          provided that all liabilities of the Current Issuer required to be
          paid in priority thereto or pari passu therewith pursuant to such
          Current Issuer Priority of Payments have been paid, discharged
          and/or otherwise provided for in full PROVIDED THAT this paragraph
          (b) shall not apply to and shall not limit the obligations of the
          Current Issuer to the Noteholders under the Current Issuer Notes and
          this Current Issuer Deed of Charge; and

     (c)  it shall not take any steps for the purpose of recovering any of the
          Current Issuer Secured Obligations (including, without limitation,
          by exercising any rights of set-off) or enforcing any rights arising
          out of the Current Issuer Transaction Documents against the Current
          Issuer and it shall not take any steps or legal proceedings for the
          winding-up, dissolution or reorganisation of, or the institution of
          insolvency proceedings against, the Current Issuer or for the
          appointment of a receiver, administrator, administrative receiver,
          liquidator or similar officer of the Current Issuer in respect of
          any or all of its revenues and assets,

PROVIDED THAT

          (i)  in the case of any Noteholder, this provision shall be subject
               to Clause 7.2 (Only Note Trustee to Enforce) of the Current
               Issuer Trust Deed; and

          (ii) in the case of any other Current Issuer Secured Creditor and
               subject to there being no Current Issuer Note then outstanding,
               if the Note Trustee having become bound to do so subject to and
               in accordance with the terms of this Current Issuer Deed of
               Charge and the Current Issuer Transaction Documents, fails to
               take any steps or proceedings to enforce the security created
               hereunder within 30 days of becoming so bound and such failure
               is continuing, each such other Current Issuer Secured Creditor
               shall be entitled to take such steps and proceedings to enforce
               its rights arising out of the relevant Current Issuer
               Transaction Document as it shall deem necessary other than the
               presentation of a

                                      13
<PAGE>

               petition or making an application for the winding up,
               dissolution or reorganisation of, or the institution of
               insolvency proceedings against, the Current Issuer or the
               appointment of an administrator or liquidator of the Current
               Issuer.

6.7  Acknowledgement of Note Trustee: The Note Trustee hereby acknowledges and
     agrees that save with respect to the obligations of the Current Issuer to
     the Noteholders under the Current Issuer Notes and this Current Issuer
     Deed of Charge which are not limited under paragraph (b) of Clause 6.6
     (No Enforcement by Current Issuer Secured Creditors) or under this Clause
     6.7 (Acknowledgement of Note Trustee) and notwithstanding any other
     provision of this Current Issuer Deed of Charge or any other Current
     Issuer Transaction Document, no sum due or owing to any Current Issuer
     Secured Creditor or to the Note Trustee (whether for itself or on behalf
     of the Current Issuer Secured Creditors) from or by the Current Issuer
     under this Current Issuer Deed of Charge or any other Current Issuer
     Transaction Document shall be payable by the Current Issuer except to the
     extent that the Current Issuer has sufficient funds available or
     (following enforcement of the Current Issuer Security) the Note Trustee
     has realised sufficient funds from the Current Issuer Security to pay
     such sum subject to and in accordance with the relevant Current Issuer
     Priority of Payments and provided that all liabilities of the Current
     Issuer required to be paid in priority thereto or pari passu therewith
     pursuant to such Current Issuer Priority of Payments have been paid,
     discharged and/or otherwise provided for in full.

7.   Enforcement

7.1  Notification: The Note Trustee shall, if practicable, give prior
     notification to the Seller, Funding, the Cash Manager and the Current
     Issuer Cash Manager of the Note Trustee's intention to enforce the
     security created by this Current Issuer Deed of Charge. However, the
     failure of the Note Trustee to provide such notification shall not in any
     way prejudice the ability of the Note Trustee to enforce the security
     created by this Current Issuer Deed of Charge.

7.2  Enforceable:

     (a)  Without prejudice to the provisions of Clause 9 (Receiver) the
          security created under this Current Issuer Deed of Charge shall
          become immediately enforceable and the power of sale and other
          powers conferred by Section 101 of the 1925 Act, as varied or
          amended by this Current Issuer Deed of Charge, shall be exercisable
          by the Note Trustee:

          (i)  at any time when any Current Issuer Note remains outstanding,
               in accordance with and subject to, Clause 6 (Enforcement) and
               Clause 7 (Proceedings, Action and Indemnification) of the
               Current Issuer Trust Deed which shall, as necessary, be
               incorporated in and apply, mutatis mutandis, to this Current
               Issuer Deed of Charge (and for that purpose references therein
               to "this Trust Deed" or "these presents" shall be construed as
               references to this Current Issuer Deed of Charge); or

          (ii) if there are no Current Issuer Notes outstanding, following a
               default in payment of any other Current Issuer Secured
               Obligations on its due date or within any applicable grace
               period following such due date

                                      14
<PAGE>

               stated in the relevant Current Issuer Transaction Document but
               subject always to any limited recourse provisions stated
               therein and to Clause 6.6 (No Enforcement by Current Issuer
               Secured Creditors) hereof; or

         (iii) upon the service on Funding by the Security Trustee of an
               Intercompany Loan Enforcement Notice.

     (b)  For the purposes of the Jersey Security Interests, upon the
          occurrence of any of the events specified in Clause 7.2 (a) (i),
          (ii) or (iii) (which shall constitute events of default for the
          purposes of the Jersey Security Interests in accordance with the
          Jersey Security Law) the Note Trustee shall have the right to give
          notice (the "Current Issuer Jersey Enforcement Notice") to the
          Current Issuer in accordance with the Jersey Security Law and the
          power of sale of the Current Issuer Jersey Secured Property shall
          become exercisable without the order of the Jersey court in
          accordance with the Jersey Security Law so that the Jersey Security
          Interests shall be enforceable in accordance with the provisions of
          the Jersey Security Law.

7.3  Power of Sale:

     (a)  Notwithstanding any other provision of this Current Issuer Deed of
          Charge, the Current Issuer Secured Obligations shall be deemed to
          have become due and payable for the purposes of Section 101 of the
          1925 Act and Article 8 of the Jersey Security Law and (to the extent
          applicable) the statutory power of sale and of appointing a receiver
          and other powers which are conferred on mortgagees under the 1925
          Act as varied or extended by this Current Issuer Deed of Charge
          shall be deemed to arise immediately after execution of this Current
          Issuer Deed of Charge. (b) Section 103 of the 1925 Act shall not
          apply to this Current Issuer Deed of Charge and forthwith after the
          security has become enforceable in accordance with Clause 7.2
          (Enforceable) the statutory power of sale, as extended by this
          Current Issuer Deed of Charge, and all other powers shall become
          immediately exercisable without notice to the Current Issuer and the
          provisions of the 1925 Act regulating the power of sale shall, so
          far as they relate to the Current Issuer Charged Property, be varied
          and extended accordingly.

7.4  Law of Property Act 1925: Subject, in the case of the Current Issuer
     Jersey Secured Property, to the provisions of the Jersey Security Law,
     the provisions of the 1925 Act relating to the power of sale and the
     other powers conferred by Section 101(1) and (2) are hereby extended in
     relation to the Current Issuer as if such extensions were contained in
     the 1925 Act such that at any time after the security constituted by this
     Current Issuer Deed of Charge has become enforceable in accordance with
     Clause 7.2 (Enforceable) above, the Note Trustee may in its absolute
     discretion:

     (a)  make demand in the name of the Current Issuer Secured Creditors or
          in its own right for any monies and liabilities in respect of the
          Current Issuer Charged Property;

                                      15
<PAGE>

     (b)  enforce any rights it may have in respect of the whole or any part
          of the Current Issuer Charged Property in such manner and upon such
          terms as the Note Trustee shall think fit;

     (c)  take possession of, get in and collect the Current Issuer Charged
          Property and perfect interests comprised therein;

     (d)  (subject to any restrictions under or in respect of the relevant
          Current Issuer Charged Property) sell, transfer, convey, dispose of,
          vary or otherwise deal with, and also grant any option to purchase,
          and effect exchanges of, the whole or any part of Current Issuer
          Charged Property or any interest therein in such manner, for such
          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit
          and/or to concur in any of the foregoing (and nothing shall preclude
          any such disposal being made to a Current Issuer Secured Creditor);

     (e)  carry out any transaction, scheme or arrangement which the Note
          Trustee may, in its absolute discretion, consider appropriate with a
          view to or in connection with the sale of the Current Issuer Charged
          Property;

     (f)  do all or any of the things or exercise all or any of the powers,
          authorities and discretions conferred expressly or by implication on
          any Receiver under Clause 9.6 (Powers of the Receiver) or otherwise
          under this Current Issuer Deed of Charge; and/or

     (g)  exercise all or any of the powers conferred on mortgagees by the
          1925 Act as varied or extended by this Current Issuer Deed of Charge
          and any other rights and remedies that may be conferred by statute
          or common law or in equity on mortgagees or receivers.

8.   Upon Enforcement

8.1  Service of a Current Issuer Note Enforcement Notice: Without prejudice to
     the effectiveness of any service of a Current Issuer Note Enforcement
     Notice, the Note Trustee shall as soon as is practicable notify each of
     the following parties of the enforcement of the Current Issuer Security
     (whether by service of a copy of any Current Issuer Note Enforcement
     Notice or otherwise):

     (a)  the Seller;

     (b)  Funding;

     (c)  the Account Bank, the Cash Manager and the Current Issuer Cash
          Manager;

     (d)  the Paying Agents and the other Agents under the Current Issuer
          Paying Agent and Agent Bank Agreement;

     (e)  the Current Issuer Swap Providers;

     (f)  the Corporate Services Provider; and

     (g)  each other Current Issuer Secured Creditor.

                                      16
<PAGE>

8.2  Crystallisation: From and including the date when the Note Trustee serves
     a Current Issuer Note Enforcement Notice (which has not been withdrawn)
     on the Current Issuer:

     (a)  notwithstanding any provision hereof or of any other Current Issuer
          Transaction Document no amount may be withdrawn from the Current
          Issuer Bank Accounts except with the prior written consent of the
          Note Trustee; and

     (b)  if not already crystallised, any charge created by this Current
          Issuer Deed of Charge which is a floating charge shall crystallise,
          provided that the floating charge created by this Current Issuer
          Deed of Charge shall not be crystallised solely as a result of
          obtaining a moratorium (or anything done with a view to obtaining a
          moratorium) under the Insolvency Act 2000 except with leave of the
          court.

8.3  Current Issuer Post-Enforcement Priority of Payments: At any time after
     the security created by this Current Issuer Deed of Charge has become
     enforceable in accordance with Clause 7.2 (Enforceable) and provided that
     the relevant Current Issuer Note Event of Default has not been waived in
     accordance with the provisions of this Current Issuer Deed of Charge,
     Current Issuer Available Revenue Receipts, Current Issuer Available
     Principal Receipts and all other monies (excluding Swap Collateral
     Excluded Amounts) paid to or received or recovered by or on behalf of the
     Current Issuer or the Note Trustee or any Receiver appointed on its
     behalf, including all proceeds following any sale, realisation or
     enforcement of the security created under this Current Issuer Deed of
     Charge and all amounts (excluding Swap Collateral Excluded Amounts) not
     previously distributed and/or standing to the credit of any Current
     Issuer Bank Account and Swap Collateral Account shall (if not already
     received by the Note Trustee) be paid to and held by the Note Trustee on
     trust to apply the same (save to the extent otherwise required by
     applicable law) in accordance with the order of priority of the Current
     Issuer Post-Enforcement Priority of Payments (as the same may be amended
     or varied from time to time) as set out on the date hereof in Schedule 2
     (Current Issuer Post-Enforcement Priority of Payments) to this Current
     Issuer Deed of Charge.

                                      17
<PAGE>

8.4  Certification of Amounts:

(a)  The Note Trustee shall be entitled to rely on (and to accept as
     conclusive evidence save in the case of manifest error) a certificate
     from each Current Issuer Secured Creditor as to the amounts owed to such
     Current Issuer Secured Creditor under the Current Issuer Transaction
     Documents. The Note Trustee shall not take into account for the purpose
     of the application of moneys in accordance with the Current Issuer
     Post-Enforcement Priority of Payments any amounts of which it has not
     been notified by the intended recipient on or prior to the date in
     question.

(b)  Each Current Issuer Secured Creditor will, at all times, promptly provide
     the Note Trustee and/or any Receiver on request with a certificate
     setting out detailed information as to the amount of the Current Issuer
     Secured Obligations to which such Current Issuer Secured Creditor is
     entitled and such other information as the Note Trustee and/or any
     Receiver may require to enable or facilitate the Note Trustee and/or any
     Receiver to perform its functions hereunder or under any of the Current
     Issuer Transaction Documents, such certificate to be in a form required
     by the Note Trustee and/or any Receiver. In determining the respective
     entitlements of the Current Issuer Secured Creditors hereunder, such
     certificates shall be binding on all of the Current Issuer Secured
     Creditors.

8.5  Retention Account: If the Note Trustee enforces the security created
     under this Current Issuer Deed of Charge at a time when either no amounts
     or not all amounts owing in respect of the Current Issuer Secured
     Obligations have become due and payable or any of the Current Issuer
     Secured Obligations are at such time contingent or future, the Note
     Trustee or a Receiver may, for so long as no such amounts or not all such
     amounts have become due and payable or any of the Current Issuer Secured
     Obligations are at such time contingent or future, pay any monies
     referred to in Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments), as the case may be, into, and retain such monies in, an
     interest-bearing account (a "retention account") to be held by it as
     security and applied by it in accordance with Clause 8.3 (Current Issuer
     Post-Enforcement Priority of Payments) as and when any of the amounts
     referred to therein become due and payable.

8.6  Note Trustee Rights upon Enforcement: In addition to any other rights
     expressly provided herein, for the period commencing upon the service of
     a Current Issuer Note Enforcement Notice and terminating upon the
     notification to the Current Issuer Secured Creditors by the Note Trustee
     that all Current Issuer Secured Obligations have been satisfied in full:

     (a)  (provided such Current Issuer Secured Creditor has received a copy
          of, or other notice of the service on the Current Issuer of, any
          such Current Issuer Note Enforcement Notice) each Current Issuer
          Secured Creditor agrees that it will pay to the Note Trustee or the
          Receiver, as the case may be, all monies received or recovered by
          such Current Issuer Secured Creditor (whether by way of set-off or
          otherwise) in order that such amounts may be applied by the Note
          Trustee in accordance with Clause 8.3 (Current Issuer
          Post-Enforcement Priority of Payments);

     (b)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge or as required by the Note Trustee, all payments under or
          arising from this

                                      18
<PAGE>

          Current Issuer Deed of Charge and all amounts payable to the Current
          Issuer by any party to this Current Issuer Deed of Charge under any
          Current Issuer Transaction Document shall be paid to the Note
          Trustee or to its order;

     (c)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge, all rights or remedies provided for by this Current Issuer
          Deed of Charge or available at law or in equity to the Current
          Issuer Secured Creditors are exercisable by the Note Trustee;

     (d)  save as otherwise expressly provided in this Current Issuer Deed of
          Charge, all rights to compel performance of the Current Issuer
          Transaction Documents are exercisable by the Note Trustee; and

     (e)  all payments in respect of the Current Issuer Secured Obligations
          shall operate in satisfaction pro tanto of the Current Issuer's
          covenants to the relevant Current Issuer Secured Creditors.

9. Receiver

9.1  Appointment: At any time after the security constituted hereunder becomes
     enforceable, and whether or not the Note Trustee has taken possession of
     the Current Issuer Charged Property, the Note Trustee may appoint, by
     writing or by deed, such person or persons (including an officer or
     officers of the Note Trustee) as the Note Trustee thinks fit to be a
     receiver, a receiver and manager or an administrative receiver of the
     Current Issuer Charged Property or any part thereof (each a "Receiver")
     and, in the case of an appointment of more than one person, to act
     together or independently of the other or others.

9.2  Removal and Replacement: Except as otherwise required by statute, the
     Note Trustee may by writing or by deed remove a Receiver and appoint
     another in its place or to act with a Receiver and the Note Trustee may
     apply to the court for an order removing an administrative receiver.

9.3  Extension of Appointment: The exclusion of any part of the Current Issuer
     Charged Property from the appointment of the Receiver shall not preclude
     the Note Trustee from subsequently extending its appointment (or that of
     the Receiver replacing it) to that part of the Current Issuer Charged
     Property or appointing another Receiver over any other part of the
     Current Issuer Charged Property.

9.4  Agent of Current Issuer: The Receiver shall, so far as the law permits,
     be the agent of the Current Issuer and the Current Issuer alone shall be
     responsible for the Receiver's contracts, engagements, acts, omissions,
     misconduct, negligence or default and for liabilities incurred by it; and
     in no circumstances whatsoever shall the Note Trustee or any Current
     Issuer Secured Creditor be in any way responsible for or incur any
     liability in connection with its contracts, engagements, acts, omissions,
     misconduct, negligence or default, and if a liquidator of the Current
     Issuer shall be appointed, the Receiver shall act as principal and not as
     agent for the Note Trustee. Notwithstanding the generality of the
     foregoing, such Receiver shall in the exercise of its powers, authorities
     and discretions conform to the regulations or directions (if any) from
     time to time made and given by the Note Trustee.

                                      19
<PAGE>

9.5  Remuneration: Subject as provided otherwise by applicable law, the
     remuneration of the Receiver shall be fixed by the Note Trustee and may
     be or include a commission calculated by reference to the gross amount of
     all monies received or otherwise. Such remuneration and such commission
     (if any) shall be payable hereunder by the Current Issuer alone subject
     always to Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments) and the amount of such remuneration shall form part of the
     Current Issuer Secured Obligations and shall accordingly be secured on
     the Current Issuer Charged Property under the security created by this
     Current Issuer Deed of Charge.

9.6  Powers of the Receiver: Subject, in the case of the Current Issuer Jersey
     Secured Property, to the provisions of the Jersey Security Law, the
     Receiver of the Current Issuer, in addition to any powers conferred on an
     administrative receiver, receiver, manager or receiver and manager by
     statute or common law, shall have the power to:

     (a)  take possession of, get in and collect the Current Issuer Charged
          Property;

     (b)  (subject to any restrictions under or in respect of relevant Current
          Issuer Charged Property) sell, transfer, convey, license, release or
          otherwise dispose of vary or deal with, and also grant any option to
          purchase, and effect exchanges of, the whole or any part of the
          Current Issuer Charged Property or any interest therein and grant or
          accept surrenders, disclaimers and variations in relation to or
          otherwise affecting the Current Issuer Charged Property in each case
          in such manner, for such consideration (if any) and generally upon
          such terms (including by deferred payment of payment by instalments)
          as it may think fit and/or concur in any of the foregoing (and
          nothing shall preclude any such disposal being made to a Current
          Issuer Secured Creditor);

     (c)  carry out any transaction, scheme or arrangement which it may, in
          its absolute discretion, consider appropriate with a view to or in
          connection with the sale of the Current Issuer Charged Property;

     (d)  insure the Current Issuer Charged Property against such risks and
          for such amounts as it may consider prudent and obtain bonds and
          performance guarantees;

     (e)  otherwise protect, maintain or improve, the Current Issuer Charged
          Property or any part thereof in any manner and for any purpose
          whatsoever as it shall think fit;

     (f)  transfer all or any of the Current Issuer Charged Property and/or
          any of the liabilities to any other company or body corporate,
          whether or not formed or acquired for the purpose (and whether or
          not a subsidiary or associated company of the Note Trustee or any
          other party to the Current Issuer Transaction Documents) and to form
          a subsidiary or subsidiaries of the Current Issuer;

     (g)  carry on and manage or concur in managing or appoint a manager of,
          the whole or any part of the business of the Current Issuer in such
          manner as it shall in its absolute discretion think fit including
          the power to enter into any contract and to perform, repudiate,
          rescind or vary any contract to which the Current Issuer is a party;

                                      20
<PAGE>

     (h)  sell or concur in selling the whole or any part of the Current
          Issuer's business whether as a going concern or otherwise;

     (i)  appoint, dismiss, engage or vary the terms of employment of any
          employees, managers, agents or advisers of the Current Issuer upon
          such terms as to remuneration and otherwise for such periods as it
          may in its absolute discretion think fit;

     (j)  in connection with the exercise or proposed exercise of any of its
          powers or in order to obtain payment of its remuneration or
          reimbursement of its expenses (in each case, whether or not already
          due), borrow or raise money from any person, without security or on
          the security of the Current Issuer Charged Property (either in
          priority to the security constituted by this Current Issuer Deed of
          Charge or otherwise) and generally in such manner and on such terms
          as it may think fit;

     (k)  bring, defend, submit to arbitration, negotiate, compromise,
          enforce, abandon and settle actions, suits, claims and proceedings
          concerning or affecting the Current Issuer Charged Property or the
          security created under this Current Issuer Deed of Charge;

     (l)  exercise any powers, discretions, voting, conversion or other rights
          or entitlements in relation to any of the Current Issuer Charged
          Property or incidental to the ownership of or rights in or to any of
          the Current Issuer Charged Property and to complete or effect any
          transaction entered into by the Current Issuer or disclaim, abandon
          or modify all or any of the outstanding contracts or arrangements of
          the Current Issuer relating to or affecting the Current Issuer
          Charged Property;

     (m)  generally carry out, or cause to be carried out any transaction or
          scheme or arrangement whatsoever, whether similar or not to any of
          the foregoing, in relation to the Current Issuer Charged Property
          which it may consider expedient as effectual as if it were solely
          and absolutely entitled to the Current Issuer Charged Property;

     (n)  in connection with the exercise of any of its powers, execute or do,
          or cause or authorise to be executed or done, on behalf of or in the
          name of the Current Issuer or otherwise, as it may think fit, all
          documents, acts or things which it may consider appropriate;

     (o)  redeem, discharge or compromise any security whether or not having
          priority to the security created hereunder;

     (p)  enter into covenants, guarantees, commitments, indemnities and other
          obligations or liabilities as it shall think fit;

     (q)  pay and discharge out of the profits and income of the Current
          Issuer Charged Property and the monies to be made by it carrying on
          any such business as aforesaid the expenses in and about the
          carrying on and management of such business or in the exercise of
          any of the powers conferred by Clause 9 (Receivers) or otherwise in
          respect of the Current Issuer Charged Property and

                                      21
<PAGE>

          all outgoings which it shall think fit to pay and to apply the
          residue of the said profits, income or monies in the manner provided
          by Clause 8.3 (Current Issuer Post-Enforcement Priority of
          Payments); and

     (r)  exercise any other powers, rights and/or remedies that may be
          available at law or in equity including the powers referred to in
          Section 1 of the Insolvency Act 1986.

9.7  Security: The Note Trustee may from time to time and at any time require
     any such Receiver to give security for the due performance of its duties
     and may fix the nature and amount of the security to be so given but the
     Note Trustee shall not be bound in any such case to require any such
     security.

9.8  Application by Receiver: Save so far as otherwise directed by the Note
     Trustee, all monies from time to time received by such Receiver shall be
     paid over to the Note Trustee to be held by it on the trusts declared
     under this Current Issuer Deed of Charge and to be distributed in
     accordance with Clause 8.3 (Current Issuer Post-Enforcement Priority of
     Payments).

9.9  Payment to Receiver: The Note Trustee may pay over to such Receiver any
     monies constituting part of the Current Issuer Charged Property for the
     same to be applied for the purposes of this Current Issuer Deed of Charge
     by such Receiver and the Note Trustee may from time to time determine
     what funds the Receiver shall be at liberty to keep in hand with a view
     to the performance of its duties as such Receiver.

9.10 No Restrictions: None of the restrictions imposed by the 1925 Act in
     relation to the appointment of receivers or the giving of notice or
     otherwise shall apply in relation to the Receiver.

9.11 Administration:

     (a)  Upon presentation of an application or a petition to a court of
          competent jurisdiction for an administration order or the service of
          a notice of intention to appoint an administrator or the filing of
          documents with the court for the appointment of an administrator in
          relation to the Current Issuer or other order having substantially
          the same effect to be made on application by a creditor or creditors
          of the Current Issuer, the Note Trustee shall, subject to it being
          indemnified to its satisfaction, as soon as practicable appoint a
          Receiver in accordance with this Current Issuer Deed of Charge (who
          shall, to the extent permitted by law, be an "administrative
          receiver" under Section 29 (2) of the Insolvency Act 1986) of the
          whole of the Current Issuer Charged Property and, in the case of any
          application to the court or petition the Note Trustee shall instruct
          the Receiver to attend at the hearing of the application or petition
          and take such steps as are necessary to prevent the appointment of
          an administrator. The Current Issuer Secured Creditors shall
          co-operate and do all acts and enter into such further documents,
          deeds or agreements as the Note Trustee may deem necessary or
          desirable to ensure that an administration order is not made and
          that an administrative receiver is appointed.

     (b)  Paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to
          the floating charge created hereunder.

                                      22
<PAGE>

10.  Further Assurance and Power of Attorney

10.1 Further Assurance: The Current Issuer covenants with and undertakes to
     the Note Trustee from time to time (notwithstanding that the security may
     not have become enforceable and the Note Trustee may not have served any
     Current Issuer Note Enforcement Notice) upon demand:

     (a)  to execute, at the Current Issuer's cost, any document or do any act
          or thing which the Note Trustee or any Receiver may specify
          (including executing such Security Interests over its rights in and
          over the Current Issuer Charged Property and any other assets of the
          Current Issuer in such form as the Note Trustee and/or any Receiver
          may require) with a view to:

          (i)  registering, perfecting, protecting or improving any charge or
               security or Security Interest (including any Jersey Security
               Interest) created or intended to be created by or pursuant to
               this Current Issuer Deed of Charge (including any act or
               document which may be required or desirable under the laws of
               any jurisdiction in which any property or assets may be located
               in order to confer on the Note Trustee security over such
               property and assets equivalent or similar to the security
               intended to be conferred by or pursuant to this Current Issuer
               Deed of Charge) and in such form as the Note Trustee or the
               Receiver may specify; and/or

          (ii) facilitating the realisation of or enforcement of rights of,
               all or any part of the Current Issuer Charged Property
               (including any Current Issuer Jersey Secured Property) or the
               exercise, or proposed exercise, of any of the powers, duties or
               discretions vested or intended to be vested in the Note Trustee
               or such Receiver by or pursuant to this Current Issuer Deed of
               Charge or doing any act or thing deemed necessary by the Note
               Trustee or the Receiver;

     (b)  to give or join in giving or procure the giving of any notices to
          any persons and obtain or procure that there is obtained any
          necessary acknowledgements in relation to such notices, all in such
          form, as the Note Trustee or the Receiver may require at the cost of
          the Current Issuer,

     and for the purpose of this Clause 10.1 (Further Assurance) a certificate
     in writing signed by the Note Trustee to the effect that any particular
     assurance or thing is required by it shall be conclusive evidence of that
     fact provided that the Current Issuer shall not be obliged to execute any
     such documentation or take any other action or steps to the extent that
     it would breach a restriction in any agreement to which it is a party or
     conflict with any applicable law.

10.2 Execution of Power of Attorney: Immediately upon execution of this
     Current Issuer Deed of Charge, the Current Issuer shall execute and
     deliver to the Note Trustee the power of attorney in or substantially in
     the form set out in Schedule 1 (Form of Security Power of Attorney).

10.3 Current Issuer Charged Property on Trust: To the extent permitted to do
     so under the Current Issuer Transaction Documents, for the purpose of
     giving effect to this

                                      23
<PAGE>

     Current Issuer Deed of Charge, the Current Issuer hereby declares that,
     after service of a Current Issuer Note Enforcement Notice, it will hold
     all the Current Issuer Charged Property (subject to the right of
     redemption) upon trust to convey, assign or otherwise deal with such
     Current Issuer Charged Property in such manner and to such person as the
     Note Trustee shall direct pursuant to this Current Issuer Deed of Charge,
     and declares that it shall be lawful for the Note Trustee to appoint a
     new trustee or trustees of the Current Issuer Charged Property in place
     of the Current Issuer.

11.  Crystallisation

11.1 Notice: In addition and without prejudice to any other event resulting in
     a crystallisation of the floating charge created by this Current Issuer
     Deed of Charge or any other right the Note Trustee may have, the Note
     Trustee may, by notice in writing to the Current Issuer, declare that the
     floating charge hereby created shall be converted into first specific
     fixed charges over such of the undertaking, property and assets of the
     Current Issuer as the Note Trustee may specify in such notice at any time
     if:

     (a)  a Current Issuer Note Event of Default or a Current Issuer Potential
          Note Event of Default has occurred; or

     (b)  the Note Trustee believes that the Current Issuer Charged Property
          or any part thereof is in danger of being seized or sold under any
          form of distress, execution or diligence levied or is otherwise in
          jeopardy; or

     (c)  the Note Trustee considers that it is desirable in order to protect
          the priority of the security created by this Current Issuer Deed of
          Charge,

     provided that the floating charge created by this Current Issuer Deed of
     Charge may not be converted into a fixed charge or charges solely as a
     result of the obtaining of a moratorium (or anything done with a view to
     obtaining a moratorium) under the Insolvency Act 2000 without the leave
     of the court.

11.2 Automatic Crystallisation: In addition and without prejudice to any other
     event resulting in a crystallisation of the floating charge contained
     herein and without prejudice to any rule of law which may have a similar
     effect, the floating charge created under this Current Issuer Deed of
     Charge shall automatically and without notice be converted with immediate
     effect into a fixed charge as regards:

     (a)  all property, assets or undertaking of the Current Issuer subject to
          the floating charge, upon:

          (i)  the presentation of a petition for or the making of an
               application for the compulsory winding-up of the Current
               Issuer;

          (ii) the convening of a meeting for the passing of a resolution for
               the voluntary winding-up of the Current Issuer;

         (iii) the presentation of a petition for or the making of an
               application for an administration order or the filing of
               documents with the court for the appointment of an
               administrator or the service of a notice of intention to
               appoint an administrator in relation to the Current Issuer;

                                       24
<PAGE>

          (iv) the presentation or making of an application for a warrant of
               execution, writ of fieri facias, garnishee order or charging
               order in respect of any of the assets of the Current Issuer
               subject to the floating charge;

          (v)  the occurrence of a Current Issuer Note Event of Default;
               and/or

     (b)  any property, assets or undertaking of the Current Issuer, which
          become subject to an Encumbrance in favour of any person other than
          the Note Trustee or which is/are the subject of a sale, transfer or
          other disposition, in either case, contrary to the covenants and
          undertakings contained in the Current Issuer Transaction Documents,
          immediately prior to such Encumbrance arising or such sale, transfer
          or other disposition being made,

     provided that the floating charge created by this Current Issuer Deed of
     Charge may not be converted into a fixed charge or charges solely as a
     result of the obtaining of a moratorium (or anything done with a view to
     obtaining a moratorium) under the Insolvency Act 2000 without the leave
     of the court.

12.  Provisions relating to the Security

12.1 Continuing Security: The security created under or pursuant to this
     Current Issuer Deed of Charge shall be:

     (a)  in addition to and independent of and shall not operate so as to
          prejudice or affect or merge in any other security, right of
          recourse or other right whatsoever which may be held by any of the
          Current Issuer Secured Creditors or the Note Trustee on their behalf
          in respect of the whole or any part of the Current Issuer Secured
          Obligations and shall not be affected by any release, reassignment
          or discharge of such other security; and

     (b)  a continuing security for the Current Issuer Secured Obligations and
          shall remain in force as continuing security for the Current Issuer
          Secured Creditors and shall not be considered as satisfied or
          discharged by any intermediate payment or settlement of the whole or
          any part of the Current Issuer Secured Obligations or the existence
          at any time of a credit balance on any current or other account or
          any other matter or thing whatsoever.

12.2 Consolidation: Section 93 of the 1925 Act shall not apply in relation to
     any of the charges contained in this Current Issuer Deed of Charge.

12.3 Ruling Off: If the Note Trustee receives notice of any Encumbrance
     affecting the whole or any part of the Current Issuer Charged Property or
     any security granted hereunder in contravention of the provisions hereof:

     (a)  the Note Trustee may open a new account in the name of the Current
          Issuer and, if it does not, it shall nevertheless be deemed to have
          done so at the time it received such notice; and

     (b)  all payments made by the Current Issuer to the Note Trustee after
          the Note Trustee receives such notice shall be credited or deemed to
          have been credited to the new account, and in no circumstances
          whatsoever shall operate to

                                      25
<PAGE>

          reduce the Current Issuer Secured Obligations as at the time the
          Note Trustee received such notice.

12.4 Avoidance of Payments: Any settlement, discharge or release between (a)
     the Current Issuer and (b) the Note Trustee or any Receiver (the
     "Relevant Person(s)") shall be conditional upon no security or payment
     granted or made to the Relevant Person(s) by the Current Issuer or any
     other person being avoided or reduced by virtue of any provisions or
     enactments relating to bankruptcy, insolvency or liquidation for the time
     being in force and, in the event of such security or payment being so
     avoided or reduced, the Relevant Person(s) shall be entitled to recover
     the value or amount of such security or payment from the Current Issuer
     and from the security subsequently as if such settlement, discharge or
     release had not occurred.

12.5 Retention of Charges: If the Note Trustee shall have reasonable grounds
     for believing that the Current Issuer may be insolvent or deemed to be
     insolvent pursuant to the provisions of the Insolvency Act 1986 (and
     production of a solvency certificate of a duly authorised officer of the
     Current Issuer shall be prima facie evidence of the solvency of the
     Current Issuer) as at the date of any payment made by the Current Issuer
     to the Note Trustee and that as a result, such payment may be capable of
     being avoided or clawed back, the Note Trustee shall be at liberty to
     retain the charges contained in or created pursuant to this Current
     Issuer Deed of Charge until the expiry of a period of one month plus such
     statutory period within which any assurance, security, guarantee or
     payment can be avoided or invalidated after the payment and discharge in
     full of all Current Issuer Secured Obligations notwithstanding any
     release, settlement, discharge or arrangement which may be given or made
     by the Note Trustee on, or as a consequence of, such payment or discharge
     of liability provided that, if at any time within such period, a petition
     or an application shall be presented to a competent court for an order
     for the winding up or the making of an administration order in respect of
     the Current Issuer, or if the Current Issuer shall commence to be wound
     up or to go into administration or any analogous proceedings shall be
     commenced by or against the Current Issuer, as the case may be, the Note
     Trustee shall be at liberty to continue to retain such security for such
     further period as the Note Trustee may determine and such security shall
     be deemed to continue to have been held as security for the payment and
     discharge to the Note Trustee of all Current Issuer Secured Obligations.

12.6 Possession: Entry into possession of the Current Issuer Charged Property
     or any part thereof shall not render the Note Trustee or any Receiver of
     the Current Issuer liable to account as mortgagee or creditor in
     possession for anything except actual receipts. If and whenever the Note
     Trustee or the Receiver enters into possession of the Current Issuer
     Charged Property, it shall be entitled at any time to go out of such
     possession.

12.7 Change of Name, etc.: This Deed shall remain valid and enforceable
     notwithstanding any change in the name, composition or constitution of
     the Note Trustee or the Current Issuer or any amalgamation, merger or
     consolidation by the Note Trustee or the Current Issuer, with any other
     corporation (whether, in the case of the Current Issuer, permitted under
     the Current Issuer Transaction Documents or not).

13.  Protection of Third Parties

13.1 No Enquiry: No purchaser from, or other person dealing with, the Note
     Trustee or a

                                      26
<PAGE>

     Receiver shall be concerned to enquire whether any of the powers
     exercised or purported to be exercised under this Current Issuer Deed of
     Charge has arisen or become exercisable, whether the Current Issuer
     Secured Obligations remain outstanding or have become payable, whether
     the Note Trustee or the Receiver is authorised to act or as to the
     propriety or validity of the exercise or purported exercise of any power;
     and the title and the position of such a purchaser or other person shall
     not be impeachable by reference to any of those matters and all the
     protection to purchasers contained in Sections 104 and 107 of the 1925
     Act shall apply to any person purchasing from or dealing with the Note
     Trustee or any such Receiver.

13.2 Receipts to Current Parties: Upon any sale, calling in, collection,
     enforcement or other realisation of the Current Issuer Charged Property
     in accordance with the terms hereof and upon any other dealing or
     transaction under or pursuant to this Current Issuer Deed of Charge, the
     receipt of the Note Trustee or any Receiver shall be an absolute and a
     conclusive discharge to a purchaser or other person dealing with the Note
     Trustee or such Receiver and shall relieve it of any obligation to see to
     the application of any monies paid to or by the direction of the Note
     Trustee or such Receiver.

14.  Set-Off

     The Note Trustee may at any time after the security created under this
     Current Issuer Deed of Charge has become enforceable in accordance with
     Clause 7.2 (Enforceable) without notice and notwithstanding any
     settlement of account or other matter whatsoever combine or consolidate
     all or any existing accounts of the Current Issuer whether in its own
     name or jointly with others and held by it or any Current Issuer Secured
     Creditor and may set-off or transfer all or any part of any credit
     balance or any sum standing to the credit of any such account (whether or
     not the same is due to the Current Issuer from the Note Trustee or
     relevant Current Issuer Secured Creditor and whether or not the credit
     balance and the account in debit or the Current Issuer Secured
     Obligations are expressed in the same currency in which case the Note
     Trustee is hereby authorised to effect any necessary conversions at its
     prevailing rates of exchange) in or towards satisfaction of any of the
     Current Issuer Secured Obligations (and on or at any time after the
     security created under this Current Issuer Deed of Charge has become
     enforceable in accordance with Clause 7.2 (Enforceable) the Security
     Trustee may make such application notwithstanding any specified maturity
     of any deposits), but subject always to the Current Issuer Priority of
     Payments, and may in its absolute discretion estimate the amount of any
     liability of the Current Issuer which is contingent or unascertained and
     thereafter set-off such estimated amount and no amount shall be payable
     by the Note Trustee to the Current Issuer unless and until all the
     Current Issuer Secured Obligations have been ascertained and fully repaid
     or discharged.

15.  Representations and Covenants

15.1 Representations and Warranties:

(a)  The Current Issuer hereby represents to the Note Trustee that it is, as
     of the date hereof, the beneficial owner of all of the Current Issuer
     Charged Property free and clear of all liens, claims, charges or
     Encumbrances except those specifically created by this Current Issuer
     Deed of Charge and undertakes that it will retain all rights

                                      27
<PAGE>

     associated with ownership of the Current Issuer Charged Property free and
     clear of all liens, claims, charges, Encumbrances except those
     specifically created by this Current Issuer Deed of Charge or any other
     Current Issuer Transaction Document.

(b)  The Current Issuer represents that it has taken all necessary steps to
     enable it to create the Security Interests in respect of the Current
     Issuer Charged Property in accordance with this Current Issuer Deed of
     Charge and has taken no action or steps which will or may prejudice its
     right, title and interest in, to and under the Current Issuer Charged
     Property.

15.2 Negative Covenants: The Current Issuer hereby undertakes that, for so
     long as any Current Issuer Secured Obligation remains outstanding, the
     Current Issuer shall not, save to the extent contemplated or provided in
     the Current Issuer Transaction Documents or unless it has obtained the
     prior written consent of the Note Trustee:

     (a)  open or maintain any bank account or deposit account with any bank
          or any other financial institution other than the Current Issuer
          Bank Accounts or close the Current Issuer Bank Accounts;

     (b)  either in a single transaction or in a series of transactions,
          whether related or not and whether voluntarily or involuntarily,
          sell, transfer, lease or otherwise dispose of or grant any option
          over all or any part of its property, assets or undertaking or any
          interest, estate, right, title or benefit therein or agree or
          purport to do any of the foregoing;

     (c)  create or permit to subsist any Security Interest (unless arising by
          operation of law) over or in respect of any of its property, assets
          (including any uncalled capital) or undertaking, present or future;

     (d)  incur any indebtedness in respect of borrowed money whatsoever or
          give any guarantee or indemnity in respect of any indebtedness of or
          of any obligation or any person;

     (e)  pay any dividend or make any other distribution to its shareholder
          or issue any further shares;

     (f)  consolidate or merge with any other person or convey or transfer its
          properties or assets substantially as an entirety to any other
          person;

     (g)  consent to any amendment to, or variation of or agree to waive or
          authorise any breach of any provision of any of the Current Issuer
          Transaction Documents or permit any person whose obligations form
          part of the Current Issuer Charged Property to be released from its
          respective obligations;

     (h)  offer to surrender to any company any amounts which are available
          for surrender by way of group relief within Chapter IV of Part X of
          the Income and Corporation Taxes Act 1988 except for full payment at
          the current applicable rate of corporation tax applied to the
          surrendered amount and payable at the date when corporation tax is
          due to be paid by the claimant or would be due in the absence of the
          surrender;

                                      28
<PAGE>

     (i)  do any act or thing the effect of which would be to make the Current
          Issuer resident in any jurisdiction other than the United Kingdom;

     (j)  permit any person other than the Current Issuer and the Note Trustee
          to have any equitable interest in any of its property, assets or
          undertakings or any interest, estate, right, title or benefit
          therein;

     (k)  purchase or otherwise acquire any Note or Notes (including the
          Current Issuer Notes); or

     (l)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not
          hold any property if doing so would cause it to be engaged or deemed
          to be engaged in a trade or business within the United States as
          determined under United States tax principles.

15.3 Positive covenants: The Current Issuer covenants and undertakes with the
     Note Trustee for the benefit of the Current Issuer Secured Creditors that
     it shall:

     (a)  Registration of Security: file or procure the filing with the
          Registrar of Companies pursuant to Chapter I of Part XII of the
          Companies Act 1985 of duly completed Forms 395 together with an
          executed original of this Current Issuer Deed of Charge and the
          required fee within 21 days after the date of this Current Issuer
          Deed of Charge;

     (b)  Notice of Assignment: on the date hereof join with the Note Trustee
          in giving notice of the assignments and the security created under
          or pursuant to this Current Issuer Deed of Charge to Funding, the
          Security Trustee and each other party to any Current Issuer
          Transaction Document not being a party to this Current Issuer Deed
          of Charge and for the purposes of the Jersey Security Interests to
          any person from whom the Current Issuer would have been entitled to
          claim the collateral (but for the Jersey Security Interests) and on
          any date hereafter (to the extent only that such notice and
          acknowledgement is not given under or pursuant to this Current
          Issuer Deed of Charge) join with the Note Trustee in giving notice
          of the assignments and the security created under this Current
          Issuer Deed of Charge to any party to a Current Issuer Transaction
          Document entered into by the Current Issuer after the date hereof
          and, for the purposes of the Jersey Security Interests, to any
          person from whom the Current Issuer would have been entitled to
          claim the collateral (but for the Jersey Security Interests), in
          each case in the form (or substantially in the form) set out in
          Schedule 3 (Form of Notice of Assignment);

     (c)  Accounts for Stock Exchange: cause to be prepared and certified by
          the Auditors of the Current Issuer in respect of each Financial
          Year, accounts in such form as will comply with relevant legal and
          accounting requirements for the time being and all requirements for
          the time being of any stock exchange on which the Current Issuer
          Notes are listed;

     (d)  Books and Records: at all times keep or procure the keeping of such
          books of account and records as may be necessary to comply with all
          applicable laws and so as to enable accounts of the Current Issuer
          to be prepared and allow the

                                      29
<PAGE>

          Note Trustee and any person or persons appointed by the Note Trustee
          free access to such books of account and records at all reasonable
          times during normal business hours upon reasonable notice in
          writing, provided that such inspection shall only be for the
          purposes of carrying out its duties under this Current Issuer Deed
          of Charge and any information so obtained shall only be used and
          passed on to any other person for the purpose of the Note Trustee
          carrying out its duties under this Current Issuer Deed of Charge;

     (e)  Notice of Current Issuer Note Event of Default: give notice in
          writing to the Note Trustee forthwith upon becoming aware of the
          occurrence of any Current Issuer Note Event of Default or Current
          Issuer Potential Note Event of Default including the status of any
          such default or matter and what action the Current Issuer is taking
          or proposes to take with respect thereto, without waiting for the
          Note Trustee to take any action;

     (f)  Certificates Relating to Financial Information: give to the Note
          Trustee (a) within seven days after demand by the Note Trustee
          therefor and (b) (without the necessity for any such demand)
          promptly after the publication of its audited accounts in respect of
          each Financial Year commencing with the Financial Year first ending
          after the date hereof and in any event not later than 180 days after
          the end of each such Financial Year a certificate signed by two
          directors of the Current Issuer to the effect that as at a date not
          more than seven days before delivering such certificate (the
          "certification date") there did not exist and had not existed since
          the certification date of the previous certificate (or in the case
          of the first such certificate the date hereof) any Current Issuer
          Note Event of Default or any Current Issuer Potential Note Event of
          Default (or if such then exists or existed specifying the same) and
          that during the period from and including the certification date of
          the last such certificate (or in the case of the first such
          certificate the date hereof) to and including the certification date
          of such certificate the Current Issuer has complied with all its
          obligations contained in this Current Issuer Deed of Charge and each
          of the other Current Issuer Transaction Documents or (if such is not
          the case) specifying the respects in which it has not so complied;

     (g)  Further Assurances: so far as permitted by applicable law, at all
          times execute all such further documents and do all such further
          acts and things as may be necessary at any time or times in the
          opinion of the Note Trustee to give effect to this Current Issuer
          Deed of Charge and the other Current Issuer Transaction Documents;

     (h)  Compliance with Current Issuer Transaction Documents: observe and
          comply with its obligations and use its reasonable endeavours to
          procure that each other party to any of the Current Issuer
          Transaction Documents complies with and performs all its respective
          obligations under each Current Issuer Transaction Document and not
          make any amendment or modification to such agreement or agree to
          waive or authorise any breach thereof without the prior written
          approval of the Note Trustee and notify the Note Trustee forthwith
          upon becoming aware of any breach by any such other party to any
          Current Issuer Transaction Document;

                                      30
<PAGE>

     (i)  Information: so far as permitted by applicable law, give or procure
          to be given to the Note Trustee such opinions, certificates,
          information and evidence as it shall require and in such form as it
          shall require (including without limitation the procurement by the
          Current Issuer of all such certificates called for by the Note
          Trustee pursuant to this Current Issuer Deed of Charge) for the
          purpose of the discharge or exercise of the duties, trusts, powers,
          authorities and discretions vested in it under this Current Issuer
          Deed of Charge or by operation of law;

     (j)  Taxes: duly and promptly pay and discharge all Taxes imposed upon it
          or its assets unless such Taxes are, in the opinion of the Note
          Trustee, being contested in good faith by the Current Issuer;

     (k)  Basis Rate Swap Agreement: in the event of termination of the
          Current Issuer Basis Rate Swap Agreement, notify the Note Trustee
          and the Rating Agencies and use its best efforts to enter into a
          replacement basis rate swap agreement upon terms acceptable to the
          Rating Agencies and the Note Trustee with a basis rate swap provider
          whom the Rating Agencies have previously confirmed in writing to the
          Current Issuer and the Note Trustee will not cause the then-current
          ratings of the Current Issuer Notes to be downgraded, withdrawn or
          qualified; and

     (l)  Currency Swap Agreements:

          (i)  Dollar Currency Swap Agreements: in the event of termination of
               any Transaction (as defined in the Current Issuer Dollar
               Currency Swap Agreements) under any Current Issuer Dollar
               Currency Swap Agreement, notify the Note Trustee and the Rating
               Agencies and use its best efforts to enter into a replacement
               of that Transaction in respect of the Dollar Notes (or, as
               applicable, the relevant class of the Dollar Notes) upon terms
               acceptable to the Rating Agencies and the Note Trustee with a
               dollar currency swap provider whom the Rating Agencies have
               previously confirmed in writing to the Current Issuer and the
               Note Trustee will not cause the then-current ratings of the
               Current Issuer Notes to be downgraded, withdrawn or qualified;

          (ii) Euro Currency Swap Agreements: in the event of termination of
               any Transaction (as defined in the Current Issuer Euro Currency
               Swap Agreements) under any Current Issuer Euro Currency Swap
               Agreement, notify the Note Trustee and the Rating Agencies and
               use its best efforts to enter into a replacement of that
               Transaction in respect of the Euro Notes (or, as applicable,
               the relevant class of the Euro Notes) upon terms acceptable to
               the Rating Agencies and the Note Trustee with a euro currency
               swap provider whom the Rating Agencies have previously
               confirmed in writing to the Current Issuer and the Note Trustee
               will not cause the then-current ratings of the Current Issuer
               Notes to be downgraded, withdrawn or qualified;

     (m)  Bank Accounts: in the event of termination of the Current Issuer
          Bank Account Agreement, subject to and in accordance with the
          provisions of the Current

                                      31
<PAGE>

          Issuer Bank Account Agreement use its reasonable endeavours to enter
          into a replacement bank account agreement;

     (n)  Cash Management Agreement: in the event of termination of the
          Current Issuer Cash Management Agreement, subject to and in
          accordance with the provisions of the Current Issuer Cash Management
          Agreement, use its reasonable endeavours to enter into a replacement
          cash management agreement.

     In addition to the foregoing, the Current Issuer hereby covenants with
     each of the Current Issuer Swap Providers, that it shall not make any
     amendment or modification to, or exercise any waiver in respect of, the
     Current Issuer Cash Management Agreement which would be adversely
     prejudicial to the interests of any Current Issuer Swap Provider, without
     the prior written consent of the affected Current Issuer Swap Provider
     save that to the extent required, such consent shall not be unreasonably
     withheld or delayed.

16.  Note Trustee Provisions

16.1 Supplement to Trustee Acts: It is hereby agreed that Clause 10
     (Supplement to Trustee Acts) of the Current Issuer Trust Deed shall be
     incorporated in and shall apply, mutatis mutandis, to this Current Issuer
     Deed of Charge (and for that purpose references therein to "these
     presents" or to "this Deed" shall be construed as references to this
     Current Issuer Deed of Charge) provided that for the purposes of Clause
     10.3(q) of the Current Issuer Trust Deed at any time after the redemption
     in full of the Current Issuer Notes, the Note Trustee shall have regard
     to the interests of the Current Issuer Secured Creditor which ranks next
     highest under the Current Issuer Post-Enforcement Priority of Payment.

16.2 Appointment, Removal and Retirement: It is hereby agreed that Clause 14
     (Appointment, Removal and Retirement of Note Trustee) of the Current
     Issuer Trust Deed shall be incorporated in and shall apply, mutatis
     mutandis, to this Current Issuer Deed of Charge (and for that purpose
     references therein to "these presents" or to "this Deed" shall be
     construed as references to this Current Issuer Deed of Charge) provided
     that for the purposes of this Current Issuer Deed of Charge it shall be
     an additional requirement that the Note Trustee under this Current Issuer
     Deed of Charge shall be the same person or persons as the Note Trustee
     under the Current Issuer Trust Deed.

16.3 Remuneration and Indemnification of Note Trustee: It is hereby agreed
     that Clause 9 (Remuneration and Indemnification of Note Trustee) of the
     Current Issuer Trust Deed shall be incorporated in and shall apply,
     mutatis mutandis, to this Current Issuer Deed of Charge (and for that
     purpose references therein to "these presents" or to "this Deed" shall be
     construed as references to this Current Issuer Deed of Charge).

16.4 Meetings of Noteholders: It is hereby agreed that Schedule 4 (Provisions
     for Meetings of Noteholders) of the Current Issuer Trust Deed shall be
     incorporated in and shall apply, mutatis mutandis, to this Current Issuer
     Deed of Charge.

16.5 Investment of Moneys: It is hereby agreed that Clause 8.3 (Authorised
     Investments) of the Current Issuer Trust Deed shall be incorporated in
     and shall apply, mutatis

                                      32
<PAGE>

     mutandis, to this Current Issuer Deed of Charge.

16.6 Acknowledgement: Each of the parties to this Current Issuer Deed of
     Charge hereby acknowledges that it is bound by the provisions of the
     Current Issuer Trust Deed which are incorporated by reference into this
     Current Issuer Deed of Charge and confirms that it has received a copy of
     the Current Issuer Trust Deed.

16.7 Jersey Law Waivers:

     (a)  Any right which at any time the Current Issuer has under the
          existing or future laws of Jersey whether by virtue of the droit de
          discussion or otherwise to require that recourse be had to the
          assets of any other person before any claim is enforced against the
          Current Issuer in respect of the obligations hereby assumed by the
          Current Issuer is hereby abandoned and waived.

     (b)  The Current Issuer undertakes that if at any time any person
          indemnified sues the Current Issuer in respect of any such
          obligations and the person in respect of whose obligations the
          indemnity is given is not sued also, the Current Issuer shall not
          claim that such person be made a party to the proceedings and the
          Current Issuer agrees to be bound by this indemnity whether or not
          it is made a party to legal proceedings for the recovery of the
          amount due or owing to the person indemnified, as aforesaid, by the
          person in respect of whose obligations the indemnity is given and
          whether the formalities required by any law of Jersey whether
          existing or future in regard to the rights or obligations of
          securities shall or shall not have been observed.

     (c)  Any right which the Current Issuer may have under the existing or
          future laws of Jersey whether by virtue of the droit de division or
          otherwise to require that any liability under the indemnity referred
          to in (b) above be divided or apportioned with any other person or
          reduced in any manner whatsoever is hereby abandoned and waived.

17.  Modification and Waiver

17.1 Modification: The Note Trustee may without the consent or sanction of the
     Noteholders or any other Current Issuer Secured Creditor at any time and
     from time to time concur with the Current Issuer in making any
     modification (except a Basic Terms Modification (as defined in paragraph
     1 of Schedule 4 (Provisions for Meetings of Noteholders) to the Current
     Issuer Trust Deed) (i) to this Current Issuer Deed of Charge, the Current
     Issuer Notes, the Current Issuer Trust Deed or to any of the other
     Transaction Documents which in the opinion of the Note Trustee it may be
     proper to make PROVIDED THAT the Note Trustee is of the opinion that such
     modification will not be materially prejudicial to the interests of the
     Noteholders or (ii) to this Current Issuer Deed of Charge, the Current
     Issuer Notes, the Current Issuer Trust Deed or any of the other
     Transaction Documents if in the opinion of the Note Trustee such
     modification is of a formal, minor or technical nature or to correct a
     manifest error or proven error. For the purposes of this Clause 17.1
     (Modification), a proposed modification will not materially harm the
     interest of any Noteholder solely as a result of any New Issuer executing
     a Deed of Accession pursuant to Clause 3.12 (New Intercompany Loans) of
     the Funding Deed of Charge or Clause 2.2 (New Intercompany Loan
     Agreement) of the Intercompany Loan Terms and Conditions.

                                      33
<PAGE>

     Any such modification may be made on such terms and subject to such
     conditions (if any) as the Note Trustee may determine, shall be binding
     upon the Current Issuer and the Current Issuer Secured Creditors and,
     unless the Note Trustee agrees otherwise, shall be notified by the
     Current Issuer to the Noteholders in accordance with the Conditions and
     to the other Current Issuer Secured Creditors as soon as practicable
     thereafter. So long as any of the Current Issuer Notes are rated by the
     Rating Agencies, the Current Issuer shall notify the Rating Agencies in
     writing as soon as reasonably practicable thereafter of any modification
     to the provisions of this Current Issuer Deed of Charge, the Current
     Issuer Notes, the Current Issuer Trust Deed or any of the other Current
     Issuer Transaction Documents.

17.2 Waiver: Subject as expressly provided otherwise in the Current Issuer
     Notes or in any other Transaction Document, the Note Trustee may from
     time to time and at any time without the consent or sanction of the
     Noteholders or any other Current Issuer Secured Creditor and without
     prejudice to its rights in respect of any subsequent breach, but only if
     and in so far as in its opinion the interests of the Noteholders shall
     not be materially prejudiced thereby waive or authorise any breach or
     proposed breach by the Current Issuer or any other party thereto of any
     of the covenants or provisions contained in this Current Issuer Deed of
     Charge or in any of the other Transaction Documents or determine that any
     Current Issuer Note Event of Default shall not be treated as such for the
     purposes of this Current Issuer Deed of Charge, the Current Issuer Notes
     and the Current Issuer Trust Deed PROVIDED ALWAYS THAT the Note Trustee
     shall not exercise any powers conferred on it by this Clause 17.2
     (Waiver) in contravention of any express direction given by Extraordinary
     Resolution or by a request in writing of the relevant Noteholders in
     accordance with the Conditions (but so that no such direction or request
     shall affect any waiver, authorisation or determination previously given
     or made). Any such waiver, authorisation or determination:

     (a)  may be given or made on such terms and subject to such conditions
          (if any) as the Note Trustee may determine;

     (b)  shall be binding on the Noteholders and the other Current Issuer
          Secured Creditors, if, but only if, the Note Trustee shall so
          require; and

     (c)  shall be notified by the Current Issuer to the Noteholders in
          accordance with the Conditions and to the other Current Issuer
          Secured Creditors as soon as practicable thereafter.

     The provisions of this Clause 17.2 (Waiver) shall be in lieu of Section
     316(a)(1)(B) of the Trust Indenture Act and Section 316(a)(1)(B) of the
     Trust Indenture Act is hereby expressly excluded from this Current Issuer
     Deed of Charge, the Current Issuer Notes and the Current Issuer Trust
     Deed as permitted by the Trust Indenture Act.

18.  Miscellaneous Provisions

18.1 Evidence of Indebtedness: In any action, proceedings or claim relating to
     this Current Issuer Deed of Charge or the charges contained in this
     Current Issuer Deed of Charge, a statement as to any amount due to any
     Current Issuer Secured Creditor or of the Current Issuer Secured
     Obligations or any part thereof or a statement of any amounts which have
     been notified to the Note Trustee as being amounts due to any

                                      34
<PAGE>

     Current Issuer Secured Creditor which is certified as being correct by an
     officer of the Note Trustee or an officer of the relevant Current Issuer
     Secured Creditor shall, save in the case of manifest error, be conclusive
     evidence that such amount is in fact due and payable.

18.2 Liability: All the liabilities and obligations of the Current Issuer
     under or by virtue of this Current Issuer Deed of Charge shall not be
     impaired by:

     (a)  any failure of this Current Issuer Deed of Charge to be legal,
          valid, binding and enforceable as regards the Current Issuer whether
          as a result of a lack of corporate powers or of directors'
          authority, defective execution or for any other reason whatsoever;

     (b)  any giving of time, forbearance, indulgence or waiver as regards the
          Current Issuer;

     (c)  a discharge or release of the Current Issuer; or

     (d)  any other matter or event whatsoever whether similar to the
          foregoing or not which might have the effect of impairing all or any
          of its liabilities or obligations except proper and valid payment or
          discharge of all Current Issuer Secured Obligations and amounts
          whatsoever which this Current Issuer Deed of Charge provides are to
          be paid by the Current Issuer or an absolute discharge or release of
          the Current Issuer signed by the Current Issuer Secured Creditors
          and the Note Trustee.

18.3 Current Issuer Secured Creditors: Each Current Issuer Secured Creditor
     shall be bound by the provisions of this Current Issuer Deed of Charge as
     if it contained covenants by each Current Issuer Secured Creditor in
     favour of the Note Trustee and every other Current Issuer Secured
     Creditor to observe and be bound by all the provisions of this Current
     Issuer Deed of Charge expressed to apply to the Current Issuer Secured
     Creditors.

19.  Rights cumulative

     The respective rights of the Note Trustee, the Current Issuer Secured
     Creditors and any Receiver to this Current Issuer Deed of Charge are
     cumulative and may be exercised as often as each considers appropriate
     and are in addition to their respective rights under the general law. No
     failure on the part of the Note Trustee, the Current Issuer Secured
     Creditors or any Receiver to exercise, and no delay in exercising, any
     right hereunder shall operate as a waiver thereof, nor shall any single
     or partial exercise of any such right preclude any other or further
     exercise thereof or the exercise of any other right. The remedies in this
     Current Issuer Deed of Charge are cumulative and not exclusive of any
     remedies provided by law.

20.  Assignment

     None of the Current Issuer Secured Creditors may assign, encumber or
     transfer all or any part of its rights or benefits and/or transfer its
     obligations under this Current Issuer Deed of Charge without the prior
     written consent of the Note Trustee.

                                      35
<PAGE>

21.  Non Petition Covenant; Corporate Obligations

21.1 Non Petition: Each of the parties hereto hereby agrees that it shall not
     institute against the Current Issuer any winding-up, administration,
     insolvency or similar proceedings for so long as any sum is outstanding
     under Current Issuer Notes or for two years plus one day since the last
     day on which any such sum was outstanding provided that the Note Trustee
     may prove or lodge a claim in the event of a liquidation initiated by any
     other person.

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

22.  Notices

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

     (a)  in the case of the Current Issuer, to Granite Mortgages 04-2 plc,
          Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile number 020
          7606 0643) for the attention of the Company Secretary with a copy to
          Northern Rock plc, Northern Rock House, Gosforth, Newcastle upon
          Tyne NE3 4PL (facsimile number 0191 213 2203) for the attention of
          the Group Secretary;

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

     (c)  in the case of the Principal Paying Agent, the Agent Bank, the
          Registrar, the Transfer Agent or the Account Bank, to Citibank,
          N.A., 5 Carmelite Street, London, EC4Y 0PA;

                                      36
<PAGE>

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

     (e)  in the case of the U.S. Paying Agent, to Citibank, N.A., 111 Wall
          Street, 14th Floor, Zone 3, New York, N.Y. 10043, U.S.A. (facsimile
          number 212 657 3862) for the attention of Global Agency and Trust;

     (f)  in the case of the Basis Rate Swap Provider, to Northern Rock plc,
          Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
          (facsimile number 0191 213 2203) for the attention of the Group
          Secretary;

     (g)  in the case of the Dollar Currency Swap Provider to Banque AIG,
          London Branch, 5th Floor, One Curzon Street, London W1J 5RT
          (facsimile number 020 7659 7200) for the attention of the Manager;

     (h)  in the case of the Euro Currency Swap Provider, to ABN AMRO Bank
          N.V., 199 Bishopsgate, London EC2M 3XW (facsimile number 020 7857
          9430/9428) for the attention of Derivative Operations;

     (i)  in the case of the Corporate Services Provider, to Law Debenture
          Corporate Services Limited, Fifth Floor, 100 Wood Street, London
          EC2V 7EX (facsimile number 020 7606 0643) for the attention of the
          Company Secretary;

     (j)  in the case of Moody's, to Moody's Investor Services, 1st Floor, 2
          Minster Court, Mincing Lane, London EC3R 7XB (facsimile number 020
          7772 5400) for the attention of Head of Monitoring Group, Structured
          Finance;

     (k)  in the case of S&P, to Standard & Poor's, 20 Cannon Square, Canary
          Wharf, London E14 5LH (facsimile number 020 7176 3598) for the
          attention of the Structured Finance Surveillance Group; and

     (l)  in the case of Fitch, to Fitch Ratings Limited, Eldon House, 2 Eldon
          Street, London EC2M 7UA (facsimile number: 020 7417 6262) for the
          attention of European Structured Finance,

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party
     to the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 22 (Notices).

23.  Third Party Rights

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

24.  Execution in Counterparts; Severability

24.1 Counterparts: This Deed may be executed in any number of counterparts
     (manually or by facsimile) and by different parties hereto in separate
     counterparts, each of which

                                      37
<PAGE>

     when so executed shall be deemed to be an original and all of which when
     taken together shall constitute one and the same instrument.

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

25.  Governing Law and Jurisdiction; Appropriate Forum

25.1 Governing Law: This Deed is governed by, and shall be construed in
     accordance with, English law, save that those parts of this Current
     Issuer Deed of Charge concerned with the creation, subsistence or
     enforcement of the Jersey Security Interests shall be governed by, and
     shall be construed in accordance with Jersey law.

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

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

IN WITNESS of which this Current Issuer Deed of Charge has been executed by
the parties hereto as a deed which has been delivered on the date first
appearing on page one.

                                      38
<PAGE>

                                EXECUTION PAGE

The Current Issuer

<TABLE>
<CAPTION>

<S>                                                                 <C>
Executed by
GRANITE MORTGAGES 04-2 PLC
as its deed as follows:                                             By:
Signed for and on its behalf by one of its                               ----------------------------------------------
directors and by another of its directors/its                              for and on behalf of LDC
secretary                                                                  Securitisation Director No. 1 Limited
                                                                           - Director

                                                                    Name:  Clive Rakestrow
                                                                           --------------------------------------------

                                                                    By:
                                                                         ----------------------------------------------
                                                                           for and on behalf of LDC
                                                                           Securitisation Director No. 2 Limited
                                                                           - Director

                                                                    Name:  Sharon Tyson
                                                                           --------------------------------------------

The Note Trustee

Executed by
THE BANK OF NEW YORK
as its deed as follows:                                             By:
Signed for and on its behalf by one of its duly                          ----------------------------------------------
authorised attorneys/signatories                                             Duly Authorised Attorney/Signatory

                                                                    Name:
                                                                           --------------------------------------------

The Principal Paying Agent, the Agent Bank, the
Registrar, the Transfer Agent, and the Account
Bank

Executed by
CITIBANK, N.A.
as follows:                                                         By:
Signed for and on its behalf by one of its duly authorised               ----------------------------------------------
attorneys/signatories                                                        Duly Authorised Attorney/Signatory

                                                                    Name:
                                                                           --------------------------------------------

                                      39
<PAGE>

The US Paying Agent

Executed by
CITIBANK, N.A.
as follows:                                                         By:
Signed for and on its behalf by one of its duly                          ----------------------------------------------
authorised attorneys/signatories                                             Duly Authorised Attorney/Signatory

                                                                    Name:
                                                                           --------------------------------------------

The Current Issuer Cash Manager and the Basis Rate Swap Provider

Executed by
NORTHERN ROCK PLC
as its deed as follows:                                             By:
Signed for and on its behalf by one of its duly                          ----------------------------------------------
authorised attorneys/signatories                                             Duly Authorised Attorney/Signatory

                                                                    Name:
                                                                           --------------------------------------------

Signature:
            -----------------------------------
            Witness

Full Name:
            ------------------------------------
Occupation:  Solicitor
             -----------------------------------
Address:  c/o Sidley Austin Brown & Wood
          --------------------------------------
          Woolgate Exchange
          --------------------------------------
          25 Basinghall Street
          --------------------------------------
          London EC2V 5HA
          --------------------------------------

The Corporate Service Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED                                                    By:
as its deed as follows:                                                  ----------------------------------------------
Signed for and on its behalf by one of its                          Director
directors and by another of its directors/its
secretary                                                           Name:
                                                                           --------------------------------------------

                                                                    By:
                                                                         ----------------------------------------------
                                                                             Director/Secretary

                                                                    Name:
                                                                           --------------------------------------------

                                      40
<PAGE>

The Dollar Currency Swap Provider

Executed by
BANQUE AIG                                                          By:
as its deed as follows:                                                   ---------------------------------------------
Signed for and on its behalf by one of its duly                              Duly Authorised Signatory
authorised signatories
                                                                    Name:
                                                                           ---------------------------------------------

The Euro Currency Swap Provider

Executed by
ABN AMRO BANK N.V.                                                  By:
as its deed as follows:                                                  ----------------------------------------------
Signed for and on its behalf by one of its duly                              Duly Authorised Signatory
authorised signatories
                                                                    Name:
                                                                           --------------------------------------------
</TABLE>

                                      41
<PAGE>

                                  SCHEDULE 1

                      FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on [o] by Granite Mortgages 04-2 plc
(registered number 5057377) a private limited liability company incorporated
under the laws of England and Wales whose registered office is at Fifth Floor,
100 Wood Street, London EC2V 7EX (the "Principal").

WHEREAS

(1)  By virtue of a Deed (as amended, varied, supplemented or novated from
     time to time the "Current Issuer Deed of Charge") dated [o] between
     Granite Mortgages 04-2 plc, The Bank of New York as Note Trustee and
     others, provision was made for the execution by the Principal of this
     Power of Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed
     to the contrary) have the same meanings respectively as the words and
     phrases in the Current Issuer Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Current Issuer Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Current Issuer Deed of Charge and the other Current
     Issuer Transaction Documents to which the Principal is a party from time
     to time appoints The Bank of New York and any other person or persons for
     the time being the Note Trustee or Note Trustees of and under the Current
     Issuer Deed of Charge (the "Attorney") and each and every person to whom
     the Note Trustee shall from time to time have delegated the exercise of
     the power of attorney conferred by this Power of Attorney (each a
     "Delegate") and any receiver including any administrative receiver and
     any manager (the "Receiver") and/or administrator (the "Administrator")
     appointed from time to time by the Attorney or on its behalf its true and
     lawful attorney for and in the Principal's name or otherwise jointly and
     severally to sign, seal, execute, deliver, perfect and do any assurance,
     act, matter or thing which the Attorney, Delegate, Receiver or
     Administrator considers in each case to be necessary for the protection
     or preservation of the Attorney's and the Current Issuer Secured
     Creditors' interests and rights (as described in the Current Issuer Deed
     of Charge) in and to the Current Issuer Charged Property or which ought
     to be done by the Principal under the covenants, undertakings and
     provisions contained in the Current Issuer Deed of Charge and the other
     Current Issuer Transaction Documents to which the Principal is a party
     from time to time and generally to in its name and on its behalf to
     exercise all or any of the powers, authorities or discretions conferred
     by or pursuant to the Current Issuer Deed of Charge on the Note Trustee
     and/or any Receiver whether on or at any time after the security has
     become enforceable in accordance with Clause 7.2 (Enforceable) of the
     Current Issuer Deed of Charge or in any other circumstances where the
     Attorney has become entitled to take any of the

                                      42
<PAGE>

     steps referred to in the Current Issuer Deed of Charge including (without
     limitation) any or all of the following:

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Current Issuer Charged Property and/or fully
          and effectively vesting, transferring or assigning the Current
          Issuer Charged Property or any part thereof and/or the Principal's
          estate, right, title, benefit and/or interest therein or thereto in
          or to the Attorney and its successors in title or other person or
          persons entitled to the benefit thereof or for carrying into effect
          any other dealing with the Current Issuer Charged Property
          whatsoever permitted under the Current Issuer Deed of Charge in the
          same manner and as fully and effectively as the Principal could have
          done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Current Issuer Deed of
          Charge) from time to time to appoint a substitute attorney (each a
          "Substitute") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney
          by this Power of Attorney and/or to revoke any such appointment at
          any time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or
     Administrator and/or Substitute, or a person dealing with any of them and
     the successors and assigns of such a person, all acts properly done and
     documents executed or signed by the Attorney, a Delegate, a Receiver, an
     Administrator or a Substitute in the purported exercise of any power
     conferred by this Power of Attorney shall for all purposes be valid and
     binding on the Principal and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or
     Substitute appointed from time to time by the Attorney and their
     respective estates (each an "Indemnified Party") against all actions,
     proceedings, claims, costs, expenses and liabilities of every description
     arising from the exercise, or the purported exercise, of any of the
     powers conferred by this Power of Attorney, save where the same arises as
     the result of the fraud, negligence or wilful default of the relevant
     Indemnified Party or its officers or employees.

4.   The provisions of Clause 3 (Current Issuer Security) of the Current
     Issuer Deed of Charge shall continue in force after the revocation or
     termination, howsoever arising, of this Power of Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and
     the interpretation thereof and to all acts of the Attorney and each
     Delegate, Receiver and/or Administrator and/or Substitute carried out or
     purported to be carried out under the terms hereof except that in
     relation to any action taken by the Attorney, each Delegate, Receiver
     and/or Administrator/and or Substitute in respect of the Jersey Security
     Interests or the Current Issuer Jersey Secured Property, the laws of
     Jersey shall apply.

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any
     Delegate, Receiver or Administrator

                                      43
<PAGE>

     or Substitute shall properly and lawfully do or cause to be done in and
     concerning the Current Issuer Charged Property.

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

EXECUTED AS A DEED by          )

GRANITE MORTGAGES 04-2 PLC     )

acting by:                     )

Director

Name:

Title:

Director/Secretary

Name:

Title:

                                      44
<PAGE>

                                  SCHEDULE 2

             CURRENT ISSUER POST-ENFORCEMENT PRIORITY OF PAYMENTS

Following enforcement of the Current Issuer Security, on each Payment Date the
Note Trustee (or the Current Issuer Cash Manager on its behalf) will apply
amounts received or recovered as follows:

     (A)  first, to pay amounts due to the Note Trustee (and any Receiver
          appointed by the Note Trustee) together with interest and (if
          necessary) VAT on those amounts and to provide for any amounts then
          due or to become due and payable to the Note Trustee and the
          Receiver under the provisions of the Current Issuer Trust Deed, the
          Current Issuer Deed of Charge and any other Transaction Document;

     (B)  second, to pay, in no order of priority among them but in proportion
          to the respective amounts due, the Agent Bank, the Paying Agents,
          the Transfer Agent and the Registrar, together with interest and (if
          necessary) VAT on those amounts and to provide for any costs,
          charges, liabilities and expenses then due or to become due and
          payable to them under the provisions of the Current Issuer Paying
          Agent and Agent Bank Agreement;

     (C)  third, in no order of priority among them but in proportion to the
          respective amounts due, towards payment of amounts (together with
          (if necessary) VAT on those amounts) due and payable to the Current
          Issuer Cash Manager under the Current Issuer Cash Management
          Agreement and to the Corporate Services Provider under the Current
          Issuer Corporate Services Agreement and to the Account Bank under
          the Current Issuer Bank Account Agreement;

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

          (i)  amounts (including such part of any termination payment) due to
               the Basis Rate Swap Provider (except for any termination
               payment or any part thereof due and payable to the Basis Rate
               Swap Provider as a result of a Basis Rate Swap Provider Default
               by that Basis Rate Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Basis Rate Swap and applied
               in accordance with this order of priority of payments);

          (ii) amounts (including such part of any termination payment) due to
               the Series 1 Class A1 Dollar Currency Swap Provider under the
               Series 1 Class A1 Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a

                                      45
<PAGE>

               Downgrade Termination Event in respect of the Series 1 Class A1
               Dollar Currency Swap and applied in accordance with this order
               of priority of payments) and from amounts received from the
               Series 1 Class A1 Dollar Currency Swap Provider to pay interest
               due or overdue and to repay principal on the Series 1 Class A1
               Notes until the Series 1 Class A1 Notes have been repaid in
               full;

         (iii) amounts (including such part of any termination payment) due
               to the Series 1 Class A2 Dollar Currency Swap Provider under
               the Series 1 Class A2 Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class A2 Dollar
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               1 Class A2 Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class A2 Notes
               until the Series 1 Class A2 Notes have been repaid in full;

          (iv) amounts (including such part of any termination payment) due to
               the Series 2 Class A1 Euro Currency Swap Provider under the
               Series 2 Class A1 Euro Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Euro Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class A1 Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class A1 Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class A1 Notes
               until the Series 2 Class A1 Notes have been repaid in full;

          (v)  interest due or overdue and to repay principal of the Series 2
               Class A2 Notes until the Series 2 Class A2 Notes have been
               repaid in full; and

          (vi) interest due or overdue and to repay principal of the Series 3
               Class A Notes until the Series 3 Class A Notes have been repaid
               in full;

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

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class B Dollar Currency Swap Provider under the
               Series 1 Class B Dollar Currency Swap (except for any
               termination payment due or any part thereof and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a

                                      46
<PAGE>

               Downgrade Termination Event in respect of the Series 1 Class B
               Dollar Currency Swap and applied in accordance with this order
               of priority of payments) and from amounts received from the
               Series 1 Class B Dollar Currency Swap Provider to pay interest
               due or overdue and to repay principal on the Series 1 Class B
               Notes until the Series 1 Class B Notes have been repaid in
               full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class B Euro Currency Swap Provider under the
               Series 2 Class B Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default
               by that Swap Provider save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class B Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class B Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class B Notes
               until the Series 2 Class B Notes have been repaid in full; and

         (iii) interest due or overdue and to repay principal of the Series 3
               Class B Notes until the Series 3 Class B Notes have been repaid
               in full;

     (F)  sixth, in no order of priority among them but in proportion to the
          respective amounts due, to pay:

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class M Dollar Currency Swap Provider under the
               Series 1 Class M Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider, save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class M Dollar
               Currency Swap and applied in accordance with this order of
               priority of payment) and from amounts received from the Series
               1 Class M Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class M Notes
               until the Series 1 Class M Notes have been repaid in full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class M Euro Currency Swap Provider under the
               Series 2 Class M Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider default
               by that Swap Provider, save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class M Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class M Euro

                                      47
<PAGE>

               Currency Swap Provider to pay interest due or overdue and to
               repay principal of the Series 2 Class M Notes until the Series
               2 Class M Notes have been repaid in full; and

         (iii) interest due or overdue and to repay principal of the Series 3
               Class M Notes until the Series 3 Class M Notes have been repaid
               in full;

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

          (i)  amounts (including such part of any termination payment) due to
               the Series 1 Class C Dollar Currency Swap Provider under the
               Series 1 Class C Dollar Currency Swap (except for any
               termination payment or any part thereof due and payable to that
               Swap Provider as a result of a Dollar Currency Swap Provider
               Default by that Swap Provider save to the extent such
               termination payment may be satisfied by any Swap Replacement
               Payment received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 1 Class C Dollar
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               1 Class C Dollar Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 1 Class C Notes
               until the Series 1 Class C Notes have been repaid in full;

          (ii) amounts (including such part of any termination payment) due to
               the Series 2 Class C Euro Currency Swap Provider under the
               Series 2 Class C Euro Currency Swap (except for any termination
               payment or any part thereof due and payable to that Swap
               Provider as a result of a Euro Currency Swap Provider Default
               by that Swap Provider save to the extent such termination
               payment may be satisfied by any Swap Replacement Payment
               received by the Current Issuer following a Downgrade
               Termination Event in respect of the Series 2 Class C Euro
               Currency Swap and applied in accordance with this order of
               priority of payments) and from amounts received from the Series
               2 Class C Euro Currency Swap Provider to pay interest due or
               overdue and to repay principal on the Series 2 Class C Notes
               until the Series 2 Class C Notes have been repaid in full; and

         (iii) to pay interest due or overdue and to repay principal on the
               Series 3 Class C Notes until the Series 3 Class C Notes have
               been repaid in full;

     (H)  eighth, on the Payment Date falling in December of each year, to pay
          to the Current Issuer Account Bank an amount equal to the amount of
          any debit balance in any Current Issuer Transaction Account as
          permitted by the Current Issuer Account Bank and outstanding as at
          such Payment Date; and

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

          (i)  the Basis Rate Swap Provider following a Basis Rate Swap
               Provider Default by the Basis Rate Swap Provider;

                                      48
<PAGE>

          (ii) the Dollar Currency Swap Provider following a Dollar Currency
               Swap Provider Default by the Dollar Currency Swap Provider;

         (iii) the Euro Currency Swap Provider following a Euro Currency Swap
               Provider Default by the Euro Currency Swap Provider; and

     (J)  last, to pay any amount remaining following the application of
          principal and revenue set forth in paragraphs (A) through (I) above,
          to the Current Issuer.

     Following enforcement of the Current Issuer Security, if, on any Payment
     Date, an amount equal to the cash benefit relating to any Tax Credit
     obtained by the Current Issuer is required to be paid to any Current
     Issuer Swap Provider (in accordance with Part 5(o) of the Schedule to the
     relevant Current Issuer Swap Agreement), then the Note Trustee shall make
     such payment on such Payment Date out of amounts received or recovered in
     priority to the payments and provisions to be made on such Payment Date
     in accordance with the Current Issuer Post-Enforcement Priority of
     Payments. The amount of any such cash benefit paid to the relevant
     Current Issuer Swap Provider in accordance with this paragraph shall, to
     avoid double counting, be deducted from the amount to be paid to that
     Current Issuer Swap Provider under the relevant Current Issuer Swap
     Agreement in accordance with the Current Issuer Post-Enforcement Priority
     of Payments on the relevant Payment Date.

                                      49
<PAGE>

                                  SCHEDULE 3

                         FORM OF NOTICE OF ASSIGNMENT

To:  [Addressee(s)]

Granite Mortgages 04-2 plc - Assignment of rights under Current Issuer
Transaction Documents

                                                                          [o]

Dear Sirs,

Terms and expressions used in this letter are as defined in a deed of charge
(the "Current Issuer Deed of Charge") between Granite Mortgages 04-2 plc (the
"Current Issuer"), The Bank of New York (the "Note Trustee") and others dated
[o].

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Current Issuer Deed of Charge, the Current Issuer has
assigned absolutely, by way of security for the payment and performance of
certain obligations of the Current Issuer described in the Current Issuer Deed
of Charge (the "Current Issuer Secured Obligations"), to the Note Trustee all
its right, title, benefit and interest under the [Agreement(s)] (the "Current
Issuer Transaction Documents") [including its right, title interest and
benefit in relation to [describe property] and including, without limitation,
all rights to receive payment of any amounts which may become payable to the
Current Issuer thereunder, all payments received by the Current Issuer
thereunder, all rights to serve notices and/or make demands thereunder and/or
to take such steps as are required to cause payments to become due and payable
thereunder and all rights of action in respect of any breach thereof and all
rights to receive damages or obtain relief in respect thereof and the proceeds
of any of the foregoing, (hereinafter called "Relevant Current Issuer
Property").

In relation to any of the Relevant Current Issuer Property which may be
situated in Jersey at any time, we hereby give notice for the purpose of the
Security Interests (Jersey) Law 1983 to each addressee of this letter that
with the intention of creating a security interest in accordance with such law
in such property in favour of the Note Trustee for the payment and performance
of the Current Issuer Secured Obligations, the Current Issuer has assigned all
of its rights, title, benefit and interest, present and future, in, to and
under the Relevant Current Issuer Property to the Note Trustee.

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (a)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to the Current Issuer under
          the aforesaid agreements to or to the order of the Note Trustee; and

     (b)  you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Current Issuer Property.

                                      50
<PAGE>

Notwithstanding the assignments made by the Current Issuer and referred to in
this notice, the Note Trustee hereby confirms and you further acknowledge
that:

     (a)  you may continue to make all payments becoming due to the Current
          Issuer in respect of the Relevant Current Issuer Property in the
          manner envisaged by the relevant Current Issuer Transaction
          Document(s); and

     (b)  the Current Issuer shall be entitled to exercise its rights, powers
          and discretions and perform its obligations in relation to the
          Relevant Current Issuer Property and under the Current Issuer
          Transaction Documents in accordance with the provisions of the
          Current Issuer Transaction Documents,

but only until such time as you receive notice from the Note Trustee to the
contrary or to the effect that the security created under the Current Issuer
Deed of Charge has become enforceable, in which event from receipt of such
notice you agree that you will pay all monies becoming due and payable to the
Current Issuer in respect of the Relevant Current Issuer Property in
accordance with any instructions received from the Note Trustee.

This letter is governed by, and shall be construed in accordance with, English
law, except that to the extent of any Relevant Current Issuer Property which
may be situated in Jersey at any time, it is governed by and shall be
construed in accordance with the laws of Jersey.

Please acknowledge receipt of this notice by executing and returning the copy
of this letter attached hereto.

Yours faithfully,

EXECUTED for and on behalf of  )

GRANITE MORTGAGES 04-2 PLC     )

by:                            )

Authorised Signatory

Name:

Title:

                                      51
<PAGE>

EXECUTED for and on behalf of  )

THE BANK OF NEW YORK           )

by:                            )

Authorised Signatory

Name:

Title:

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Current Issuer Property.

In respect of the [Agreement]:

For and on behalf of                           )

[Party to Current Issuer Transaction Document] )

by:                                            )

Authorised Signatory

Name:

Title:

                                      52

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]