Document:

Exhibit 4.6

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                   [____________] OWNER TRUST 200[__]-[__]

                       CLASS A-1 [__]% ASSET BACKED NOTES

                       CLASS A-2 [__]% ASSET BACKED NOTES

                       CLASS A-3 [__]% ASSET BACKED NOTES

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

                                FORM OF INDENTURE

                         Dated as of [________], 200[__]

                           [NAME OF INDENTURE TRUSTEE]

                                Indenture Trustee

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<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1    Definitions...................................................2
Section 1.2    Incorporation by Reference of Trust Indenture Act............10
Section 1.3    Rules of Construction........................................10

                                   ARTICLE II

                                    THE NOTES

Section 2.1    Form.........................................................10
Section 2.2    Execution, Authentication and Delivery.......................11
Section 2.3    Temporary Notes..............................................11
Section 2.4    Registration; Registration of Transfer and Exchange..........12
Section 2.5    Mutilated, Destroyed, Lost or Stolen Notes...................13
Section 2.6    Persons Deemed Owner.........................................14
Section 2.7    Payment of Principal and Interest; Defaulted Interest........14
Section 2.8    Cancellation.................................................15
Section 2.9    Release of Collateral........................................15
Section 2.10   Book-Entry Notes.............................................15
Section 2.11   Notices to Clearing Agency...................................16
Section 2.12   Definitive Notes.............................................16

                                   ARTICLE III

                                    COVENANTS

Section 3.1    Payment of Principal and Interest............................17
Section 3.2    Maintenance of Office or Agency..............................17
Section 3.3    Money for Payments to Be Held in Trust.......................17
Section 3.4    Existence....................................................19
Section 3.5    Protection of Trust Fund.....................................19
Section 3.6    Opinions as to Trust Fund....................................20
Section 3.7    Performance of Obligations; Servicing of Receivables.........20
Section 3.8    Negative Covenants...........................................22
Section 3.9    Annual Statement as to Compliance............................23
Section 3.10   Issuer May Consolidate, Etc..................................23
Section 3.11   Successor or Transferee......................................25
Section 3.12   No Other Business............................................25

                                       -i-
<PAGE>

Section 3.13   No Borrowing.................................................25
Section 3.14   Servicer's Obligations.......................................25
Section 3.15   Guarantees, Loans, Advances and Other Liabilities............25
Section 3.16   Capital Expenditures.........................................26
Section 3.17   Compliance With Laws.........................................26
Section 3.18   Restricted Payments..........................................26
Section 3.19   Notice of Events of Default..................................26
Section 3.20   Further Instruments and Acts.................................26
Section 3.21   Amendments of Sale and Servicing Agreement and Trust
               Agreement....................................................26
Section 3.22   Income Tax Characterization..................................27

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

Section 4.1    Satisfaction and Discharge of Indenture......................27
Section 4.2    Application of Trust Money...................................28
Section 4.3    Repayment of Moneys Held by Paying Agent.....................28

                                    ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

Section 5.1    Events of Default............................................28
Section 5.2    Rights Upon Event of Default.................................30
Section 5.3    Collection of Indebtedness and Suits for Enforcement by
               Indenture Trustee............................................31
Section 5.4    Remedies.....................................................33
Section 5.5    Optional Preservation of the Trust Fund......................34
Section 5.6    Priorities...................................................35
Section 5.7    Limitation of Suits..........................................35
Section 5.8    Unconditional Rights of Noteholders to Receive Principal
               and Interest.................................................36
Section 5.9    Restoration of Rights and Remedies...........................36
Section 5.10   Rights and Remedies Cumulative...............................36
Section 5.11   Delay or Omission not a Waiver...............................37
Section 5.12   Control by Noteholders.......................................37
Section 5.13   Waiver of Past Defaults......................................37
Section 5.14   Undertaking for Costs........................................38
Section 5.15   Waiver of Stay or Extension Laws.............................38
Section 5.16   Action on Notes..............................................38
Section 5.17   Performance and Enforcement of Certain Obligations...........38
Section 5.18   Claims Under Policy..........................................39
Section 5.19   Preference Claims............................................40

                                      -ii-
<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

Section 6.1    Duties of Indenture Trustee..................................41
Section 6.2    Rights of Indenture Trustee..................................43
Section 6.3    Individual Rights of Indenture Trustee.......................44
Section 6.4    Indenture Trustee's Disclaimer...............................44
Section 6.5    Notice of Defaults...........................................44
Section 6.6    Reports by Indenture Trustee to Holders......................44
Section 6.7    Compensation and Indemnity...................................44
Section 6.8    Replacement of Indenture Trustee.............................45
Section 6.9    Successor Indenture Trustee by Merger........................47
Section 6.10   Appointment of Co-Indenture Trustee or Separate
               Indenture Trustee............................................47
Section 6.11   Eligibility; Disqualification................................48
Section 6.12   Preferential Collection of Claims Against Issuer.............49
Section 6.13   Appointment and Powers.......................................49
Section 6.14   Performance of Duties........................................49
Section 6.15   Limitation on Liability......................................49
Section 6.16   Reliance Upon Documents......................................50
Section 6.17   [RESERVED]...................................................50
Section 6.18   [RESERVED]...................................................50
Section 6.19   Representations and Warranties of the Indenture Trustee......50
Section 6.20   Waiver of Setoffs............................................51
Section 6.21   Control by the Controlling Party.............................51

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

Section 7.1    Issuer to Furnish to Indenture Trustee Names and
               Addresses of Noteholders.....................................51
Section 7.2    Preservation of Information; Communications to
               Noteholders..................................................51
Section 7.3    Reports by Issuer............................................52
Section 7.4    Reports by Indenture Trustee.................................52
Section 7.5    Fiscal Year..................................................52

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.1    Collection of Money..........................................52
Section 8.2    Trust Accounts...............................................53
Section 8.3    General Provisions Regarding Accounts........................53
Section 8.4    Release of Trust Fund........................................54
Section 8.5    Opinion of Counsel...........................................54

                                      -iii-
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

Section 9.1    Supplemental Indentures......................................55
Section 9.2    Supplemental Indentures with Consent of Noteholders..........56
Section 9.3    Execution of Supplemental Indentures.........................57
Section 9.4    Effect of Supplemental Indenture.............................57
Section 9.5    Conformity with Trust Indenture Act..........................58
Section 9.6    Reference in Notes to Supplemental Indentures................58

                                    ARTICLE X

                               REDEMPTION OF NOTES

Section 10.1   Redemption...................................................58
Section 10.2   Form of Redemption Notice....................................59
Section 10.3   Notes Payable on Redemption Date.............................59

                                   ARTICLE XI

                                  MISCELLANEOUS

Section 11.1   Compliance Certificates and Opinions, Etc....................60
Section 11.2   Form of Documents Delivered to Indenture Trustee.............61
Section 11.3   Acts of Noteholders..........................................62
Section 11.4   Notices, Etc., to Indenture Trustee, Issuer, Insurer and
               Rating Agencies..............................................63
Section 11.5   Notices to Noteholders; Waiver...............................64
Section 11.6   Alternate Payment and Notice Provisions......................64
Section 11.7   Conflict with Trust Indenture Act............................64
Section 11.8   Effect of Headings and Table of Contents.....................65
Section 11.9   Successors and Assigns.......................................65
Section 11.10  Separability.................................................65
Section 11.11  Benefits of Indenture........................................65
Section 11.12  Legal Holidays...............................................65
Section 11.13  Governing Law................................................65
Section 11.14  Counterparts.................................................65
Section 11.15  Recording of Indenture.......................................65
Section 11.16  Trust Obligation.............................................66
Section 11.17  No Petition..................................................66
Section 11.18  Inspection...................................................67
Exhibit A   -   Schedule of Receivables
Exhibit B-1 -   Form of Class A-1 Note
Exhibit B-2 -   Form of Class A-2 Note
Exhibit B-3 -   Form of Class A-3 Note

                                      -iv-
<PAGE>

                              CROSS-REFERENCE TABLE

TIA INDENTURE                                                            SECTION
-------------                                                            -------

310(a)(1)      ...........................................................6.11
   (a)(2)      ...........................................................6.11
   (a)(3)      .....................................................6.10; 6.11
   (a)(4)      ...........................................................N.A.
   (a)(5)      ...........................................................6.11
   (b)         ......................................................6.8; 6.11
   (c)         ...........................................................N.A.
311(a)         ...........................................................6.12
   (b)         ...........................................................6.12
   (c)         ............................................................N.A
312(a)         ............................................................7.1
   (b)         ............................................................7.2
   (c)         ............................................................7.2
313(a)         ............................................................7.4
   (b)(1)      ............................................................7.4
   (b)(2)      ............................................................7.4
   (c)         ...........................................................11.5
   (d)         ............................................................7.3
314(a)         .......................................................3.9; 7.3
   (b)         ..........................................................11.15
   (c)(1)      ...........................................................11.1
   (c)(2)      ...........................................................11.1
   (c)(3)      ...........................................................11.1
   (d)         ......................................................1.1; 11.1
   (e)         ...........................................................11.1
   (f)         ............................................................6.1
315(a)         ............................................................6.1
   (b)         ......................................................6.5; 11.5
   (c)         ............................................................6.1
   (d)         ............................................................6.1
   (e)         ...........................................................5.14
316(last sentence).........................................................1.1
   (a)(1)(A)   ...........................................................5.12
   (a)(1)(B)   ...........................................................5.13
   (a)(2)      ...........................................................N.A.
   (b)         .......................................................5.7; 5.8
   (c)         ...........................................................N.A.
317(a)(1)      ............................................................5.3
   (a)(2)      ............................................................5.3
   (b)         ............................................................5.3

                                       -v-
<PAGE>

318(a)         ...........................................................11.7
   (b)         ...........................................................N.A.
   (c)         ...........................................................11.7

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

1. Note: This Cross Reference Table shall not, for any purpose, be deemed to be
   part of this Indenture.

2. N.A. means Not Applicable.

                                      -vi-
<PAGE>

            INDENTURE dated as of [_______], [__], 200[__], between
[____________] OWNER TRUST 200[__]-[__], a Delaware business trust (the
"Issuer") and [Name of Indenture Trustee], a [Name of State] [National] banking
association, as trustee (the "Indenture Trustee").

            Each party agrees as follows for the benefit of the other party and
for the equal and ratable benefit of the Holders of the Issuer's Class A-1
[___]% Asset Backed Notes, Class A-2 [___]% Asset Backed Notes and the Class A-3
[___]% Asset Backed Notes:

            As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Collateral (as defined below) as collateral to the Indenture Trustee on
behalf of the Noteholders.

            [_________], a [_________] financial guaranty insurance company (the
"Insurer"), has issued and delivered a financial guaranty insurance policy,
dated the Closing Date (with endorsements, the "Policy"), pursuant to which the
Insurer guarantees Scheduled Payments, as defined in the Policy.

            As an inducement to the Insurer to issue and deliver the Policy, the
Issuer and the Insurer have executed and delivered the Insurance and Indemnity
Agreement, dated as of [__________] [__], 2000 (as amended from time to time,
the "Insurance Agreement"), among the Insurer, the Issuer, the Transferor and
[__________].

            As an additional inducement to the Insurer to issue the Policy, and
as security for the performance by the Issuer of the Insurer Secured Obligations
and as security for the performance by the Issuer of the Indenture Trustee
Secured Obligations, the Issuer has agreed to assign the Collateral (as defined
below) as collateral to the Indenture Trustee for the benefit of the Issuer
Secured Parties, as their respective interests may appear.

                                 GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee on the Closing
Date, for the benefit of the Issuer Secured Parties to secure the Issuer Secured
Obligations, all of the Issuer's right, title and interest in and to all
accounts, money, chattel paper, securities, instruments, documents, deposit
accounts, certificates of deposit, letters of credit, advices of credit,
banker's acceptances, general intangibles, contract rights, investment property,
goods and other property consisting of, arising from or relating to (a) the
Initial Receivables, and all moneys due thereon after the Initial Cutoff Date;
(b) the Subsequent Receivables and all moneys due thereon or in respect thereof
after the related Subsequent Cutoff Date; (c) an assignment of the security
interests in the Financed Vehicles granted by Obligors pursuant to the Initial
Receivables and any Subsequent Receivables and any other interest of the Issuer
in the Financed Vehicles; (d) any proceeds with respect to the Initial
Receivables and the Subsequent Receivables repurchased pursuant to the terms of
the Sale and Servicing Agreement; (e) all rights under any Service Contracts on
the related Financed Vehicles; (f) any proceeds with respect to the Initial
Receivables and the Subsequent Receivables from claims on any physical damage,
theft, credit life or disability insurance policies covering Financed Vehicles
or Obligors and any proceeds from liquidation of any Initial Receivable or
Subsequent Receivable and Net Liquidation Proceeds with respect to the Initial
Receivables and any Subsequent Receivable; (g) all funds on

<PAGE>

deposit or other property from time to time in the Trust Accounts, and in all
investments and proceeds thereof and all rights of the Issuer therein (including
all income dividends, earnings, profits or other distributions of cash or other
property thereon); (h) the Issuer's rights and benefits, but none of its
obligations or burdens, under the Sale and Servicing Agreement and each
Subsequent Transfer Agreement, including the delivery requirements,
representations and warranties and the cure and repurchase obligations of
[__________] and [__________] under the Sale and Servicing Agreement and each
Subsequent Transfer Agreement; (i) all items contained in the Receivables Files,
computer tapes or disk drives, and any and all other documents that [__________]
keeps on file in accordance with its customary procedures relating to the
Receivables, the Obligors or the Financed Vehicles, and (j) all present and
future claims, demands, causes and chooses in action in respect of any or all of
the foregoing and all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion, voluntary or involuntary, into cash or other liquid
property, all proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Collateral").

            The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, and all amounts owing hereunder equally and ratably without prejudice,
priority or distinction except as set forth herein, and to secure compliance
with the provisions of this Indenture, all as provided in this Indenture.

            The Indenture Trustee on behalf of the Holders of the Notes, and for
the benefit of the Insurer acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture in accordance with the terms
hereof.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

            Section 1.1 Definitions. Except as otherwise specified herein, the
following terms have the respective meanings set forth below for all purposes of
this Indenture.

            "Act" has the meaning specified in Section 11.3(a).

            "Authorized Officer" means, with respect to the Issuer and the
Servicer, any officer of the Owner Trustee or the Servicer, as applicable, who
is authorized to act for the Owner Trustee or the Servicer, as applicable, in
matters relating to the Issuer or the Servicer and who is identified on the list
of Authorized Officers delivered by the Servicer to the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time
thereafter) or, in the case of the Owner Trustee, a Responsible Officer of the
Owner Trustee.

                                      -2-
<PAGE>

            "Book Entry Notes" means a beneficial interest in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.10.

            "Class A-1 Interest Rate" means [_____]%.

            "Class A-2 Interest Rate" means [_____]%.

            "Class A-3 Interest Rate" means [_____]%.

            "Class A-1  Notes" means the Class A-1 Notes,  substantially
in the form of Exhibit B-1.

            "Class A-2  Notes" means the Class A-2 Notes,  substantially
in the form of Exhibit B-2.

            "Class A-3  Notes" means the Class A-3 Notes,  substantially
in the form of Exhibit B-3.

            "Clearing  Agency"  means an  organization  registered  as a
"clearing agency" pursuant to Section 17A of the Exchange Act.

            "Clearing Agency Participant" means a broker, dealer, bank,
other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities deposited
with the Clearing Agency.

            "Code" means the Internal  Revenue Code of 1986,  as amended
from time to time, and Treasury Regulations promulgated thereunder.

            "Collateral"  has  the  meaning  specified  in the  Granting
Clause of this Indenture.

            "Corporate Trust Office" means the principal office of the
Indenture Trustee at which at any particular time its corporate trust business
shall be administered which office at date of the execution of this Agreement is
located at [______], [______], [______], [______], Attention: Corporate Trust
Department or at such other address as the Indenture Trustee may designate from
time to time by notice to the Noteholders, the Insurer, the Servicer and the
Issuer, or the principal corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the
Noteholders and the Issuer).

            "Default"  means any  occurrence  that is, or with notice or
the lapse of time or both would become, an Event of Default.

            "Definitive Notes" has the meaning specified in Section 2.10.

            "Event of Default" has the meaning specified in Section 5.1.

            "Exchange  Act" means the  Securities  Exchange Act of 1934,
as amended.

                                      -3-
<PAGE>

            "Executive Officer" means, with respect to any corporation or
limited liability company, the Chief Executive Officer, Chief Operating Officer,
Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation or limited
liability company; with respect to any partnership, any general partner thereof,
and with respect to any limited liability company, any Manager.

            "Grant" means mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, grant a lien upon
or a security interest in or right of set-off against, deposit, or set over and
confirm pursuant to this Indenture. A Grant of the Collateral or of any other
agreement or instrument shall include all rights, powers and options (but none
of the obligations) of the Granting party thereunder, including the immediate
and continuing right to claim for, collect, receive and give receipt for
principal and interest payments in respect of the Collateral and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the Granting party or otherwise and generally
to do and receive anything that the Granting party is or may be entitled to do
or receive thereunder or with respect thereto.

            "Holder"  or  "Noteholder"  means the Person in whose name a
Note is registered on the Note Register.

            "Indebtedness" means, with respect to any Person at any time,
(a) indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (b)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (c) current liabilities of such Person in respect of unfunded
vested benefits under plans covered by Title IV of ERISA; (d) obligations issued
for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

            "Indenture" means this Indenture as amended and supplemented from
time to time.

            "Indenture   Trustee"  means   [____________]   not  in  its
individual  capacity but as trustee  under this  Indenture,  or any  successor
Indenture Trustee under this Indenture.

            "Indenture Trustee Secured Obligations" means all amounts and
obligations which the Issuer may at any time owe to the Indenture Trustee in its
individual capacity and the Noteholders under this Indenture or the Notes.

                                      -4-
<PAGE>

            "Independent" means, when used with respect to any specified
Person, that the person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the Seller and any Affiliate of any of the foregoing
persons, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller or
any Affiliate of any of the foregoing Persons and (c) is not connected with the
Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or Person performing similar functions.

            "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1, prepared
by an Independent appraiser or other expert appointed by an Issuer Order and
approved by the Indenture Trustee in the exercise of reasonable care, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

            "Insurance   Agreement  Indenture  Cross  Default"  has  the
meaning assigned to such term in the Insurance Agreement.

            "Insurer  Default" has the meaning  assigned to such term in
the Insurance Agreement.

            "Insurer Secured Obligations" means all amounts and
obligations which the Issuer may at any time owe to or on behalf of the Insurer
under this Indenture, the Insurance Agreement or any other Basic Document.

            "Interest Rate" means with respect to the (i) Class A-1 Notes,
the Class A-1 Interest Rate, (ii) Class A-2 Notes, the Class A-2 Interest Rate,
and (iii) Class A-3 Notes, the Class A-3 Interest Rate.

            "Issuer" means the party named as such in this Indenture until
a successor replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein and required by the TIA, each other obligor on
the Notes.

            "Issuer Order" and "Issuer Request" means a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Indenture Trustee.

            "Issuer  Secured  Obligations"  means  the  Insurer  Secured
Obligations and the Indenture Trustee Secured Obligations.

            "Issuer Secured Parties" means each of (i) the Indenture
Trustee in respect of the Indenture Trustee Secured Obligations and (ii) the
Insurer in respect of the Insurer Secured Obligations.

            "Note" means any of the Class A-1 Notes,  Class A-2 Notes or
Class A-3  Notes  substantially  in the form of  Exhibit B-1,  Exhibit B-2 and
Exhibit B-3, respectively.

                                      -5-
<PAGE>

            "Note Depository Agreement" means the agreement among the
Issuer, the Indenture Trustee, the Servicer and The Depository Trust Company, as
the initial Clearing Agency, dated [________] [__], 200[__], substantially in
the form of Exhibit C.

            "Note  Majority"  means the  Holders of Notes  evidencing  a
majority of the Outstanding Amount of the Notes.

            "Note Owner" means, with respect to a Book-Entry Note, the
person who is the owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant), in each case in accordance with the rules of such
Clearing Agency.

            "Note  Register" and "Note  Registrar"  have the  respective
meanings specified in Section 2.4.

            "Notice of Claim" has the meaning specified in Section 5.18.

            "Officer's  Certificate"  means a certificate  signed by any
Authorized  Officer of the Owner Trustee,  under the  circumstances  described
in, and otherwise complying with, the applicable  requirements of Section 11.1
and  TIA  Section 314,   and  delivered  to  the  Indenture  Trustee.   Unless
otherwise  specified,   any  reference  in  this  Indenture  to  an  Officer's
Certificate shall be to an Officer's  Certificate of any Authorized Officer of
the Issuer.

            "Opinion Of Counsel" means one or more written opinions of
counsel who may, except as otherwise expressly provided in this Indenture, be
employees of or counsel to the Issuer, the Seller or the Servicer and who shall
be satisfactory to the Indenture Trustee and, if addressed to the Insurer,
satisfactory to the Insurer, and which shall comply with any applicable
requirements of Section 11.1, and shall be in form and substance satisfactory to
the Indenture Trustee, and if addressed to the Insurer, satisfactory to the
Insurer.

            "Outstanding"  means, as of the date of  determination,  all
Notes theretofore authenticated and delivered under this Indenture except:

                  (i) Notes theretofore canceled by the Note Registrar or
            delivered the Note Registrar for cancellation;

                  (ii) Notes or portions thereof the payment for which money in
            the amount has been theretofore deposited with the Indenture Trustee
            or Paying Agent in trust for the Holders of such Notes (provided,
            however, that if such Notes are to be redeemed, notice of such has
            been duly given pursuant to this Indenture or provision,
            satisfactory to the Indenture Trustee); and

                  (iii) Notes in exchange for or in lieu of other Notes which
            have authenticated and delivered pursuant to this Indenture unless
            evidence satisfactory to the Indenture Trustee is presented that any
            such Notes are by a bona fide purchaser;

                                      -6-
<PAGE>

            provided, however, that Notes which have been paid with proceeds of
the Policy shall continue to remain Outstanding for purposes of this Indenture
until the Insurer has been paid as subrogee hereunder or reimbursed pursuant to
the Insurance Agreement as evidenced by a written notice from the Insurer
delivered to the Indenture Trustee, and the Insurer shall be deemed to be the
Holder thereof to the extent of any payments thereon made by the Insurer;
provided, further, that in determining whether the Holders of the requisite
Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any Basic Document,
Notes owned by the Issuer, any other obligor on the Notes, the Seller, the
Servicer, or any Affiliate of any of the foregoing Persons shall be disregarded
and deemed not to be Outstanding, except that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that a
Responsible Officer of the Indenture Trustee either actually knows to be so
owned or has received written notice thereof shall be so disregarded. Notes so
owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Indenture Trustee the pledgee's
right so to act with respect to such Notes and that the pledgee is not the
Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of
the foregoing Persons.

            "Outstanding  Amount" means the aggregate  principal  amount
of all  Notes or class of Notes,  as  applicable,  Outstanding  at the date of
determination.

            "Paying Agent" means the Indenture Trustee or any other Person
that meets the eligibility standards for the Indenture Trustee specified in
Section 6.11 and is authorized by the Issuer to make the payments to and
distributions from the Collection Account and the Note Distribution Account,
including payment of principal of or interest on the Notes on behalf of the
Issuer.

            "Policy" means the financial guaranty insurance policy issued
by the Insurer with respect to the Notes, including any endorsements thereto, in
the form of Annex I to the Insurance Agreement.

            "Predecessor Note" means, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any
Note authenticated and delivered under Section 2.5 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

            "Preference Claim" has the meaning specified in Section 5.19.

            "Proceeding"  means  any suit in  equity,  action  at law or
other judicial or administrative proceeding.

            "Record Date" means, with respect to a Payment Date or
Redemption Date, the close of business on the Business Day preceding such
Payment Date or Redemption Date.

            "Redemption Date" means in the case of a redemption of the
Notes pursuant to Section 10.1(a) or a payment to Noteholders pursuant to
Section 10.1(b), the Payment Dates specified by the Servicer or the Issuer
pursuant to Section 10.1(a) or (b) as applicable.

                                      -7-
<PAGE>

            "Redemption Price" means (a) in the case of a redemption of
the Notes pursuant to Section 10.1(a), an amount equal to the unpaid principal
amount of the then Outstanding Amount of each class of Notes being redeemed plus
accrued and unpaid interest thereon to but excluding the Redemption Date, or (b)
in the case of a payment made to Noteholders pursuant to Section 10.1(b), the
amount on deposit in the Note Distribution Account, but not in excess of the
amount specified in clause (a) above.

            "Responsible Officer" means, (i) with respect to the Indenture
Trustee, any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary, or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject and (ii) with respect to the Owner
Trustee, any officer within the Corporate Trust Administration office of the
Owner Trustee, including any Vice President, Assistant Vice President, Assistant
Treasurer, Assistant Secretary or any other officer of the Owner Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.

            "Sale and Servicing Agreement" means the Sale and Servicing
Agreement dated as of [________] [__], 200[__], among the Issuer, the Seller,
the Servicer, the Transferor, the Depositor, the Indenture Trustee, the Backup
Servicer and the Custodian, as the same may be amended or supplemented from time
to time.

            "Schedule of Receivables" means the listing of the Receivables
set forth in Exhibit A (which Exhibit may be in the form of microfiche); as
supplemented on each Subsequent Transfer Date to reflect the assignment to the
Issuer of Subsequent Receivables.

            "Scheduled Payments" has the meaning specified in the Policy.

            "Securities Act" means the Securities Act of 1933, as amended.

            "State" means any one of the 50 states of the United States of
America or the District of Columbia.

            "Successor Servicer" has the meaning specified in Section 3.7(e).

            "Termination Date" means the latest to occur of (i) the
expiration of the Policy and the return of the Policy to the Insurer for
cancellation, (ii) the date on which the Insurer shall have received payment and
performance of all Insurer Issuer Secured obligations and (iii) the date on
which the Indenture Trustee shall have received payment and performance of all
Indenture Trustee Secured Obligations.

            "Trust Fund" means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security
interest of this Indenture for the benefit of the Noteholders (including all
property and interests Granted to the Indenture Trustee), including all proceeds
thereof.

                                      -8-
<PAGE>

            "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939 as in force on the date hereof, unless otherwise specifically provided.

            "UCC" means, unless the context otherwise requires, the
Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended
from time to time.

            Except as otherwise specified herein, the following terms have
the respective meanings set forth in the Sale and Servicing Agreement as in
effect on the Closing Date for all purposes of this Indenture, and the
definitions of such terms are equally applicable both to the singular and plural
forms of such terms:

                                             SECTION OF SALE
TERM                                      AND SERVICING AGREEMENT
----                                      -----------------------

Affiliate ...............................      Section 1.1
Backup Servicer .........................      Section 1.1
Backup Servicer Fee .....................      Section 1.1
Basic Documents .........................      Section 1.1
Business Day ............................      Section 1.1
Class ...................................      Section 1.1
Closing Date ............................      Section 1.1
Collection Account ......................      Section 1.1
Controlling Party .......................      Section 1.1
Depositor ...............................      Section 1.1
Distribution Amount .....................      Section 1.1
Draw Date ...............................      Section 1.1
Payment Date ............................      Section 1.1
Eligible Investments ....................      Section 1.1
Final Scheduled Payment Date ............      Section 1.1
Financed Vehicle ........................      Section 1.1
Indenture Trustee Fee ...................      Section 1.1
Noteholders' Distributable Amount .......      Section 1.1
Obligor .................................      Section 1.1
Original Pool Balance ...................      Section 1.1
Payment Date ............................      Section 1.1
Person ..................................      Section 1.1
Policy Claim Amount .....................      Section 1.1
Pool Balance ............................      Section 1.1
Rating Agency ...........................      Section 1.1
Rating Agency Condition .................      Section 1.1
Receivable ..............................      Section 1.1
Remaining Pre-Funding Amount ............      Section 1.1
Seller ..................................      Section 1.1
Servicer ................................      Section 1.1
Servicer Default ........................      Section 1.1
Trust Accounts ..........................      Section 1.1

                                      -9-
<PAGE>

            Capitalized terms used herein and not otherwise defined herein or in
the Sale and Servicing Agreement have the meanings assigned to them in the Trust
Agreement.

            Section 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings: "Commission" means
the Securities and Exchange Commission. "Indenture Securities" means the Notes.
"Indenture Securityholder" means a Noteholder. "Indenture to be Qualified" means
this Indenture. "Indenture Trustee" or "Institutional Trustee" means the
Indenture Trustee. "Obligor" on the indenture securities means the Issuer and
any other obligor on the indenture securities. All other TIA terms used in this
Indenture that are defined by the TIA, defined by TIA reference to another
statute or defined by Commission rule have the meaning assigned to them by such
definitions.

            Section 1.3 Rules of Construction. Unless the context otherwise
requires:

            (i) a term has the meaning assigned to it;

            (ii) an accounting term not otherwise defined has the meaning
      assigned to it in accordance with generally accepted accounting principles
      as in effect from time to time;

            (iii) "or" is not exclusive;

            (iv) "including" means including without limitation; and

            (v) words in the singular include the plural and words in the plural
      include the singular.

                                   ARTICLE II

                                    THE NOTES

            Section 2.1 Form. The Class A-1 Notes, the Class A-2 Notes and the
Class A-3 Notes, in each case, together with the Indenture Trustee's certificate
of authentication, shall be in substantially the form set forth in Exhibit B-1,
Exhibit B-2 and Exhibit B-3, respectively, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Note.

            The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

                                      -10-
<PAGE>

            Each Note shall be dated the date of its authentication. The terms
of the Notes set forth in Exhibit B are part of the terms of this Indenture.

            Section 2.2 Execution, Authentication and Delivery. The Notes shall
be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

            Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

            The Indenture Trustee shall upon receipt of the Policy and Issuer
Order authenticate and deliver Class A-1 Notes for original issue in an
aggregate principal amount of $[_______], Class A-2 Notes for original issue in
the aggregate principal amount of $[_______] and Class A-3 Notes for original
issue in the aggregate principal amount of $[_______]. Notes Outstanding at any
time may not exceed such amount except as provided in Section 2.5.

            Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes in the minimum denomination of $1,000 and
in $1,000 integral multiples thereof (except for one Note of each class which
may be issued in a denomination other than an integral multiple of $1,000).

            No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

            Section 2.3 Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

            If temporary Notes are issued, the Issuer will cause Definitive
Notes to be prepared without unreasonable delay. After the preparation of
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the office or agency of the Issuer to
be maintained as provided in Section 3.2, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

                                      -11-
<PAGE>

            Section 2.4 Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "Note Registrar" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

            If a Person other than the Indenture Trustee is appointed by the
Issuer as Note Registrar, the Issuer will give the Indenture Trustee prompt
written notice of the appointment of such Note Registrar and of the location,
and any change in the location, of the Note Register, and the Indenture Trustee
shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely
upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the names and addresses of the Holders of the Notes and
the principal amounts and number of such Notes.

            Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.2, if
the requirements of Section 8-401(1) of the UCC are met the Issuer shall execute
and upon its request the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated
transferee or transferees, one or more new Notes, in any authorized
denominations, of the same Class And a like aggregate principal amount.

            Subject to the restrictions set forth in this Section 2.4, at the
option of the Holder, Notes may be exchanged for other Notes in any authorized
denominations, of the same Class And a like aggregate principal amount, upon
surrender of the Notes to be exchanged at such office or agency. Whenever any
Notes are so surrendered for exchange, if the requirements of Section 8-401(1)
of the UCC are met the Issuer shall execute and upon its request the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture
Trustee, the Notes which the Noteholder making the exchange is entitled to
receive.

            All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

            Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder thereof or such Holder's attorney duly authorized in
writing, with such signature guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar which requirements include
membership or participation in Securities Transfer Agents Medallion Program
("Stamp") or such other "signature guarantee program" as may be determined by
the Note Registrar in addition to, or in substitution for, Stamp, all in
accordance with the Exchange Act, and (ii) accompanied by such Note and such
other documents as the Indenture Trustee may require.

            No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Note Registrar may require payment of a
sum sufficient to cover any

                                      -12-
<PAGE>

tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes, other than exchanges pursuant to
Section 2.3 or 9.6 not involving any transfer.

            The preceding provisions of this section notwithstanding, the Issuer
shall not be required to make and the Note Registrar need not register transfers
or exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to the Note.

            Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee and the Insurer
(unless an Insurer Default shall have occurred and be continuing) such security
or indemnity as may be required by it to hold the Issuer, the Indenture Trustee
and the Insurer harmless, then, in the absence of notice to the Issuer, the Note
Registrar or the Indenture Trustee that such Note has been acquired by a bona
fide purchaser, and provided that the requirements of Section 8-405 of the UCC
are met, the Issuer shall execute and upon its request the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note; provided,
however, that if any such destroyed, lost or stolen Note, but not a mutilated
Note, shall have become or within seven days shall be due and payable, or shall
have been called for redemption, instead of issuing a replacement Note, the
Issuer may pay such destroyed, lost or stolen Note when so due or payable or
upon the Redemption Date without surrender thereof. If, after the delivery of
such replacement Note or payment of a destroyed, lost or stolen Note pursuant to
the proviso to the preceding sentence, a bona fide purchaser of the original
Note in lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer, the Indenture Trustee and the Insurer shall be
entitled to recover such replacement Note (or such payment) from the Person to
whom it was delivered or any Person taking such replacement Note from such
Person to whom such replacement Note was delivered or any assignee of such
Person, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer or the Indenture Trustee in connection
therewith.

            Upon the issuance of any replacement Note under this Section, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee) connected therewith.

            Every replacement Note issued pursuant to this Section in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

            The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

                                      -13-
<PAGE>

            Section 2.6 Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, any
agent of the Issuer, the Indenture Trustee or the Insurer may treat the Person
in whose name any Note is registered (as of the day of determination) as the
owner of such Note for the purpose of receiving payments of principal of and
interest, if any on such Note and for all other purposes whatsoever, whether or
not such Note be overdue, and none of the Issuer, the Indenture Trustee nor any
agent of the Issuer, the Insurer or the Indenture Trustee shall be affected by
notice to the contrary.

            Section 2.7 Payment of Principal and Interest; Defaulted Interest.
(a) The Notes shall accrue interest as provided in the forms of the Class A-1
Note, the Class A-2 Note and the Class A-3 form of the Note set forth in
Exhibits B-1, B-2 and B-3, respectively, and such interest shall be payable on
each Payment Date as specified therein. Any installment of interest or
principal, if any, payable on any Note which is punctually paid or duly provided
for by the Issuer on the applicable Payment Date shall be paid to the Person in
whose name such Note (or one or more Predecessor Notes) is registered on the
Record Date, by check mailed first-class, postage prepaid, to such Person's
address as it appears on the Note Register on such Record Date, except that,
unless Definitive Notes have been issued pursuant to Section 2.12, with respect
to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made
by wire transfer in immediately available funds to the account designated by
such nominee and except for the final installment of principal payable with
respect to such Note on a Payment Date or on the Final Scheduled Payment Date
for such Note (and except for the Redemption Price for any Note called for
redemption pursuant to Section 10.1(a)) which shall be payable as provided
below. The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.3.

            (b) The principal of each Note shall be payable in installments on
each Payment Date to the person registered as the holder thereof on the related
Record Date as provided in the forms of the Class A-1 Note, the Class A-2 Note
and the Class A-3 Note set forth in Exhibits B-1, B-2 and B-3, respectively.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable, if not previously paid, on the date on which an Event
of Default shall have occurred and be continuing, if the Indenture Trustee or
the Holders of the Notes representing not less than a majority of the
Outstanding Amount of the Notes have declared the Notes to be immediately due
and payable in the manner provided in Section 5.2. All principal payments on
each class of Notes shall be made pro rata to the Noteholders of such class
entitled thereto. The Indenture Trustee shall notify the Person in whose name a
Note is registered at the close of business on the Record Date preceding the
Payment Date on which the Issuer expects that the final installment of principal
of and interest on such Note will be paid. Such notice shall be mailed or
transmitted by facsimile prior to such final Payment Date and shall specify that
such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.

            (c) If the Issuer defaults in a payment of interest on the Notes,
the Issuer shall pay defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable Interest Rate in any lawful
manner. The Issuer may pay such defaulted interest to the

                                      -14-
<PAGE>

Persons who are Noteholders on a subsequent special record date, which date
shall be at least five Business Days prior to the payment date. The Issuer shall
fix or cause to be fixed any such special record date and payment date, and, at
least 15 days before any such special record date, the Issuer shall mail to each
Noteholder and the Indenture Trustee a notice that states the special record
date, the payment date and the amount of defaulted interest to be paid.

            (d) Promptly following the date on which all principal of and
interest on the Notes has been paid in full and the Notes have been surrendered
to the Indenture Trustee, the Indenture Trustee shall, if the Insurer has paid
any amount in respect of the Notes under the Policy or otherwise which has not
been reimbursed to it, deliver such surrendered Notes to the Insurer.

            Section 2.8 Cancellation. Subject to Section 2.7(d), all Notes
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Indenture Trustee, be delivered to
the Indenture Trustee and shall be promptly canceled by the Indenture Trustee.
Subject to Section 2.7(d), the Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section, except as expressly permitted by this Indenture.
Subject to Section 2.7(d), all canceled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that
they be destroyed or returned to it; provided that such Issuer Order is timely
and the Notes have not been previously disposed of by the Indenture Trustee.

            Section 2.9 Release of Collateral. The Indenture Trustee shall, on
or after the Termination Date, release any remaining portion of the Trust Fund
from the lien created by this Indenture and deposit in the Collection Account
any funds then on deposit in any other Trust Account. The Indenture Trustee
shall release property from the lien created by this Indenture pursuant to this
Section 2.9 only upon receipt of an Issuer Request accompanied by an Officer's
Certificate, an Opinion of Counsel meeting the applicable requirements of
Section 11.1 and (if required by the TIA) Independent Certificates in accordance
with TIA Sections 314(c) and 314(d)(1).

            Notwithstanding this Section 2.9 or any other provision of this
Agreement, the Issuer may (A) collect, liquidate, sell or otherwise dispose of
Receivables as and to the extent permitted or required by the Basic Documents
and (B) make cash payments out of the Trust Accounts as and to the extent
permitted or required by the Basic Documents.

            Section 2.10 Book-Entry Notes. The Notes, upon original issuance,
will be issued in the form of typewritten Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Clearing
Agency, by, or on behalf of, the Issuer. Such Notes shall initially be
registered on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Note Owner will receive a Definitive Note
representing such Note Owner's interest in such Note, except as provided in
Section 2.12.

                                      -15-
<PAGE>

            Unless and until definitive, fully registered Notes (the "Definitive
Notes") have been issued to Note Owners pursuant to Section 2.12:

            (i) the provisions of this Section shall be in full force and
      effect;

            (ii) the Note Registrar and the Indenture Trustee shall be entitled
      to deal with the Clearing Agency for all purposes of this Indenture
      (including the payment of principal of and interest on the Notes and the
      giving of instructions or directions hereunder) as the sole Holder of the
      Notes, and shall have no obligation to the Note Owners;

            (iii) to the extent that the provisions of this Section conflict
      with any other provisions of this Indenture, the provisions of this
      Section shall control;

            (iv) the rights of Note Owners shall be exercised only through the
      Clearing Agency and shall be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency Participants. Pursuant to the Note Depository Agreement,
      unless and until Definitive Notes are issued pursuant to Section 2.12, the
      initial Clearing Agency will make book-entry transfers among the Clearing
      Agency Participants and receive and transmit payments of principal of and
      interest on the Notes to such Clearing Agency Participants;

            (v) whenever this Indenture requires or permits actions to be taken
      based upon instructions or directions of Holders of Notes evidencing a
      specified percentage of the Outstanding Amount of the Notes, the Clearing
      Agency shall be deemed to represent such percentage only to the extent
      that it has received instructions to such effect from Note Owners and/or
      Clearing Agency Participants owning or representing, respectively, such
      required percentage of the beneficial interest in the Notes and has
      delivered such instructions to the Indenture Trustee; and

            (vi) Note Owners may receive copies of any reports sent to
      Noteholders pursuant to this Indenture, upon written request, together
      with a certification that they are Note Owners and payment of reproduction
      and postage expenses associated with the distribution of such reports,
      from the Indenture Trustee at the Corporate Trust Office.

            Section 2.11 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, until
Definitive Notes shall have been issued to Note Owners pursuant to Section 2.12,
the Indenture Trustee shall give all such notices and communications specified
herein to be given to Holders of the Notes to the Clearing Agency, and shall
have no obligation to the Note Owners.

            Section 2.12 Definitive Notes. If (i) the Servicer advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities with respect to the Notes, and
the Servicer is unable to locate a qualified successor, (ii) the Servicer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, Note Owners representing beneficial interests aggregating
at least a majority of the Outstanding Amount of the Notes advise the Indenture
Trustee through the Clearing Agency

                                      -16-
<PAGE>

in writing that the continuation of a book entry system through the Clearing
Agency is no longer in the best interests of the Note Owners, then the Clearing
Agency shall notify all Note Owners and the Indenture Trustee of the occurrence
of any such event and of the availability of Definitive Notes to Note Owners
requesting the same. Upon surrender to the Indenture Trustee of the typewritten
Note or Notes representing the Book-Entry Notes by the Clearing Agency,
accompanied by registration instructions, the Issuer shall execute and the
Indenture Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders.

                                   ARTICLE III

                                    COVENANTS

            Section 3.1 Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture. Without limiting the foregoing,
subject to Section 8.2(c), the Issuer will cause to be distributed all amounts
on deposit in the Note Distribution Account on each Payment Date deposited
therein, pursuant to the Sale and Servicing Agreement (i) for the benefit of the
Class A-1 Notes, to Class A-1 Noteholders, (ii) for the benefit of the Class A-2
Notes, to Class A-2 Noteholders and (iii) for the benefit of the Class A-3
Notes, to Class A-3 Noteholders. Amounts properly withheld under the Code by any
Person from a payment to any Noteholder of interest and/or principal shall be
considered as having been paid by the Issuer to such Noteholder for all purposes
of this Indenture.

            Section 3.2 Maintenance of Office or Agency. The Issuer will
maintain in the Borough of Manhattan, The City of New York, an office or agency
where Notes may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. The Issuer will give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

            Section 3.3 Money for Payments to Be Held in Trust. As provided in
Sections 8.2(a) and (b), all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection Account
and the Note Distribution Account pursuant to Section 8.2(c) shall be made on
behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no
amounts so withdrawn from the Collection Account and the Note Distribution
Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section.

                                      -17-
<PAGE>

            On or before each Payment Date and Redemption Date, the Issuer shall
deposit or cause to be deposited in the Note Distribution Account an aggregate
sum sufficient to pay the amounts then becoming due under the Notes, such sum to
be held in trust for the benefit of the Persons entitled thereto and (unless the
Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of its action or failure so to act.

            The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee and the Insurer an
instrument in which such Paying Agent shall agree with the Indenture Trustee
(and if the Indenture Trustee acts as Paying Agent, it hereby so agrees),
subject to the provisions of this Section, that such Paying Agent will:

            (i) hold all sums held by it for the payment of amounts due with
      respect to the Notes in trust for the benefit of the Persons entitled
      thereto until such sums shall be paid to such Persons or otherwise
      disposed of as herein provided and pay such sums to such Persons as herein
      provided;

            (ii) give the Indenture Trustee notice of any default by the Issuer
      of which it has actual knowledge (or any other obligor upon the Notes) in
      the making of any payment required to be made with respect to the Notes;

            (iii) at any time during the continuance of any such default, upon
      the written request of the Indenture Trustee, forthwith pay to the
      Indenture Trustee all sums so held in trust by such Paying Agent;

            (iv) immediately resign as a Paying Agent and forthwith pay to the
      Indenture Trustee all sums held by it in trust for the payment of Notes if
      at any time it ceases to meet the standards required to be met by a Paying
      Agent at the time of its appointment; and

            (v) comply with all requirements of the Code with respect to the
      withholding from any payments made by it on any Notes of any applicable
      withholding taxes imposed thereon and with respect to any applicable
      reporting requirements in connection therewith.

            The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such a payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

            Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Paying Agent in trust for the payment
of any amount due with respect to any Note and remaining unclaimed for two (2)
years after such amount has become due and payable shall be discharged from such
trust and be paid to the Issuer on Issuer Request and with the consent of the
Insurer (unless an Insurer Default shall have occurred and be continuing), and
the Holder of such Note shall thereafter, as an unsecured general creditor, look
only to the Issuer for payment thereof (but only to the extent of the amounts so
paid to the

                                      -18-
<PAGE>

Issuer), and all liability of the Indenture Trustee or such Paying Agent with
respect to such trust money shall thereupon cease; provided, however, that if
such money or any portion thereof had been previously deposited by the Insurer
or Indenture Trustee for the payment of principal or interest on the Notes, to
the extent any amounts are owing to the Insurer, such amounts shall be paid
promptly to the Insurer upon receipt of a written request by the Insurer to such
effect, and provided, further, that the Indenture Trustee or such Paying Agent,
before being required to make any such repayment, shall at the expense of the
Issuer cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in The City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Issuer. The Indenture Trustee shall also adopt and employ,
at the expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

            Section 3.4 Existence. Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will keep in full effect its existence,
rights and franchises as a business trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Fund.

            Section 3.5 Protection of Trust Fund. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Issuer
Secured Parties to be prior to all other liens in respect of the Trust Fund, and
the Issuer shall take all actions necessary to obtain and maintain, in favor of
the Indenture Trustee, for the benefit of the Issuer Secured Parties, a first
lien on and a first priority, perfected security interest in the Trust Fund. The
Issuer will from time to time prepare (or shall cause to be prepared), execute
and deliver all such supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

            (i) Grant more effectively all or any portion of the Trust Fund;

            (ii) maintain or preserve the lien and security interest (and the
      priority thereof) in favor of the Indenture Trustee for the benefit of the
      Issuer Secured Parties created by this Indenture or carry out more
      effectively the purposes hereof;

            (iii) perfect, publish notice of or protect the validity of any
      Grant made or to be made by this Indenture;

                                      -19-
<PAGE>

            (iv) enforce any of the Collateral;

            (v) preserve and defend title to the Trust Fund and the rights of
      the Indenture Trustee in such Trust Fund against the claims of all persons
      and parties; and

            (vi) pay all taxes or assessments levied or assessed upon the Trust
      Fund when due.

            The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any such financing statement, continuation statement
or other instrument delivered by or on behalf of the Issuer to the Indenture
Trustee for execution. The Indenture Trustee shall not have any liability for
the perfection or priority of the security interest granted hereby and shall
have no duty to prepare or file any continuation statements or other related
instruments.

            Section 3.6 Opinions as to Trust Fund. (a) On the Closing Date, the
Issuer shall furnish to the Indenture Trustee and the Insurer an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, as are necessary to perfect and make effective the first priority
lien and security interest in favor of the Indenture Trustee, for the benefit of
the Issuer Secured Parties, created by this Indenture and reciting the details
of such action, or stating that, in the opinion of such counsel, no such action
is necessary to make such lien and security interest effective.

            (b) Within 120 days after the beginning of each calendar year,
beginning with the first calendar year beginning more than three months after
the Closing Date, the Issuer shall furnish to the Indenture Trustee and the
Insurer an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and with respect to the execution and filing
of any financing statements and continuation statements as are necessary to
maintain the lien and security interest created by this Indenture and reciting
the details of such action or stating that in the opinion of such counsel no
such action is necessary to maintain such lien and security interest. Such
Opinion of Counsel shall also describe the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until January 30 in
the following calendar year.

            Section 3.7 Performance of Obligations; Servicing of Receivables.
(a) The Issuer will not take any action and will use its best efforts not to
permit any action to be taken by others that would release any Person from any
of such Person's material covenants or obligations under any instrument or
agreement included in the Trust Fund or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the Basic Documents or such other instrument or agreement.

                                      -20-
<PAGE>

            (b) The Issuer may contract with other Persons acceptable to the
Insurer (so long as no Insurer Default shall have occurred and be continuing) to
assist it in performing its duties under this Indenture, and any performance of
such duties by a Person identified to the Indenture Trustee and the Insurer in
an Officer's Certificate of the Issuer shall be deemed to be action taken by the
Issuer. Initially, the Issuer has contracted with the Servicer to assist the
Issuer in performing its duties under this Indenture.

            (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Trust Fund, including but not
limited to preparing (or causing to be prepared) and filing (or causing to be
filed) all UCC financing statements and continuation statements required to be
filed by the terms of this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee (given at the direction of
the Controlling Party) or the Controlling Party.

            (d) If an officer of the Owner Trustee shall have actual knowledge
of the occurrence of a Servicer Default under the Sale and Servicing Agreement,
the Issuer shall promptly notify the Indenture Trustee, the Insurer and the
Rating Agencies thereof in accordance with Section 11.4, and shall specify in
such notice the action, if any, the Issuer is taking in respect of such default.
If a Servicer Default shall arise from the failure of the Servicer to perform
any of its duties or obligations under the Sale and Servicing Agreement with
respect to the Receivables, the Issuer shall take all reasonable steps available
to it to remedy such failure.

            (e) If an Insurer Default shall have occurred and be continuing and
if the Issuer has given notice of termination to the Servicer of the Servicer's
rights and powers pursuant to Section 11.1 of the Sale and Servicing Agreement,
as promptly as possible thereafter, the Issuer shall appoint a Successor
Servicer in accordance with Section 11.2 of the Sale and Servicing Agreement.

            (f) Upon any termination of the Servicer's rights and powers
pursuant to the Sale and Servicing Agreement, the Issuer shall promptly notify
the Indenture Trustee. As soon as a Successor Servicer (other than the Indenture
Trustee) is appointed, the Issuer shall notify the Indenture Trustee of such
appointment, specifying in such notice the name and address of such Successor
Servicer.

            (g) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Seller of their respective duties under the
Basic Documents (x) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (y) if the effect thereof
would adversely affect the Holders of the Notes.

            (h) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees that, unless such action is
specifically permitted hereunder or under the other Basic Documents, it will
not, without the prior written consent of the Indenture Trustee (to be given at
the direction of the Controlling Party) amend, modify, waive, supplement,
terminate or

                                      -21-
<PAGE>

surrender, or agree to any amendment, modification, supplement, termination,
waiver or surrender of, the terms of any Collateral or the Basic Documents, or
waive timely performance or observance by the Servicer or the Seller under the
Sale and Servicing Agreement; provided that no such amendment shall (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
distributions that are required to be made for the benefit of the Noteholders,
or (ii) reduce the aforesaid percentage of the Notes which are required to
consent to any such amendment, without the consent of the Holders of all the
Outstanding Notes. If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee or such Controlling Party, the
Issuer agrees, promptly following a request by the Indenture Trustee to do so,
to execute and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem
necessary or appropriate under the circumstances.

            Section 3.8 Negative Covenants. So long as any Notes are
Outstanding, the Issuer shall not:

            (i) except as expressly permitted by this Indenture or the Basic
      Documents, sell, transfer, exchange or otherwise dispose of any of the
      properties or assets of the Issuer, including those included in the Trust
      Fund, unless directed to do so by the Controlling Party;

            (ii) claim any credit on, or make any deduction from the principal
      or interest payable in respect of, the Notes (other than amounts properly
      withheld from such payments under the Code) or assert any claim against
      any present or former Noteholder by reason of the payment of the taxes
      levied or assessed upon any part of the Trust Fund; or

            (iii) (A) permit the validity or effectiveness of this Indenture to
      be impaired, or permit the lien in favor of the Indenture Trustee created
      by this Indenture to be amended, hypothecated, subordinated, terminated or
      discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may
      be expressly permitted hereby, (B) permit any lien, charge, excise, claim,
      security interest, mortgage or other encumbrance (other than the lien of
      this Indenture) to be created on or extend to or otherwise arise upon or
      burden the Trust Fund or any part thereof or any interest therein or the
      proceeds thereof (other than tax liens, mechanics' liens and other liens
      that arise by operation of law, in each case on a Financed Vehicle and
      arising solely as a result of an action or omission of the related
      Obligor), (C) permit the lien of this Indenture not to constitute a valid
      first priority (other than with respect to any such tax, mechanics' or
      other lien) security interest in the Trust Fund or (D) amend, modify or
      fail to comply with the provisions of the Basic Documents without the
      prior written consent of the Controlling Party.

            (iv) take any action or fail to take any action that would cause the
      Issuer to be treated as an association (or publicly traded partnership)
      taxable as a corporation for U.S. Federal income tax purposes.

                                      -22-
<PAGE>

            Section 3.9 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee and the Insurer, within 120 days after the end
of each fiscal year of the Issuer (commencing with the fiscal year ended
December 31, 200[__]) and otherwise in compliance with the requirements of TIA
Section 314(a)(4), an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that

            (i) a review of the activities of the Issuer during such year and of
      performance under this Indenture has been made under such Authorized
      Officer's supervision; and

            (ii) to the best of such Authorized Officer's knowledge, based on
      such review, the Issuer has complied with all conditions and covenants
      under this Indenture throughout such year, or, if there has been a default
      in the compliance of any such condition or covenant, specifying each such
      default known to such Authorized Officer and the nature and status
      thereof.

            Section 3.10 Issuer May Consolidate, Etc. Only on Certain Terms. (a)
The Issuer shall not consolidate or merge with or into any other Person, unless

            (i) the Person (if other than the Issuer) formed by or surviving
      such consolidation or merger shall be a Person organized and existing
      under the laws of the United States of America or any state and shall
      expressly assume, by an indenture supplemental hereto, executed and
      delivered to the Indenture Trustee, in form satisfactory to the Indenture
      Trustee and the Insurer (so long as no Insurer Default shall have occurred
      and be continuing), the due and punctual payment of the principal of and
      interest on all Notes and the performance or observance of every agreement
      and covenant of this Indenture on the part of the Issuer to be performed
      or observed, all as provided herein;

            (ii) immediately after giving effect to such transaction, no Default
      or Event of Default shall have occurred and be continuing;

            (iii) the Rating Agency Condition shall have been satisfied with
      respect to such transaction;

            (iv) the Issuer shall have received an Opinion of Counsel (and shall
      have delivered copies thereof to the Indenture Trustee and the Insurer (so
      long as no Insurer Default shall have occurred or be continuing)) to the
      effect that such transaction will not have any material adverse tax
      consequence to the Trust, the Insurer or any Noteholder or any
      Certificateholder;

            (v) all actions necessary to maintain the lien and security interest
      created by this Indenture shall have been taken;

            (vi) the Issuer shall have delivered to the Indenture Trustee and
      the Insurer an Officer's Certificate and an Opinion of Counsel each
      stating that such consolidation or merger and such supplemental indenture
      comply with this Article III and that all

                                      -23-
<PAGE>

      conditions precedent herein provided for relating to such transaction have
      been complied with (including any filing required by the Exchange Act);
      and

            (vii) so long as no Insurer Default shall have occurred and be
      continuing, the Issuer shall have given the Insurer written notice of such
      consolidation or merger at least 20 Business Days prior to the
      consummation of such action and shall have received the prior written
      approval of the Insurer of such consolidation or merger and the Issuer or
      the Person (if other than the Issuer) formed by or surviving such
      consolidation or merger has a net worth, immediately after such
      consolidation or merger, that is greater than zero and (b) not less than
      the net worth of the Issuer immediately prior to giving effect to such
      consolidation or merger.

            (b) The Issuer shall not convey or transfer all or substantially all
of its properties or assets, including those included in the Trust Fund, to any
Person, unless

            (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer the conveyance or transfer of which is
      hereby restricted shall (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any state, (B) expressly assume, by an indenture supplemental hereto,
      executed and delivered to the Indenture Trustee, in form satisfactory to
      the Indenture Trustee and the Insurer (so long as no Insurer Default shall
      have occurred and be continuing), the due and punctual payment of the
      principal of and interest on all Notes and the performance or observance
      of every agreement and covenant of this Indenture and each of the Basic
      Documents on the part of the Issuer to be performed or observed, all as
      provided herein, (C) expressly agree by means of such supplemental
      indenture that all right, title and interest so conveyed or transferred
      shall be subject and subordinate to the rights of Holders of the Notes,
      (D) unless otherwise provided in such supplemental indenture, expressly
      agree to indemnify, defend and hold harmless the Issuer against and from
      any loss, liability or expense arising under or related to this Indenture
      and the Notes and (E) expressly agree by means of such supplemental
      indenture that such Person (or if a group of persons, then one specified
      Person) shall prepare (or cause to be prepared) and make all filings with
      the Commission (and any other appropriate Person) required by the Exchange
      Act in connection with the Notes;

            (ii) immediately after giving effect to such transaction, no Default
      or Event of Default shall have occurred and be continuing; the Rating
      Agency Condition shall have been satisfied with respect to such
      transaction;

            (iii) the Issuer shall have received an Opinion of Counsel (and
      shall have delivered copies thereof to the Indenture Trustee and the
      Insurer (so long as no Insurer Default shall have occurred and be
      continuing)) to the effect that such transaction will not have any
      material adverse tax consequence to the Trust, the Insurer or any
      Noteholder or any Certificateholder;

            (iv) any action as is necessary to maintain the lien and security
      interest created by this Indenture shall have been taken; and

                                      -24-
<PAGE>

            (v) the Issuer shall have delivered to the Indenture Trustee and the
      Insurer an Officers' Certificate and an Opinion of Counsel each stating
      that such conveyance or transfer and such supplemental indenture comply
      with this Article III and that all conditions precedent herein provided
      for relating to such transaction have been complied with (including any
      filing required by the Exchange Act); and

            (vi) so long as no Insurer Default shall have occurred and be
      continuing, the Issuer shall have given the Insurer written notice of such
      conveyance or transfer at least 20 Business Days prior to the consummation
      of such action and shall have received the prior written approval of the
      Insurer of such consolidation or merger and the Issuer or the Person (if
      other than the Issuer) formed by or surviving such consolidation or merger
      has a net worth, immediately after such consolidation or merger, that is
      (a) greater than zero and (b) not less than the net worth of the Issuer
      immediately prior to giving effect to such consolidation or merger.

            Section 3.11 Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.10(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

            (b) Upon a conveyance or transfer of all the assets and properties
of the Issuer pursuant to Section 3.10(b), the Issuer will be released from
every covenant and agreement of this Indenture to be observed or performed on
the part of the Issuer with respect to the Notes immediately upon the delivery
of written notice to the Indenture Trustee stating that the Trust is to be so
released.

            Section 3.12 No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by this Indenture and the Basic Documents
and activities incidental thereto. After the Pre-Funding Period, the Issuer
shall not fund the purchase any additional Receivables.

            Section 3.13 No Borrowing. The Issuer shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness except for (i) the Notes and (ii) obligations owing from time to
time to the Insurer under the Insurance Agreement and (iii) any other
Indebtedness permitted by or arising under the Basic Documents or the Issuer's
compliance therewith. The proceeds of the Notes shall be used exclusively to
fund the Issuer's purchase of the Receivables and the other assets specified in
the Sale and Servicing Agreement, to fund the Pre-Funding Account and the
Capitalized Interest Account, the Reserve Account and the Yield Supplement
Account and to pay the Issuer's organizational, transactional and start-up
expenses.

            Section 3.14 Servicer's Obligations. The Issuer shall cause the
Servicer to comply with the Sale and Servicing Agreement.

            Section 3.15 Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by the Sale and Servicing Agreement or this Indenture,
the Issuer shall not make

                                      -25-
<PAGE>

any loan or advance or credit to, or guarantee (directly or indirectly or by an
instrument having the effect of assuring another's payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the obligations,
stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any
other interest in, or make any capital contribution to, any other Person.

            Section 3.16 Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

            Section 3.17 Compliance With Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
Basic Document.

            Section 3.18 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security or
(iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, distributions
to the Servicer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders and the Insurer as permitted by, and to the extent funds are
available for such purpose under the Sale and Servicing Agreement or Trust
Agreement. The Issuer will not, directly or indirectly, make payments to or
distributions from the Collection Account except in accordance with this
Indenture and the Basic Documents.

            Section 3.19 Notice of Events of Default. Upon a responsible officer
of the Owner Trustee having actual knowledge thereof, the Issuer agrees to give
the Indenture Trustee, the Insurer and the Rating Agencies prompt written notice
of each Event of Default hereunder and each default on the part of the Servicer
or the Seller of its obligations under the Sale and Servicing Agreement.

            Section 3.20 Further Instruments and Acts. Upon request of the
Indenture Trustee or the Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

            Section 3.21 Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 15.1 of the
Sale and Servicing Agreement or Section 11.1 of the Trust Agreement to eliminate
the requirements thereunder that the Indenture Trustee, the Insurer or the
Holders of the Notes consent to amendments thereto as provided therein.

                                      -26-
<PAGE>

            Section 3.22 Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other taxes, the Issuer
will treat the Notes as indebtedness.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

            Section 4.1 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8,
3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under Section 4.2) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Indenture Trustee payable to
all or any of them, and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when:

                  (A) either

                        (1) all Notes theretofore authenticated and delivered
                  (other than (i) Notes that have been destroyed, lost or stolen
                  and that have been replaced or paid as provided in Section 2.5
                  and (ii) Notes for whose payment money has theretofore been
                  deposited in trust or segregated and held in trust by the
                  Issuer and thereafter repaid to the Issuer or discharged from
                  such trust, as provided in Section 3.3) have been delivered to
                  the Indenture Trustee for cancellation and the Policy has
                  expired and been returned to the Insurer for cancellation; or

                        (2) all Notes not theretofore delivered to the Indenture
                  Trustee for cancellation (i) have become due and payable, (ii)
                  will become due and payable at their respective Final
                  Scheduled Payment Dates within one year, or (iii) are to be
                  called for redemption within one year under arrangements
                  satisfactory to the Indenture Trustee for the giving of notice
                  of redemption by the Indenture Trustee in the name, and at the
                  expense, of the Issuer, and the Issuer, in the case of (i),
                  (ii) or (iii) above, has irrevocably deposited or caused to be
                  irrevocably deposited with the Indenture Trustee cash or
                  direct obligations of or obligations guaranteed by the United
                  States of America (which will mature prior to the date such
                  amounts are payable), in trust for such purpose, in an amount
                  sufficient to pay and discharge the entire indebtedness on
                  such Notes not theretofore delivered to the Indenture Trustee
                  for cancellation when due to the Final Scheduled Payment Date
                  or Redemption Date (if Notes shall have been called for
                  redemption pursuant to Section 10.1(a)), as the case may be;

                                      -27-
<PAGE>

                  (B) the Issuer has paid or caused to be paid all Insurer
            Secured Obligations and all Indenture Trustee Secured Obligations;
            and

                  (C) the Issuer has delivered to the Indenture Trustee and the
            Insurer an Officer's Certificate, an Opinion of Counsel and, if
            required by the TIA, the Indenture Trustee or the Insurer (so long
            as an Insurer Default shall not have occurred and be continuing) an
            Independent Certificate from a firm of certified public accountants,
            each meeting the applicable requirements of Section 11.1(a) and each
            stating that all conditions precedent herein provided for relating
            to the satisfaction and discharge of this Indenture have been
            complied with.

            Section 4.2 Application of Trust Money. All moneys deposited with
the Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Holders of the particular Notes for the
payment or redemption of which such moneys have been deposited with the
Indenture Trustee, of all sums due and to become due thereon for principal and
interest; but such moneys need not be segregated from other funds except to the
extent required herein or in the Sale and Servicing Agreement or required by
law.

            Section 4.3 Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.3 and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

            Section 5.1 Events of Default. "Event Of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

            (i) default in the payment of any interest on any Note when the same
      becomes due and payable, and such default shall continue for a period of
      five days after receipt of notice thereof from the Indenture Trustee
      (solely for purposes of this clause, a payment on the Notes funded by the
      Insurer shall be deemed to be a payment made by the Issuer); or

            (ii) default in the payment of the principal of or any installment
      of the principal of any Note when the same becomes due and payable on the
      related Final Scheduled Payment Date (solely for purposes of this clause,
      a payment on the Notes funded by the Insurer shall be deemed to be a
      payment made by the Issuer); or

                                      -28-
<PAGE>

            (iii) so long as an Insurer Default shall not have occurred and be
      continuing, an Insurance Agreement Indenture Cross Default; provided,
      however, that the occurrence of an Insurance Agreement Indenture Cross
      Default may not form the basis of an Event of Default unless the Insurer
      shall, upon prior written notice to the Rating Agencies, have delivered
      (and not rescinded) to the Issuer and the Indenture Trustee a written
      notice specifying that such Insurance Agreement Indenture Cross Default
      constitutes an Event of Default under the Indenture; or

            (iv) so long as an Insurer Default shall have occurred and be
      continuing, default in the observance or performance of any covenant or
      agreement of the Issuer made in this Indenture (other than a covenant or
      agreement, a default in the observance or performance of which is
      elsewhere in this Section specifically dealt with), or any representation
      or warranty of the Issuer made in this Indenture or in any certificate or
      other writing delivered pursuant hereto or in connection herewith proving
      to have been incorrect in any material respect as of the time when the
      same shall have been made, and such default shall continue or not be
      cured, or the circumstance or condition in respect of which such
      misrepresentation or warranty was incorrect shall not have been eliminated
      or otherwise cured, for a period of 30 days (or for such longer period,
      not in excess of 90 days, as may be reasonably necessary to remedy such
      default; provided that such default is capable of remedy within 90 days or
      less and the Servicer on behalf of the Owner Trustee delivers an Officer's
      Certificate to the Indenture Trustee to the effect that the Issuer has
      commenced, or will promptly commence and diligently pursue, all reasonable
      efforts to remedy such default) after there shall have been given, by
      registered or certified mail, to the Issuer by the Indenture Trustee or to
      the Issuer and the Indenture Trustee by the Holders of at least 25% of the
      Outstanding Amount of the Notes a written notice specifying such default
      or incorrect representation or warranty and requiring it to be remedied
      and stating that such notice is a "Notice of Default" hereunder; or

            (v) so long as an Insurer Default shall have occurred and be
      continuing, the filing of a decree or order for relief by a court having
      jurisdiction in the premises in respect of the Issuer or any substantial
      part of the Trust Fund in an involuntary case under any applicable Federal
      or state bankruptcy, insolvency or other similar law now or hereafter in
      effect, or appointing a receiver, liquidator, assignee, custodian,
      trustee, sequestrator or similar official of the Seller, the Transferor or
      the Issuer or for any substantial part of the Trust Fund, or ordering the
      winding-up or liquidation of the Seller's, the Transferor's or the
      Issuer's affairs, and such decree or order shall remain unstayed and in
      effect for a period of 60 consecutive days; or

            (vi) so long as an Insurer Default shall have occurred and be
      continuing, the commencement by the Issuer of a voluntary case under any
      applicable Federal or state bankruptcy, insolvency or other similar law
      now or hereafter in effect, or the consent by the Issuer to the entry of
      an order for relief in an involuntary case under any such law, or the
      consent by the Issuer to the appointment or taking possession by a
      receiver, liquidator, assignee, custodian, trustee, sequestrator or
      similar official of the Seller, the Transferor or the Issuer or for any
      substantial part of the Trust Fund, or the making by the Seller, the
      Transferor or the Issuer of any general assignment for the benefit of
      creditors, or the failure by the Seller, the Transferor or the Issuer
      generally to pay its debts as such

                                      -29-
<PAGE>

      debts become due, or the taking of action by the Issuer in furtherance of
      any of the foregoing.

            The Issuer shall deliver to the Indenture Trustee and the Insurer,
within five days after the occurrence thereof, written notice in the form of an
Officer's Certificate of any event which with the giving of notice and the lapse
of time would become an Event of Default under clause (iii), its status and what
action the Issuer is taking or proposes to take with respect thereto.

            Section 5.2 Rights Upon Event of Default. (a) If an Event of Default
shall have occurred and be continuing, the Controlling Party may exercise any of
the remedies specified in Section 5.4(a). In the event of any acceleration of
any Notes by operation of this Section 5.2, the Indenture Trustee shall continue
to be entitled to make claims under the Policy pursuant to Section 5.18 hereof
for Scheduled Payments on the Notes. Payments under the Policy following
acceleration of any Notes shall be applied by the Indenture Trustee:

            FIRST: to Noteholders for amounts due and unpaid on the Notes for
interest, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for interest; and

            SECOND: to Noteholders for amounts due and unpaid on the Notes for
principal, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for principal.

            (b) In the event any Notes are accelerated due to an Event of
Default, the Insurer shall have the right (in addition to its obligation to pay
Scheduled Payments on the Notes in accordance with the Policy), but not the
obligation, to make payments under the Policy or otherwise of interest and
principal due on such Notes, in whole or in part, on any date or dates following
such acceleration as the Insurer, in its sole discretion, shall elect.

            (c) If an Insurer Default shall have occurred and be continuing and
an Event of Default shall have occurred and be continuing, the Indenture Trustee
in its discretion may, or if so requested in writing by a Note Majority, declare
by written notice to the Issuer that the Notes become, whereupon they shall
become, immediately due and payable at par, together with accrued interest
thereon.

            (d) If an Insurer Default shall have occurred and be continuing,
then at any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, a
Note Majority, by written notice to the Issuer and the Indenture Trustee, may
rescind and annul such declaration and its consequences if:

            (i) the Issuer has paid or deposited with the Indenture Trustee a
      sum sufficient to pay

                  (A) all payments of principal of and interest on all Notes and
            all other amounts that would then be due hereunder or upon such
            Notes if the Event of Default giving rise to such acceleration had
            not occurred; and

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<PAGE>

                  (B) all sums paid or advanced by the Indenture Trustee
            hereunder and the reasonable compensation, expenses, disbursements
            and advances of the Indenture Trustee and its agents and counsel;

            and

            (ii) all Events of Default, other than the nonpayment of the
      principal of the Notes that has become due solely by such acceleration,
      have been cured or waived as provided in Section 5.12.

            No such rescission shall affect any subsequent default or impair any
right consequent thereto.

            Section 5.3 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of any interest on any Note when the same becomes due and payable, and
such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee, pay to it, for the benefit of the Holders of the Notes, the whole
amount then due and payable on such Notes for principal and interest, with
interest upon the overdue principal, and, to the extent payment at such rate of
interest shall be legally enforceable, upon overdue installments of interest, at
the applicable Interest Rate and in addition thereto such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

            (b) Each Issuer Secured Party hereby irrevocably and unconditionally
appoints the Controlling Party as the true and lawful attorney-in-fact of such
Issuer Secured Party for so long as such Issuer Secured Party is not the
Controlling Party, with full power of substitution, to execute, acknowledge and
deliver any notice, document, certificate, paper, pleading or instrument and to
do in the name of the Controlling Party as well as in the name, place and stead
of such Issuer Secured Party such acts, things and deeds for or on behalf of and
in the name of such Issuer Secured Party under this Indenture (including
specifically under Section 5.4) and under the Basic Documents which such Issuer
Secured Party could or might do or which may be necessary, desirable or
convenient in such Controlling Party's sole discretion to effect the purposes
contemplated hereunder and under the Related Documents and, without limitation,
following the occurrence of an Event of Default, exercise full right, power and
authority to take, or defer from taking, any and all acts with respect to the
administration, maintenance or disposition of the Trust Fund.

            (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may in its discretion but with the consent of the Controlling Party and
shall, at the direction of the Controlling Party (except as provided in Section
5.3(d) below), proceed to protect and enforce its rights and the rights of the
Noteholders by such appropriate Proceedings as the Indenture Trustee or the
Controlling Party shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of

                                      -31-
<PAGE>

the exercise of any power granted herein, or to enforce any other proper remedy
or legal or equitable right vested in the Indenture Trustee by this Indenture or
by law.

            (d) Notwithstanding anything to the contrary contained in this
Indenture (including without limitation Sections 5.4(a), 5.12, 5.13 and 5.17)
and regardless of whether an Insurer Default shall have occurred and be
continuing, if the Issuer fails to perform its obligations under Section 10.1
hereof when and as due, the Indenture Trustee may in its discretion (and without
the consent of the Controlling Party) proceed to protect and enforce its rights
and the rights of the Noteholders by such appropriate proceedings as the
Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for specific performance of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture
Trustee by this Indenture or by law; provided that the Indenture Trustee shall
only be entitled to take any such actions without the consent of the Controlling
Party to the extent such actions are taken only to enforce the Issuer's
obligations to redeem the principal amount of Notes and pay interest thereon at
the applicable Interest Rate and are taken only against the portion of the
Collateral, if any, consisting of the Pre-Funding Account, the Capitalized
Interest Account, any investments therein and any proceeds thereof.

            (e) In case there shall be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Fund, proceedings under Title 11 of the United States Code
or any other applicable Federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

            (i) to file and prove a claim or claims for the whole amount of
      principal and interest owing and unpaid in respect of the Notes and to
      file such other papers or documents as may be necessary or advisable in
      order to have the claims of the Indenture Trustee (including any claim for
      reasonable compensation to the Indenture Trustee and each predecessor
      Indenture Trustee, and their respective agents, attorneys and counsel, and
      for reimbursement of all expenses and liabilities incurred, and all
      advances made, by the Indenture Trustee and each predecessor Indenture
      Trustee, except as a result of gross negligence, bad faith or willful
      misconduct) and of the Noteholders allowed in such proceedings;

            (ii) unless prohibited by applicable law and regulations, to vote on
      behalf of the Holders of Notes in any election of a trustee, a standby
      trustee or person performing similar functions in any such proceedings;

                                      -32-
<PAGE>

            (iii) to collect and receive any moneys or other property payable or
      deliverable on any such claims and to distribute all amounts received with
      respect to the claims of the Noteholders and of the Indenture Trustee on
      their behalf; and

            (iv) to file such proofs of claim and other papers or documents as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee or the Holders of Notes allowed in any judicial proceedings
      relative to the Issuer, its creditors and its property; and any trustee,
      receiver, liquidator, custodian or other similar official in any such
      proceeding is hereby authorized by each of such Noteholders to make
      payments to the Indenture Trustee, and, in the event that the Indenture
      Trustee shall consent to the making of payments directly to such
      Noteholders, to pay to the Indenture Trustee such amounts as shall be
      sufficient to cover reasonable compensation to the Indenture Trustee, each
      predecessor Indenture Trustee and their respective agents, attorneys and
      counsel, and all other expenses and liabilities incurred, and all advances
      made, by the Indenture Trustee and each predecessor Indenture Trustee
      except as a result of negligence or bad faith.

            (f) Nothing herein contained shall be deemed to authorize the
Indenture Trustee to authorize or consent to or vote for or accept or adopt on
behalf of any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar person.

            (g) All rights of action and of asserting claims under this
Indenture or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other proceedings relative thereto, and any such action or proceedings
instituted by the Indenture Trustee shall be brought in its own name as
Indenture Trustee of an express trust, and any recovery of judgment, subject to
the payment of the expenses, disbursements and compensation of the Indenture
Trustee, each predecessor Indenture Trustee and their respective agents and
attorneys, shall be for the ratable benefit of the Holders of the Notes.

            (h) In any proceedings brought by the Indenture Trustee (and also
any proceedings involving the interpretation of any provision of this
Indenture), the Indenture Trustee shall be held to represent all the Holders of
the Notes, and it shall not be necessary to make any Noteholder a party to any
such proceedings.

            Section 5.4 Remedies. (a) If an Event of Default shall have occurred
and be continuing, the Controlling Party may do one or more of the following
(subject to Section 5.5):

            (i) institute Proceedings in its own name and as trustee of an
      express trust for the collection of all amounts then payable on the Notes
      or under this Indenture with respect thereto, whether by declaration or
      otherwise, enforce any judgment obtained, and collect from the Issuer and
      any other obligor upon such Notes moneys adjudged due;

                                      -33-
<PAGE>

            (ii) institute Proceedings from time to time for the complete or
      partial foreclosure of this Indenture with respect to the Trust Fund;

            (iii) exercise any remedies of a secured party under the UCC and
      take any other appropriate action to protect and enforce the rights and
      remedies of the Indenture Trustee and the Holders of the Notes; and

            (iv) direct the Indenture Trustee to sell the Trust Fund or any
      portion thereof or rights or interest therein, at one or more public or
      private sales called and conducted in any manner permitted by law;
      provided, however, that the Indenture Trustee, or, if the Insurer is the
      Controlling Party, the Insurer, may not sell or otherwise liquidate the
      Trust Fund following an Insurance Agreement Indenture Cross Default
      unless:

                  (I) such Insurance Agreement Indenture Cross Default arises
            from a claim being made on the Policy or from the insolvency of the
            Trust, or

                  (II) the proceeds of such sale or liquidation distributable to
            the Noteholders are sufficient to discharge in full all amounts then
            due and unpaid upon such Notes for principal and interest; or if the
            Indenture Trustee is the Controlling Party, the Indenture Trustee
            may not sell or otherwise liquidate the Trust Fund following an
            Event of Default unless either (x) the Holders of 100% of the
            Outstanding Amount of the Notes consents thereto, or (y) the
            proceeds of such sale or liquidation distributable to the
            Noteholders are sufficient to discharge in full all amounts then due
            and unpaid upon such Notes for principal and interest, or (z) the
            Indenture Trustee determines that the Trust Fund will not continue
            to provide sufficient funds for the payment of principal of and
            interest on the Notes as they would have become due if the Notes had
            not been declared due and payable, and the Indenture Trustee
            provides notice to the Rating Agencies and obtains the consent of
            Holders of 66 2/3% of the Outstanding Amount of the Notes.

            In determining such sufficiency or insufficiency with respect to
clause (y) and (z), the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Fund for such purpose.

            Section 5.5 Optional Preservation of the Trust Fund. If the
Indenture Trustee is the Controlling Party and if the Notes have been declared
to be due and payable under Section 5.2 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, but need not, elect to maintain possession of the Trust
Fund. It is the desire of the parties hereto and the Noteholders that there be
at all times sufficient funds for the payment of principal of and interest on
the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Fund. In
determining whether to maintain possession of the Trust Fund, the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust Fund
for such purpose.

                                      -34-
<PAGE>

            Section 5.6 Priorities. (a) Following (1) the acceleration of the
Notes pursuant to Section 5.2 or (2) if an Insurer Default shall have occurred
and be continuing, the occurrence of an Event of Default pursuant to Section
5.1(i), 5.1(ii), 5.1(iii), 5.1(v) or 5.1(vi), the Distribution Amount, including
any money or property collected pursuant to this Article V, shall be applied by
the Indenture Trustee in the following order of priority:

                  (i) FIRST: amounts due and owing and required to be
            distributed to the Servicer, the Backup Servicer, the Custodian, the
            Owner Trustee and the Indenture Trustee, respectively, pursuant to
            priorities (i) and (ii) of Section 5.6(b) of the Sale and Servicing
            Agreement and not previously distributed, in the order of such
            priorities and without preference or priority of any kind within
            such priorities;

                  (ii) SECOND: to Noteholders for amounts due and unpaid on the
            Notes for interest, ratably, without preference or priority of any
            kind, according to the amounts due and payable on the Notes for
            interest;

                  (iii) THIRD: to Noteholders for amounts due and unpaid on the
            Notes for principal, ratably, (a) to the Class A-1 Noteholders, (b)
            to the Class A-2 Noteholders and (c) to the Class A-3 Noteholders,
            according to the amounts due and payable on the Notes for principal;

                  (iv) FOURTH: amounts due and owing and required to be
            distributed to the Insurer pursuant to priority (v) of Section
            5.6(b) of the Sale and Servicing Agreement and not previously
            distributed; and

                  (v) FIFTH: all remaining amounts to the Owner Trustee for
            distribution to Certificateholders in accordance with Section 5.2(d)
            of the Trust Agreement;

                  (vi) SIXTH: to or upon the order of the Transferor; provided
            that any amounts collected from the Pre-Funding Account shall be
            paid, first, for amounts due and unpaid on the Notes for principal,
            if any, for distribution to Noteholders in accordance with Section
            10.1(b) and, second, in accordance with priorities ONE through SIXTH
            above.

            (b) The Indenture Trustee may fix a special record date and payment
date for any payment to Noteholders pursuant to this Section. At least 15 days
before such special record date the Issuer shall mail to each Noteholder and the
Indenture Trustee a notice that states the record date, the payment date and the
amount to be paid.

            Section 5.7 Limitation of Suits. Neither the Insurer, nor any Holder
of any Note shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:

            (i) the Insurer or such Holder has previously given written notice
      to the Indenture Trustee of a continuing Event of Default; the Insurer or
      the Holders of not less than 25% of the Outstanding Amount of the Notes
      have made written request to the Indenture Trustee to institute such
      proceeding in respect of such Event of Default in its own name as
      Indenture Trustee hereunder;

                                      -35-
<PAGE>

            (ii) the Insurer or such Holder or Holders have offered and provided
      to the Indenture Trustee indemnity reasonably satisfactory to it against
      the costs, expenses and liabilities to be incurred in complying with such
      request;

            (iii) the Indenture Trustee for 60 days after its receipt of such
      notice, request and offer and provision of indemnity has failed to
      institute such proceedings;

            (iv) no direction inconsistent with such written request has been
      given to the Indenture Trustee during such 60-day period by the Holders of
      a majority of the Outstanding Amount of the Notes; and

            (v) with respect to such Holder, an Insurer Default shall have
      occurred and be continuing;

      it being understood and intended that no one or more Holders of Notes
      shall have any right in any manner whatever by virtue of, or by availing
      of, any provision of this Indenture to affect, disturb or prejudice the
      rights of any other Holders of Notes or to obtain or to seek to obtain
      priority or preference over any other Holders or to enforce any right
      under this Indenture, except in the manner herein provided.

            In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

            Section 5.8 Unconditional Rights of Noteholders to Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

            Section 5.9 Restoration of Rights and Remedies. If the Controlling
Party or any Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such proceeding had been
instituted.

            Section 5.10 Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Controlling Party or to the Noteholders
is intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or

                                      -36-
<PAGE>

remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

            Section 5.11 Delay or Omission not a Waiver. No delay or omission of
the Controlling Party or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

            Section 5.12 Control by Noteholders. Following the occurrence and
continuation of an Insurer Default, the Holders of a majority of the Outstanding
Amount of the Notes shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Indenture Trustee with
respect to the Notes or exercising any trust or power conferred on the Indenture
Trustee; provided that:

            (i) such direction shall not be in conflict with any rule of law or
      with this Indenture;

            (ii) subject to the express terms of Section 5.4, any direction to
      the Indenture Trustee to sell or liquidate the Trust Fund shall be by the
      Holders of Notes representing not less than 100% of the Outstanding Amount
      of the Notes;

            (iii) if the conditions set forth in Section 5.5 have been satisfied
      and the Indenture Trustee elects to retain the Trust Fund pursuant to such
      Section, then any direction to the Indenture Trustee by Holders of Notes
      representing less than 100% of the Outstanding Amount of the Notes to sell
      or liquidate the Trust Fund shall be of no force and effect; and

            (iv) the Indenture Trustee may take any other action deemed proper
      by the Indenture Trustee that is not inconsistent with such direction;

      provided, however, that, subject to Section 6.1, the Indenture Trustee
      need not take any action that it determines might involve it in liability
      or might materially adversely affect the rights of any Noteholders not
      consenting to such action.

            Section 5.13 Waiver of Past Defaults. If an Insurer Default shall
have occurred and be continuing prior to the declaration of the acceleration of
the maturity of the Notes as provided in Section 5.2, a Note Majority may waive
any past Default or Event of Default and its consequences except a Default (a)
in payment of principal of or interest on any of the Notes or (b) in respect of
a covenant or provision hereof which cannot be modified or amended without the
consent of the Holder of each Note. In the case of any such waiver, the Issuer,
the Indenture Trustee and the Holders of the Notes shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

                                      -37-
<PAGE>

            Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred,
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.

            Section 5.14 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

            Section 5.15 Waiver of Stay or Extension Laws. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

            Section 5.16 Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Trust Fund or
upon any of the assets of the Issuer.

            Section 5.17 Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so and at the
Servicer's expense, the Issuer agrees to take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and observance
by the Seller, the Transferor and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing
Agreement in accordance with the terms thereof, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Sale and Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, including the transmission of notices
of default on the part of the Seller, the Transferor or the Servicer

                                      -38-
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thereunder and the institution of legal or administrative actions or proceedings
to compel or secure performance by the Seller or the Servicer of each of their
obligations under the Sale and Servicing Agreement.

            (b) If the Indenture Trustee is a Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and, at
the direction (which direction shall be in writing) of the Holders of at least
66 2/3% of the Outstanding Amount of the Notes and upon receipt of indemnity
reasonably satisfactory to the Indenture Trustee shall, exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Seller, the
Transferor or the Servicer under or in connection with the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller, the Transferor or the Servicer of each
of their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

            Section 5.18 Claims Under Policy. (a) In the event that the
Indenture Trustee has delivered a Deficiency Notice with respect to any
Determination Date pursuant to Section 5.4 of the Sale and Servicing Agreement,
the Indenture Trustee shall on the related Draw Date determine the Policy Claim
Amount for the related Payment Date. If the Policy Claim Amount for such Payment
Date is greater than zero, the Indenture Trustee shall furnish to the Insurer no
later than 3:00 p.m. New York City time on the related Draw Date a completed
Notice of Claim in the amount of the Policy Claim Amount. Amounts paid by the
Insurer pursuant to a claim submitted under this Section 5.18(a) shall be
deposited by the Indenture Trustee into the Note Distribution Account for
payment to Noteholders on the related Payment Date.

            (b) Any notice delivered by the Indenture Trustee to the Insurer
pursuant to subsection 5.18(a) shall specify the Policy Claim Amount claimed
under the Policy and shall constitute a "Notice of Claim" under the Policy. In
accordance with the provisions of the Policy, the Insurer is required to pay to
the Indenture Trustee the Policy Claim Amount properly claimed thereunder by
12:00 noon, New York City time, on the later of (i) the third Business Day
following the Business Day on which the Notice of Claim was received, and (ii)
the applicable Payment Date. Any payment made by the Insurer under the Policy
shall be applied solely to the payment of the Notes, and for no other purpose.

            (c) The Indenture Trustee shall (i) receive as attorney-in-fact of
each Noteholder any Policy Claim Amount from the Insurer and (ii) deposit the
same in the Note Distribution Account for distribution to Noteholders as
provided in Section 3.1 or Section 5.2 of this Indenture. Any and all Policy
Claim Amounts disbursed by the Indenture Trustee from claims made under the
Policy shall not be considered payment by the Issuer with respect to such Notes,
and shall not discharge the obligations of the Issuer with respect thereto. The
Insurer shall, to the extent it makes any payment with respect to the Notes,
become subrogated to the rights of the recipients of such payments to the extent
of such payments. Subject to and conditioned upon any payment with respect to
the Notes by or on behalf of the Insurer, the Indenture Trustee shall assign to
the Insurer all rights to the payment of interest or principal with respect to
the Notes which are then due for payment to the extent of all payments made by
the Insurer, and the Insurer may exercise any option, vote, right, power or the
like with respect to the Notes to the extent that it has made payment pursuant
to the Policy. To evidence such

                                      -39-
<PAGE>

subrogation, the Note Registrar shall note the Insurer's rights as subrogee upon
the register of Noteholders upon receipt from the Insurer of proof of payment by
the Insurer of any Noteholders' Interest Distributable Amount or Noteholders'
Principal Distributable Amount. The foregoing subrogation shall in all cases be
subject to the rights of the Noteholders to receive all Scheduled Payment in
respect of the Notes.

            (d) The Indenture Trustee shall keep a complete and accurate record
of all funds deposited by the Insurer into the Note Distribution Account and the
allocation of such funds to payment of interest on and principal paid in respect
of any Note. The Insurer shall have the right to inspect such records at
reasonable times upon one Business Day's prior notice to the Indenture Trustee.

            (e) The Indenture Trustee shall be entitled to enforce on behalf of
the Noteholders the obligations of the Insurer under the Policy. Notwithstanding
any other provision of this Agreement or any Basic Documents, the Noteholders
are not entitled to institute proceedings directly against the Insurer.

            Section 5.19 Preference Claims. (a) In the event that the Indenture
Trustee has received a certified copy of an order of the appropriate court that
any Noteholders' Interest Distributable Amount or Noteholders' Principal
Distributable Amount paid on a Note has been avoided in whole or in part as a
preference payment under applicable bankruptcy law, the Indenture Trustee shall
so notify the Insurer, shall comply with the provisions of the Policy to obtain
payment by the Insurer of such avoided payment, and shall, at the time it
provides notice to the Insurer, notify Holders of the Notes by mail that, in the
event that any Noteholder's payment is so recoverable, such Noteholder will be
entitled to payment pursuant to the terms of the Policy. The Indenture Trustee
shall furnish to the Insurer its records evidencing the payments of principal of
and interest on Notes, if any, which have been made by the Indenture Trustee and
subsequently recovered from Noteholders, and the dates on which such payments
were made. Pursuant to the terms of the Policy, the Insurer will make such
payment on behalf of the Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order (as defined in
the Policy) and not to the Indenture Trustee or any Noteholder directly (unless
a Noteholder has previously paid such payment to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy, in which case the Insurer will
make such payment to the Indenture Trustee for distribution to such Noteholder
upon proof of such payment reasonably satisfactory to the Insurer).

            (b) The Indenture Trustee shall promptly notify the Insurer of any
proceeding or the institution of any action (of which the Indenture Trustee has
actual knowledge) seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership, rehabilitation or similar law
(a "Preference Claim") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Indenture Trustee hereby agree that so
long as an Insurer Default shall not have occurred and be continuing, the
Insurer may at any time during the continuation of any proceeding relating to a
Preference Claim direct all matters relating to such Preference Claim including,
without limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance
bond pending any such appeal at the expense of the Insurer, but subject to
reimbursement as provided in the Insurance Agreement. In addition, and without
limitation of

                                      -40-
<PAGE>

the foregoing, as set forth in Section 5.18(c), the Insurer shall be subrogated
to, and each Noteholder and the Indenture Trustee hereby delegate and assign, to
the fullest extent permitted by law, the rights of the Indenture Trustee and
each Noteholder in the conduct of any proceeding with respect to a Preference
Claim, including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

            Section 6.1 Duties of Indenture Trustee. (a) If an Event of Default
actually known to a Responsible Officer of the Indenture Trustee has occurred
and is continuing, the Indenture Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs.

            (b) Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee has actual knowledge:

            (i) The Indenture Trustee undertakes to perform such duties and only
      such duties as are specifically set forth in this Indenture and no implied
      covenants or obligations shall be read into this Indenture against the
      Indenture Trustee.

            (ii) In the absence of bad faith on its part, the Indenture Trustee
      may conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon certificates or
      opinions furnished to the Indenture Trustee and conforming to the
      requirements of this Indenture; however, the Indenture Trustee shall
      examine the certificates and opinions to determine whether or not they
      conform to the requirements of this Indenture and, if applicable, the
      other Basic Documents.

            (c) The Indenture Trustee may not be relieved from liability for its
own grossly negligent action, its own grossly negligent failure to act or its
own willful misconduct, except that:

            (i) this paragraph does not limit the effect of paragraph (b) of
      this Section;

            (ii) the Indenture Trustee shall not be liable for any error of
      judgment made in good faith by a Responsible Officer unless it is proved
      that the Indenture Trustee was grossly negligent in ascertaining the
      pertinent facts; and

            (iii) the Indenture Trustee shall not be liable with respect to any
      action it takes or omits to take in good faith in accordance with a
      direction received by it pursuant to Section 5.12 or 5.17.

            (d) The Indenture Trustee shall not be liable for interest on any
money received by it except as the Indenture Trustee may agree in writing with
the Issuer.

                                      -41-
<PAGE>

            (e) Money held in trust by the Indenture Trustee need not be
segregated from other funds except to the extent required by law or the terms of
this Indenture or the Sale and Servicing Agreement.

            (f) No provision of this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

            (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section, Section 6.2 and provisions
of the TIA.

            (h) The Indenture Trustee shall, upon reasonable prior notice to the
Indenture Trustee, permit any representative of the Insurer or the Noteholders,
during the Indenture Trustee's normal business hours, to examine all books of
account, records, reports and other papers of the Indenture Trustee relating to
the Notes, to make copies and extracts therefrom and to discuss the Indenture
Trustee's affairs and actions, as such affairs and actions relate to the
Indenture Trustee's duties with respect to the Notes, with the Indenture
Trustee's officers and employees responsible for carrying out the Indenture
Trustee's duties with respect to the Notes.

            (i) The Indenture Trustee shall, and hereby agrees that it will,
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement.

            (j) The Indenture Trustee shall, and hereby agrees that it will,
hold the Policy in trust, and will hold any proceeds of any claim on the Policy
in trust solely for the use and benefit of the Noteholders.

            (k) Without limiting the generality of this Section 6.1, the
Indenture Trustee shall have no duty unless specifically set forth in this
Indenture or the Basic Documents (i) to see to any recording, filing or
depositing of this Indenture or any agreement referred to herein or any
financing statement evidencing a security interest in the Financed Vehicles, or
to see to the maintenance of any such recording or filing or depositing or to
any recording, refiling or redepositing of any thereof, (ii) to see to any
insurance of the Financed Vehicles or Obligors or to effect or maintain any such
insurance, (iii) to see to the payment or discharge of any tax, assessment or
other governmental charge or any Lien or encumbrance of any kind owing with
respect to, assessed or levied against any part of the Trust, (iv) to confirm or
verify the contents of any reports or certificates delivered to the Indenture
Trustee pursuant to this Indenture or the Sale and Servicing Agreement believed
by the Indenture Trustee to be genuine and to have been signed or presented by
the proper party or parties, or (v) to inspect the Financed Vehicles at any time
or ascertain or inquire as to the performance of observance of any of the
Issuer's, the Seller's or the Servicer's representations, warranties or
covenants or the Servicer's duties and obligations as Servicer and as custodian
of the Receivable Files under the Sale and Servicing Agreement.

                                      -42-
<PAGE>

            Section 6.2 Rights of Indenture Trustee. (a) The Indenture Trustee
may rely on and shall be protected in acting or refraining from acting upon any
document believed by it to be genuine and to have been signed or presented by
the proper person. The Indenture Trustee need not investigate any fact or matter
stated in the document.

            (b) Before the Indenture Trustee acts or refrains from acting, it
may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on the Officer's Certificate or Opinion of Counsel.

            (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee, and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of, or for the
supervision of, PeopleFirst Finance, LLC, or any other such agent, attorney,
custodian or nominee appointed with due care by it hereunder.

            (d) The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers, provided, that the Indenture Trustee's conduct does
not constitute willful misconduct, gross negligence or bad faith.

            (e) The Indenture Trustee may consult with counsel, and the advice
or opinion of counsel with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

            (f) The Indenture Trustee shall be under no obligation to institute,
conduct or defend any litigation under this Indenture or in relation to this
Indenture or otherwise exercise any rights or powers vested in it by this
Indenture, at the request, order or direction of any of the Holders of Notes or
the Controlling Party pursuant to the provisions of this Indenture, unless such
Holders of Notes or the Controlling Party shall have offered and provided to the
Indenture Trustee security or indemnity reasonably satisfactory to the Indenture
Trustee against the costs, expenses and liabilities that may be incurred therein
or thereby; provided, however, that the Indenture Trustee shall, upon the
occurrence of an Event of Default (that has not been cured), exercise the rights
and powers vested in it by this Indenture with reasonable care and skill.

            (g) The Indenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond or other paper or document, and may conclusively rely on the
correctness of any statement made therein but the Indenture Trustee shall make
such investigation if requested in writing to do so by the Insurer (so long as
no, if the Insurer Default shall have occurred and be continuing) or (if an
Insurer Default shall have occurred and be continuing), the Controlling Party,
or by the Holders of Notes evidencing not less than 25% of the Outstanding
Amount thereof; provided, however, that if the payment within a reasonable time
to the Indenture Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the
Indenture Trustee, not reasonably assured

                                      -43-
<PAGE>

to the Indenture Trustee by the security afforded to it by the terms of this
Indenture or the Sale and Servicing Agreement, the Indenture Trustee may require
indemnity reasonably satisfactory to the Indenture Trustee against such cost,
expense or liability as a condition to so proceeding; the reasonable expense of
every such examination shall be paid by the Person making such request, or, if
paid by the Indenture Trustee, shall be reimbursed by the Person making such
request upon demand.

            Section 6.3 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

            Section 6.4 Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Trust Fund or the Notes; the Indenture Trustee
shall not be accountable for the Issuer's use of the proceeds from the Notes,
and it shall not be responsible for any recitals or statement of the Issuer in
this Indenture or in any document issued in connection with the sale of the
Notes or in the Notes other than the Indenture Trustee's certificate of
authentication.

            Section 6.5 Notice of Defaults. If a Default occurs and is
continuing and if it is either actually known by, or written notice of the
existence thereof has been delivered to, a Responsible Officer of the Indenture
Trustee, the Indenture Trustee shall mail to each Noteholder notice of the
Default within 90 days after such knowledge or notice occurs. Except in the case
of a Default in payment of principal of or interest on any Note (including
payments pursuant to the mandatory redemption provisions of such Note), the
Indenture Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

            Section 6.6 Reports by Indenture Trustee to Holders. Within the
prescribed period for tax reporting purposes after the end of each calendar year
during the term of this Indenture, the Indenture Trustee shall deliver to each
Noteholder such information in its possession relating to the payments made by
the Indenture Trustee on the Notes as may be reasonably required to enable such
Holder to prepare its Federal and state income tax returns.

            Section 6.7 Compensation and Indemnity. (a) Pursuant to Section
5.6(b) of the Sale and Servicing Agreement, the Issuer shall, or shall cause the
Servicer to, pay to the Indenture Trustee from time to time compensation for its
services and reimbursement for its expenses in accordance with a separate
agreement between the Servicer and the Indenture Trustee. The Indenture
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Indenture Trustee shall notify the Issuer and
the Servicer promptly of any claim for which it may seek indemnity. Failure by
the Indenture Trustee to so notify the Issuer and the Servicer shall not relieve
the Issuer of its obligations hereunder or the Servicer of its obligations under
Article XIV of the Sale and Servicing Agreement. The Issuer shall or shall cause
the Servicer to defend the claim, the Indenture Trustee may have separate
counsel and the Issuer shall or shall cause the Servicer to pay the fees and
expenses of such

                                      -44-
<PAGE>

counsel. Neither the Issuer nor the Servicer need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee through the Indenture Trustee's own willful misconduct, negligence or
bad faith.

            (b) The payment obligations to the Indenture Trustee pursuant to
this Section shall survive the Termination Date and the discharge of this
Indenture subject to a satisfaction of the Rating Agency Condition. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.1(v) or (vi) with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code
or any other applicable Federal or state bankruptcy, insolvency or similar law.
Notwithstanding anything else set forth in this Indenture or the Basic
Documents, the Indenture Trustee agrees that the obligations of the Issuer (but
not the Servicer) to the Indenture Trustee hereunder and under the Basic
Documents shall be recourse to the Trust Fund only and specifically shall not be
recourse to the assets of the Seller, the Transferor, the Depositor, the Issuer
or any Noteholder or any Certificateholder. In addition, the Indenture Trustee
agrees that its recourse to the Seller, the Transferor, the Depositor, the
Issuer, the Trust Fund and the Seller shall be limited to the right to receive
the distributions referred to in Section 5.6(b) of the Sale and Servicing
Agreement.

            Section 6.8 Replacement of Indenture Trustee. (a) The Indenture
Trustee may resign at any time by so notifying the Issuer and the Insurer. The
Controlling Party may remove the Indenture Trustee by so notifying the Indenture
Trustee and may appoint a successor Indenture Trustee. The Issuer shall remove
the Indenture Trustee, if:

            (i) the Indenture Trustee fails to comply with;

            (ii) a court having jurisdiction in the premises in respect of the
      Indenture Trustee in an involuntary case or proceeding under federal or
      state banking or bankruptcy laws, as now or hereafter constituted, or any
      other applicable federal or state bankruptcy, insolvency or other similar
      law, shall have entered a decree or order granting relief or appointing a
      receiver, liquidator, assignee, custodian, trustee, conservator,
      sequestrator (or similar official) for the Indenture Trustee or for any
      substantial part of the Indenture Trustee's property, or ordering the
      winding-up or liquidation of the Indenture Trustee's affairs;

            (iii) an involuntary case under the federal bankruptcy laws, as now
      or hereafter in effect, or another present or future federal or state
      bankruptcy, insolvency or similar law is commenced with respect to the
      Indenture Trustee and such case is not dismissed within 60 days;

            (iv) the Indenture Trustee commences a voluntary case under any
      federal or state banking or bankruptcy laws, as now or hereafter
      constituted, or any other applicable federal or state bankruptcy,
      insolvency or other similar law, or consents to the appointment of or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      conservator, sequestrator (or other similar official) for the Indenture
      Trustee or for any substantial part of the Indenture Trustee's property,
      or makes any assignment for the benefit of creditors or fails generally to
      pay its debts as such debts become due or takes any corporate action in
      furtherance of any of the foregoing; or

                                      -45-
<PAGE>

            (v) the Indenture Trustee otherwise becomes incapable of acting.

            If the Indenture Trustee resigns or is removed or if a vacancy
exists in the office of Indenture Trustee for any reason (the Indenture Trustee
in such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee, acceptable to the
Insurer in its sole discretion (so long as an Insurer Default shall not have
occurred and be continuing). If the Issuer fails to appoint such a successor
Indenture Trustee, the Controlling Party may appoint a successor Indenture
Trustee.

            A successor Indenture Trustee shall deliver a written acceptance of
its appointment to the retiring Indenture Trustee, to the Issuer and to the
Insurer (so long as no Insurer Default shall have occurred and be continuing).
Thereupon the resignation or removal of the retiring Indenture Trustee shall
become effective, and the successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture subject to
satisfaction of the Rating Agency Condition. The successor Indenture Trustee
shall mail a notice of its succession to Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

            If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Controlling Party may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

            If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

            Any resignation or removal of the Indenture Trustee and appointment
of a successor Indenture Trustee pursuant to any of the provisions of this
Section shall not become effective until acceptance of appointment by the
successor Indenture Trustee pursuant to Section 6.8 and payment of all fees and
expenses owed to the outgoing Indenture Trustee.

            Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Servicer's obligations under Section 6.7
shall continue for the benefit of the retiring Indenture Trustee.

            (b) Every temporary or permanent successor Indenture Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
and to the Indenture Trustee, each Issuer Secured Party and the Issuer an
instrument in writing accepting such appointment hereunder and the relevant
predecessor shall execute, acknowledge and deliver such other documents and
instruments as will effectuate the delivery of all Indenture Collateral to the
successor Collateral Agent, whereupon such successor, without any further act,
deed or conveyance, shall become fully vested with all the estates, properties,
rights, powers, duties and obligations of its predecessor. Such predecessor
shall, nevertheless, on the written request of either Issuer Secured Party or
the Issuer, execute and deliver an instrument transferring to such successor all
the estates, properties, rights and powers of such predecessor hereunder. In the
event that any instrument in writing from the Issuer or an Issuer Secured Party
is reasonably

                                      -46-
<PAGE>

required by a successor Indenture Trustee to more fully and certainly vest in
such successor the estates, properties, rights, powers, duties and obligations
vested or intended to be vested hereunder in the Indenture Trustee, any and all
such written instruments shall, at the request of the temporary or permanent
successor Indenture Trustee, be forthwith executed, acknowledged and delivered
by the Issuer. The designation of any successor Indenture Trustee and the
instrument or instruments removing any Indenture Trustee and appointing a
successor hereunder, together with all other instruments provided for herein,
shall be maintained with the records relating to the Collateral and, to the
extent required by applicable law, filed or recorded by the successor Indenture
Trustee in each place where such filing or recording is necessary to effect the
transfer of the Collateral to the successor Indenture Trustee or to protect or
continue the perfection of the security interests granted hereunder.

            Section 6.9 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee and shall
provide written notice thereof to the Issuer, the Insurer, and each Rating
Agency provided, however that such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11 hereto.

            In case at the time such successor or successors by merger,
conversion or consolidation to the Indenture Trustee shall succeed to the trusts
created by this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

            Section 6.10 Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. (a) Notwithstanding any other provisions of this Indenture,
at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Trust may at the time be located, the
Indenture Trustee with the consent of the Insurer (so long as an Insurer Default
shall not have occurred and be continuing) shall have the power and may execute
and deliver all instruments to appoint one or more Persons to act as a
co-trustee or co-trustees, or a separate trustee or separate trustees, of all or
any part of the Trust, and to vest in such Person or Persons, in such capacity
and for the benefit of the Noteholders, such title to the Trust, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8 hereof.

            (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                                      -47-
<PAGE>

            (i) all rights, powers, duties and obligations conferred or imposed
      upon the Indenture Trustee shall be conferred or imposed upon and
      exercised or performed by the Indenture Trustee and such separate trustee
      or co-trustee jointly (it being understood that such separate trustee or
      co-trustee is not authorized to act separately without the Indenture
      Trustee joining in such act), except to the extent that under any law of
      any jurisdiction in which any particular act or acts are to be performed
      the Indenture Trustee shall be incompetent or unqualified to perform such
      act or acts, in which event such rights, powers, duties and obligations
      (including the holding of title to the Trust Fund or any portion thereof
      in any such jurisdiction) shall be exercised and performed singly by such
      separate trustee or co-trustee, but solely at the direction of the
      Indenture Trustee;

            (ii) no trustee hereunder shall be personally liable by reason of
      any act or omission of any other trustee hereunder, including acts or
      omissions of predecessor or successor trustees; and

            (iii) the Indenture Trustee may at any time accept the resignation
      of or remove any separate trustee or co-trustee.

            (c) Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.

            (d) Any separate trustee or co-trustee may at any time constitute
the Indenture Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, dissolve, become insolvent, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and
trusts shall invest in and be exercised by the Indenture Trustee, to the extent
permitted by law, without the appointment of a new or successor trustee.

            Section 6.11 Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition or its parent and
it or its parent shall have a long term debt rating of BBB- or better by the
Rating Agencies. The Indenture Trustee shall provide copies of such reports to
the Insurer upon request. The Indenture Trustee shall comply with TIA Section
310(b), including the optional provision permitted by the second sentence of TIA
Section 310(b)(9); provided, however, that there shall be excluded from the
operation of TIA Section 310(b)(1) any indenture or indentures under which other
securities of the Issuer are outstanding if the requirements for such exclusion
set forth in TIA Section 310(b)(1) are met.

                                      -48-
<PAGE>

            Section 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

            Section 6.13 Appointment and Powers. Subject to the terms and
conditions hereof, each of the Issuer Secured Parties hereby appoints
[_____________], in its capacity as Indenture Trustee, as the collateral agent
with respect to the Collateral, and [_____________] hereby accepts such
appointment and agrees to act as collateral agent with respect to the Collateral
for the Issuer Secured Parties, to maintain custody and possession of such
Collateral (except as otherwise provided hereunder) and to perform the other
duties with respect to the Collateral in accordance with the provisions of this
Indenture. Each Issuer Secured Party hereby authorizes the Indenture Trustee to
take such action on its behalf, and to exercise such rights, remedies, powers
and privileges hereunder, as the Controlling Party may direct and as are
specifically authorized to be exercised by the Indenture Trustee by the terms
hereof, together with such actions, rights, remedies, powers and privileges as
are reasonably incidental thereto. The Indenture Trustee shall act upon and in
compliance with the written instructions of the Controlling Party delivered
pursuant to this Indenture promptly following receipt of such written
instructions; provided that the Indenture Trustee shall not act in accordance
with any instructions (i) which are not authorized by, or in violation of the
provisions of, this Indenture, (ii) which are in violation of any applicable
law, rule or regulation or (iii) for which the Indenture Trustee has not
received reasonable indemnity. Receipt of such instructions shall not be a
condition to the exercise by the Indenture Trustee of its express duties
hereunder, except where this Indenture provides that the Indenture Trustee is
permitted to act only following and in accordance with such instructions.

            Section 6.14 Performance of Duties. The Indenture Trustee shall have
no duties or responsibilities except those expressly set forth in this Indenture
and the other Basic Documents to which the Indenture Trustee is a party or as
directed by the Controlling Party in accordance with this Indenture. The
Indenture Trustee shall not be required to take any discretionary actions
hereunder except at the written direction and with the indemnification of the
Controlling Party. The Indenture Trustee shall, and hereby agrees that it will,
perform all of the duties and obligations required of it under the Sale and
Servicing Agreement.

            Section 6.15 Limitation on Liability. Neither the Indenture Trustee
nor any of its directors, officers or employees shall be liable for any action
taken or omitted to be taken by it or them hereunder, or in connection herewith,
except that the Indenture Trustee shall be liable for its negligence, bad faith
or willful misconduct; nor shall the Indenture Trustee be responsible for the
validity, effectiveness, value, sufficiency or enforceability against the Issuer
of this Indenture or any of the Collateral (or any part thereof).
Notwithstanding any term or provision of this Indenture, the Indenture Trustee
shall incur no liability to the Issuer or the Issuer Secured Parties for any
action taken or omitted by the Indenture Trustee in connection with the
Collateral, except for the negligence, bad faith or willful misconduct on the
part of the Indenture Trustee, and, further, shall incur no liability to the
Issuer Secured Parties except for negligence, bad faith or willful misconduct in
carrying out its duties to the Issuer Secured Parties. Subject to Section 6.16,
the Indenture Trustee shall be protected and shall incur no liability to any
such party in relying upon the accuracy, acting in reliance upon the contents,
and assuming the

                                      -49-
<PAGE>

genuineness of any notice, demand, certificate, signature, instrument or other
document reasonably believed by the Indenture Trustee to be genuine and to have
been duly executed by the appropriate signatory, and (absent actual knowledge to
the contrary) the Indenture Trustee shall not be required to make any
independent investigation with respect thereto. The Indenture Trustee shall at
all times be free independently to establish to its reasonable satisfaction, but
shall have no duty to independently verify, the existence or nonexistence of
facts that are a condition to the exercise or enforcement of any right or remedy
hereunder or under any of the Basic Documents. The Indenture Trustee may consult
with counsel, and shall not be liable for any action taken or omitted to be
taken by it hereunder in good faith and in accordance with the written advice of
such counsel. The Indenture Trustee shall not be under any obligation to
exercise any of the remedial rights or powers vested in it by this Indenture or
to follow any direction from the Controlling Party unless it shall have received
reasonable security or indemnity satisfactory to the Indenture Trustee against
the costs, expenses and liabilities which might be incurred by it.

            Section 6.16 Reliance Upon Documents. In the absence of negligence,
bad faith or willful misconduct on its part, the Indenture Trustee shall be
entitled to rely on any communication, instrument, paper or other document
reasonably believed by it to be genuine and correct and to have been signed or
sent by the proper Person or Persons and shall have no liability in acting, or
omitting to act, where such action or omission to act is in reasonable reliance
upon any statement or opinion contained in any such document or instrument.

            Section 6.17 [RESERVED]

            Section 6.18 [RESERVED]

            Section 6.19 Representations and Warranties of the Indenture
Trustee. The Indenture Trustee represents and warrants to the Issuer and to each
Issuer Secured Party as follows:

            (a) Due Organization. The Indenture Trustee is a national banking
association, duly organized, validly existing and in good standing under the
laws of the United States and is duly authorized and licensed under applicable
law to conduct its business as presently conducted.

            (b) Corporate Power. The Indenture Trustee has all requisite right,
power and authority to execute and deliver this Indenture and to perform all of
its duties as Indenture Trustee hereunder.

            (c) Due Authorization. The execution and delivery by the Indenture
Trustee of this Indenture and the other Basic Documents to which it is a party,
and the performance by the Indenture Trustee of its duties hereunder and
thereunder, have been duly authorized by all necessary organizational
proceedings and no further approvals or filings, including any governmental
approvals, are required for the valid execution and delivery by the Indenture
Trustee, or the performance by the Indenture Trustee, of this Indenture and such
other Basic Documents to which it is a party.

                                      -50-
<PAGE>

            (d) Valid and Binding Indenture. The Indenture Trustee has duly
executed and delivered this Indenture and each other Basic Document to which it
is a party, and each of this Indenture and each such other Basic Document
constitutes the legal, valid and binding obligation of the Indenture Trustee,
enforceable against the Indenture Trustee in accordance with its terms, except
as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

            Section 6.20 Waiver of Setoffs. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may
otherwise at any time have under applicable law with respect to any Trust
Account and agrees that amounts in the Trust Accounts shall at all times be held
and applied solely in accordance with the provisions hereof.

            Section 6.21 Control by the Controlling Party. The Indenture Trustee
shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

            Section 7.1 Issuer to Furnish to Indenture Trustee Names and
Addresses of Noteholders. The Issuer will furnish or cause to be furnished to
the Indenture Trustee (a) not more than five (5) days after the earlier of (i)
each Record Date and (ii) three months after the last Record Date, a list, in
such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Holders as of such Record Date, (b) at such other times as the
Indenture Trustee may request in writing, within thirty (30) days after receipt
by the Issuer of any such request, a list of similar form and content as of a
date not more than ten (10) days prior to the time such list is furnished;
provided, however, that so long as the Indenture Trustee is the Note Registrar,
no such list shall be required to be furnished. The Indenture Trustee or, if the
Indenture Trustee is not the Note Registrar, the Issuer shall furnish to the
Insurer in writing on an annual basis on each March 31 and at such other times
as the Insurer may request, a copy of the list.

            Section 7.2 Preservation of Information; Communications to
Noteholders. (a) The Indenture Trustee shall preserve, in as current a form as
is reasonably practicable, the names and addresses of the Holders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.1 and the names and addresses of Holders received by the Indenture Trustee in
its capacity as Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.1 upon receipt of a new list so
furnished.

            (b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

                                      -51-
<PAGE>

            (c) The Issuer, the Indenture Trustee and the Note Registrar shall
have the protection of TIA Section 312(c).

            Section 7.3 Reports by Issuer. The Issuer shall:

            (i) file with the Indenture Trustee, within 15 days after the Issuer
      is required to file the same with the Commission, copies of the annual
      reports and of the information, documents and other reports (or copies of
      such portions of any of the foregoing as the Commission may from time to
      time by rules and regulations prescribe) which the Issuer may be required
      to file with the Commission pursuant to Section 13 or 15(d) of the
      Exchange Act;

            (ii) file with the Indenture Trustee and the Commission in
      accordance with rules and regulations prescribed from time to time by the
      Commission such additional information, documents and reports with respect
      to compliance by the Issuer with the conditions and covenants of this
      Indenture as may be required from time to time by such rules and
      regulations; and

            (iii) supply to the Indenture Trustee (and the Indenture Trustee
      shall transmit by mail to all Noteholders described in TIA Section 313(c))
      such summaries of any information, documents and reports required to be
      filed by the Issuer pursuant to clauses (i) and (ii) of this Section
      7.3(a) as may be required by rules and regulations prescribed from time to
      time by the Commission.

            Section 7.4 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each June 30, beginning with June 30, 200[__], the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

            A copy of each report at the time of its mailing to Noteholders
shall be filed by the Indenture Trustee with the Commission and each stock
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

Section 7.5 Fiscal Year.  Unless the Issuer otherwise  determines,  the fiscal
year of the Issuer shall end on December 31 of each year.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

            Section 8.1 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive directly and without intervention or assistance of any fiscal
agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except

                                      -52-
<PAGE>

as otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under any agreement or instrument that is
part of the Trust Fund, the Indenture Trustee may take such action as may be
appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate proceedings. Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

            Section 8.2 Trust Accounts. (a) On or prior to the Closing Date, the
Issuer shall establish or shall cause the Servicer to establish and maintain, in
the name of the Indenture Trustee, for the benefit of the Noteholders, the
Insurer and Certificateholders, as applicable, the Trust Accounts as provided in
Section 5.1 of the Sale and Servicing Agreement.

            (b) Subject to Section 5.6 of the Sale and Servicing Agreement, on
each Payment Date and Redemption Date, the Indenture Trustee shall distribute
all amounts on deposit in the Note Distribution Account to Noteholders in
respect of the Notes to the extent of amounts due and unpaid on the Notes for
principal and interest in the following amounts and in the following order of
priority (except as otherwise provided in Section 5.6):

            (i) accrued and unpaid interest on the Notes; provided that if there
      are not sufficient funds in the Note Distribution Account to pay the
      entire amount of accrued and unpaid interest then due on each class of the
      Notes, the amount in the Note Distribution Account shall be applied to the
      payment of such interest on the each class of Notes pro rata on the basis
      of the amount of accrued and unpaid interest due on each class of Notes;

            (ii) any amounts deposited in the Note Distribution Account with
      respect to the Remaining Pre-Funding Amount shall be distributed in
      accordance with Section 10.1 hereof;

            (iii) principal to the Holders of the Class A-1 Notes until the
      Outstanding Amount of the Class A-1 Notes is reduced to zero;

            (iv) principal to the Holders of the Class A-2 Notes until the
      Outstanding Amount of the Class A-2 Notes is reduced to zero; and

            (v) principal to the Holders of the Class A-3 Notes until the
      Outstanding Amount of the Class A-3 Notes is reduced to zero.

            Section 8.3 General Provisions Regarding Accounts. (a) So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Trust Accounts shall be invested and reinvested in
Eligible Investments by the Indenture Trustee upon Issuer Order, subject to the
provisions of Section 5.1(b) of the Sale and Servicing Agreement. All income or
other gain from investments of moneys deposited in a Trust Account shall be
deposited (or caused to be deposited) by the Indenture Trustee in such Trust
Account, and any loss resulting from such investments shall be charged to such
account. The Issuer will not direct the Indenture Trustee to make any investment
of any funds or to sell any investment held in any of the Trust Accounts unless
the security interest Granted and perfected in such account will continue to be
perfected in such investment or the proceeds of such sale, in either case
without any further action by any Person, and, in connection with any direction
to the

                                      -53-
<PAGE>

Indenture Trustee to make any such investment or sale, the Issuer shall deliver
to the Indenture Trustee an Opinion of Counsel, acceptable to the Indenture
Trustee, to such effect.

            (b) [RESERVED]

            (c) Subject to Section 6.1(c), the Indenture Trustee shall not in
any way be held liable by reason of any insufficiency in any of the Trust
Accounts resulting from any loss on any Eligible Investment included therein
except for losses attributable to the Indenture Trustee's failure to make
payments on such Eligible Investment issued by the Indenture Trustee, in its
commercial capacity as principal obligor and not as trustee, in accordance with
their terms.

            (d) If (i) the Issuer shall have failed to give investment
directions for any funds on deposit in the Trust Accounts to the Indenture
Trustee by 2:00 p.m. Eastern Time (or such other time as may be agreed by the
Issuer and Indenture Trustee) on any Business Day; or (ii) a Default or Event of
Default shall have occurred and be continuing with respect to the Notes but the
Notes shall not have been declared due and payable pursuant to Section 5.2, or,
if such Notes shall have been declared due and payable following an Event of
Default, amounts collected or receivable from the Trust Fund are being applied
in accordance with Section 5.5 as if there had not been such a declaration; then
the Indenture Trustee shall, to the fullest extent practicable, invest and
reinvest funds in the Trust Accounts in investments of the type set forth in
clause (c) of the definition of Eligible Investments maturing no later than the
Business Day immediately preceding the next scheduled Payment Date.

            Section 8.4 Release of Trust Fund. (a) Subject to the payment of its
fees and expenses pursuant to Section 6.7, the Indenture Trustee may, and when
required by the provisions of this Indenture and the Sale and Servicing
Agreement shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article VIII shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any moneys.

            (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have
been paid, release any remaining portion of the Trust Fund from the lien of this
Indenture and release for deposit into the Certificate Distribution Account or
to any other Person entitled thereto any funds then on deposit in the Trust
Accounts. The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.4(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and (if required
by TIA) Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.1.

            Section 8.5 Opinion of Counsel. The Indenture Trustee shall receive
at least seven days notice when requested by the Issuer to take any action
pursuant to Section 8.4(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to

                                      -54-
<PAGE>

complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and
adversely impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the Trust Fund. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

            Section 9.1 Supplemental Indentures. (a) Without the consent of the
Holders of any Notes but with the prior written consent of the Insurer (unless
an Insurer Default shall have occurred and be continuing) and with prior notice
to the Rating Agencies by the Issuer, as evidenced to the Indenture Trustee, the
Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any
time and from time to time, may enter into one or more indentures supplemental
hereto (which shall conform to the provisions of the Trust Indenture Act as in
force at the date of the execution thereof), in form satisfactory to the
Indenture Trustee, for any of the following purposes:

            (i) to correct or amplify the description of any property at any
      time subject to the lien of this Indenture, or better to assure, convey
      and confirm unto the Indenture Trustee any property subject or required to
      be subjected to the lien of this Indenture, or to subject to the lien of
      this Indenture additional property;

            (ii) to evidence the succession, in compliance with the applicable
      provisions hereof, of another person to the Issuer, and the assumption by
      any such successor of the covenants of the Issuer herein and in the Notes
      contained;

            (iii) to add to the covenants of the Issuer, for the benefit of the
      Holders of the Notes, or to surrender any right or power herein conferred
      upon the Issuer;

            (iv) to convey, transfer, assign, mortgage or pledge any property to
      or with the Indenture Trustee;

            (v) to cure any ambiguity, to correct or supplement any provision
      herein or in any supplemental indenture which may be inconsistent with any
      other provision herein or in any supplemental indenture or to make any
      other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided that such action
      shall not adversely affect the interests of the Holders of the Notes;

            (vi) to evidence and provide for the acceptance of the appointment
      hereunder by a successor trustee with respect to the Notes and to add to
      or change any of the provisions of this Indenture as shall be necessary to
      facilitate the administration of the trusts hereunder by more than one
      trustee, pursuant to the requirements of Article VI; or

                                      -55-
<PAGE>

            (vii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as shall be necessary to effect the qualification
      of this Indenture under the TIA or under any similar federal statute
      hereafter enacted and to add to this Indenture such other provisions as
      may be expressly required by the TIA.

            The Indenture Trustee is hereby authorized to join in the execution
of any such supplemental indenture and to make any further appropriate
agreements and stipulations that may be therein contained.

            (b) The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, may, also without the consent of any of the Holders of the Notes
but with the consent of the Insurer, if there is no Insurer Default, and with
prior notice to the Rating Agencies by the Issuer, as evidenced to the Indenture
Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however, that
such action shall not, as evidenced by an Opinion of Counsel, adversely affect
in any material respect the interests of any Noteholder.

            Section 9.2 Supplemental Indentures with Consent of Noteholders. (a)
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior written notice to the Rating Agencies, with the consent of the
Insurer (unless an Insurer Default shall have occurred and be continuing) and if
the Insurer is no longer the Controlling Party, with the consent of the Holders
of not less than a majority of the Outstanding Amount of the Notes, enter into
an indenture or indentures supplemental hereto for any purpose; provided,
however, that, no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Note affected thereby:

            (i) change the date of payment of any installment of principal of or
      interest on any Note, or reduce the principal amount thereof, the interest
      rate thereon or the Redemption Price with respect thereto, change the
      provision of this Indenture relating to the application of collections on,
      or the proceeds of the sale of, the Trust Fund to payment of principal of
      or interest on the Notes, or change any place of payment where, or the
      coin or currency in which, any Note or the interest thereon is payable;

            (ii) impair the right to institute suit for the enforcement of the
      provisions of this Indenture requiring the application of funds available
      therefor, as provided in Article V, to the payment of any such amount due
      on the Notes on or after the respective due dates thereof (or, in the case
      of redemption, on or after the Redemption Date);

            (iii) reduce the percentage of the Outstanding Amount of the Notes,
      the consent of the Holders of which is required for any such supplemental
      indenture, or the consent of the Holders of which is required for any
      waiver of compliance with certain provisions of this Indenture or certain
      defaults hereunder and their consequences provided for in this Indenture;

            (iv) modify or alter the provisions of the proviso to the definition
      of the term "Outstanding";

                                      -56-
<PAGE>

            (v) reduce the percentage of the Outstanding Amount of the Notes
      required to direct the Indenture Trustee to direct the Issuer to sell or
      liquidate the Trust Fund pursuant to Section 5.4;

            (vi) modify any provision of this Section except to increase any
      percentage specified herein or to provide that certain additional
      provisions of this Indenture or the Basic Documents cannot be modified or
      waived without the consent of the Holder of each Outstanding Note;

            (vii) modify any of the provisions of this Indenture in such manner
      as to affect the calculation of the amount of any payment of interest or
      principal due on any Note on any Payment Date (including the calculation
      of any of the individual components of such calculation) or to affect the
      rights of the Holders of Notes to the benefit of any provisions for the
      mandatory redemption of the Notes contained herein; or

            (viii) permit the creation of any lien ranking prior to or on a
      parity with the lien of this Indenture with respect to any part of the
      Trust Fund or, except as otherwise permitted or contemplated herein or in
      any of the Basic Documents, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of
      the security provided by the lien of this Indenture.

            (b) The Indenture Trustee may determine whether or not any Notes
would be affected by any supplemental indenture and any such determination shall
be conclusive upon the Holders of all Notes, whether theretofore or thereafter
authenticated and delivered hereunder. The Indenture Trustee shall not be liable
for any such determination made in good faith.

            (c) It shall not be necessary for any Act of Noteholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

            (d) Promptly after the execution by the Issuer and the Indenture
Trustee of any supplemental indenture pursuant to this Section, the Indenture
Trustee shall mail to the Insurer and the Holders of the Notes to which such
amendment or supplemental indenture relates a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the Indenture
Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.

            Section 9.3 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

            Section 9.4 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed

                                      -57-
<PAGE>

to be modified and amended in accordance therewith with respect to the Notes
affected thereby, and the respective rights, limitations of rights, obligations,
duties, liabilities and immunities under this Indenture of the Indenture
Trustee, the Issuer, the Insurer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

            Section 9.5 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

            Section 9.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                               REDEMPTION OF NOTES

            Section 10.1 Redemption. (a) The Notes are subject to redemption in
whole, but not in part, at the direction of the Seller pursuant to Section
13.1(a) of the Sale and Servicing Agreement, on any Payment Date on which the
Servicer exercises its option to purchase the Trust Estate pursuant to said
Section 13.1(a), for a purchase price equal to the Redemption Price; provided,
however, that the Issuer has available funds sufficient to pay the Redemption
Price. The Servicer or the Issuer shall furnish the Insurer and the Rating
Agencies notice of such redemption. If the Notes are to be redeemed pursuant to
this Section 10.1(a), the Servicer or the Issuer shall furnish notice of such
election to the Indenture Trustee not later than 35 days prior to the Redemption
Date and the Issuer shall deposit with the Indenture Trustee in the Note
Distribution Account the Redemption Price of the Notes to be redeemed whereupon
all such Notes shall be due and payable on the Redemption Date upon the
furnishing of a notice complying with Section 10.2 to each Holder of Notes.

            (b) If on the Payment Date on which the Pre-Funding Period ends (or
on the Payment Date on or immediately following the last day of the Pre-Funding
Period, if the Pre-Funding Period does not end on a Payment Date), any
Pre-Funded Amount remains on deposit in the Pre-Funding Account after giving
effect to the purchase of all Subsequent Receivables, including any such
purchase on such Redemption Date, the Notes will be redeemed in whole or in
part, in an aggregate principal amount equal to the Prepayment Amount which will
be distributed pro rata to Holders of each Class of Notes based on the
Outstanding Amount of each such Class; provided that if the Remaining
Pre-Funding Amount is $100,000 or less such amount

                                      -58-
<PAGE>

shall be applied sequentially to release the Outstanding Amount of the Class of
Notes having the lowest numerical designation then outstanding until paid in
full, and then to the Class of Notes having the next lowest numerical
designation then outstanding.

            (c) In the event that the assets of the Trust are sold pursuant to
Section 9.2 of the Trust Agreement, all amounts on deposit in the Note
Distribution Account shall be paid to the Noteholders up to the Outstanding
Amount of the Notes and all accrued and unpaid interest thereon. If amounts are
to be paid to Noteholders pursuant to this Section 10.1(c), the Servicer or the
Issuer shall, to the extent practicable, furnish notice of such event to the
Indenture Trustee not later than 45 days prior to the Redemption Date whereupon
all such amounts shall be payable on the Redemption Date.

            Section 10.2 Form of Redemption Notice. (a) Notice of redemption
under Section 10.1 shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the applicable
Redemption Date to the Insurer and each Holder of Notes, as of the close of
business on the Record Date preceding the applicable Redemption Date, at such
Holder's address appearing in the Note Register.

            All notices of redemption shall state:

            (i) the Redemption Date;

            (ii) the Redemption Price;

            (iii) that the Record Date otherwise applicable to such Redemption
      Date is not applicable and that payments shall be made only upon
      presentation and surrender of such Notes and the place where such Notes
      are to be surrendered for payment of the Redemption Price (which shall be
      the office or agency of the Issuer to be maintained as provided in Section
      3.2); and

            (iv) that (unless the Issuer shall default in the payment of the
      Redemption Price) interest on the Notes shall cease to accrue on the
      Redemption Date. Notice of redemption of the Notes shall be given by the
      Indenture Trustee in the name and at the expense of the Issuer. Failure to
      give notice of redemption, or any defect therein, to any Holder of any
      Note shall not impair or affect the validity of the redemption of any
      other Note.

            (b) Prior notice of redemption under Section 10.1(b) is not required
to be given to Noteholders.

            Section 10.3 Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2 (in
the case of redemption pursuant to Section 10.1), on the Redemption Date become
due and payable at the Redemption Price and (unless the Issuer shall default in
the payment of the Redemption Price) no interest shall accrue on the Redemption
Price for any period after the date to which accrued interest is calculated for
purposes of calculating the Redemption Price.

                                      -59-
<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

            Section 11.1 Compliance Certificates and Opinions, Etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and to the Insurer (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and (ii) an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with and (iii) (if required by the TIA) an Independent Certificate
from a firm of certified public accountants meeting the applicable requirements
of this Section, except that, in the case of any such application or request as
to which the furnishing of such documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished.

            Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

            (i) a statement that each signatory of such certificate or opinion
      has read or has caused to be read such covenant or condition and the
      definitions herein relating thereto;

            (ii) a brief statement as to the nature and scope of the examination
      or investigation upon which the statements or opinions contained in such
      certificate or opinion are based;

            (iii) a statement that, in the opinion of each such signatory, such
      signatory has made such examination or investigation as is necessary to
      enable such signatory to express an informed opinion as to whether or not
      such covenant or condition has been complied with; and

            (iv) a statement as to whether, in the opinion of each such
      signatory, such condition or covenant has been complied with.

            (b) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Insurer an
Officer's Certificate certifying or stating the opinion of each person signing
such certificate as to the fair value (within 90 days of such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited.

            (i) Whenever the Issuer is required to furnish to the Indenture
      Trustee and the Insurer an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (a)
      above, the Issuer shall also deliver to the Indenture Trustee and the
      Insurer an Independent Certificate as to the same matters, if the fair
      value to the Issuer of the securities to be so deposited and of all other
      such securities made the

                                      -60-
<PAGE>

      basis of any such withdrawal or release since the commencement of the
      then-current fiscal year of the Issuer, as set forth in the certificates
      delivered pursuant to clause (a) above and this clause (b)(i), is 10% or
      more of the Outstanding Amount of the Notes, but such a certificate need
      not be furnished with respect to any securities so deposited, if the fair
      value thereof to the Issuer as set forth in the related Officer's
      Certificate is less than $25,000 or less than 1% percent of the
      Outstanding Amount of the Notes.

            (ii) Other than with respect to the release of any Purchased
      Receivables or Liquidated Receivables, whenever any property or securities
      are to be released from the lien of this Indenture, the Issuer shall also
      furnish to the Indenture Trustee and the Insurer an Officer's Certificate
      certifying or stating the opinion of each person signing such certificate
      as to the fair value (within 90 days of such release) of the property or
      securities proposed to be released and stating that in the opinion of such
      person the proposed release will not impair the security under this
      Indenture in contravention of the provisions hereof.

            (iii) Whenever the Issuer is required to furnish to the Indenture
      Trustee and the Insurer an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (a)
      above, the Issuer shall also furnish to the Indenture Trustee and the
      Insurer an Independent Certificate as to the same matters if the fair
      value of the property or securities and of all other property other than
      Purchased Receivables and Liquidated Receivables, or securities released
      from the lien of this Indenture since the commencement of the then current
      calendar year, as set forth in the certificates required by clause (a)
      above and this clause (b)(iii), equals 10% or more of the Outstanding
      Amount of the Notes, but such certificate need not be furnished in the
      case of any release of property or securities if the fair value thereof as
      set forth in the related Officer's Certificate is less than $25,000 or
      less than 1% percent of the then Outstanding Amount of the Notes.

            (iv) Notwithstanding Section 2.9 or any other provision of this
      Section, the Issuer may (A) collect, liquidate, sell or otherwise dispose
      of Receivables as and to the extent permitted or required by the Basic
      Documents and (B) make cash payments out of the Trust Accounts as and to
      the extent permitted or required by the Basic Documents.

            Section 11.2 Form of Documents Delivered to Indenture Trustee. In
any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

            Any certificate or opinion of an Authorized Officer of the Issuer
may be based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or

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<PAGE>

Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Servicer, the Seller or the Issuer, stating that the information with
respect to such factual matters is in the possession of the Servicer, the Seller
or the Issuer, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

            Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

            Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

            Section 11.3 Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee, and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section.

            (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any customary manner of the Indenture
Trustee.

            (c) The ownership of Notes shall be proved by the Note Register.

            (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

                                      -62-
<PAGE>

            Section 11.4 Notices, Etc., to Indenture Trustee, Issuer, Insurer
and Rating Agencies. Any request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders or other documents provided or permitted
by this Indenture to be made upon, given or furnished to or filed with:

            (a) The Indenture Trustee by any Noteholder or by the Issuer shall
be sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
be deemed to have been duly given upon receipt to the Indenture Trustee at its
Corporate Trust Office, or

            (b) The Issuer by the Indenture Trustee or by any Noteholder shall
be sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed certified mail, return receipt requested and shall
be deemed to have been duly given upon receipt to the Issuer addressed to:
[_________] Owner Trust 200[__]-[__], in care of [________], [________],
[________], [________], Attention: [________] or at any other address previously
furnished in writing to the Indenture Trustee by Issuer. The Issuer shall
promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee.

            (c) The Insurer by the Issuer or the Indenture Trustee shall be
sufficient for any purpose hereunder if in writing and mailed by registered mail
or personally delivered or telexed or telecopied to the recipient as follows:

            To the Insurer:

                  [___________]
                  [___________]
                  [___________], [___________]
                  Attention:  [___________]
                  Telex No.:  (___) [___________]
                  Confirmation:  (___) [___________]
                      Telecopy No.: (___) [___________] or
                  (___) [___________]

            (In each case in which notice or other communication to the Insurer
refers to an Event of Default, a claim on the Policy or with respect to which
failure on the part of the Insurer to respond shall be deemed to constitute
consent or acceptance, then a copy of such notice or other communication should
also be sent to the attention of the General Counsel and the Head--Financial
Guaranty Group "URGENT MATERIAL ENCLOSED.")

            Notices required to be given to the Rating Agencies by the Issuer,
the Indenture Trustee, or the Owner Trustee shall be in writing, personally
delivered, delivered by overnight courier or mailed certified mail, return
receipt requested to (i) [_____________], at the following address:
[__________], [__________], [__________], [__________], [__________], Attention:
[__________] and (ii) [__________], at the following address: [___________],
[___________], [___________], [___________], Attention: [___________]; or as to
each of the foregoing, at such other address as shall be designated by written
notice to the other parties.

                                      -63-
<PAGE>

            Section 11.5 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner here
in provided shall conclusively be presumed to have been duly given.

            Where this Indenture provides for notice in any manner, such notice
may be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

            In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

            Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute a Default or
Event of Default.

            Section 11.6 Alternate Payment and Notice Provisions.
Notwithstanding any provision of this Indenture or any of the Notes to the
contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for in
this Indenture for such payments or notices, provided that such methods are
reasonable and consented to by the Indenture Trustee (which consent shall not be
unreasonably withheld). The Issuer will furnish to the Indenture Trustee a copy
of each such agreement and the Indenture Trustee will cause payments to be made
and notices to be given in accordance with such agreements.

            Section 11.7 Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

            The provisions of TIA Sections 310 through 317 that impose duties on
any person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

                                      -64-
<PAGE>

            Section 11.8 Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

            Section 11.9 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors.

            Section 11.10 Separability. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality, and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

            Section 11.11 Benefits of Indenture. The Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default shall have occurred
and be continuing. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the Noteholders, and any other party secured
hereunder, and any other person with an Ownership interest in any part of the
Trust Fund, any benefit or any legal or equitable right, remedy or claim under
this Indenture. The Insurer may disclaim any of its rights and powers under this
Indenture (in which case the Indenture Trustee may exercise such right or power
hereunder), but not its duties and obligations under the Policy, upon delivery
of a written notice to the Indenture Trustee.

            Section 11.12 Legal Holidays. In any case where the date on which
any payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date an which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

            Section 11.13 Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW, BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICT OF
LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            Section 11.14 Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

            Section 11.15 Recording of Indenture. If this Indenture is subject
to recording in any appropriate public recording offices, such recording is to
be effected by the Issuer and at its expense accompanied by an Opinion of
Counsel (which may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
person secured

                                      -65-
<PAGE>

hereunder or for the enforcement of any right or remedy granted to the Indenture
Trustee under this Indenture.

            Section 11.16 Trust Obligation. (a) No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the
Seller, the Transferor, the Depositor, the Servicer, the Owner Trustee or the
Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Seller, the Transferor, the Depositor, the Servicer, the Owner Trustee or the
Indenture Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Seller, the Transferor, the Depositor, the
Servicer, the Owner Trustee, or the Indenture Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Seller, the
Transferor, the Depositor, the Servicer, the Owner Trustee, or the Indenture
Trustee or of any successor or assign of the Seller, the Transferor, the
Depositor, the Servicer, the Owner Trustee or the Indenture Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

            (b) It is expressly understood and agreed to by the parties hereto
that (a) this Indenture is executed and delivered by [Name of Owner Trustee],
not individually or personally but solely as Owner Trustee of the [_______]
Owner Trust 200[__]-[__], in the exercise of the powers and authority conferred
and vested in it, (b) each of the representations, undertakings and agreements
herein made on the part of the Issuer is made and intended not as personal
representations, undertakings and agreements by [__________] but is made and
intended for the purpose for binding only the Issuer, (c) nothing herein
contained shall be construed as creating any liability on [__________],
individually or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties
hereto and (d) under no circumstances shall [__________] be personally liable
for the payment of any indebtedness or expenses of the Issuer or be liable for
the breach or failure of any obligation, representation, warranty or covenant
made or undertaken by the Issuer under this Indenture or any other related
documents.

            Section 11.17 No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Transferor, the
Depositor, or the Issuer, or join in any institution against the Transferor, the
Depositor, or the Issuer of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, this Indenture or any of the Basic Documents.

                                      -66-
<PAGE>

            Section 11.18 Inspection. The Issuer agrees that, on reasonable
prior notice, it will permit any representative of the Indenture Trustee or of
the Insurer, during the Issuer's normal business hours, to examine all the books
of account, records, reports, and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information except to the extent disclosure may be
required by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Indenture Trustee may reasonably
determine that such disclosure is consistent with its Obligations hereunder.

            [THIS SPACE LEFT INTENTIONALLY BLANK]

                                      -67-
<PAGE>

            IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, thereunto duly
authorized, all as of the day and year first above written.

                                       [_________________],
                                          OWNER TRUST 200[__]-[__]

                                       By:[_________________], not in its
                                          individual capacity but solely as
                                          Owner/Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                       [_________________]
                                          [_________________], not in its
                                          individual capacity but solely as
                                          Indenture Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

<PAGE>

                                                                   EXHIBIT B-1

                                 [Form of Note]

REGISTERED
No. __________                                                    $[_________]

                       SEE REVERSE FOR CERTAIN DEFINITIONS

            [Unless this Note is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to the Issuer or
its agent for registration of transfer, exchange or payment, and any Note issued
is registered in the name of Cede & Co. or in such other name as is requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC).]

            THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

                   [____________] OWNER TRUST 200[__]-[__]
                      Class A-1 [____]% ASSET BACKED NOTES

            [______________] OWNER TRUST 200[__]-[__], a Delaware business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO.,
or registered assigns, the principal sum of [_________] payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction the
numerator of which is $[_________] and the denominator of which is $[_________]
by (ii) the aggregate amount, if any, payable from the Note Distribution Account
in respect of principal on the Class A-1 Notes pursuant to Section 3.1 of the
Indenture; provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the Class A-1 Payment Date in [_____], 200[__]
(the "Final Scheduled Payment Date"). The Issuer will pay interest on this Note
at the rate per annum shown above on each Payment Date until the principal of
this Note is paid or made available for payment. With respect to any Payment
Date, interest on the Outstanding Amount of this Note will be an amount equal to
one-twelfth of the rate shown above, multiplied by the Outstanding Amount on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date). Interest on this Note will accrue for each Payment
Date for the related Interest Period. Interest will be computed on the basis of
a 360-day year consisting of twelve 30-day months. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

            The principal of and interest on this Note are payable in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to

                                     B-1-1
<PAGE>

interest due and payable on this Note as provided above and then to the unpaid
principal of this Note.

            The Notes are entitled to the benefits of a financial guaranty
insurance policy (the "Policy") issued by Financial Security Assurance Inc. (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments to the Noteholders to the extent set forth in the Indenture.

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which shall have the same effect as though fully set
forth on the face of this Note.

            Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

            IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer as of the date set
forth below.

                                       [_________________],
                                          OWNER TRUST 200[__]-[__]

                                       By:[_________________], not in its
                                          individual capacity but solely as
                                          Owner/Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                     B-1-2
<PAGE>

                   TRUSTEE'S CERTIFICATE OF AUTHENTICATION

            This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Dated:

                                       [_____________]
                                          [_____________], not in its
                                          individual capacity but solely as
                                          Indenture Trustee

                                       By:____________________________________
                                          Authorized Signatory

                                     B-1-3
<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 [______]% Asset Backed Notes (herein called the
"Class A-1 Notes"), all issued under an Indenture dated as of [_________] [__],
200[__] (such indenture, as supplemented or amended, is herein called the
"Indenture"), between the Issuer and [____________], as trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture, to which Indenture) and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
The Notes are subject to all terms of the Indenture. All terms used in this Note
that are defined in the Indenture, as supplemented or amended, shall have the
meanings assigned to them in or pursuant to the Indenture, as so supplemented or
amended.

            The Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes
(together, the "Notes") are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

            Principal of the Class A-1 Notes will be payable on each Payment
Date in an amount described on the face hereof. "Payment Date" means the
fifteenth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing in [______], 200[__].

            As provided in the Indenture and subject to the restrictions on
transfer and certain limitations set forth therein, the transfer of this Note
may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, (i) duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or his attorney duly authorized in writing, with
such signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar which requirements include membership or
participation in Securities Transfer Agents Medallion Program ("Stamp") or such
other "signature guarantee program" as may be determined by the Note Registrar
in addition to, or in substitution for, Stamp, all in accordance with the
Exchange Act, and (ii) accompanied by such other documents as the Indenture
Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be
required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or
exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note covenants and agrees that
by accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, the Depositor, or the Issuer or join in
any institution against the Transferor, the Depositor, or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings, under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Basic Documents.

                                     B-1-4
<PAGE>

            By acceptance of this Note each Noteholder covenants and agrees to
treat such Note as indebtedness for purposes of federal income, State and local
income and franchise and any other taxes.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and the Insurer and any agent of the
Issuer, the Indenture Trustee or the Insurer may treat the Person in whose name
this Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

            The Indenture permits the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the
Insurer or, if an Insurer Default has occurred and is continuing, with the
consent of the Holders of Notes representing a majority of the Outstanding
Amount of all Notes at time Outstanding. The Indenture also contains provisions
permitting the Insurer (and in certain circumstances described in the Indenture,
Holders of Notes representing specified percentages of the Outstanding Amount of
the Notes, on behalf of the Holders of all the Notes), to waive compliance by
the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Controlling Party or the Holder of this Note (or any one of more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Notes issued thereunder.

            The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Holders of Notes under the Indenture.

            The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

            This Note and the Indenture shall be construed in accordance with
the laws of the State of New York, including Section 5-1401 of the General
Obligations Law, but otherwise without reference to its conflict of law
provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such laws.

            No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

                                     B-1-5
<PAGE>

            Anything herein to the contrary notwithstanding, except as expressly
provided in the Indenture or the Basic Documents, neither [Name of Owner
Trustee], any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal of or interest on, or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Owner Trustee for the sole purposes of binding the interests of the Owner
Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof agrees that except as expressly provided in the Indenture or the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture
or in this Note.

                                     B-1-6
<PAGE>

                                   ASSIGNMENT

            Social  Security or taxpayer I.D. or other  identifying  number of
assignee

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto__________________________________________________________________
                                   (NAME AND ADDRESS OF ASSIGNEE)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints _____________, attorney, to transfer said Note on the books kept
for registration thereof, with full power of substitution in the premises.

Dated:      ___________                       _________________________________1
                                              Signature Guaranteed:

----------
1 NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

                                     B-1-7Exhibit 4.7

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

                          SALE AND SERVICING AGREEMENT

                         Dated as of ___________, 200__

                                      among

                 _____________ HOME LOAN OWNER TRUST 200__-__
                                    (Issuer)

                    SECURITIZED ASSET BACKED RECEIVABLES LLC
                                   (Depositor)

                        -----------------------------
                        (Transferor and Master Servicer)

                                       and

                        -----------------------------
                               (Indenture Trustee)

                   ____________ HOME LOAN OWNER TRUST 200__-__
                          HOME LOAN ASSET BACKED NOTES

                                 SERIES 200__-__

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

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions....................................................1

Section 1.02  Other Definitional Provisions.................................24

                                   ARTICLE II

                          CONVEYANCE OF THE HOME LOANS

Section 2.01  Conveyance of the Home Loans..................................25

Section 2.02  Ownership and Possession of Home Loan Files...................25

Section 2.03  Books and Records.............................................26

Section 2.04  Delivery of Home Loan Documents...............................26

Section 2.05  Acceptance by the Indenture Trustee of the Home Loans;
               Certain Substitutions; Certification by the Custodian........28

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

Section 3.01  Representations and Warranties of the Depositor...............30

Section 3.02  Representations and Warranties of the Transferor..............31

Section 3.03  Representations, Warranties and Covenants of the Master
               Servicer.....................................................34

Section 3.04  Representations and Warranties Regarding Individual Home
               Loans........................................................36

Section 3.05  Purchase and Substitution.....................................42

                                   ARTICLE IV

                ADMINISTRATION AND SERVICING OF THE HOME LOANS

Section 4.01  Appointment and Duties of the Master Servicer.................45

Section 4.02  Interim Servicer..............................................48

                                       -i-
<PAGE>

Section 4.03  Powers of Attorney............................................48

Section 4.04  Filing of Continuation Statements.............................48

Section 4.05  Reports to the Securities and Exchange Commission.............49

                                    ARTICLE V

                         ESTABLISHMENT OF TRUST ACCOUNTS

Section 5.01  Collection Account and Note Payment Account...................49

Section 5.01A Claims Under Guaranty Policy..................................52

Section 5.02  Certificate Distribution Account..............................55

Section 5.03  Trust Accounts; Trust Account Property........................56

Section 5.04  Allocation of Losses..........................................58

                                   ARTICLE VI

                       STATEMENTS AND REPORTS; WITHHOLDING

Section 6.01  Statements....................................................58

Section 6.02  Withholding...................................................61

                                   ARTICLE VII

                          GENERAL SERVICING PROCEDURES

Section 7.01  Servicing Advances............................................61

Section 7.02  Release of Home Loan Files....................................62

Section 7.03  Servicing Compensation........................................62

Section 7.04  Statement as to Compliance and Financial Statements...........63

Section 7.05  Independent Public Accountants' Servicing Report..............63

Section 7.06  Reports to the Indenture Trustee; Collection Account
               Statements...................................................64

Section 7.07  Financial Statements and Records of Servicer..................64

                                      -ii-
<PAGE>

                                  ARTICLE VIII

                                   (RESERVED)

                                   ARTICLE IX

                               THE MASTER SERVICER

Section 9.01  Indemnification; Third Party Claims...........................64

Section 9.02  Merger or Consolidation of the Master Servicer................65

Section 9.03  Limitation on Liability of the Master Servicer and Others.....66

Section 9.04  Master Servicer Not to Resign; Assignment.....................66

Section 9.05  [Reserved.]...................................................66

Section 9.06  Relationship of Master Servicer to the Issuer and the
               Indenture Trustee............................................66

Section 9.07  Master Servicer May Own Securities............................67

Section 9.08  Right to Examine Master Servicer Records......................67

Section 9.09  Financial Statements..........................................67

                                    ARTICLE X

                                     DEFAULT

Section 10.01 Master Servicer Events of Default.............................68

Section 10.02 [Reserved]....................................................70

Section 10.03 Waiver of Defaults............................................70

Section 10.04 Accounting Upon Termination of Master Servicer................70

                                   ARTICLE XI

                                   TERMINATION

Section 11.01 Termination...................................................70

Section 11.02 Optional Termination..........................................71

Section 11.03 Notice of Termination.........................................71

                                      -iii-
<PAGE>

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

Section 12.01 Acts of Noteholders...........................................72

Section 12.02 Amendment.....................................................72

Section 12.03 Recordation of Agreement......................................73

Section 12.04 Duration of Agreement.........................................73

Section 12.05 Governing Law.................................................73

Section 12.06 Notices.......................................................73

Section 12.07 Severability of Provisions....................................74

Section 12.08 No Partnership................................................74

Section 12.09 Counterparts..................................................74

Section 12.10 Successors and Assigns........................................74

Section 12.11 Headings......................................................74

Section 12.12 Actions of Securityholders....................................74

Section 12.13 Reports to Rating Agencies....................................75

Section 12.14 Holders of the Residual Interest Certificates.................75

Section 12.15 [Grant of Noteholder Rights to Securities Insurer.............76

Section 12.16 Third Party Beneficiary.......................................76

Section 12.17 [Suspension and Termination of Securities Insurer's Rights....76

EXHIBITS:

A     -     Home Loan Schedule
B     -     Form of Servicer's Monthly Remittance Report to Indenture Trustee
C     -     Form of Loan Liquidation Report
D     -     Form of Master Servicer Renewal Notice
E     -     Form of Standard Servicing Terms

                                      -iv-
<PAGE>

            This SALE AND SERVICING AGREEMENT is entered into effective as of
_________, 200__, (this "Agreement") among ______________ HOME LOAN OWNER TRUST
200__-__, a Delaware business trust (the "Issuer" or the "Trust"), SECURITIZED
ASSET BACKED RECEIVABLES LLC, a Delaware corporation, as Depositor (the
"Depositor"), ______________________________, a ________________________
("___________"), as Transferor (in such capacity, the "Transferor") and Master
Servicer (in such capacity, the "Master Servicer") and
_____________________________, a ____________________, as Indenture Trustee on
behalf of the Noteholders (the "Indenture Trustee").

                              W I T N E S S E T H:

            In consideration of the mutual agreements herein contained, the
parties hereto hereby agree as follows for the benefit of each of them and for
the benefit of the holders of the Notes issued under the Indenture, the Residual
Interest Certificates issued under the Owner Trust Agreement [and the Securities
Insurer for issuing the Guaranty Policy]:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01 Definitions. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the meanings specified in this Article. Unless otherwise specified, all
calculations of interest described herein shall be made on the basis of the
actual number of days elapsed during the related Interest Accrual Period and a
360-day year.

            Accepted Servicing Procedures: Servicing procedures that satisfy the
following: (a) meet at least the same standards the Servicer would follow in
exercising reasonable care in servicing mortgage loans such as the Home Loans
held for its own account; (b) comply with applicable state and federal law; (c)
comply with the provisions of the related Debt Instruments and Mortgages; and
(d) give due consideration to the accepted standards of practice of prudent loan
servicers that service sub-prime mortgage loans comparable to the Home Loans,
including the terms set forth in the Standard Servicing Terms set forth herein
as Exhibit E, and the reliance placed by [the Securities Insurer,] the Master
Servicer and Securityholders on the Servicer for the servicing of the Home
Loans, but without regard to:

            (a) any relationship that the Servicer or any Affiliate of the
      Servicer may have with the related Obligor;

            (b) the ownership of any Notes or the Residual Interest Certificates
      by the Servicer or any Affiliate of the Servicer;

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

            (d) the Servicer's right to receive compensation for its services
      hereunder with respect to any particular transaction.

<PAGE>

            Accrual Period: With respect to the Notes and any Payment Date, the
period commencing on the Payment Date preceding the month in which the related
Payment Date occurs and ending on the day immediately preceding the related
Payment Date, except in the case of the first Payment Date, which shall be the
period commencing on the Closing Date and ending on the first Payment Date.

            Administration Agreement: The Administrative Agreement, dated as of
__________, 200__, by and among the Issuer, _______________________ and
________________________.

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

            Agreement: This Sale and Servicing Agreement and all amendments
hereof and supplements hereto.

            Annual Loss Percentage: With respect to any Payment Date, a
fraction, expressed as a percentage, the numerator of which is the aggregate of
all Realized Losses for the twelve preceding Due Periods ending on the last day
of the preceding Due Period and the denominator of which is the Pool Principal
Balance as of the first day of the twelfth preceding Due Period.

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

            Available Collection Amount: With respect to any Payment Date, an
amount without duplication equal to the sum of: (i) all amounts received on the
Home Loans or required to be paid by the Master Servicer, the Servicer or the
Transferor during the related Due Period (exclusive of amounts not required to
be deposited in the Collection Account pursuant to Section 5.01(b)(1) hereof and
amounts permitted to be withdrawn by the Indenture Trustee from the Collection
Account pursuant to Section 5.01(b)(3) hereof); (ii) upon exercise of optional
redemption of the Notes and termination of the Issuer pursuant to Section 11.02
hereof, the Termination Price; and (iii) the Purchase Price paid for any Home
Loans purchased pursuant to Section 3.05 hereof prior to the related
Determination Date and the Substitution Adjustment to be deposited in the
Collection Account in connection with any substitution, in each case prior to
the related Determination Date.

            Available Payment Amount: With respect to any Payment Date, the
Available Collection Amount deposited into the Note Payment Account, minus the
amount of any Trust

                                      -2-
<PAGE>

Fees and Expenses required to be paid from the Note Payment Account pursuant to
Section 5.01(c)(i) hereof.

            Business Day: Any day other than (a) a Saturday or Sunday, or (b) a
day on which the banking institutions are authorized or obligated by law or
executive order to be closed in a city at any of the following locations: (i)
The City of New York, [(ii) where the Securities Insurer is located,] (iii)
where the Corporate Trust Office of the Indenture Trustee is located, (iv) where
the servicing operations of the Servicer are located or (v) where the master
servicing operations of the Master Servicer are located.

            Call Option Date: The first Payment Date on which the Pool Principal
Balance has declined to ___% or less of the Original Pool Principal Balance.

            Certificate Distribution Account: The account designated as such,
established and maintained pursuant to Section 5.02 hereof.

            Certificate Register: The register established pursuant to Section
3.4 of the Owner Trust Agreement.

            Certificateholder: A holder of a Residual Interest Certificate.

            Closing Date: ___________, 200__.

            Code: The Internal Revenue Code of 1986, as amended from time to
time, and Treasury Regulations promulgated thereunder.

            Collection Account: The Eligible Account established and maintained
by the Indenture Trustee pursuant to Section 5.01(a)(1) hereof.

            Compensating Interest: With respect to any Due Period, the amount of
the shortfall in the interest portion of the Monthly Payments due on Home Loans
that prepay in full or in part during the related month other than on the date
the Monthly Payments were due.

            Custodial Agreement: The custodial agreement dated as of __________,
200__ by and among the Depositor, the Issuer, ___________, as the Transferor and
as the Master Servicer, and _______________________, a
__________________________, as the custodian, providing for the retention of the
Indenture Trustee's Home Loan Files by such custodian on behalf of the Owner
Trust.

            Custodian: Any custodian [acceptable to the Securities Insurer and]
appointed by the Indenture Trustee pursuant to the Custodial Agreement, which
custodian shall not be affiliated with the Master Servicer, the Transferor, the
Servicer or the Depositor.___________________, ________________ shall be the
initial Custodian pursuant to the terms of the Custodial Agreement.

            Custodian's Final Certification: As defined in Section 1(c) of the
Custodial Agreement.

                                      -3-
<PAGE>

            Custodian's Initial Certification: As defined in Section 1(a) of the
Custodial Agreement.

            Custodian's Updated Certification: As defined in Section 1(c) of the
Custodial Agreement.

            Cut-Off Date: The close of business on _____________, 200__.

            Debt Instrument: The mortgage note evidencing the indebtedness of an
Obligor under a Home Loan.

            Defaulted Home Loan: With respect to any date of determination, any
Home Loan, including, without limitation, any Liquidated Home Loan with respect
to which any of the following has occurred as of the end of the preceding Due
Period: (a) foreclosure or similar proceedings have been commenced; or (b) the
Servicer has determined in good faith and in accordance with the Accepted
Servicing Procedures that such Home Loan is in default for a period in excess of
30 days or imminent default and that such default or imminent default involves
the nonpayment of any Monthly Payment or a default which has or would have a
material adverse affect on such Home Loan.

            Defective Home Loan: As defined in Section 3.05 hereof.

            Deficiency Amount: As of any Payment Date, the sum of (a) the amount
by which (1) the Noteholders' Interest Payment Amount for the Notes on such
Payment Date less Relief Act Shortfalls for such Payment Date, exceeds (2) the
Available Payment Amount for such Payment Date, and (b) the Noteholders'
Principal Deficiency Amount for such Payment Date.

            Deleted Home Loan: A Home Loan replaced or to be replaced by one or
more than one Qualified Substitute Home Loan.

            Delinquent: A Home Loan is "Delinquent" if any Monthly Payment due
thereon is not made by the Due Date. A Home Loan shall be deemed to be "30 days
Delinquent" if the delinquency remains uncured for two calendar months, but not
three. The determination of whether a Home Loan is "60 days Delinquent," "90
days Delinquent", etc., shall be made in like manner.

            Delivery: When used with respect to Trust Account Property means the
delivery of such Trust Account Property in a manner that results in the
transferee having either the status of a perfected security interest free of any
adverse claims or a holder in due course in accordance with the following: (a)
in the case of "certificated securities" or "uncertificated securities" (in
either case as defined in Article 8 of the UCC), the applicable provisions of
Article 8 of the UCC, and in the case of "instruments", "accounts" or "general
intangibles" (in either case as defined in Article 9 of the UCC), the applicable
provisions of Article 9 of the UCC; or (b) in the case of book-entry securities
governed by Federal law, the applicable provisions of Federal law.

            Denomination: With respect to a Note, the portion of the Original
Note Principal Balance represented by such Note as specified on the face
thereof.

                                      -4-
<PAGE>

            Depositor: Securitized Asset Backed Receivables LLC, a Delaware
limited liability company, and any successor thereto.

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

            Due Date: With respect to a Monthly Payment, the day of the month on
which such Monthly Payment is due from the Obligor on a Home Loan.

            Due Period: With respect to any Determination Date or Payment Date,
the ____ day of the calendar month preceding the month in which the relevant
Determination Date or Payment Date occurs, and ending on the ______ day of the
month in which the relevant Determination Date or Payment Date occurs.

            Eligible Account: At any time, an account that is either:

            (a) A segregated account or accounts maintained with an institution
      that satisfies the following: (1) whose deposits are insured by the FDIC;
      (2) whose unsecured and uncollateralized long-term debt obligations of
      which are then rated by each Rating Agency in one of their two highest
      short-term ratings; and (3) which is either (i) a federal savings and loan
      association duly organized, validly existing and in good standing under
      the federal banking laws, (ii) an institution duly organized, validly
      existing and in good standing under the applicable banking laws of any
      state, (iii) a national banking association duly organized, validly
      existing and in good standing under the federal banking laws, (iv) a
      principal subsidiary of a bank holding company, or (v) an institution
      approved in writing by the Securities Insurer and each Rating Agency; or

            (b) A segregated trust account or accounts maintained with the
      corporate trust department of a federal or state chartered depository
      institution that satisfies the following: (1) is acceptable to the
      Securities Insurer and each Rating Agency; (2) has capital and surplus of
      not less than $100,000,000; and (3) is acting in its fiduciary capacity.

            Eligible Servicer: A Person that (i) has demonstrated the ability
professionally and competently to service a portfolio of mortgage loans similar
to the Home Loans, (ii) has a net worth calculated in accordance with GAAP of at
least $500,000, and (iii) is acceptable to the Securities Insurer and each
Rating Agency.

            Excess Spread: With respect to any Payment Date, the excess of (a)
the Available Payment Amount over (b) the Regular Payment Amount.

            FDIC: The Federal Deposit Insurance Corporation and any successor
thereto.

            FHLMC: Freddie Mac (f/k/a Federal Home Loan Mortgage Corporation)
and any successor thereto.

                                      -5-
<PAGE>

            FNMA: Fannie Mae (f/k/a Federal National Mortgage Association) and
any successor thereto.

            Foreclosed Loan: As of any date of determination, any Home Loan that
has been discharged as a result of (i) the completion of foreclosure or
comparable proceedings; (ii) the Issuer's acceptance of the deed or other
evidence of title to any related Mortgaged Property in lieu of foreclosure or
other comparable proceeding; or (iii) the acquisition by the Issuer of title to
any related Mortgaged Property by operation of law.

            Foreclosure Property: Any real property securing a Foreclosed Loan
that has been acquired by the Servicer through foreclosure, deed in lieu of
foreclosure or similar proceedings in respect of the related Home Loan.

            GAAP: Generally accepted accounting principles as in effect in the
United States.

            [Guaranty Insurance Premium: The premium payable monthly that is
specified in the Premium Letter.]

            [Guaranty Policy: That certain financial guaranty insurance policy
for the Notes, number dated _________, 200__, and issued by the Securities
Insurer to the Indenture Trustee and guaranteeing payment of any Insured Payment
thereunder.]

            Home Loan: Any mortgage loan that is included in the Home Loan Pool.
As applicable, a Home Loan shall be deemed to refer to the related Debt
Instrument, the Mortgage and any related Foreclosure Property, and shall
include, among other items, all Monthly Payments with a Due Date after the
Cut-Off Date.

            Home Loan File: As to each Home Loan, the Indenture Trustee's Home
Loan File and the Servicer's Home Loan File.

            Home Loan Interest Rate: The annual rate of interest borne by a Debt
Instrument, as shown on the related Home Loan Schedule.

            Home Loan Pool: The pool of Home Loans conveyed to the Issuer
pursuant to this Agreement on the Closing Date, together with the payments
thereon and proceeds therefrom received after the applicable Cut-Off Date, as
identified on the Home Loan Schedule annexed hereto as Exhibit A.

            Home Loan Purchase Agreement: The Home Loan Purchase Agreement
between the Transferor and the Depositor, dated as of __________, 200__.

            Home Loan Schedule: The schedule of Home Loans set forth on Exhibit
A attached hereto, as amended or supplemented from time to time specifying, with
respect to each Home Loan, the following information: (i) the Transferor's Home
Loan number; (ii) the Obligor's name and the street address; (iii) the current
principal balance; (iv) the original principal amount with respect to any Home
Loan originated by the Transferor and the principal amount purchased by the
Transferor with respect to a Home Loan acquired by the Transferor

                                      -6-
<PAGE>

subsequent to its origination; (v) any related Loan-to-Value Ratio as of the
date of the origination of the related Home Loan; (vi) the paid through date;
(vii) whether the Home Loan pays interest at a fixed rate or an adjustable rate;
(viii) the current Home Loan Interest Rate; (ix) if such Home Loan has an
adjustable Home Loan Rate, (A) the initial rate reset date, (B) the frequency of
the rate reset, (C) the initial periodic cap, (D) the subsequent periodic cap,
(E) the margin, (F) the maximum lifetime rate and (G) the minimum lifetime rate;
(x) the final maturity date under the Debt Instrument; (xi) the current Monthly
Payment; (xii) the occupancy status of the Mortgaged Property, if any; and
(xiii) the original term of the Debt Instrument.

            Indemnification and Contribution Agreement: The Indemnification and
Contribution Agreement dated as of __________, 200__ by and among
_________________________, the Depositor, [Barclays],
_______________________________ and _______________________________________.

            Indenture: The Indenture, dated as of ____________, 200__, between
the Issuer and the Indenture Trustee.

            Indenture Trustee: _____________________, a
__________________________, as Indenture Trustee under the Indenture and this
Agreement acting on behalf of the Noteholders, or any successor indenture
trustee under the Indenture or this Agreement.

            Indenture Trustee Fee: As to any Payment Date, the one-twelfth
(1/12) of the Indenture Trustee Fee Rate times the Pool Principal Balance as of
the opening of business on the first day of the Due Period immediately preceding
the calendar month of such Payment Date (or, with respect to the first Payment
Date, the Original Pool Principal Balance).

            Indenture Trustee Fee Rate: __________% ( _____ basis points) per
annum.

            Indenture Trustee's Home Loan File: As defined in Section 2.04
hereof.

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

            Independent Accountants: A firm of nationally recognized certified
public accountants that is in fact Independent.

                                      -7-
<PAGE>

            [Insurance Agreement: The Insurance and Indemnity Agreement, dated
as of _________, 200__, among the Securities Insurer, the Transferor, the Master
Servicer, the Depositor and the Issuer.]

            [Insured Payment: With respect to the Guaranty Policy, as of any
Payment Date (i) any Deficiency Amount and (ii) any Preference Amount.]

            [Insured Securities: Each of the Notes.]

            Interest Reduction Amount: As to any Payment Date, the sum of the
Servicing Fee, the Master Servicer Fee, the Indenture Trustee Fee, [and the
Guaranty Insurance Premium] payable with respect to such Payment Date or the
related Interest Accrual Period or Due Period as applicable, provided that on
any Payment Date on or after the Payment Date occurring in __________ 200__, the
Interest Reduction Amount shall increase by an amount equal to one-twelfth of
the product of ____ % and the aggregate Principal Balance of the Home Loans as
of the first day of the related Due Period.

            Issuer: _____________ Home Loan Owner Trust 200__-__, a Delaware
business trust.

            Liquidated Home Loan: With respect to any date of determination, any
Foreclosure Property or any Home Loan in respect of which a Monthly Payment is
in excess of 30 days past due and as to which the Servicer has determined that
all amounts which it reasonably and in good faith expects to collect have been
recovered from or on account of such Home Loan or the related Foreclosure
Property; provided, however, that in any event any Home Loan or the related
Foreclosure Property shall be deemed uncollectible and therefore be a Liquidated
Home Loan upon the earliest to occur of: (i) the liquidation or disposition of
such Home Loan or the related Foreclosure Property; or (ii) the determination by
the Servicer in accordance with the Accepted Servicing Procedures that there is
no reasonable likelihood of (A) recovering an economically significant amount
attributable to the outstanding interest and principal owing on such Home Loan
from either the related Mortgaged Property or the Obligor, in excess of (B) the
costs and expenses to obtain such recovery (including without limitation any
Servicing Advances), and in relation to (C) the expected timing of such recovery
therefrom.

            Liquidation Proceeds: With respect to a Liquidated Home Loan, any
cash amounts received in connection with the liquidation or disposition of such
Liquidated Home Loan, whether through trustee's sale, foreclosure sale or other
disposition, any cash amounts received in connection with the management of the
Foreclosure Properties from Foreclosed Home Loans and any other amounts required
to be deposited in the Collection Account pursuant to Section 5.01(b) hereof, in
each case other than Property Insurance Proceeds and Released Mortgaged Property
Proceeds.

            Loan-to-Value Ratio: With respect to any Home Loan, the fraction,
expressed as a percentage, (a) the numerator of which is the principal balance
of such Home Loan at origination and (b) the denominator of which is the value
as determined pursuant to the Transferor's underwriting guidelines of the
related Mortgaged Property at the time of origination of such Home Loan.

                                      -8-
<PAGE>

            Majority Noteholders: The holder or holders of in excess of 50% of
the Note Principal Balance of all the Notes.

            Majority Residual Interestholders: The holder or holders of more
than 50% of the Residual Interest.

            Master Servicer: _______________________, a _______________________,
as Master Servicer hereunder, or any successor Master Servicer hereunder.

            Master Servicer Compensation: The Master Servicer Fee and other
amounts to which the Master Servicer is entitled pursuant to Section 4.01(a)
hereof.

            Master Servicer Event of Default: As described in Section 10.01
hereof.

            Master Servicer Fee: As to each Home Loan (including any Home Loan
that has been foreclosed and has become a Foreclosure Property, but excluding
any Liquidated Home Loan), the fee payable monthly to the Master Servicer on
each Payment Date, which shall equal the product of (a) one-twelfth (1/12) of
_______ % (___ basis points) and (b) the Principal Balance of such Home Loan as
of the beginning of the immediately preceding Due Period.

            Maturity Date: With respect to the Notes, the Payment Date occurring
in __________ 203__.

            Monthly Advance: As defined in Section 4.01(h) hereof.

            Monthly Advance Reimbursement Amount: With respect to any date of
determination and with respect to the receipt of proceeds from or the
liquidation of a Home Loan for which any Monthly Advances have been made, the
amount of any such Monthly Advances that have not been reimbursed as of such
date, including Nonrecoverable Monthly Advances.

            Monthly Cut-Off Date: The last day of any calendar month and, with
respect to any Payment Date, the last day of the calendar month immediately
preceding such Payment Date.

            Monthly Payment: The scheduled monthly payment of principal and/or
interest required to be made by an Obligor on the related Home Loan, as set
forth in the related Debt Instrument.

            Mortgage: The mortgage, deed of trust or other security instrument
creating a lien in accordance with applicable law on a Mortgaged Property to
secure the Debt Instrument which evidences a Home Loan.

            Mortgaged Property: The real property encumbered by the Mortgage
that secures the Debt Instrument evidencing a Home Loan.

            Mortgaged Property States: Each state in which any Mortgaged
Property securing a Home Loan is located as set forth in the Home Loan Schedule.

                                      -9-
<PAGE>

            Net Interest Rate: As to any Payment Date, the annualized percentage
derived from the fraction (which shall not be greater than 1), the numerator of
which is the positive difference, if any, between (x) the amount of all interest
due on the Home Loans during the related Due Period and (y) the Interest
Reduction Amount and the denominator of which is the aggregate principal amount
of the Notes immediately prior to such Payment Date.

            Net Liquidation Proceeds: With respect to any Payment Date,
Liquidation Proceeds received during the related Due Period, net of any
reimbursements to the Servicer or the Master Servicer, as the case may be, made
from such amounts for the following: (i) any unreimbursed Servicing Compensation
or Master Servicing Compensation; and (ii) Servicing Advances (including
Nonrecoverable Servicing Advances) made, and (iii) Monthly Advances (including
Nonrecoverable Monthly Advances) made and any other fees and expenses paid in
connection with the foreclosure, conservation or liquidation of the related
Liquidated Home Loan or Foreclosure Property.

            Net Loan Losses: With respect to any Defaulted Home Loan that is
subject to a modification, an amount equal to the portion of the Principal
Balance, if any, released in connection with such modification.

            Nonrecoverable Monthly Advance: With respect to any Defaulted Home
Loan or any Foreclosure Property, any Monthly Advance previously made and not
reimbursed from late or other fee collections, Liquidation Proceeds, Property
Insurance Proceeds or the Released Mortgaged Property Proceeds following the
liquidation or disposition of such Defaulted Home Loan or Foreclosure Property,
as evidenced by an Officer's Certificate delivered to the Indenture Trustee [and
the Securities Insurer].

            Nonrecoverable Servicing Advance: With respect to any Defaulted Home
Loan or any Foreclosure Property, any Servicing Advance previously made and not
reimbursed from late or other fee collections, Liquidation Proceeds, Property
Insurance Proceeds or the Released Mortgaged Property Proceeds following the
liquidation or disposition of such Defaulted Home Loan or Foreclosure Property,
as evidenced by an Officer's Certificate delivered to the Indenture Trustee, the
Master Servicer [and the Securities Insurer].

            Note: Any of the Notes issued pursuant to the Indenture.

            Note Factor: With respect to any date of determination, the Note
Principal Balance divided by the Original Note Principal Balance.

            Note Interest Rate: As to any Payment Date, a per annum rate equal
to the lesser of (i) One-Month LIBOR plus _____ %, provided that on any Payment
Date after the Call Option Date, this rate shall be One-Month LIBOR plus _____
%; and (ii) the Net Interest Rate.

            Note Payment Account: The Eligible Account established and
maintained pursuant to Section 5.01(a)(2) hereof.

            Note Principal Balance: As of any date of determination, the
Original Note Principal Balance reduced by the sum of all amounts previously
distributed in respect of principal of such Notes on all previous Payment Dates.

                                      -10-
<PAGE>

            Note Redemption Amount: As of any date of determination, an amount
without duplication equal to the sum of (i) the then outstanding Note Principal
Balance of all Notes plus all accrued and unpaid interest thereon including any
unpaid Noteholders Interest Carry-Forward Amount, (ii) any Trust Fees and
Expenses due and unpaid on such date, (iii) any Servicing Advance Reimbursement
Amount [and Monthly Advance Reimbursement Amount and (iv) any due and unpaid
Securities Insurer Reimbursement Amount].

            Noteholder: A holder of a Note.

            Noteholders' Interest Carry-Forward Amount: With respect to any
Payment Date, (A) if on the immediately preceding Payment Date the Note Interest
Rate was limited pursuant to clause (ii) of the definition of "Note Interest
Rate," the excess, if any, of the amount of interest that would have accrued on
the Notes for the immediately preceding Payment Date pursuant to clause (i) of
the definition thereof, over the amount of interest that was due on the Notes
for the immediately preceding Payment Date pursuant to clause (ii) of the
definition thereof, plus (ii) any outstanding Noteholders' Interest
Carry-Forward Amount remaining unpaid from prior Payment Dates, together with
interest thereon at the Note Interest Rate (without regard to clause (ii)
thereof).

            Noteholders' Interest Payment Amount: With respect to any Payment
Date, the sum of the Noteholders' Monthly Interest Payment Amount for such
Payment Date and the Noteholders' Interest Shortfall Amount for such Payment
Date.

            Noteholders' Interest Shortfall Amount: With respect to any Payment
Date, the excess, if any, of (A) the Noteholders' Monthly Interest Payment
Amount for the preceding Payment Date plus any outstanding Noteholders' Interest
Shortfall Amount on such preceding Payment Date, over (B) the amount in respect
of interest that is actually deposited in the Note Payment Account on such
preceding Payment Date.

            Noteholders' Monthly Interest Payment Amount: With respect to each
Payment Date and the Notes, the interest accrued during the related Accrual
Period at the Note Interest Rate on the Note Principal Balance of the Notes
immediately preceding such Payment Date (or, in the case of the first Payment
Date, beginning on the Closing Date) after giving effect to all payments of
principal to the holders of the Notes on or prior to such preceding Payment
Date.

            Noteholders' Principal Deficiency Amount: (1) With respect to any
Payment Date (other than as set forth in (2) below), the excess, if any, of (a)
the Note Principal Balance as of such Payment Date (after giving effect to all
payments of principal on such Payment Date, but without giving effect to any
payments in respect of this Noteholders' Principal Deficiency Amount to be made
on such Payment Date), over (b) the Pool Principal Balance as of the end of the
related Due Period; and [(2) with respect to the Maturity Date of the Notes or
any Payment Date upon which the Securities Insurer has exercised its option to
accelerate the Notes under the Indenture, the excess of (a) the Note Principal
Balance (after giving effect to all payments of principal on such Payment Date,
but without giving effect to any payments in respect of this Noteholders'
Principal Deficiency Amount to be made on such Payment Date), over (b) the
Available Payment Amount remaining after the payment of the Noteholders'
Interest Payment Amount and the Regular Principal Payment Amount for such
Payment Date].

                                      -11-
<PAGE>

            Obligor: Each obligor on a Debt Instrument.

            OC Trigger Increase Event: With respect to any Payment Date, the
occurrence of any of the following: (1) the Six-Month Average Delinquency equals
or exceeds ______ %; (2) the Annual Loss Percentage exceeds ___ %; or (3)
cumulative Realized Losses as a percentage of the Original Pool Principal
Balance, equal or exceed the following percentages based on the month of
determination after the Closing Date:

                                                    Cumulative
                        Month of Determination   Realized Losses
                        ----------------------   ---------------

                        0 - 12..............          _____ %

                        13 - 24.............          _____ %

                        25 - 36.............          _____ %

                        37 - 48.............          _____ %

                        49+.................          _____ %

            Officer's Certificate: A certificate delivered to the Indenture
Trustee, the Depositor, the Servicer, the Master Servicer, [the Securities
Insurer,] the Transferor or the Issuer signed by the President or a Vice
President or an Assistant Vice President or other officer of the Indenture
Trustee, the Depositor, the Servicer, the Master Servicer, [the Securities
Insurer,] the Issuer or the Transferor, in each case, as required by this
Agreement.

            One-Month LIBOR: With respect to each Accrual Period, as determined
by the Indenture Trustee on the second Business Day preceding the beginning of
such Accrual Period, on the basis of the offered rates of the Reference Bank for
one-month U.S. dollar deposits as such rates appear on the Telerate Screen Page
3750 as of 11:00 a.m. (London time) on such LIBOR Determination Date. As used in
this paragraph, "business day" means a day on which banks are open for dealing
in foreign currency and exchange in London and New York City; and "Reference
Banks" means leading banks selected by the Indenture Trustee and engaged in
transactions in Eurodollar deposits in the international Eurocurrency market (i)
with an established place of business in London, (ii) whose quotations appear on
the Telerate Screen Page 3750 on the LIBOR Determination Date in question, (iii)
which have been designated as such by the Indenture Trustee and (iv) not
controlling, controlled by or under common control with the Issuer, the
Depositor or the Transferor.

            On each LIBOR Determination Date, One-Month LIBOR will be
established by the Indenture Trustee as follows:

                                      -12-
<PAGE>

            (a) If on such LIBOR Determination Date two or more Reference Banks
      provide such offered quotations, One-Month LIBOR shall be the arithmetic
      mean (rounded upwards if necessary to the nearest whole multiple of
      0.0625%) of such offered quotations.

            (b) If on such LIBOR Determination Date fewer than two Reference
      Banks provide such offered quotations, One-Month LIBOR shall be the
      greater of (x) One-Month LIBOR as determined on the previous LIBOR
      Determination Date and (y) the Reserve Interest Rate. The "Reserve
      Interest Rate" shall be the rate per annum that the Indenture Trustee
      determines to be either (i) the arithmetic mean (rounded upwards if
      necessary to the nearest whole multiple of 0.0625%) of the one-month U.S.
      dollar lending rates which New York City banks selected by the Indenture
      Trustee are quoting on the relevant LIBOR Determination Date to the
      principal London offices of leading banks in the London interbank market
      or, in the event that the Indenture Trustee can determine no such
      arithmetic mean, (ii) the lowest one-month U.S. dollar lending rate which
      New York City banks selected by the Indenture Trustee are quoting on such
      LIBOR Determination Date to leading European banks.

            The establishment of One-Month LIBOR on each LIBOR Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
Note Interest Rate for the related Accrual Period shall (in the absence of
manifest error) be final and binding.

            Opinion of Counsel: A written opinion of counsel issued by counsel
(a) who is acceptable to the Master Servicer, the Indenture Trustee, the Rating
Agencies [and the Securities Insurer], and (b) who may be employed or retained
by the Transferor, the Servicer, the Master Servicer, the Depositor, [the
Securities Insurer] or any of their respective Affiliates.

            Original Note Principal Balance: $____________.

            Original Pool Principal Balance: $_____________, which is the Pool
Principal Balance as of the Cut-Off Date.

            Outstanding: As defined in the Indenture.

            [Overcollateralization Amount: With respect to any Payment Date, the
amount equal to the excess of (A) the Pool Principal Balance as of the end of
the preceding Due Period, over (B) the Note Principal Balance of the Notes
(after giving effect to the payments made on such date pursuant to Section
5.01(d) and (e) hereof). As of the Closing Date, the initial
Overcollateralization Amount attributable to such excess shall be equal to
zero.]

            [Overcollateralization Deficiency Amount: With respect to any
Payment Date, the excess, if any, of the Overcollateralization Target Amount
over the Overcollateralization Amount prior to the application of Excess Spread
on such Payment Date.]

            [Overcollateralization Reduction Amount: With respect to any Payment
Date that occurs on or after the Stepdown Date, the lesser of (1) the excess, if
any, of (a) the Overcollateralization Amount (assuming principal payments on the
Notes on such Payment Date are equal to the Regular Principal Payment Amount
without deduction of this Overcollateralization Reduction Amount), over (b) the
Overcollateralization Target Amount, and (2) the Regular Principal Payment
Amount (as determined without the deduction of this

                                      -13-
<PAGE>

Overcollateralization Reduction Amount therefrom) on such Payment Date. Prior to
the occurrence of a Stepdown Date, the Overcollateralization Reduction Amount
shall be zero.]

            [Overcollateralization Target Amount: With respect to any Payment
Date, an amount determined as follows:

            (a) with respect to any Payment Date occurring prior to the Stepdown
      Date or on which the Step Down Test is not satisfied, an amount equal to
      ______ % of the Original Pool Principal Balance plus the Spread Squeeze
      Amount, if any;

            (b) with respect to any other Payment Date occurring on or after the
      Stepdown Date and on which the Step Down Test is satisfied, an amount
      equal to the greatest of (a) the Stepped Down Percentage of the Pool
      Principal Balance, (b) ______ % of the Original Pool Principal Balance;
      and (c) the aggregate Principal Balance of the three largest Home Loans
      then outstanding, plus, in the case of (a), (b) and (c), the Spread
      Squeeze Amount, if any; and

            (c) with respect to any Payment Date occurring on which an OC
      Trigger Increase Event is occurring, notwithstanding any of the preceding
      clauses (1) through (2), an amount equal to 100% of the Pool Principal
      Balance; provided, however, with respect to any Payment Date,
      notwithstanding any of the preceding clauses (1) through (3), the
      Overcollateralization Target Amount shall not exceed the Note Principal
      Balance and may be modified by the Securities Insurer, but shall not be
      reduced below, (1) with respect to any Payment Date occurring prior to the
      Stepdown Date, ______ % of the Cut-Off Date Pool Balance or (2) with
      respect to any Payment Date occurring on or after the Stepdown Date, an
      amount equal to the greater of (a) ______ % of the Pool Principal Balance
      as of the end of the related Due Period, (b) ______ % of the Cut-Off Date
      Pool Principal Balance or (c) an amount equal to the aggregate Principal
      Balance of the ________ largest Loans then outstanding.

            Owner Trust Agreement: The Owner Trust Agreement, dated as of
________, 200__, among the Depositor, __________, the Owner Trustee and
__________________________, a national banking association.

            Owner Trustee: ________________________, as owner trustee under the
Owner Trust Agreement, and any successor owner trustee under the Owner Trust
Agreement.

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

            Payment Date: The ______ day of any month or if such ______ day is
not a Business Day, the first Business Day immediately following such day,
commencing in ________ 200__.

            Payment Statement: As defined in Section 6.01 hereof.

                                      -14-
<PAGE>

            Percentage Interest: As defined in the Owner Trust Agreement.

            Permitted Investments: Each of the following:

            (a) direct obligations of, and obligations fully guaranteed by, the
      United States of America, FHLMC, FNMA, the Federal Home Loan Banks or any
      agency or instrumentality of the United States of America the obligations
      of which are backed by the full faith and credit of the United States of
      America;

            (b) (i) demand and time deposits in, certificates of deposit of,
      bankers acceptances issued by, or federal funds sold by, any depository
      institution or trust company (including the Indenture Trustee or its agent
      acting in their respective commercial capacities) incorporated under the
      laws of the United States of America or any state thereof and subject to
      supervision and examination by federal or state authorities, so long as,
      at the time of such investment or contractual commitment providing for
      such investment, such depository institution or trust company or its
      ultimate parent has a short-term unsecured debt rating in _____________
      highest available rating categories of ___________ and the ___________
      available rating category of Moody's and provided that each such
      investment has an original maturity of no more than 365 days, and (ii) any
      other demand or time deposit or deposit which is fully insured by the
      FDIC;

            (c) repurchase obligations with a term not to exceed 30 days with
      respect to any security described in clause (a) above and entered into
      with a depository institution or trust company (acting as principal) rated
      "A" or higher by S&P and rated "A2" or higher by Moody's; provided,
      however, that collateral transferred pursuant to such repurchase
      obligation must be of the type described in clause (a) above and must (i)
      be valued daily at current market price plus accrued interest, (ii)
      pursuant to such valuation, be equal, at all times, to at least ______ %
      of the cash transferred by the Indenture Trustee in exchange for such
      collateral, and (iii) be delivered to the Indenture Trustee, or if the
      Indenture Trustee is supplying the collateral, an agent for the Indenture
      Trustee, in such a manner as to accomplish perfection of a security
      interest in the collateral by possession of certificated securities;

            (d) securities bearing interest or sold at a discount issued by any
      corporation incorporated under the laws of the United States of America or
      any state thereof which has a short-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

            (e) commercial paper having an original maturity of less than 365
      days and issued by an institution having a short-term unsecured debt
      rating in the highest available rating category of each of the Rating
      Agencies at the time of such investment;

            (f) a guaranteed investment contract approved by each of the Rating
      Agencies [and the Securities Insurer] and issued by an insurance company
      or other corporation having a short-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

                                      -15-
<PAGE>

            (g) money market funds having one of the two highest available
      rating categories of S&P and the highest available rating category of
      Moody's at the time of such investment, which invests only in other
      Permitted Investments, including any such money market funds for which the
      Master Servicer or the Indenture Trustee or any affiliate of the Master
      Servicer or the Indenture Trustee acts as the investment manager or
      advisor; provided that any such money market funds which provide for
      demand withdrawals shall be conclusively deemed to satisfy any maturity
      requirements for Permitted Investments set forth in this Agreement; and

            (h) any investment approved in writing by the Securities Insurer and
      for which the Ratings Confirmation have been obtained with respect to such
      investment.

            The Indenture Trustee may purchase from or sell to itself or an
affiliate, as principal or agent, the Permitted Investments listed above. All
Permitted Investments in a trust account under this Agreement shall be made in
the name of the Indenture Trustee for the benefit of the Securityholders and the
Securities Insurer; provided, that the Master Servicer shall be entitled to all
investment earnings from the Note Payment Account and the Collection Account as
part of its Master Servicer Compensation hereunder.

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

            Pool Principal Balance: With respect to any date of determination,
the aggregate Principal Balances of the Home Loans as of the end of the
preceding Due Period; provided, however, that the Pool Principal Balance on any
Payment Date on which the Termination Price is to be paid to Noteholders will be
deemed to have been equal to zero as of such date.

            Preference Amount: Any amount previously distributed to the holder
of an Insured Security that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy pursuant to the United States
Bankruptcy Code (11 U.S.C.), as amended from time to time, in accordance with a
final, non-appealable order of a court having jurisdiction.

            [Premium Letter: The letter agreement dated ___________, 200__
between the Securities Insurer and _____________ relating to the premiums due in
respect of the Guaranty Policy.]

            Principal Balance: With respect to any Home Loan or related
Foreclosure Property, (i) at the Cut-Off Date, the outstanding unpaid principal
balance of the Home Loan as of the Cut-Off Date and (ii) with respect to any
date of determination, the outstanding unpaid principal balance of the Home Loan
as of the last day of the preceding Due Period (after giving effect to all
payments received thereon or Monthly Advances in respect of principal made with
respect thereto and the allocation of any Net Loan Losses with respect thereto
which relates to such Due Period), without giving effect to amounts received in
respect of such Home Loan or related Foreclosure Property after such Due Period;
provided, however, that any Liquidated

                                      -16-
<PAGE>

Home Loan shall have a Principal Balance of zero and with respect to the
valuation of the Issuer's assets such Liquidated Home Loan shall not accrue
interest thereon.

            Principal Prepayment: With respect to any Home Loan and any Due
Period, any principal amount received on a Home Loan in excess of the principal
of the Monthly Payment due in such Due Period and applied by the Servicer during
such Due Period in reduction of the Principal Balance of the Home Loan.

            Property Insurance Proceeds: With respect to any Mortgaged Property,
all amounts collected in respect of any related insurance policy that insures
such Mortgaged Property or the related Obligor and not required to be applied to
the restoration of any such Mortgaged Property or paid to the related Obligor
(but excluding any Insured Payments).

            Prospectus: The Depositor's final Prospectus dated __________, 200__
as supplemented by the Prospectus Supplement.

            Prospectus Supplement: The Prospectus Supplement dated ___________,
200__ prepared by the Depositor and Transferor in connection with the issuance
and sale of the Notes.

            Purchase Price: With respect to a Defective Home Loan, the Principal
Balance thereof as of the date of purchase, plus all accrued and unpaid interest
on such Defective Home Loan from the Closing Date to but not including the date
of repurchase computed at the applicable Home Loan Interest Rate, plus the
amount of any unreimbursed Servicing Advances and Monthly Advances with respect
to such Defective Home Loan (after deducting therefrom any amounts received in
respect of such repurchased Defective Home Loan and being held in the Collection
Account for future distribution to the extent such amounts represent recoveries
of principal not yet applied to reduce the related Principal Balance or interest
(net of the Servicing Fee, Master Servicer Fee, Indenture Trustee Fee [and
Guaranty Insurance Premium] for such Defective Home Loan) for the period from
and after the date of repurchase).

            Qualified Substitute Home Loan: A home loan or home loans
substituted for a Deleted Home Loan pursuant to Section 3.05 hereof, which
satisfies the following: (i) in the case of a fixed rate Home Loan, has or have
a fixed interest rate (a) no lower than the Home Loan Interest Rate for the
Deleted Home Loan, and (b) not more than 2.0 percentage points greater than the
Home Loan Interest Rate for the Deleted Home Loan; (ii) in the case of an
adjustable rate Home Loan has or have an adjustable rate and (a) has a current
interest rate no lower than the Home Loan Interest Rate for the Deleted Home
Loan, (b) has a gross margin not more than [2.0] percentage points different
than the Home Loan Interest Rate for the Deleted Home Loan, (c) has a lifetime
interest rate cap not more than [2.0] percentage points lower than the Home Loan
Interest Rate for the Deleted Home Loan, (d) has a lifetime interest rate floor
not more than [2.0] percentage points lower than the Home Loan Interest Rate for
the Deleted Home Loan, and (e) pays interest based on the same index as the
Deleted Home Loan; (iii) matures or mature not more than one year later than,
and not more than one year earlier, than the maturity date of Deleted Home Loan,
has a maturity date no later than ___________, 20__ and an original term to
maturity of less than or equal to 30 years; (iv) has or have a principal balance
or principal balances (after application of all payments received on or prior to
the date of substitution) equal to or less than the Principal Balance or
Balances of the Deleted Home Loan or Loans as of such

                                      -17-
<PAGE>

date; (v) has or have a borrower or borrowers with a debt-to-income ratio no
higher than the debt-to-income ratio of the Obligor with respect to the Deleted
Loan; (vi) complies or comply as of the date of substitution with each
representation and warranty set forth in Section 3.04 hereof and is or are not
more than 89 days delinquent as of the date of substitution for such Deleted
Home Loan or Loans; (vii) has or have a lien priority no lower than the Deleted
Loan; and [(viii) is otherwise satisfactory to the Securities Insurer]. For
purposes of determining whether multiple mortgage loans proposed to be
substituted for one or more Deleted Home Loans pursuant to Section 3.05 hereof
are in fact "Qualified Substitute Home Loans" as provided above, the criteria
specified in clauses (i), (ii) and (iii) above may be considered on an aggregate
or weighted average basis, rather than on a loan-by-loan basis (i.e., so long as
the weighted average Home Loan Interest Rate of any loans proposed to be
substituted is not less than the Home Loan Interest Rate for the designated
Deleted Home Loan or Loans and not more than two percentage points greater than
the Home Loan Interest Rate for the designated Deleted Home Loan or Loans, the
requirements of clause (i) above would be deemed satisfied).

            Rating Agencies: ___________ and________. If no such organization or
successor is any longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization or other comparable person designated
by the Master Servicer [and approved by the Securities Insurer], notice of which
designation shall have been given to the Indenture Trustee[, the Securities
Insurer], the Servicer and the Issuer.

            Ratings: The ratings initially assigned to the Notes by the Rating
Agencies, as evidenced by letters from the Rating Agencies.

            Ratings Confirmation: With respect to a contemplated action to be
undertaken or performed pursuant to this Agreement, a written confirmation from
each Rating Agency to the effect that such action will not result in or cause
the downgrading, withdrawal or qualification of the rating that would otherwise
be assigned by such Rating Agency to the Notes [without the benefit of the
Guaranty Policy provided by the Securities Insurer].

            Realized Losses: As of any Payment Date, the sum of (1) with respect
to all Home Loans that have become Liquidated Home Loans during the related Due
Period, the difference between (a) the aggregate Principal Balances of such
Liquidated Home Loans and accrued and unpaid interest thereon, minus (b) the
aggregate Net Liquidation Proceeds collected during the related Due Period, and
(2) with respect to all Defaulted Home Loans, the aggregate Net Loan Losses that
occurred during the related Due Period.

            Record Date: With respect to each Payment Date, the close of
business on the last Business Day of the month immediately preceding the month
in which such Payment Date occurs.

            Regular Payment Amount: With respect to any Payment Date, the lesser
of (a) the Available Payment Amount and (b) the sum of (i) the Noteholders'
Interest Payment Amount and (ii) the Regular Principal Payment Amount.

            Regular Principal Payment Amount: On each Payment Date, an amount
equal to the lesser of:

                                      -18-
<PAGE>

            (a) the Note Principal Balance of the Notes immediately prior to
      such Payment Date; and

            (b) the sum of (i) each scheduled payment of principal collected by
      the Servicer or advanced by the Master Servicer in respect of the related
      Due Period, (ii) all Principal Prepayments applied by the Servicer during
      such related Due Period, (iii) the principal portion of all Net
      Liquidation Proceeds, Property Insurance Proceeds and Released Mortgaged
      Property Proceeds received during the related Due Period, (iv) that
      portion of the Purchase Price of any repurchased Home Loan which
      represents principal received prior to the related Determination Date, (v)
      the principal portion of any Substitution Adjustments required to be
      deposited in the Collection Account as of the related Determination Date
      and (vi) on the Payment Date on which the Issuer is to be terminated
      pursuant to Section 11.02 hereof, the Termination Price (net of any
      accrued and unpaid interest, Trust Fees and Expenses due and unpaid on
      such date and Servicing Advance Reimbursement Amounts and Monthly Advance
      Reimbursement Amounts);

provided, however, that if such Payment Date is on or after a Stepdown Date,
then with respect to the payment of principal to the Noteholders the foregoing
amount will be reduced (but not less than zero) by the Overcollateralization
Reduction Amount, if any, for such Payment Date.

            Released Mortgaged Property Proceeds: With respect to any Home Loan,
proceeds received by the Servicer in connection with (i) a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation or
(ii) any release of part of the Mortgaged Property from the lien of the related
Mortgage, whether by partial condemnation, sale or otherwise; which proceeds in
either case are not released to the Obligor in accordance with applicable law,
Accepted Servicing Procedures and this Agreement.

            Relief Act Shortfall: Any shortfall in an Obligor's Monthly Payment
caused by the application of the Soldiers' and Sailors' Civil Relief Act of
1940, as amended.

            Residual Interest: The meaning assigned thereto in the Owner Trust
Agreement.

            Residual Interest Certificate: The meaning assigned thereto in the
Owner Trust Agreement.

            Responsible Officer: When used with respect to the Indenture
Trustee, any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Secretary, Assistant
Secretary or any other officer of the Indenture Trustee, customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject. When used with respect to the Issuer, any officer in the
Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Owner Trust Agreement and this
Agreement on behalf of the Issuer. When used with respect to the Depositor, the
Servicer, the Master Servicer, the Transferor, the Servicer or any Custodian,
the President or any Vice President, Assistant Vice President, or any Secretary
or Assistant Secretary.

                                      -19-
<PAGE>

            Securities: The Notes or Residual Interest Certificates.

            [Securities Insurer: ________________, as issuer of the Guaranty
Policy, and its successors and assigns.]

            [Securities Insurer Default: The existence and continuation of any
of the following:

            (a) The Securities Insurer fails to make a payment required under
      the Guaranty Policy in accordance with its terms;

            (b) The Securities Insurer (1) files any petition or commences any
      case or proceeding under any provision or chapter of the United States
      Bankruptcy Code or any other similar federal or state law relating to
      insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (2)
      makes a general assignment for the benefit of its creditors, or (3) has an
      order for relief entered against it under the United States Bankruptcy
      Code or any other similar federal or state law relating to insolvency,
      bankruptcy, rehabilitation, liquidation or reorganization which is final
      and nonappealable; or

            (c) A court of competent jurisdiction, the New York Department of
      Insurance or other competent regulatory authority enters a final and
      nonappealable order, judgment or decree (1) appointing a custodian,
      trustee, agent or receiver for the Securities Insurer or for all or any
      material portion of its property or (2) authorizing the taking of
      possession by a custodian, trustee, agent or receiver of the Securities
      Insurer (or the taking of possession of all or any material portion of the
      property of the Securities Insurer).]

            [Securities Insurer Reimbursement Amount: At any time, an amount
owed to the Securities Insurer for any unreimbursed Insured Payments made under
the Guaranty Policy and any other amounts then owing to the Securities Insurer
under the Insurance Agreement, which have not previously been reimbursed, in
each case together with interest thereon at the rate specified in the Insurance
Agreement.]

            Securityholder: Any Noteholder or Certificateholder.

            Series or Series 200__-__: _____________ Home Loan Asset Backed
Notes, Series 200__-__.

            [Servicer: One or more servicers that enter into a Servicing
Agreement with the Master Servicer, which initially will
be_______________________, a _____________________ ________________________
_______________ for an interim period, and thereafter will be
___________________, a __________ corporation.]

            Servicer's Home Loan Files: In respect of each Home Loan, all
documents customarily included in the Servicer's loan file for the related type
of Home Loan as specifically set forth in Section 4.4 of the Servicing
Agreement.

                                      -20-
<PAGE>

            Servicer's Monthly Remittance Report: A report prepared and computed
by the Servicer in substantially the form of Exhibit B attached hereto.

            Servicing Advance Reimbursement Amount: With respect to any date of
determination and with respect to the receipt of proceeds from or the
liquidation of a Home Loan for which any Servicing Advances have been made, the
amount of any such Servicing Advances that have not been reimbursed as of such
date, including Nonrecoverable Servicing Advances.

            Servicing Advances: All reasonable, customary and necessary "out of
pocket" costs and expenses advanced or paid by the Servicer with respect to the
Home Loans in accordance with the performance by the Servicer of its servicing
obligations under Section 6.6 of the Servicing Agreement, including, but not
limited to, the costs and expenses for (i) the preservation, restoration and
protection of any related Mortgaged Property, including without limitation
advances in respect of real estate taxes and assessments, (ii) any collection,
enforcement or judicial proceedings, including without limitation foreclosures,
collections and liquidations, (iii) the conservation, management and sale or
other disposition of a Foreclosure Property, and (iv) the satisfaction,
cancellation, release or discharge of any Home Loan or any related Mortgage in
accordance with this Agreement; provided, however, that such Servicing Advances
(plus accrued interest thereon from the date of such advance to the date of
reimbursement and at the rate equal to the Servicer's cost of funds) are
reimbursable to the Servicer out of the expected late collections, Liquidation
Proceeds, Property Insurance Proceeds or Released Mortgaged Property Proceeds
from the related Home Loan, Obligor or Mortgaged Property.

            Servicing Agreement: The servicing agreement, incorporating by
reference the Agreement Regarding Standard Servicing Terms, each dated as of the
date hereof each between _________ owner of the Home Loans and as the Master
Servicer and the Servicer, a form of which is attached hereto as Exhibit E.

            Servicing Compensation: The Servicing Fee and other amounts to which
the Servicer is entitled pursuant to this Agreement and the Servicing Agreement.
On any Payment Date Servicing Compensation shall include any Servicing Fee
Recovery Amounts due and unpaid, to the extent of Master Servicer Compensation
available after allocations under Section 4.01(K) hereof on such Payment Date.

            Servicing Fee: As to each Home Loan (including any Home Loan that
has been foreclosed and has become a Foreclosure Property, but excluding any
Liquidated Home Loan), the fee payable monthly to the Servicer on each Payment
Date, which shall equal the product of (a) one-twelfth (1/12) of ____% (____
basis points) and (b) the Principal Balance of such Home Loan as of the
beginning of the immediately preceding Due Period (or as of the Cut-Off Date
with respect to the first Due Period).

            Servicing Fee Recovery Amount: The amount of any Servicing Fee used
to pay Compensating Interest for which the Servicer has not received
reimbursement.

            Servicing Officer: Any officer of the Servicer or Master Servicer
involved in, or responsible for, the administration and servicing of the Home
Loans whose name and specimen

                                      -21-
<PAGE>

signature appears on a list of servicing officers annexed to an Officer's
Certificate furnished by the Servicer or the Master Servicer, respectively, to
[the Securities Insurer,] the Master Servicer and the Indenture Trustee, on
behalf of the Securityholders [and the Securities Insurer], as such list may
from time to time be amended.

            Six-Month Average Delinquency: With respect to any Payment Date, the
average for such Payment Date and the five preceding Payment Dates of the
respective ratios, expressed as a percentage, equal to (x) the aggregate
Principal Balances of all Home Loans that are 90 days or more Delinquent
(excluding any Liquidated Home Loans but including Foreclosed Loans and Home
Loans in foreclosure proceedings) as of the end of each of the related Due
Periods, divided by (y) the respective Pool Principal Balance as of the end of
the applicable Due Period.

            Spread Squeeze Amount: For any Payment Date on or after the Payment
Date in _______ 200__, an amount (not less than zero) equal to the product,
obtained by multiplying (i) _______, (ii) the excess, if any, of ____% (
___________________________) or ____% (with respect to any Payment Date after
the 24th Payment Date) over the Spread Squeeze Percentage for such Payment Date
and (iii) the Original Pool Principal Balance.

            Spread Squeeze Percentage: With respect to any Payment Date, the
percentage equivalent of a fraction, the numerator of which is the product of
_____ and the excess of the Excess Spread for such Payment Date [over the
Securities Insurer Reimbursement Amount] for such Payment Date, and the
denominator of which is the Pool Principal Balance for such Payment Date.

            Stepdown Date: The first Payment Date occurring on the later of: (a)
the ___________ month after the month in which the Closing Date occurs; or (b)
the Payment Date on which the Pool Principal Balance as of the end of the
related Due Period has been reduced to an amount that is less than or equal to
___% of the Original Pool Principal Balance.

            Step Down Test: As of any Payment Date, each of the following
conditions:

            (a) the most recent six month rolling 90-day and over average
      delinquency rate (including foreclosures and REOs) is equal to or less
      than ___% of the Pool Principal Balance.

            (b) the cumulative losses through the given month is equal to or
      less than the following percent of Principal Pool Original Balance:

                         Cumulative Loss
                       % of Original Pool
            Month            Balance
            -----            -------

        24...........         _____ %

                                      -22-
<PAGE>

        36...........         _____ %

        48...........         _____ %

        60+..........         _____ %

        and..........         _____ %

            (c) the aggregate loss during the 12 months preceding a Payment
      Date, as a percentage of the Pool Principal Balance as of the first day of
      such 12 month period must be less than ____ basis points (_____ %).

            Stepped Down Percentage: For any Payment Date on or after the Step
Down Date on which the Step Down Test is satisfied, a percentage equal to _____
%.

            Substitution Adjustment: As to any date on which a substitution
occurs pursuant to Section 3.05 hereof, the amount, if any, by which (a) the sum
of the aggregate principal balance (after application of principal payments
received on or before the date of substitution) of any Qualified Substitute Home
Loans as of the date of substitution, plus any accrued and unpaid interest
thereon to the date of substitution, is less than (b) the sum of the Principal
Balance, together with accrued and unpaid interest thereon to the date of
substitution, of the related Deleted Home Loans.

            Tangible Net Worth: As defined in Section 10.01(a)(x) hereof.

            Termination Price: As of any date of determination, an amount
without duplication equal to the greater of (A) the Note Redemption Amount and
(B) the sum of (i) the Principal Balance of each Home Loan as of the applicable
Monthly Cut-Off Date; (ii) all unpaid interest accrued on the Principal Balance
of each such Home Loan at the related Home Loan Interest Rate to such Monthly
Cut-Off Date; (iii) the aggregate fair market value of each Foreclosure Property
on such Monthly Cut-Off Date, as determined by an appraiser acceptable to [the
Indenture Trustee as of a date not more than 30 days prior to such Monthly
Cut-Off Date; and (iv) any due but unpaid Securities Insurer Reimbursement
Amount].

            Transaction Documents: This Agreement, the Servicing Agreement, the
Home Loan Purchase Agreement, the Owner Trust Agreement, the Custodial
Agreement, the Administration Agreement, the Indemnification and Contribution
Agreement, [the Insurance and Indemnity Agreement, the Premium Letter and the
Indemnification Agreement].

            Transferor: __________, in its capacity as the transferor hereunder.

            Treasury Regulations: Regulations, including proposed or temporary
regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary

                                      -23-
<PAGE>

regulations shall include analogous provisions of final Treasury Regulations or
other successor Treasury Regulations.

            Trust: The Issuer.

            Trust Account Property: The Trust Accounts, all amounts and
investments held from time to time in the Trust Accounts and all proceeds of the
foregoing.

            Trust Accounts: The Note Payment Account, the Certificate
Distribution Account, the Policy Payment Account or the Collection Account.

            Trust Estate: The assets subject to this Agreement, the Owner Trust
Agreement and the Indenture and assigned and conveyed to the Trust, which assets
consist of: (i) such Home Loans as from time to time are subject to this
Agreement as listed in the Home Loan Schedule, as the same may be amended or
supplemented from time to time including by the removal of Deleted Home Loans
and the addition of Qualified Substitute Home Loans, together with the Home Loan
File relating thereto and all proceeds thereof, (ii) the Mortgages and security
interests in Mortgaged Properties, (iii) all payments in respect of interest due
with respect to the Home Loans on or after the Cut-Off Date and all payments in
respect of principal received after the Cut-Off Date, (iv) such assets as from
time to time are identified as Foreclosure Property, (v) such assets and funds
as are from time to time are deposited in the Collection Account, the Note
Payment Account and the Certificate Distribution Account, including amounts on
deposit in such accounts which are invested in Permitted Investments, (vi) the
Issuer's rights under all insurance policies with respect to the Home Loans and
any Property Insurance Proceeds, (vii) Net Liquidation Proceeds and Released
Mortgaged Property Proceeds, (viii) all right, title and interest of the
Depositor in and to the obligations of the Transferor under the Home Loan
Purchase Agreement pursuant to which the Depositor acquired the Home Loans from
the Transferor, and (ix) all right, title and interest of the Depositor in and
to the Servicing Agreement and all proceeds of any of the foregoing.

            Trust Fees and Expenses: As of each Payment Date, an amount equal to
the Master Servicer Compensation (which includes the Master Servicer Fee), the
Servicing Compensation (which includes the Servicing Fee), [Guaranty Insurance
Premium] and the Indenture Trustee Fee and reimbursement of the reasonable
expenses of the Indenture Trustee.

            UCC: The Uniform Commercial Code as in effect in the State of New
York.

            Section 1.02 Other Definitional Provisions. (a) Capitalized terms
used herein and not otherwise defined herein have the meanings assigned to them
in the Indenture and the Owner Trust Agreement.

            (b) All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

            (c) As used in this Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in

                                      -24-
<PAGE>

any such certificate or other document to the extent not defined, shall have the
respective meanings given to them under GAAP. To the extent that the definitions
of accounting terms in this Agreement or in any such certificate or other
document are inconsistent with the meanings of such terms under GAAP, the
definitions contained in this Agreement or in any such certificate or other
document shall control.

            (d) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Article, Section, Schedule
and Exhibit references contained in this Agreement are references to Articles,
Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; and the term "including" shall mean "including without limitation."

            (e) The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms and to the masculine as
well as to the feminine genders of such terms.

            (f) Any agreement, instrument or statute defined or referred to
herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended,
modified or supplemented and includes (in the case of agreements or instruments)
references to all attachments thereto and instruments incorporated therein;
references to a Person are also to its permitted successors and assigns.

                                   ARTICLE II

                          CONVEYANCE OF THE HOME LOANS

            Section 2.01 Conveyance of the Home Loans. (a) As of the Closing
Date, in consideration of the Issuer's delivery of the Notes and the Residual
Interest Certificates to the Depositor or its designee, upon the order of the
Depositor, the Depositor, as of the Closing Date and concurrently with the
execution and delivery hereof, does hereby sell, transfer, assign, set over and
otherwise convey to the Issuer, without recourse, but subject to the other terms
and provisions of this Agreement, all of the right, title and interest of the
Depositor in and to the Trust Estate. The foregoing sale, transfer, assignment,
set over and conveyance does not, and is not intended to, result in a creation
or an assumption by the Issuer of any obligation of the Depositor, the
Transferor or any other person in connection with the Trust Estate or under any
agreement or instrument relating thereto except as specifically set forth
herein.

            (b) As of the Closing Date, the Issuer acknowledges the conveyance
to it of the Trust Estate, including all right, title and interest of the
Depositor in and to the Trust Estate, receipt of which is hereby acknowledged by
the Issuer. Concurrently with such delivery and in exchange therefor, the Issuer
has pledged the Trust Estate to the Indenture Trustee and executed the Notes,
and the Indenture Trustee, pursuant to the written instructions of the Issuer,
has caused the Notes to be authenticated and delivered to the Depositor or its
designee. In addition, concurrently with such delivery and in exchange therefor,
the Owner Trustee, pursuant to the instructions of the Depositor, has executed
(not in its individual capacity, but solely as Owner Trustee on behalf of the
Issuer) and caused the Residual Interest Certificates to be authenticated and
delivered to the Depositor or its designee, upon the order of the Depositor.

                                      -25-
<PAGE>

            Section 2.02 Ownership and Possession of Home Loan Files. Upon the
issuance of the Notes, with respect to the Home Loans, the ownership of each
Debt Instrument, the related Mortgage and the contents of the related Servicer's
Home Loan File and the Indenture Trustee's Home Loan File shall be vested in the
Trust and pledged to the Indenture Trustee for the benefit of the Noteholders,
although possession of the Servicer's Home Loan Files (other than items required
to be maintained in the Indenture Trustee's Home Loan Files) on behalf of and
for the benefit of the Securityholders shall remain with the Servicer, and the
Custodian shall take possession of the Indenture Trustee's Home Loan Files as
contemplated in Section 2.05 hereof.

            Section 2.03 Books and Records. The sale of each Home Loan shall be
reflected on the balance sheets and other financial statements of the Depositor
or the Transferor, as the case may be, as a sale of assets by the Depositor or
the Transferor, as the case may be, under GAAP. Each of the Servicer and the
Custodian shall be responsible for maintaining, and shall maintain, a complete
set of books and records for each Home Loan which shall be clearly marked to
reflect the ownership of each Home Loan by the Owner Trustee and pledged to the
Indenture Trustee for the benefit of the Noteholders.

            It is the intention of the parties hereto that the transfers and
assignments contemplated by this Agreement shall constitute a sale of the Home
Loans and the other property specified in Section 2.01(a) hereof from the
Depositor to the Trust. If the assignment and transfer of the Home Loans and the
other property specified in Section 2.01(a) hereof to the Trust pursuant to this
Agreement or the conveyance of the Home Loans or any of such other property to
the Trust is held or deemed not to be a sale or is held or deemed to be a pledge
of security for a loan, the Depositor intends that the rights and obligations of
the parties shall be established pursuant to the terms of this Agreement and
that in such event, (i) the Depositor shall be deemed to have granted and does
hereby grant to the Trust a first priority security interest in the entire
right, title and interest of the Depositor in and to the Home Loans and all
other property conveyed to the Trust pursuant to Section 2.01 hereof and all
proceeds thereof and (ii) this Agreement shall constitute a security agreement
under applicable law. Within ten (10) days of the Closing Date, the Depositor
shall cause to be filed UCC-1 financing statements naming the Trust as a
"secured party" and describing the Home Loans being sold by the Depositor to the
Trust with the office of the Secretary of State of the state in which the
Depositor is located.

            Section 2.04 Delivery of Home Loan Documents. (a) With respect to
each Home Loan, the Transferor and/or the Depositor, as applicable, shall, on
the Closing Date, deliver or caused to be delivered to the Custodian, as the
designated agent of the Indenture Trustee, each of the following documents
(collectively, the "Indenture Trustee's Home Loan Files"):

            (i) The original Debt Instrument, endorsed by the Transferor in
      blank or in the following form: "Pay to the order of
      ____________________________ as Trustee without recourse" with all prior
      and intervening endorsements showing a complete chain or endorsement from
      origination of the Home Loan to the Transferor, or a lost note affidavit
      acceptable to the Indenture Trustee (not to exceed ___ Home Loans);

                                      -26-
<PAGE>

            (ii) The original Mortgage with evidence of recording thereon (or,
      if the original Mortgage has not been returned from the applicable public
      recording office or is not otherwise available, a copy of the Mortgage
      certified by a Responsible Officer of the Transferor or by the closing
      attorney or by an officer of the title insurer or agent of the title
      insurer which issued the related title insurance policy, if any, or
      commitment therefor to be a true and complete copy of the original
      Mortgage submitted for recording) and, if the Mortgage was executed
      pursuant to a power of attorney, the original power of attorney with
      evidence of recording thereon (or, if the original power of attorney has
      not been returned from the applicable public recording office or is not
      otherwise available, a copy of the power of attorney certified by a
      Responsible Officer of the Transferor or by the closing attorney or by an
      officer of the title insurer or agent of the title insurer which issued
      the related title insurance policy, if any, or commitment, thereof, to be
      a true and complete copy of the original power of attorney submitted for
      recording);

            (iii) The original executed Assignment of Mortgage, in blank or in
      recordable form to "____________________, as Trustee." The Assignment of
      Mortgage may be a blanket assignment, to the extent such assignment is
      effective under applicable law, for Mortgages covering Mortgaged
      Properties situated within the same county. If the Assignment of Mortgage
      is in blanket form, an Assignment of Mortgage need not be included in the
      individual Indenture Trustee's Home Loan File;

            (iv) All original intervening assignments of mortgage, with evidence
      of recording thereon, showing a complete chain of assignment from
      origination of the Home Loan to the Transferor (or, if any such assignment
      of mortgage has not been returned from the applicable public recording
      office or is not otherwise available, a copy of such assignment of
      mortgage certified by a Responsible Officer of the Transferor or by the
      closing attorney or by an officer of the title insurer or agent of the
      title insurer which issued the related title insurance policy, if any, or
      commitment therefor to be a true and complete copy of the original
      assignment submitted for recording); provided that the chain of
      intervening recorded assignments shall not be required to match the chain
      of intervening endorsements of the Debt Instrument so long as the chain of
      intervening recorded assignments, if applicable, evidences one or more
      assignments of the Mortgage from the original mortgagee ultimately to the
      person who has executed the Assignment of Mortgage;

            (v) The original, or a copy certified by the Transferor to be a true
      and correct copy of the original, of each assumption, modification,
      written assurance or substitute agreement, if any; and

            (vi) [The original policy of title insurance, including riders and
      endorsements thereto, as if the policy has not yet been issued, a written
      commitment or interim binder or preliminary report of title issued by the
      title insurance or escrow company.]

            (b) With respect to each Home Loan, the Transferor and the Depositor
shall, on the Closing Date, deliver or caused to be delivered to the Servicer,
as the designated agent of the Indenture Trustee, the Servicer's Home Loan
Files.

                                      -27-
<PAGE>

            (c) The Indenture Trustee shall cause the Custodian to take and
maintain continuous physical possession of the Indenture Trustee's Home Loan
Files in the State of _____________ and, in connection therewith, shall act
solely as agent for the Noteholders in accordance with the terms hereof and not
as agent for the Transferor or any other party.

            (d) Within 60 days after the Closing Date, the Transferor, at its
own expense, shall record each Assignment of Mortgage (which may be a blanket
assignment if permitted by applicable law) in the appropriate real property or
other records; provided, however, that the Transferor need not record any such
Assignment of Mortgage which relates to a Home Loan in any jurisdiction under
the laws of which, as evidenced by an Opinion of Counsel delivered by the
Transferor (at the Transferor's expense) to the Indenture Trustee, the
Securities Insurer and the Rating Agencies, that recordation of such Assignment
of Mortgage is not necessary to protect the Indenture Trustee's and the
Noteholder's interest in the related Home Loan. With respect to any Assignment
of Mortgage as to which the related recording information is unavailable within
60 days following the Closing Date, such Assignment of Mortgage shall be
submitted for recording within 30 days after receipt of such information but in
no event later than 360 days after the Closing Date. The Indenture Trustee shall
be required to retain a copy of each Assignment of Mortgage submitted for
recording. In the event that any such Assignment of Mortgage is lost or returned
unrecorded because of a defect therein, the Transferor shall promptly prepare a
substitute Assignment of Mortgage or cure such defect, as the case may be, and
thereafter the Transferor shall be required to submit each such Assignment of
Mortgage for recording.

            (e) All recordings required pursuant to this Section 2.04 shall be
accomplished by and at the expense of the Transferor.

            Section 2.05 Acceptance by the Indenture Trustee of the Home Loans;
Certain Substitutions; Certification by the Custodian. (a) The Indenture Trustee
agrees to cause the Custodian to execute and deliver on the Closing Date an
acknowledgment of receipt of the Indenture Trustee's Home Loan File for each
Home Loan. The Indenture Trustee will cause the Custodian to hold such documents
and any amendments, replacements or supplements thereto, as well as any other
assets included in the Trust Estate and delivered to the Custodian, in trust,
upon and subject to the conditions set forth herein. The Indenture Trustee
agrees to cause the Custodian to review each Indenture Trustee's Home Loan File
within 45 days after the Closing Date (or, with respect to any Qualified
Substitute Home Loan, within 45 days after the conveyance of the related Home
Loan to the Trust) and to cause the Custodian to deliver to the Transferor, the
Depositor, the Servicer, the Indenture Trustee, [and the Securities Insurer] a
certification (the "Custodian's Initial Certification") to the effect that, as
to each Home Loan listed in the Home Loan Schedule (other than any Home Loan
paid in full or any Home Loan specifically identified as an exception to such
certification), (i) all documents required to be delivered to the Indenture
Trustee pursuant to this Agreement are in its possession or in the possession of
the Custodian on its behalf (other than as expressly permitted by Section 2.04
hereof), (ii) such documents have been reviewed by the Custodian and have not
been mutilated or damaged and appear regular on their face (handwritten
additions, changes or corrections shall not constitute irregularities if
initialed by the Obligor) and relate to such Home Loan, and (iii) based on the
examination of the Custodian on behalf of the Indenture Trustee, and only as to
the foregoing documents, the information set forth on the Home Loan Schedule
accurately

                                      -28-
<PAGE>

reflects the information set forth in the Indenture Trustee's Home Loan File.
Neither the Indenture Trustee nor the Custodian shall be under any duty or
obligation to make an independent examination of any documents contained in each
Indenture Trustee's Home Loan File beyond the review listed herein. Neither the
Custodian nor the Indenture Trustee makes any representations as to: (i) the
validity, legality, sufficiency, enforceability, execution by a responsible
officer or genuineness of any of the documents contained in each Indenture
Trustee's Home Loan File of any of the Home Loans identified on the Home Loan
Schedule relating to such Home Loans, or (ii) the collectibility, insurability,
effectiveness or suitability of any such Home Loan, or (iii) the existence of
any document specified in clause (v) of Section 1(b) of the Custodial Agreement.

            (b) The Servicer's Home Loan Files shall be held in the custody of
the Servicer for the benefit of, and as agent for, the Noteholders and the
Indenture Trustee for so long as the Indenture continues in full force and
effect; after the Indenture is terminated in accordance with the terms thereof,
the Servicer's Home Loan Files shall be held in the custody of the Servicer for
the benefit of, and as agent for, the Certificateholders. It is intended that,
by the Servicer's agreement pursuant to this Section 2.05(b), the Indenture
Trustee shall be deemed to have possession of the Servicer's Home Loan Files for
purposes of Section 9-305 of the Uniform Commercial Code of the state in which
such documents or instruments are located. The Servicer shall promptly report to
the Indenture Trustee any failure by it to hold the Servicer's Home Loan File as
herein provided and shall promptly take appropriate action to remedy any such
failure. In acting as custodian of such documents and instruments, the Servicer
agrees not to assert any legal or beneficial ownership interest in the Home
Loans or such documents or instruments. The Servicer agrees to indemnify the
Securityholders and the Indenture Trustee for any and all liabilities,
obligations, losses, damages, payments, costs or expenses of any kind whatsoever
which may be imposed on, incurred by or asserted against the Securityholders or
the Indenture Trustee as the result of any act or omission by the Servicer
relating to the maintenance and custody of such documents or instruments which
have been delivered to the Servicer; provided, however, that the Servicer will
not be liable for any portion of any such amount resulting from the negligence
or misconduct of any Securityholders or the Indenture Trustee; and provided,
further, that the Servicer will not be liable for any portion of any such amount
resulting from the Servicer's compliance with any instructions or directions
consistent with this Agreement issued to the Servicer by the Indenture Trustee.
The Indenture Trustee shall have no duty to monitor or otherwise oversee the
Servicer's performance as custodian hereunder.

            (c) The Indenture Trustee agrees to cause the Custodian to review,
for the benefit of the Securityholders, each Indenture Trustee's Home Loan File
within 60 days after the date the Custodian delivered a Custodian's Initial
Certification and to deliver to the Transferor, the Depositor, the Servicer, the
Indenture Trustee [and the Securities Insurer] an updated certification (a
"Custodian's Updated Certification"), setting forth those exceptions listed on
the Custodian's Initial Certification which continue to exist on the date of
such Custodian's Updated Certification. With respect to any Home Loans which are
set forth as exceptions in the Custodian's Updated Certification because
recorded assignments or original or certified copies of Mortgages have not yet
been delivered to the Custodian, the Transferor shall cure such exceptions by
delivering such missing documents to the Custodian no later than 180 days after
the Closing Date.

                                      -29-
<PAGE>

            The Indenture Trustee agrees to cause the Custodian to review for
the benefit of the Securityholders, each Indenture Trustee's Home Loan File
within 180 days after the date it delivered a Custodian's Initial Certification
and to deliver to the Transferor, the Depositor, the Servicer, the Indenture
Trustee, [and the Securities Insurer] a final certification (a "Custodian's
Final Certification"), setting forth those exceptions listed on the Custodian's
Updated Certification which continue to exist on the date of such Custodian's
Final Certification.

            In performing any such review, the Custodian may conclusively rely
on the Transferor as to the purported genuineness of any such document and any
signature thereon. Neither the Indenture Trustee nor the Custodian shall have
any responsibility for determining whether any document is valid and binding,
whether the text of any assignment or endorsement is in proper or recordable
form, whether any document has been recorded in accordance with the requirements
of any applicable jurisdiction or whether a blanket assignment is permitted in
any applicable jurisdiction. If a material defect in a document constituting
part of a Indenture Trustee's Home Loan File is discovered, then the Depositor
and Transferor shall comply with the cure, substitution and repurchase
provisions of Section 3.05 hereof.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

            Section 3.01 Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Transferor, the Master Servicer,
the Servicer, the Indenture Trustee, the Owner Trustee[, the Securities Insurer]
and the Noteholders that as of the Closing Date:

            (a) The Depositor is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has, and had at all relevant times, full power to own its property, to carry
on its business as currently conducted, to enter into and perform its
obligations under each Transaction Document to which the Depositor is a party
and to create the Trust pursuant to the Owner Trust Agreement.

            (b) The execution and delivery of each Transaction Document to which
the Depositor is a party by the Depositor and its performance of and compliance
with the terms thereof will not violate the Depositor's certificate or limited
liability company agreement constitute a default (or an event which, with notice
or lapse of time, or both, would constitute a default) under, or result in the
breach or acceleration of, any material contract, agreement or other instrument
to which the Depositor is a party or which may be applicable to the Depositor or
any of its assets.

            (c) The Depositor has the full power and authority to enter into and
consummate the transactions contemplated by each Transaction Document to which
the Depositor is a party, has duly authorized the execution, delivery and
performance of each Transaction Document to which the Depositor is a party and
has duly executed and delivered each Transaction Document to which the Depositor
is a party. Each Transaction Document to which the Depositor is a party,
assuming due authorization, execution and delivery by each other party thereto,
constitutes a valid, legal and binding obligation of the Depositor, enforceable

                                      -30-
<PAGE>

against it in accordance with the terms thereof, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, receivership, moratorium
or other similar laws relating to or affecting the rights of creditors
generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

            (d) The Depositor is not in violation of, and the execution and
delivery of any Transaction Document by the Depositor and its performance and
compliance with the terms of any Transaction Document to which the Depositor is
a party will not constitute a violation with respect to, any order or decree of
any court or any order or regulation of any federal, state, municipal or
governmental agency having jurisdiction, which violation would materially and
adversely affect the condition (financial or otherwise) or operations of the
Depositor or its properties or materially and adversely affect the performance
of its duties hereunder or thereunder.

            (e) There are no actions or proceedings against, or investigations
of, the Depositor currently pending with regard to which the Depositor has
received service of process and no action or proceeding against, or
investigation of, the Depositor is, to the knowledge of the Depositor,
threatened or otherwise pending before any court, administrative agency or other
tribunal that (A) if determined adversely, would prohibit its entering into any
Transaction Document to which the Depositor is a party or render the Notes
invalid, (B) seek to prevent the issuance of the Notes or the consummation of
any of the transactions contemplated by any Transaction Document to which the
Depositor is a party or (C) if determined adversely, would prohibit or
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, any Transaction
Document to which the Depositor is a party or the Notes.

            (f) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Depositor of, or compliance by the Depositor with, any
Transaction Document to which the Depositor is a party or the Notes, or for the
consummation of the transactions contemplated by any Transaction Document,
except for such consents, approvals, authorizations and orders, if any, that
have been obtained prior to the Closing Date.

            (g) The Depositor is solvent, is able to pay its debts as they
become due and has capital sufficient to carry on its business and its
obligations hereunder; it will not be rendered insolvent by its execution and
delivery of any Transaction Document or its obligations hereunder; no petition
of bankruptcy (or similar insolvency proceeding) has been filed by or against
the Depositor prior to the date hereof.

            (h) The Depositor did not sell the Home Loans to the Issuer, with
any intent to hinder, delay or defraud any of its creditors; the Depositor will
not be rendered insolvent as a result of the sale of the Home Loans to the
Issuer.

            (i) Immediately upon each transfer and assignment herein
contemplated, the Depositor will have delivered to the Issuer good title to, and
the Issuer will be the sole beneficial owner of, the Home Loans free and clear
of any lien or options in favor of, or claims of, any other Person.

                                      -31-
<PAGE>

            (j) No Officers' Certificate, statement, report or other document
prepared by the Depositor and furnished or to be furnished by it pursuant to
this Agreement or in connection with the transactions contemplated hereby
contains any untrue statement of material fact.

            (k) The Depositor is not required to be registered as an "investment
company" under the Investment Company Act of 1940, as amended.

            Section 3.02 Representations and Warranties of the Transferor. The
Transferor hereby represents and warrants to the Servicer, the Indenture
Trustee, the Owner Trustee[, the Securities Insurer], the Noteholders and the
Depositor that as of the Closing Date (except as otherwise specifically provided
herein):

            (a) The Transferor is _______________________________duly organized,
validly existing and in good standing under the laws of the State of
__________________ and has and had at all relevant times, full corporate power
to originate or purchase the Home Loans, to own its property, to carry on its
business as presently conducted and to enter into and perform its obligations
under each Transaction Document to which it is a party.

            (b) The execution and delivery of each Transaction Document to which
it is a party by the Transferor and its performance of and compliance with the
terms of each Transaction Document to which it is a party will not violate the
Transferor's certificate of incorporation or by-laws or constitute a default (or
an event which, with notice or lapse of time, or both, would constitute a
default) under, or result in the breach or acceleration of, any material
contract, agreement or other instrument to which the Transferor is a party or
which may be applicable to the Transferor or any of its assets.

            (c) The Transferor has the full power and authority to enter into
and consummate all transactions to be consummated by it, contemplated by each
Transaction Document to which it is a party has duly authorized the execution,
delivery and performance of each Transaction Document to which it is a party and
has duly executed and delivered each Transaction Document to which it is a
party. Each Transaction Document to which the Transferor is a party, assuming
due authorization, execution and delivery by the other parties thereto,
constitutes a valid, legal and binding obligation of the Transferor, enforceable
against it in accordance with the terms thereof, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, receivership, moratorium
or other similar laws relating to or affecting the rights of creditors
generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

            (d) The Transferor is not in violation of, and the execution and
delivery of any Transaction Documents by the Transferor and its performance and
compliance with the terms thereof will not constitute a violation with respect
to, any order or decree of any court or any order or regulation of any federal,
state, municipal or governmental agency having jurisdiction, which violation
would materially and adversely affect the condition (financial or otherwise) or
operations of the Transferor or its properties or materially and adversely
affect the performance of its duties hereunder or thereunder.

                                      -32-
<PAGE>

            (e) There are no actions or proceedings against, or investigations
of, the Transferor currently pending with regard to which the Transferor has
received service of process and no action or proceeding against, or
investigation of, the Transferor is, to the knowledge of the Transferor,
threatened or otherwise pending, before any court, administrative agency or
other tribunal that (A) if determined adversely, would prohibit its entering
into this Agreement or render the Notes invalid, (B) seek to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or (C) if determined adversely, would prohibit or
materially and adversely affect the sale of the Home Loans to the Depositor, the
performance by the Transferor of its obligations under, or the validity or
enforceability of, this Agreement or the Notes.

            (f) No consent, approval, authorization or order of any court or
governmental agency or body is required for: (1) the execution, delivery and
performance by the Transferor of, or compliance by the Transferor with, this
Agreement, (2) the issuance of the Notes, (3) the sale of the Home Loans under
the Home Loan Purchase Agreement or (4) the consummation of the transactions
required of it by this Agreement, except such as shall have been obtained before
the Closing Date.

            (g) The Transferor acquired title to the Home Loans in good faith,
without notice of any adverse claim.

            (h) The collection practices used by the Transferor with respect to
the Home Loans have been, in all material respects, legal, proper, prudent and
customary in the servicing of loans of the same type as the Home Loans;

            (i) No Officer's Certificate, statement, report or other document
prepared by the Transferor and furnished or to be furnished by it pursuant to
any Transaction Document or in connection with the transactions contemplated
hereby contains any untrue statement of material fact.

            (j) The Transferor is solvent, is able to pay its debts as they
become due and has capital sufficient to carry on its business and its
obligations hereunder; it will not be rendered insolvent by the execution and
delivery of any Transaction Document or by the performance of its obligations
hereunder; no petition of bankruptcy (or similar insolvency proceeding) has been
filed by or against the Transferor prior to the date hereof.

            (k) The Prospectus Supplement does not contain an untrue statement
of a material fact and does not omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading; provided, however, that the Transferor makes no statement
with respect to: (1) the statements set forth in the final paragraph of the
cover of the Prospectus Supplement; and (2) statements set forth under the
following captions: (i) "SUMMARY -- Tax Status", "-- ERISA Considerations", and
"-- Legal Investment"; (ii) "DESCRIPTION OF CREDIT ENHANCEMENT"; (iii) "FEDERAL
INCOME TAX CONSEQUENCES"; (iv) "ERISA CONSIDERATIONS"; (v) "LEGAL INVESTMENT
MATTERS"; and (vi) "UNDERWRITING".

                                      -33-
<PAGE>

            (l) The Transferor has transferred the Home Loans without any intent
to hinder, delay or defraud any of its creditors.

            (m) The origination and collection practices used with respect to
each Debt Instrument and Mortgage have been in all material respects legal,
proper, prudent and customary in the mortgage origination and servicing business
and in compliance with the Transferor's underwriting criteria as described in
the Prospectus Supplement.

            (n) Upon the receipt of each Indenture Trustee's Home Loan File by
the Custodian, the Indenture Trustee will have a first priority security
interest in each Home Loan and such other items comprising the corpus of the
Trust free and clear of any lien, charge or encumbrance other than the lien of
the Indenture.

            (o) The transfer, assignment and conveyance of the Debt Instruments
and the Mortgages by the Transferor pursuant to this Agreement are not subject
to the bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction.

            It is understood and agreed that the representations and warranties
set forth in this Section 3.02 shall survive delivery of the Indenture Trustee's
Home Loan Files to the Custodian and shall inure to the benefit of the
Securityholders, the Securities Insurer, the Depositor, the Master Servicer, the
Servicer, the Indenture Trustee, the Owner Trustee and the Trust. Upon discovery
by any of the Transferor, [the Securities Insurer,] the Depositor, the Master
Servicer, the Servicer, the Indenture Trustee or the Owner Trustee of a breach
of any of the foregoing representations and warranties that materially and
adversely affects the value of any Home Loan, the party discovering such breach
shall give prompt written notice (but in no event later than two Business Days
following such discovery) to the other parties. The obligations of the
Transferor set forth in Section 3.05 hereof shall constitute the sole remedies
available hereunder to the Securityholders, the Depositor, the Master Servicer,
the Servicer, the Indenture Trustee or the Owner Trustee respecting a breach of
the representations and warranties contained in this Section 3.02.

            Section 3.03 Representations, Warranties and Covenants of the Master
Servicer.The Master Servicer hereby represents and warrants to and covenants
with the Owner Trustee, the Indenture Trustee, [the Securities Insurer,] the
Noteholders, the Depositor, and the Transferor that as of the Closing Date or as
of such date specifically provided herein:

            (a) The Master Servicer is a ______________________________ duly
organized, validly existing, and in good standing under the laws of the state of
_________________ and has all licenses necessary to carry on its business as now
being conducted and is licensed, qualified and in good standing in each state
where any property securing the Home Loans is located if the laws of such state
require licensing or qualification in order to conduct business of the type
conducted by the Master Servicer and perform its obligations as Master Servicer
hereunder and under the Servicing Agreement; the Master Servicer has the power
and authority to execute and deliver this Agreement and under the Servicing
Agreement and to perform its obligations in accordance herewith and therewith;
the execution, delivery and performance of this Agreement and under the
Servicing Agreement (including all instruments of transfer to be delivered
pursuant to this Agreement) by the Master

                                      -34-
<PAGE>

Servicer and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary action; this
Agreement and under the Servicing Agreement evidences the valid, binding and
enforceable obligation of the Master Servicer; and all requisite action has been
taken by the Master Servicer to make this Agreement valid, binding and
enforceable upon the Master Servicer in accordance with its terms, subject to
and under the Servicing Agreement the effect of bankruptcy, insolvency,
reorganization, moratorium and other, similar laws relating to or affecting
creditor's rights generally or the application of equitable principles in any
proceeding, whether at law or in equity.

            (b) All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, by or from any
federal, state or other governmental authority or agency, that are necessary in
connection with the purchase and sale of the Notes and the execution and
delivery by the Master Servicer of the documents to which it is a party, have
been duly taken, given or obtained, as the case may be, are in full force and
effect, are not subject to any pending proceedings or appeals (administrative,
judicial or otherwise) and either the time within which any appeal therefrom may
be taken or review thereof may be obtained has expired or no review thereof may
be obtained or appeal therefrom taken, and are adequate to authorize the
consummation of the transactions contemplated by this Agreement and the other
documents on the part of the Master Servicer and the performance by the Master
Servicer of its obligations as Master Servicer under this Agreement and such
other documents to which it is a party.

            (c) The consummation of the transaction contemplated by this
Agreement and the Servicing Agreement will not result in the breach of any terms
or provisions of the certificate of incorporation or by-laws of the Master
Servicer or result in the breach of any term or provision of, or conflict with
or constitute a default under or result in the acceleration for any obligation
under, any material agreement, indenture or loan or credit agreement or other
material instrument to which the Master Servicer or to its property is subject,
or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Master Servicer or its property is subject;

            (d) Neither this Agreement nor any report or other document prepared
by the Master Servicer and furnished or to be furnished pursuant to this
Agreement or in connection with the transactions contemplated hereby contains
any untrue statement of material fact; and the statements set forth in the
Prospectus Supplement under the caption "THE MASTER SERVICER" do not contain an
untrue statement of a material fact and do not omit to state a material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

            (e) There is no action, suit, proceeding or investigation pending
or, to the best of the Master Servicer's knowledge, threatened against the
Master Servicer which, either in any one instance or in the aggregate, may
result in any material adverse change in the business, operations, financial
condition, properties or assets of the Master Servicer or in any material
impairment of the right or ability of the Master Servicer to carry on its
business substantially as now conducted, or in any material liability on the
part of the Master Servicer or which would draw into question the validity of
this Agreement, the Servicing Agreement or the Home Loans or of any action taken
or to be taken in connection with the obligations of the Master Servicer

                                      -35-
<PAGE>

contemplated herein, or which would be likely to impair the ability of the
Master Servicer to perform under the terms of this Agreement or the Servicing
Agreement.

            (f) The Master Servicer is not in default with respect to any order
or decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Master Servicer or its properties or might have consequences
that would adversely affect its performance hereunder or under the Servicing
Agreement.

            It is understood and agreed that the representations, warranties and
covenants set forth in this Section 3.03 shall survive delivery of the
respective Home Loan Files to the Indenture Trustee and shall inure to the
benefit of the Depositor, the Noteholders, the Owner Trustee[, the Securities
Insurer], and the Indenture Trustee. Upon discovery by any of the Transferor,
the Depositor, the Indenture Trustee[, the Securities Insurer] or the Owner
Trustee of a breach of any of the foregoing representations, warranties and
covenants that materially and adversely affects the value of any Home Loan or
the interests of such Person therein, the party discovering such breach shall
give prompt written notice (but in no event later than _______ Business Days
following such discovery) to the other parties.

            Section 3.04 Representations and Warranties Regarding Individual
Home Loans. The Transferor hereby represents and warrants to the Depositor, the
Issuer, the Indenture Trustee, the Owner Trustee[, the Securities Insurer], the
Master Servicer and the Noteholders, with respect to each Home Loan as of the
Closing Date, except as otherwise expressly stated:

            (a) Home Loan Schedule. The information with respect to each Home
Loan set forth in the Home Loan Schedule is complete, true and correct as of the
Cut-off-Date;

            (b) Delivery of Home Loan File. All of the original or certified
documentation required to be delivered by the Transferor on the Closing Date or
as otherwise provided herein has or will be so delivered as provided; The Home
Loan File contains each of the documents and instruments specified to be
included therein duly executed and in due and proper form, and each such
document or instrument is in a form generally acceptable to prudent home loan
lenders that regularly originate or purchase mortgage loans comparable to the
Home Loans for sale to prudent investors in the secondary market that invest in
mortgage loans such as the Home Loans;

            (c) Nature of Property. Each Mortgaged Property consists of a single
parcel of residential real property, separately assessed for tax purposes, owned
by the related Obligor in fee simple absolute and is improved by a
one-to-four-family residential dwelling, which does not include condominiums,
cooperatives, units in a planned urban development, town houses, or mobile homes
and does not constitute other than real property under the state law. No
Mortgage Property is a manufactured housing unit, as defined in the Fannie
Mae/Freddie Mac Seller-Servicer's Guide;

            (d) Servicing. Each Home Loan is being serviced by the Master
Servicer;

                                      -36-
<PAGE>

            (e) Fixed Interest Rate. The Debt Instruments related to
approximately ______ % of the Home Loans bear a fixed Home Loan Interest Rate.
The Home Loan Interest Rate on the fixed rate Home Loans is not less than _____
% nor more than _______ % and as of the Cut-Off-Date, the weighted average Home
Loan Interest Rate on the fixed rate Home Loans is approximately ________ %;

            (f) Adjustable Home Loan Interest Rates. The Debt Instrument related
to approximately ______ % of the Home Loans bear an adjustable Home Loan
Interest Rate ("ARMs"). All of the terms of the Mortgage pertaining to interest
rate adjustments, payment adjustments and adjustments of the principal balance
with respect to the ARMs are enforceable, all such adjustments have been
correctly made in accordance with the terms of the related Debt Instrument and
such adjustments will not affect the priority of the Mortgage lien; all ARMs
have an index and there is no provision which would permit the Obligor to
convert to a fixed interest rate; as of the Cut-off Date, the weighted average
margin on the ARMs was approximately ________ %; the ARMs have a weighted
average contractual maximum interest rate equal to approximately _______ %; the
ARMs have a weighted average contractual minimum interest rate equal to
approximately ________ %; approximately ________ % of the ARMS are 2/28's and
have a subsequent adjustment frequency of six months, approximately _______ % of
the ARMs are 3/27's and have a subsequent adjustment frequency of six months and
the remaining approximately ____% of the ARMs adjust every 6 months;

            (g) Priority of Lien. Each Mortgage is a valid and subsisting first
lien of record on a single parcel of real estate constituting the Mortgaged
Property, subject in all cases to the exceptions to title set forth in the title
insurance policy, with respect to the related Home Loan, which exceptions are
generally acceptable to mortgage lending companies, and such other exceptions to
which similar properties are commonly subject and which do not individually, or
in the aggregate, materially and adversely affect the benefits of the security
intended to be provided by such Mortgage;

            (h) Title. Except with respect to liens released immediately prior
to the transfer herein contemplated, immediately prior to the transfer and
assignment herein contemplated the Transferor held good and indefeasible title
to, and was the sole owner of, each Home Loan, subject to no liens, charges,
mortgages, encumbrances or rights of others; and immediately upon the transfer
and assignment herein contemplated, the Owner Trust will hold good and
indefeasible title to, and be the sole owner of, each Home Loan, subject to no
liens, charges, mortgages, encumbrances or rights of others;

            (i) Delinquencies. As of the Cut-Off Date, _____ Home Loans are 30
or more days delinquent; ___ Home Loans are over 60 days delinquent; and _____
Home Loan has ever been 89 or more days delinquent;

            (j) Tax Liens; Status of Property. There is no delinquent tax or
assessment lien on any Mortgaged Property, and each Mortgaged Property is free
of material damage and is in good repair;

            (k) No Defenses. The Home Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
nor will the operation of any of

                                      -37-
<PAGE>

the terms of the Debt Instrument or the Mortgage, or the exercise of any right
thereunder, render either the Debt Instrument or the Mortgage unenforceable in
whole or in part, or subject to any right of rescission, set-off, counterclaim
or defense, including the defense of usury, and no such right of rescission,
set-off, counterclaim or defense has been asserted with respect thereto;

            (l) No Mechanic's Lien. There is no mechanic's lien or claim for
work, labor or material affecting any Mortgaged Property which is or may be a
lien prior to, or equal to or on a parity with, the lien of such Mortgage except
those which are insured against by the title insurance policy referred to in
Section (n) below;

            (m) Origination in Compliance with Laws. Each Home Loan complies, at
the time it was made complied and at all times has complied in all material
respects with applicable local, state and federal laws and regulations,
including, without limitation, usury, truth-in-lending, real estate settlement
procedure, consumer credit protection, equal credit opportunity, disclosure and
recording laws and the Transferor has and shall maintain in its possession
available for inspection and shall deliver upon demand, evidence of compliance
with all such requirements; and, to the Transferor's knowledge, no fraud or
misrepresentation was committed by any person or entity in connection with the
origination of each Home Loan;

            (n) Title Insurance. With respect to each Home Loan, a written
commitment for a lender's title insurance policy, issued in standard American
Land Title Association or California Land Title Association form, or other form
acceptable in a particular jurisdiction, by a title insurance company authorized
to transact business in the state in which the related Mortgaged Property is
situated, together with a condominium endorsement, if applicable, in an amount
at least equal to the original Principal Balance of such Home Loan insuring the
mortgagee's interest under the related Home Loan as the holder of a valid first
mortgage lien of record on the real property described in the Mortgage, subject
only to exceptions of the character referred to in paragraph (g) above, was
effective on the date of the origination of such Home Loan, and, as of the
Closing Date, such commitment will be valid and thereafter the policy issued
pursuant to such commitment shall continue in full force and effect. The
originator is the sole named insured of such mortgage title insurance policy,
the assignment to the Owner Trust, and the pledge to the Indenture Trustee, of
the originator's interest in such mortgage title insurance policy does not
require the consent of or notification to the insurer, and such mortgage title
insurance policy is in full force and effect and will be in full force and
effect and inure to the benefit of the Owner Trust upon the consummation of the
transactions contemplated by this Agreement. No claims have been made under such
mortgage title insurance policy and no prior holder of the related Mortgage,
including the originator, has done, by act or omission, anything that would
impair the coverage of such mortgage title insurance policy;

            (o) Hazard Insurance. The improvements upon each Mortgaged Property
are covered by a valid and existing hazard insurance policy with a generally
acceptable carrier that provides for fire and extended coverage representing
coverage not less than the least of (1) the outstanding principal balance of the
related Mortgage, (2) the minimum amount required to compensate for damage or
loss on a replacement cost basis or (3) the full insurable value of the
Mortgaged Property. All individual insurance policies (collectively, the "Hazard
insurance policy") are the valid and binding obligation of the insurer and
contain a standard mortgagee clause naming the originator, its successors and
assigns, as mortgagee. All premiums thereon

                                      -38-
<PAGE>

have been paid. The Mortgage obligated the Obligor thereunder to maintain all
such insurance at the Obligor's cost and expense, and upon the Obligor's failure
to do so, authorizes the holder of the Mortgage to obtain and maintain such
insurance at the Obligor's cost and expense and to seek reimbursement therefor
from the Obligor;

            (p) Flood Insurance. If any Mortgaged Property is in an area
identified in the Federal Register by the Federal Emergency Management Agency as
having special flood hazards, a flood insurance policy in a form meeting the
requirements of the current guidelines of the Federal Insurance Administration
is in effect with respect to such Mortgaged Property with a generally acceptable
carrier in an amount representing coverage not less than the least of (A) the
outstanding principal balance of the related Home Loan, (B) the minimum amount
required to compensate for damage or loss on a replacement cost basis or (C) the
maximum amount of insurance that is available under the National Flood Insurance
Act of 1968, as amended; The Mortgage obligated the Obligor thereunder to
maintain all such insurance at the Obligor's cost and expense, and upon the
Obligor's failure to do so, authorizes the holder of the Mortgage to obtain and
maintain such insurance at the Obligor's cost and expense and to seek
reimbursement therefor from the Obligor;

            (q) Enforceability. Each Mortgage and Debt Instrument is genuine and
is the legal, valid and binding obligation of the maker thereof and is
enforceable in accordance with its terms, except only as such enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors' rights generally and by general
principles of equity (whether considered in a proceeding or action in equity or
at law), and all parties to each Home Loan had full legal capacity to execute
all Home Loan documents and convey the estate therein purported to be conveyed
and the Mortgage and Debt Instrument have been duly and properly executed by
such parties; the Obligor is a natural person who is a party to the Debt
Instrument and the Mortgage in an individual capacity and not in the capacity of
a trustee or otherwise;

            (r) Notice to Insurers. The Transferor has caused or will cause to
be performed any and all acts required to be performed to preserve the rights
and remedies of the Indenture Trustee in any insurance policies applicable to
the Home Loans including, without limitation, any necessary notifications of
insurers, assignments of policies or interests therein, and establishments of
co-insured, joint loss payee and mortgagee rights in favor of the Indenture
Trustee;

            (s) Geographic Concentration. No more than approximately _____ % of
the Original Pool Principal Balance is secured by Mortgaged Properties located
within any single zip code area; no more than _____ % of the Original Pool
Principal Balance is located within any single state, except as follows
______________, _____________, ______________, or___________;

            (t) Primary Residence. At least approximately ________ % of the
Original Pool Principal Balance is secured by Mortgaged Properties that are
maintained by the Obligors as primary residence;

                                      -39-
<PAGE>

            (u) No Modification. The terms of the Debt Instrument and the
Mortgage have not been impaired, altered or modified in any material respect,
except by a written instrument which has been recorded or is in the process of
being recorded, if necessary, to protect the interest of the Securityholders and
which has been or will be delivered to the Trustee or the Custodian. The
substance of any such alteration or modification is reflected on the Home Loan
Schedule;

            (v) Recordation. Each original Mortgage was recorded, and all
subsequent assignments of the original Mortgage have been recorded in the
appropriate jurisdictions wherein such recordation is necessary to perfect the
lien thereof as against creditors of the Transferor (or, subject to Section
2.04(d) hereof, are in the process of being recorded);

            (w) No Waiver. No instrument or release or waiver has been executed
in connection with the Home Loan, and no Obligor has been released, in whole or
in part;

            (x) Taxes and Insurance. All taxes, governmental assessments,
insurance premiums, water, sewer and municipal charges, leasehold payments or
ground rents which previously became due and owing have been paid, or an escrow
of funds has been established in an amount sufficient to pay for every such item
which remains unpaid and which has been assessed but is not yet due and payable;

            (y) No Advances. Except for payments in the nature of escrow
payments, including without limitation, taxes and insurance payments, the Master
Servicer has not advanced funds, or induced, solicited or knowingly received any
advance of funds by a party other than the Obligor, directly or indirectly, for
the payment of any amount required by the Mortgage, except for interest accruing
from the date of the Debt Instrument or date of disbursement of the Mortgage
proceeds, whichever is greater, to the day which precedes by one month the Due
Date of the first installment of principal and interest;

            (z) Condemnation; Damage. There is no proceeding pending or
threatened for the total or partial condemnation of the Mortgaged Property, nor
is such a proceeding currently occurring. No Mortgaged Property is damaged by
waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, so as to affect adversely the value of the Mortgaged Property as
security for the Home Loan or the use for which the premises were intended;

            (aa) No Encroachments. All of the improvements which were included
for the purpose of determining the appraised value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of such property,
and no improvements on adjoining properties encroach upon the Mortgaged
Property;

            (bb) Property in Compliance with Law. No improvement located on or
being part of the Mortgaged Property is in violation of any applicable zoning
law or regulation. All inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have

                                      -40-
<PAGE>

been made or obtained from the appropriate authorities and the Mortgaged
Property is lawfully occupied under applicable law;

            (cc) No Future Advances. The proceeds of the Home Loan have been
fully disbursed, and there is no obligation on the part of the mortgagee or any
person to make, or option on the part of the mortgagor to request, future
advances thereunder. Any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor have
been satisfied. All costs, fees and expenses incurred in making or closing or
recording the Home Loans were paid;

            (dd) Mortgage as Sole Security. The related Debt Instrument is not
and has not been secured by any collateral, pledged account or other security
except the lien of the corresponding Mortgage;

            (ee) No-Buy-Down Loans. No Home Loan was originated under a buydown
plan;

            (ff) No Originator Payment Obligations. There is no obligation on
the part of the Master Servicer or any other party to make payments in addition
to those made by the Obligor;

            (gg) Deeds of Trust. With respect to each Mortgage constituting a
deed of trust, a trustee, duly qualified under applicable law to serve as such,
has been properly designated and currently so serves and is named in such
Mortgage, and no fees or expenses are or will become payable by the Noteholders
or the Trust to the trustee under the deed of trust, except in connection with a
trustee's sale after default by the Obligor;

            (hh) No Shared Appreciation. No Home Loan has a shared appreciation
feature, or other contingent interest feature;

            (ii) State Qualification. All parties which have had any interest in
the Home Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or,
during the period in which they held and disposed of such interest, were) (1) in
compliance with any and all applicable licensing requirements of the laws of the
state wherein the Mortgaged Property is located, and (2)(A) organized under the
laws of such state, or (B) qualified to do business in such state, or (C)
federal savings and loans associations or national banks having principal
offices in such state or (D) not doing business in such state so as to require
qualification or licensing;

            (jj) Due on Sale. The Mortgage contains a customary provision for
the acceleration of the payment of the unpaid principal balance of the Home Loan
in the event the related Mortgage Property is sold without the prior consent of
the mortgagee thereunder;

            (kk) Obligor Bankruptcy. No Obligor is a debtor in any state or
federal insolvency or bankruptcy proceeding;

            (ll) Enforcement Rights. The related Mortgage contains customary and
enforceable provisions which render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the
benefits of the security, including, (i) in the

                                      -41-
<PAGE>

case of a Mortgage designated as a deed of trust, by trustee's sale, and (ii)
otherwise by judicial foreclosure. There is no homestead or other exemption
available to the Mortgagor which would materially interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose upon
the related Mortgage;

            (mm) No Default. Other than delinquent Home Loans set forth in
clause (i) of this Section 3.04, there is no default, breach, violation or event
of acceleration existing under the Mortgage or the related Debt Instrument and
no event which, with the passage of time or with notice and the expiration of
any grace or cure period, would constitute a default, breach, violation or event
of acceleration; and neither the Master Servicer nor the Transferor has waived
any default, breach, violation or event of acceleration;

            (nn) Deposit of Payments. All amounts received on and after the
Cut-Off Date with respect to the Home Loans to which the Transferor is not
entitled to have been deposited into the Collection Account and are, as of the
Closing Date, in the Collection Account;

            (oo) Underwriting. All of the Home Loans were originated and
underwritten by the Transferor, or purchased and re-underwritten by the
Transferor, in each case in accordance with the underwriting criteria set forth
in the Prospectus Supplement;

            (pp) Conformity to Prospectus. Each Home Loan conforms, and all such
Home Loans in the aggregate conform, to the description thereof set forth in the
Prospectus and the Prospectus Supplement;

            (qq) No Adverse Selection. The Home Loans were not selected by the
Transferor for inclusion in the Trust on any basis intended to adversely affect
the Trust;

            (rr) Appraisal. A full appraisal on forms approved by FNMA or FHLMC
was performed in connection with the origination of the related Home Loan. Each
appraisal meets guidelines that would be generally acceptable to prudent
mortgage lenders that regularly originate or purchase mortgage loans comparable
to the Home Loan for sale to prudent investors in the secondary market that
invest in loans such as the Home Loans;

            (ss) Loan-To-Value. As of the Cut-Off Date, no Home Loan had a
Loan-To-Value Ratio in excess of 90.00% and as of the Cut-off Date, the weighted
average Loan-To-Value Ratio is _________ %;

            (tt) Environmental Matters. To the best of the Transferor's
knowledge, (i) no Mortgaged Property was, as of the Cut-Off Date, (A) located
within a one-mile radius of any site containing environmental or hazardous waste
risks, and (B) in violation of any environmental law or regulation; and (ii) no
Mortgaged Property contained any environmentally hazardous material, substance
or waste;

            (uu) Status of Originators. Each Home Loan was either (i) originated
by a savings and loan association, savings bank, commercial bank, credit union,
insurance company, or similar institution which is supervised and examined by a
federal or state authority, or by a mortgagee approved by the Secretary of
Housing and Urban Development pursuant to Sections 203 and 211 of the National
Housing Act or (ii) such Home Loan was underwritten in

                                      -42-
<PAGE>

accordance with standards established by the Transferor, using application forms
and related credit documents approved by the Transferor; the Transferor approved
each application and the related credit documents before a commitment by the
originator was issued, and no such commitment was issued until the Transferor
agreed to fund such Home Loan; the closing documents for such Home Loan were
prepared on forms approved by the Transferor; and such Home Loan was actually
funded by the Transferor and was purchased by the Transferor at closing or soon
thereafter;

            (vv) Term. No Home Loan has a remaining term in excess of 360
months; and

            (ww) Monthly Payments. Each Debt Instrument will provide for a
schedule of substantially equal Monthly Payments which are, if timely made,
sufficient to fully amortize the principal balance of such Debt Instrument on or
before its maturity date.

            Section 3.05 Purchase and Substitution. (a) Repurchase and
Substitution of Defective Home Loans. It is understood and agreed that the
representations and warranties set forth in Section 3.02 and Section 3.04 hereof
shall survive the conveyance of the Home Loans from the Transferor to the
Depositor and from the Depositor to the Issuer, the pledge of the Home Loans to
the Indenture Trustee and the delivery of the Notes to the Noteholders. Upon
discovery by the Depositor, the Master Servicer, the Servicer, the Transferor,
any Custodian, the Issuer, the Indenture Trustee, the Owner Trustee, the
Securities Insurer or any Securityholder of a breach of any of the
representations and warranties set forth in Section 3.02 and Section 3.04 which
materially and adversely affects the value of the Home Loans or the interests of
the Owner Trustee, the Securities Insurer or the Indenture Trustee in the
related Home Loan (notwithstanding that such representation and warranty was
made to the Transferor's best knowledge), the party discovering such breach
shall give prompt written notice to the others. The Transferor shall, within 60
days of the earlier of its discovery or its receipt of notice of any breach of a
representation or warranty, promptly cure such breach in all material respects.
If within 60 days after the earlier of the Transferor's discovery of such breach
or the Transferor's receiving notice thereof such breach has not been remedied
by the Transferor or waived by the Securities Insurer and such breach materially
and adversely affects the interests of the Owner Trustee or the Indenture
Trustee in, or the value of, the related Home Loan (the "Defective Home Loan"),
the Transferor shall on or before the Determination Date next succeeding the end
of such 60-day period either (i) remove such Defective Home Loan from the Trust
(in which case it shall become a Deleted Home Loan) and substitute one or more
Qualified Substitute Home Loans in the manner and subject to the conditions set
forth in this Section 3.05 or (ii) purchase such Defective Home Loan at a
purchase price equal to the Purchase Price by depositing such Purchase Price in
the Collection Account. The Transferor shall provide the Master Servicer, the
Servicer, the Indenture Trustee, the Securities Insurer and the Owner Trustee
with a certification of a Responsible Officer on the Determination Date next
succeeding the end of such 60-day period indicating whether the Transferor is
purchasing the Defective Home Loan or substituting in lieu of such Defective
Home Loan a Qualified Substitute Home Loan.

            Any substitution of Home Loans pursuant to this Section 3.05(a)
shall be accompanied by payment by the Transferor of the Substitution
Adjustment, if any, to be deposited in the Collection Account. For purposes of
calculating the Available Collection Amount for any Payment Date, amounts paid
by the Transferor pursuant to this Section 3.05 in

                                      -43-
<PAGE>

connection with the repurchase or substitution of any Defective Home Loan that
are on deposit in the Collection Account as of the Determination Date for such
Payment Date shall be deemed to have been paid during the related Due Period and
shall be transferred to the Note Payment Account as part of the Available
Collection Amount to be retained therein or transferred to the Certificate
Distribution Account, if applicable, pursuant to Section 5.01(c) hereof.

            In addition to such cure, repurchase or substitution obligation, the
Transferor shall indemnify the Issuer, the Depositor, the Master Servicer, the
Indenture Trustee, the Securities Insurer and the Securityholders against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and other costs and expenses resulting from
any claim, demand, defense or assertion based on or grounded upon, or resulting
from, a breach by the Transferor of any of it representations and warranties
contained in Section 3.02 and Section 3.04.

            (b) Repurchase of Defaulted Home Loans. In addition to the preceding
repurchase obligations, each of the Transferor and Master Servicer shall have
the option, exercisable in its sole discretion at any time, to repurchase from
the Owner Trustee any Home Loan that is delinquent 91 or more days (in which
case such Home Loan shall become a Deleted Home Loan); provided, however, that
any such repurchase of a Home Loan pursuant to this Subsection shall be
conducted in the same manner as the repurchase of a Defective Home Loan pursuant
to this Section 3.05. If the Home Loans repurchased pursuant to this Subsection
3.05(b) are in excess of _______ % of the Original Pool Principal Balance, then
such repurchases of Home Loans that exceed ________ % of the Original Pool
Principal Balance may be affected only with the consent of the Securities
Insurer and shall be included as Realized Losses for purposes of determining the
Realized Losses under the OC Trigger Increase Event (but not with respect to the
determination of a Master Servicer Event of Default under Section 10.01(a)
hereof).

            (c) Substitutions. As to any Deleted Home Loan for which the
Transferor substitutes a Qualified Substitute Home Loan(s), the Transferor shall
effect such substitution by delivering to the Indenture Trustee, the Master
Servicer and Owner Trustee (i) a certification executed by a Responsible Officer
of the Transferor to the effect that the Substitution Adjustment has been
credited to the Collection Account and (ii) the documents constituting the
Indenture Trustee's Home Loan File for such Qualified Substitute Home Loan(s).

            In accordance with Section 5.01(b)(1) hereof, the Master Servicer
shall cause the Servicer to deposit in the Collection Account all payments
received in connection with such Qualified Substitute Home Loan(s) after the
date of such substitution. Monthly Payments received with respect to Qualified
Substitute Home Loans on or before the date of substitution will be retained by
the Transferor. The Indenture Trustee will be entitled to all payments received
on the Deleted Home Loan on or before the date of substitution and the
Transferor shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Home Loan. The Transferor shall give written
notice to the Owner Trustee, the Master Servicer, the Servicer (if the
Transferor is not then acting as such), the Indenture Trustee[, the Securities
Insurer] and Owner Trustee that such substitution has taken place and the
Servicer shall amend the Home Loan Schedule pursuant to Subsection (g) below.
Upon such substitution, such Qualified Substitute Home Loan(s) shall be subject
to the terms of this Agreement in all respects,

                                      -44-
<PAGE>

and the Transferor shall be deemed to have made with respect to such Qualified
Substitute Home Loan(s), as of the date of substitution, the covenants,
representations and warranties set forth in Section 3.02 and Section 3.04
hereof. On the date of such substitution, the Transferor will deposit into the
Collection Account an amount equal to the related Substitution Adjustment, if
any.

            (d) Reassignment of Defective Home Loans. With respect to all
Defective Home Loans or other Home Loans repurchased by the Transferor pursuant
to this Agreement, upon the deposit of the Purchase Price therefor into the
Collection Account, the Owner Trustee shall assign to the Transferor, without
recourse, representation or warranty, all the Owner Trustee's right, title and
interest in and to such Defective Home Loans or other Home Loans, which right,
title and interest were conveyed to the Owner Trustee pursuant to the Home Loan
Purchase Agreement. The Owner Trustee shall take any actions as shall be
reasonably requested by the Transferor to effect the repurchase of any such Home
Loans.

            (e) Sole Remedies Against Transferor. It is understood and agreed
that the obligations of the Transferor to cure or to repurchase or substitute
any such Home Loan, and to indemnify for any breach of any representation or
warranty with respect thereto, pursuant to this Section 3.05 shall constitute
the sole remedies against it with respect to such breach of the foregoing
representations or warranties or the existence of the foregoing conditions. Any
cause of action against the Transferor relating to or arising out of a defect in
an Indenture Trustee's Home Loan File as or against the Transferor relating to
or arising out of a breach of any representations and warranties made in Section
3.02 and Section 3.04 hereof shall accrue as to any Home Loan upon (i) discovery
of such defect or breach by any party and notice thereof to the Transferor or
notice thereof by the Transferor to the Indenture Trustee, (ii) failure by the
Transferor to cure such defect or breach or purchase or substitute such Home
Loan as specified above, and (iii) demand upon the Transferor, as applicable, by
the Owner Trustee for all amounts payable in respect of such Home Loan.

            (f) No Duty to Investigate. Neither [the Securities Insurer,] the
Master Servicer, the Owner Trustee nor the Indenture Trustee shall have any duty
to conduct any affirmative investigation other than as specifically set forth in
this Agreement as to the occurrence of any condition requiring the repurchase or
substitution of any Home Loan pursuant to this Section or the eligibility of any
Home Loan for purposes of this Agreement.

            (g) Amendment of Home Loan Schedule. In connection with a repurchase
or substitution of any Home Loan pursuant to this Section 3.05, the Master
Servicer shall cause the Servicer shall amend the Home Loan Schedule to reflect
(i) the removal of the applicable Deleted Home Loan from the terms of this
Agreement, and (ii) if applicable, the substitution of the applicable Qualified
Substitute Home Loan. In connection with its monthly reporting here under, the
Master Servicer shall cause the Servicer shall deliver a copy of the amended
Home Loan Schedule to [the Securities Insurer,] the Master Servicer, the
Indenture Trustee, and the Transferor.

                                      -45-
<PAGE>

                                   ARTICLE IV

                ADMINISTRATION AND SERVICING OF THE HOME LOANS

            Section 4.01 Appointment and Duties of the Master Servicer. (a)
Appointment and Compensation of Master Servicer. The Issuer, the Securityholders
and the Indenture Trustee hereby assign and appoint the Master Servicer to act
as the Master Servicer for the Home Loans (including all of the duties,
obligations and rights of the Master Servicer) under this Agreement. The Master
Servicer hereby accepts its appointment as the Master Servicer hereunder. The
Master Servicer hereby undertakes to enter into the Servicing Agreement with an
Eligible Servicer. The Master Servicer may remove and replace the Servicer under
the terms of the Servicing Agreement, provided that the Securities Insurer
consents to such termination and such Servicer is replaced with an Eligible
Servicer. The Master Servicer shall not consent to any amendment or modification
of any Servicing Agreement [without the consent of the Securities Insurer]. The
Master Servicer shall not consent to any material amendment, modification or
waiver of the servicing provisions of this Agreement, without the consent of
[the Securities Insurer and] the Indenture Trustee. The Issuer, the
Securityholders and the Indenture Trustee hereby assign and appoint the Master
Servicer to act on behalf of the Issuer as "Owner" under the Servicing
Agreement.

            As compensation for its services hereunder, the Master Servicer
shall be entitled to receive from the Note Payment Account the Master Servicer
Fee. In addition to the Master Servicer Fee, additional compensation
attributable to prepayment penalties, 20% of any late charges collected on the
Home Loans, investment earnings from the Collection Account and the Note Payment
Account shall be part of the Master Servicer Compensation payable to the Master
Servicer pursuant to Section 5.01(c) hereof. Master Servicing Compensation shall
be reduced by the amount of any due and unpaid Servicing Fee Recovery Amounts.
The Master Servicer shall be required to pay all expenses incurred by it in
connection with its Master Servicer duties and activities hereunder and shall
not be entitled to reimbursement therefor except as specifically provided for
herein.

            (b) Master Servicer Assumes Servicing Responsibility. If a Servicer
Termination Event occurs, then the Master Servicer shall be obligated (1) if
instructed by the Securities Insurer, to select a successor Servicer, [that is
acceptable to the Securities Insurer,] or (2) to act as the Servicer of the Home
Loans hereunder [unless the Securities Insurer directs otherwise].

            (c) Monitoring of Servicing. The Master Servicer shall: (i) review
the servicing reports and loan level information prepared by the Servicer (1) to
determine whether such reports are inaccurate or incomplete, in any material
respect, and (2) to ascertain that the Servicer is in compliance, in all
material respects, with its duties and obligations with respect to such reports
under this Agreement; (ii) otherwise monitor the performance by the Servicer of
its duties and obligations hereunder and notify the Indenture Trustee [and the
Securities Insurer] of any Servicer Event of Default of which it has received
notice or has actual knowledge; and (iii) be obligated to verify that the
Servicer has deposited all payments and proceeds required to be deposited into
the Collection Account pursuant to Section 5.01(b)(1) hereof. On the 19th
calendar day of each month (or the next Business Day, if the 19th is not a
Business Day), the

                                      -46-
<PAGE>

Master Servicer shall provide the Indenture Trustee with an Officer's
Certificate to the effect that the Master Servicer has performed its obligations
under this Subsection 4.01(c) with respect to the servicing information for such
month.

            (d) Successor Servicer. The Master Servicer agrees that it shall at
all times be prepared [(and shall take all steps reasonably required by the
Securities Insurer to ensure such preparation)], to perform the duties and
obligations of the Servicer and become the successor servicer, if the Servicer
fails to perform its duties and obligations hereunder.

            (e) Servicer Termination or Non-Renewal. At the direction of [the
Securities Insurer, or] the Master Servicer [(with the prior consent of the
Securities Insurer)] or the Majority Noteholders [(with the prior consent of the
Securities Insurer)], the Master Servicer, on behalf of the Issuer and the
Securityholders, shall terminate the Servicer upon the occurrence and
continuance of a Servicer Event of Default. [The Securities Insurer will
instruct the Master Servicer not to renew the term of the Servicer and appoint a
replacement servicer (which shall be an Eligible Servicer) approved by the
Securities Insurer at the request of the Master Servicer.]

            (f) Resignation of Master Servicer. The Master Servicer shall resign
as Master Servicer hereunder if it determines that its duties hereunder are no
longer permissible under applicable law or are in material conflict by reason of
applicable law with any other activities carried on by it and cannot be cured,
provided that such determination shall be evidenced by an Opinion of Counsel
(which shall be Independent) to such effect delivered to the Owner Trustee, the
Indenture Trustee and the Securities Insurer. In addition, the Master Servicer
may resign for any reason with 30 day's prior written notice to the Owner
Trustee, the Indenture Trustee and the Securities Insurer. No resignation of the
Master Servicer shall become effective until a successor master servicer
acceptable to the Securities Insurer shall have assumed the obligations of the
Master Servicer hereunder.

            (g) Limitation on Liability of the Depositor and the Master
Servicer. Except as set forth in Section 9.01 herein, neither the Depositor nor
the Master Servicer nor any of the directors, officers, employees or agents of
the Depositor or the Master Servicer shall be under any liability to the Owner
Trustee, the Indenture Trustee, the Servicer, the Securities Insurer, the
Noteholders or any other Person for any action taken or for refraining from the
taking of any action at the direction of the Securities Insurer or any action in
good faith pursuant to this Agreement, or for errors in judgment; provided,
however, that this provision shall not protect the Depositor or the Master
Servicer or any such Person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Depositor or the Master Servicer and any
directors, officer, employee or agent of the Depositor or the Master Servicer
may rely in good faith on any document of any kind prima facie properly executed
and submitted by any Person respecting any matters arising hereunder.

            (h) Monthly Advances. If any Obligor fails to make all or any
portion of its Monthly Payment for any Due Period by the related Determination
Date, the Master Servicer shall deposit such shortfall (net of the Servicing Fee
and the Master Servicer Fee in respect thereof) into the Collection Account on
or before such Determination Date, unless the Master Servicer, in its reasonable
judgment, determines that any such Monthly Advance would be

                                      -47-
<PAGE>

non-recoverable from future proceeds from the related Home Loan. The Indenture
Trustee shall make any Monthly Advance that the Master Servicer fails to make.
The Indenture Trustee shall be reimbursed for funds so advanced out of Master
Servicing Compensation on subsequent Payment Dates.

            (i) Three Month Renewal of Master Servicer Term. The Master Servicer
hereby covenants and agrees to act as master servicer under this Agreement for
an initial term commencing on the Closing Date and expiring on _______, 200_
(the "Initial Term"). Thereafter, the Initial Term shall be extendible in the
sole discretion of the Securities Insurer by written notice (each, a "Master
Servicer Renewal Notice") of the Securities Insurer (or the Indenture Trustee if
a Securities Insurer Default is then occurring) for successive three month
terms. Each such Master Servicer Renewal Notice (if any) shall be delivered by
the Securities Insurer to the other parties to this Agreement. The Master
Servicer hereby agrees that, as of the date hereof and upon its receipt of any
Master Servicer Renewal Notice, the Master Servicer shall be bound for the
duration of the Initial Term and the term covered by any such Master Servicer
Renewal Notice to act as the Master Servicer, subject to and in accordance with
the other provisions of this Agreement. The Master Servicer agrees that if, as
of the last day of the calendar month preceding the last day of any such
servicing term, the Master Servicer shall not have received a Master Servicer
Renewal Notice from the Securities Insurer, the Master Servicer shall, within
five days thereafter, give written notice of such non-receipt to the Securities
Insurer and the Indenture Trustee. The failure of the Securities Insurer to
deliver a Master Servicer Renewable Notice by the end of any such three-month
term shall result in the automatic termination of the Master Servicer.

            (j) Non-renewal or Termination. Upon any non-renewal or termination
of the Master Servicer pursuant to this Section 4.01, the master servicing of
the Home Loans hereunder shall be transferred to a successor master servicer in
accordance with the terms hereof.

            (k) Compensating Interest. If Compensating Interest is owing with
respect to such Payment Date, then the Master Servicer shall cause the Servicer
to direct Compensating Interest, up to the amount of the sum of the Master
Servicer Fee and the Servicing Fee for such Payment Date, into the Collection
Account on or before the related Determination Date. The Master Servicer shall
fund the payment of Compensating Interest on any Payment Date first out of its
Master Servicer Compensation for the related Payment Date, and if and only if
such amount is not sufficient, shall cause any remaining amounts to be paid out
of the Servicing Fee for the related Payment Date. Any Servicing Fees used to
pay Compensating Interest hereunder shall be repaid to the Servicer through the
payment of Servicing Fee Recovery Amounts.

            Section 4.02 Interim Servicer. Until the transfer of servicing to
the initial Servicer on the "servicing transfer date" as specified in the
Servicing Agreement, the Master Servicer agrees, and the Issuer,
Securityholders, the Security Insurer and the Indenture Trustee hereby assign
and appoint the Master Servicer as the Servicer of the Home Loans. The Master
Servicer shall be obligated to act as the Servicer of the Home Loans and agrees
to service the Home Loans in accordance with Accepted Servicing Procedures until
the transfer of servicing to the Servicer. During the period in which the Master
Servicer is acting as servicer, it shall be entitled to any Servicing Fee earned
during such period.

                                      -48-
<PAGE>

            Section 4.03 Powers of Attorney. The Indenture Trustee shall
execute, at the written direction of the Servicer or the Master Servicer, any
limited or special powers of attorney and other documents reasonably acceptable
to the Indenture Trustee to enable the Servicer or the Master Servicer to carry
out their servicing and administrative duties hereunder, including, without
limitation, limited or special powers of attorney with respect to any
Foreclosure Property, and the Indenture Trustee shall not be accountable for the
actions of the Servicer or the Master Servicer under such powers of attorney and
shall be indemnified by the Master Servicer in accordance with Section 9.01
hereof.

            Section 4.04 Filing of Continuation Statements. On or before the
fifth (or twelfth, as appropriate) anniversary of the filing of any financing
statements by the Transferor and the Depositor, respectively, with respect to
the assets conveyed to the Owner Trustee or to the Owner Trust, the Transferor
and the Depositor shall prepare, have executed by the necessary parties and file
in the proper jurisdictions at their expense all financing and continuation
statements necessary to maintain the liens, security interests and priorities of
such liens and security interests that have been granted by the Transferor and
the Depositor, respectively, the Transferor and the Depositor shall continue to
file on or before each fifth (or twelfth) anniversary of the filing of any
financing and continuation statements such additional financing and continuation
statements until the Trust has terminated pursuant to Section 9.1 of the Owner
Trust Agreement. The Indenture Trustee and Owner Trustee agree to cooperate with
the Transferor and the Depositor in preparing, executing and filing such
statements. The filing of any such statement with respect to the Transferor and
the Depositor shall not be construed as any indication of an intent of any party
contrary to the expressed intent set forth in Section 2.03 hereof and Section
2.04 of the Home Loan Purchase Agreement. If the Transferor or the Depositor has
ceased to do business whenever any such financing and continuation statements
must be filed or the Transferor or the Depositor fails to file any such
financing statements or continuation statements at least one month prior to the
expiration thereof, each of the Transferor and the Depositor does hereby make,
constitute and appoint the Owner Trustee its attorney-in-fact, with full power
and authority, to execute and file in its name and on its behalf any such
financing statements or continuation statements required under this Section 4.04
relating to assets conveyed to the Owner Trustee and the Depositor does hereby
make, constitute and appoint the Indenture Trustee its attorney-in-fact, with
full power and authority, to execute and file in its name and on its behalf any
such financing statements or continuation statements required under this Section
4.04 relating to assets conveyed to the Owner Trust.

            Section 4.05 Reports to the Securities and Exchange Commission. The
Indenture Trustee shall, on behalf of the Issuer, cause to be filed with the
Securities and Exchange Commission all monthly reports on Form 8-K and annual
reports on Form 10-K by EDGAR electronic format (or any successor format)
required to be filed under the provisions of the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Securities and Exchange
Commission thereunder. The Indenture Trustee shall obtain on behalf of the
Issuer, EDGAR access codes (or any successor codes) on behalf of the Issuer
required for filing with the Securities and Exchange Commission. Upon the
request of the Indenture Trustee, each of the Servicer, the Master Servicer and
the Transferor shall cooperate with the Indenture Trustee in the preparation of
any such report and shall provide to the Indenture Trustee in a timely manner
all such information or documentation as the Indenture Trustee may reasonably
request in connection with the performance of its duties and obligations under
this Section 4.05.

                                      -49-
<PAGE>

                                   ARTICLE V

                         ESTABLISHMENT OF TRUST ACCOUNTS

            Section 5.01 Collection Account and Note Payment Account.

            (a) (1) Establishment of Collection Account. The Master Servicer,
for the benefit of the Securityholders, the Indenture Trustee and the Securities
Insurer, shall cause to be established and maintained by the Indenture Trustee
one or more Collection Accounts (collectively, the "Collection Account"), which
shall be separate Eligible Accounts and may be interest-bearing, and which shall
be entitled "Collection Account of _______________, as Indenture Trustee, in
trust for the _______ Home Loan Asset Backed Notes, Series 200_-_". The
Collection Account may be maintained with the Indenture Trustee or any other
depository institution, which satisfies the requirements set forth in the
definition of Eligible Account. The creation of any Collection Account other
than one maintained with the Indenture Trustee shall be evidenced by a letter
agreement between the Servicer and the depository institution acceptable to the
Indenture Trustee and the Securities Insurer. A copy of such letter agreement
shall be furnished to the Securities Insurer and the Indenture Trustee. Funds in
the Collection Account shall be invested in accordance with Section 5.03 hereof.
The Collection Account shall be established, as of the Closing Date, with
________________ as an Eligible Account pursuant to the definition thereof. The
Collection Account may, upon written notice to the Indenture Trustee, and upon
the written consent of the Securities Insurer, be transferred to a different
depository institution so long as such transfer is to an Eligible Account
acceptable to the Securities Insurer.

            (2) Establishment of Note Payment Account. No later than the Closing
Date, the Indenture Trustee, for the benefit of the Noteholders and the
Securities Insurer, shall cause to be established and maintained with the
Indenture Trustee one or more Note Payment Accounts (collectively, the "Note
Payment Account"), which shall be separate Eligible Accounts and may be
interest-bearing, and which shall be entitled "Note Payment Account of
________________, as Indenture Trustee, in trust for the _______ Home Loan Asset
Backed Notes, Series 200_-_". Funds in the Note Payment Account shall be
invested in accordance with Section 5.03 hereof.

            (b) (1) Deposits to Collection Account. The Servicer shall use its
best efforts to deposit or cause to be deposited (without duplication), within
one (1) Business Day after receipt thereof, into the Collection Account and
retain therein in trust for the benefit of the Noteholders and the Securities
Insurer:

            (i) all payments of principal and interest on the Home Loans
      collected after the Cut-Off Date;

            (ii) all Net Liquidation Proceeds;

            (iii) all Property Insurance Proceeds;

            (iv) all Released Mortgaged Property Proceeds;

                                      -50-
<PAGE>

            (v) any amounts payable in connection with the repurchase of any
      Home Loan and the amount of any Substitution Adjustment pursuant to
      Section 3.05 hereof;

            (vi) the deposit of the Termination Price under Section 11.01
      hereof;

            (vii) interest and gains on funds held in the Collection Account;

            (viii) Monthly Advances pursuant to Section 4.02(h) hereof; and

            (ix) Compensating Interest pursuant to Section 4.02(k) hereof.

            The Servicer shall be entitled to retain and not deposit into the
Collection Account any amounts received with respect to a Home Loan that
constitute additional servicing compensation pursuant to Section 7.03 hereof.

            (2) Deposits to Note Payment Account. By the close of business on
the fourth Business Day prior to each Payment Date, the Master Servicer shall
cause the Servicer to withdraw from the Collection Account the Available
Collection Amount and deposit such into the Note Payment Account for such
Payment Date.

            (3) Withdrawals from Collection Account. The Master Servicer shall
cause the Servicer to also make the following withdrawals from the Collection
Account, in no particular order of priority:

            (i) to withdraw any amount not required to be deposited in the
      Collection Account or deposited therein in error;

            (ii) to withdraw any Servicing Advance Reimbursement Amounts and
      Monthly Advance Reimbursement Amounts; and

            (iii) to clear and terminate the Collection Account in connection
      with the termination of this Agreement.

            (c) Initial Withdrawals from Note Payment Account. To the extent
funds are available in the Note Payment Account, the Indenture Trustee (based on
the information provided by the Servicer contained in the Servicer's Monthly
Remittance Report for such Payment Date) shall make withdrawals therefrom by
9:00 a.m. (New York City time) on each Payment Date, for application in the
following order of priority:

            (i) to distribute on such Payment Date the following amounts related
      to such Payment Date pursuant to the Indenture in the following order; (1)
      to the Indenture Trustee, an amount equal to the Indenture Trustee Fee and
      all unpaid Indenture Trustee Fees from prior Payment Dates; (2) to the
      Servicer an amount equal to the Servicing Compensation (net of the sum of
      any amounts retained prior to deposit into the Collection Account pursuant
      to subsection (b)(1) above) and all unpaid Servicing Compensation from
      prior Payment Dates; (3) to the Master Servicer an amount equal to the
      Master Servicer Compensation and all unpaid Master Servicer Compensation
      from prior Payment Dates; and (4) to the Securities Insurer, an amount
      equal to the Guaranty

                                      -51-
<PAGE>

      Insurance Premium and all unpaid Guaranty Insurance Premiums from prior
      Payment Dates; and

            (ii) subject to the priority of payments in Subsections 5.01(d) and
      (e) below, to deposit into the Certificate Distribution Account the
      applicable portions of the Available Payment Amount payable to the holders
      of the Residual Interest Certificates as calculated pursuant to Subsection
      5.01(e) below on such Payment Date.

            (d) Regular Payment Amount Withdrawals from Note Payment Account. On
each Payment Date, the Indenture Trustee (based on the information provided by
the Servicer contained in the Servicer's Monthly Remittance Report for such
Payment Date) shall distribute the Regular Payment Amount and any Deficiency
Amount paid by the Securities Insurer in respect of such Payment Date from the
Note Payment Account (in the case of all amounts distributable to Noteholders)
and from the Certificate Distribution Account (in the case of all amounts
distributable to Certificateholders), in the following order of priority:

            (i) to pay the holders of the Notes the Noteholders' Interest
      Payment Amount for such Payment Date;

            (ii) to pay the holders of the Notes principal thereof in an amount
      up to the sum of the Regular Principal Payment Amount and the Noteholders'
      Principal Deficiency Amount, until the Note Principal Balances thereof are
      reduced to zero;

            (iii) to apply any remaining amount together with Excess Spread in
      the manner specified in Subsection (e) below.

            (e) Excess Spread Withdrawals from Note Payment Account. On each
Payment Date, the Indenture Trustee (based on the information provided by the
Servicer contained in the Servicer's Monthly Remittance Report for such Payment
Date) shall distribute the Excess Spread, if any, in the following order of
priority (in each case after giving effect to all payments specified in Section
5.01(d) hereof):

            (i) to pay the Securities Insurer in an amount up to the Securities
      Insurer Reimbursement Amount;

            (ii) to pay the holders of the Notes, as principal thereof, any
      remaining Excess Spread in an amount up to any Overcollateralization
      Deficiency Amount (after giving effect to payments made pursuant to
      subsection (d) above), until the Note Principal Balances thereof are
      reduced to zero;

            (iii) to pay the holder of the Notes, pro rata, the Noteholders'
      Interest Carry-Forward Amount due and unpaid, if any; and

            (iv) to pay any remaining Excess Spread (A) first, concurrently to
      the Servicer in an amount equal to any outstanding Nonrecoverable
      Servicing Advances and to the Master Servicer in an amount equal to any
      outstanding Nonrecoverable Monthly Advances, (B) second, to repay the
      Servicer the Servicing Fee Recovery Amount, if any and (C) then, for
      deposit into the Certificate Distribution Account for payment to the

                                      -52-
<PAGE>

      holders of the Residual Interest Certificates any amount remaining after
      the preceding clauses (A) and (B).

            (f) All payments made on the Notes on each Payment Date will be made
on a pro rata basis among the Noteholders of record of such Notes on the next
preceding Record Date, without preference or priority of any kind, and, except
as otherwise provided in the next sentence, shall be made by wire transfer of
immediately available funds to the account of such Noteholder, if such
Noteholder shall own of record Notes in original Denominations aggregating at
least $250,000 and shall have so notified the Indenture Trustee, and otherwise
by check mailed to the address of such Noteholder appearing in the Notes
Register. The final payment on each Note will be made in like manner, but only
upon presentment and surrender of such Note at the location specified in the
notice to Noteholders of such final payment.

            Section 5.01A Claims Under Guaranty Policy. (a) If, on the second
Business Day prior to the related Payment Date a Deficiency Amount exists, the
Indenture Trustee shall give notice to the Securities Insurer and to its
direction by telephone or telecopy of the amount of such deficiency by 12:00
noon, New York City time, on such Business Day.

            (b) At the time of the execution and delivery of this Agreement, and
for the purposes of this Agreement, the Indenture Trustee shall establish a
separate special purpose trust account for the benefit of the Noteholders called
the "Policy Payments Account" and over which the Indenture Trustee shall have
exclusive control and sole right of withdrawal. The Indenture Trustee shall
deposit any amount paid under the Guaranty Policy in the Policy Payments Account
and distribute such amount only for purposes of making the Insured Payments for
which a claim was made. Such amounts shall be disbursed by the Indenture Trustee
to Noteholders in the same manner as principal and interest payments are to be
made with respect to the Notes under Sections regarding payment of Notes hereof.
It shall not be necessary for such payments to be made by checks or wire
transfers separate from the check or wire transfer used to pay Insured Payments
with other funds available to make such payments. However, the amount of any
payment of principal of or interest on the Notes to be paid from the Policy
Payments Account shall be noted as provided in (d) below in the Payment
Statement to be furnished to Noteholders. Funds held in the Policy Payments
Account shall not be invested by the Indenture Trustee.

            (c) Any funds received by the Indenture Trustee as a result of any
claim under the Guaranty Policy shall be applied by the Indenture Trustee,
subject to Section 3.03 of the Indenture, together with the funds, if any, to be
withdrawn from the Note Payment Account, directly to the payment in full of the
Insured Payments due on the Notes (including Notes held for the Indenture
Trustee's own account). Funds received by the Indenture Trustee as a result of
any claim under the Guaranty Policy shall be deposited by the Indenture Trustee
in the Policy Payments Account and used solely for payment to the Noteholders
and may not be applied to satisfy any costs, expenses or liabilities of the
Indenture Trustee. Any funds remaining in the Policy Payments Account following
a Payment Date shall promptly be remitted to the Securities Insurer except for
funds held for the payment of Noteholders pursuant to Section 3.03 of the
Indenture.

                                      -53-
<PAGE>

            (d) The Indenture Trustee shall keep a complete and accurate record
of all funds deposited by the Securities Insurer into the Policy Payments
Account and the allocation of such funds to payment of interest on and principal
paid in respect of any Note. The Securities Insurer shall have the right to
inspect such records at reasonable times upon one Business Day's prior notice to
the Indenture Trustee.

            (e) Subject to and conditioned upon payment of any interest or
principal with respect to the Notes by or on behalf of the Securities Insurer,
the Indenture Trustee shall assign to the Securities Insurer all rights to the
payment of interest or principal on the Notes which are then due to the extent
of all payments made by the Securities Insurer and the Securities Insurer may
exercise any option, vote, right, power or the like with respect to the Notes to
the extent it has made a principal payment pursuant to the Guaranty Policy. The
Indenture Trustee agrees that the Securities Insurer shall be subrogated to all
of the rights to payment of the Noteholders or in relation thereto to the extent
that any payment of principal or interest was made to such Holders with payments
made under the Guaranty Policy by the Securities Insurer.

            (f) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any scheduled payment of
principal of or interest on a Note has been voided in whole or in part as a
Preference Amount, the Indenture Trustee shall so notify the Securities Insurer,
shall comply with the provisions of the Guaranty Policy to obtain payment by the
Securities Insurer of such voided scheduled payment, and shall, at the time it
provides notice to the Securities Insurer, notify, by mail to Noteholders that,
in the event that any Noteholder's scheduled payment is so recovered, such
Noteholders will be entitled to payment pursuant to the terms of the Guaranty
Policy, a copy of which shall be made available through the Indenture Trustee,
the Securities Insurer or the fiscal agent, if any, and the Indenture Trustee
shall furnish to the Securities Insurer or its fiscal agent, if any, its records
evidencing the payments of principal of and interest on the Notes, if any, which
have been made by the Indenture Trustee and subsequently recovered from
Noteholders, and the dates on which such payments were made.

            (g) The Indenture Trustee shall promptly notify the Securities
Insurer of either of the following as to which it has actual knowledge: (i) the
commencement of any proceeding by or against the Depositor or the Issuer
commenced under the United States Bankruptcy Code or any other applicable
bankruptcy, insolvency, receivership, rehabilitation or similar law (an
"Insolvency Proceeding") and (ii) the making of any claim in connection with any
Insolvency Proceeding seeking the avoidance as a preferential transfer (a
"Preference Claim") of any payment of principal of, or interest on, the Notes.
Each Noteholder, by its purchase of Notes, and the Indenture Trustee hereby
agree that, so long as a Securities Insurer Default shall not have occurred and
be continuing, the Securities Insurer may at any time during the continuation of
any Insolvency Proceeding direct all matters relating to such Insolvency
Proceeding, including, without limitation, (i) all matters relating to any
Preference Claim, (ii) the direction of any appeal of any order relating to any
Preference Claim at the expense of the Securities Insurer but subject to
reimbursement as provided in the Insurance Agreement and (iii) the posting of
any surety, supersedes or performance bond pending any such appeal. In addition,
and without limitation of the foregoing, as set forth (i) hereinbelow, the
Securities Insurer shall be subrogated to, and each Noteholder and the Indenture
Trustee hereby delegate and assign, to the fullest extent permitted by law the
rights of the Indenture Trustee and each Noteholder in the conduct of any
Insolvency

                                      -54-
<PAGE>

Proceeding, including, without limitation, all rights of any party to an
adversary proceeding action with respect to any court under issued in connection
with any such Insolvency Proceeding.

            (h) The Indenture Trustee shall furnish to the Securities Insurer or
its fiscal agent its records evidencing the payments of principal of and
interest on the Notes which have been made by the Indenture Trustee and
subsequently recovered from Noteholders, and the dates on which such payments
were made.

            (i) Anything herein to the contrary notwithstanding, any payment
with respect to the principal of or interest on the Notes which is made with
moneys received pursuant to the terms of the Guaranty Policy shall not be
considered payment by the Issuer, shall not discharge the Issuer in respect of
its obligation to make such payment and shall not result in the payment of or
the provision for the payment of the principal of or interest on the Notes
within the meaning of Section 4.01 of the Indenture. The Issuer and the
Indenture Trustee acknowledge that without the need for any further action on
the part of the Securities Insurer, the Issuer, or the Indenture Trustee (i) to
the extent the Securities Insurer makes payments, directly or indirectly, on
account of principal of or interest on the Notes to the Noteholders, the
Securities Insurer will be fully subrogated to the rights of such Noteholders to
receive such principal and interest from the Issuer, and (ii) Noteholders shall
be paid such principal and interest in their capacity as Noteholders but only
from the sources and in the manner provided herein for the payment of such
principal and interest.

            Section 5.02 Certificate Distribution Account. (a) Establishment of
Certificate Distribution Account. No later than the Closing Date, the Master
Servicer, for the benefit of the Certificateholders, shall cause to be
established and maintained with the Indenture Trustee for the benefit of the
Owner Trustee, on behalf of the Issuer and the Certificateholders, one or more
Certificate Distribution Accounts (collectively, the "Certificate Distribution
Account"), which shall be separate Eligible Accounts and may be
interest-bearing, entitled "Certificate Distribution Account,
__________________, as Indenture Trustee, in trust for the _______ Home Loan
Owner Trust Series 200_-_". Funds in the Certificate Distribution Account shall
be invested in accordance with Section 5.03 hereof.

            (b) Deposits to and Distributions from Certificate Distribution
Account. On each Payment Date the Indenture Trustee shall withdraw from the Note
Payment Account all amounts required to be deposited into the Certificate
Distribution Account with respect to such Payment Date pursuant to Section
5.01(c)(ii) hereof and, on behalf of the Owner Trustee, shall deposit such
amounts into the Certificate Distribution Account. The Indenture Trustee shall
make payments of all remaining amounts on deposit in the Note Payment Account to
the holders of the Notes to the extent of amounts due and unpaid on the Notes
for principal thereof and interest thereon in accordance with Section 5.01(d)
and (e) hereof. The Indenture Trustee, on behalf of the Owner Trustee, shall
distribute all amounts on deposit in the Certificate Distribution Account to the
holders of the Residual Interest Certificates. The Indenture Trustee, on behalf
of the Owner Trustee, also shall withdraw from the Certificate Distribution
Account any amount not required to be deposited in the Certificate Distribution
Account or deposited therein in error.

                                      -55-
<PAGE>

            (c) Distributions on the Residual Interest Certificates. All
distributions made on the Residual Interest Certificates on each Payment Date
will be made pro rata among the holders of the Residual Interest Certificates of
record on the next preceding Record Date based on their percentage holdings in
the Residual Interest, without preference or priority of any kind, and, except
as otherwise provided in the next succeeding sentence, shall be made by wire
transfer of immediately available funds to the account of each such holder, if
such holder shall own of record a Residual Interest Certificate in an original
denomination aggregating at least a 50% holding of the Residual Interest and
shall have so notified the Indenture Trustee at least 5 Business Days prior
thereto, and otherwise by check mailed to the address of such Residual Interest
holder appearing in the Certificate Register. The final distribution on each
Residual Interest Certificate will be made in like manner, but only upon
presentment and surrender of such Residual Interest Certificate at the location
specified in the notice to holders of the Residual Interest Certificates of such
final distribution. Any amount distributed to the holders of the Residual
Interest Certificates on any Payment Date shall not be subject to any claim or
interest of holders of the other Notes.

            Section 5.03 Trust Accounts; Trust Account Property. (a) Control of
Trust Accounts. Each of the Trust Accounts (or interests therein) established
hereunder has been pledged by the Issuer to the Indenture Trustee under the
Indenture and shall be subject to the lien of the Indenture. In addition to the
provisions hereunder, each of the Trust Accounts shall also be established and
maintained pursuant to the Indenture. Amounts distributed from each Trust
Account in accordance with the Indenture and this Agreement shall be released
from the lien of the Indenture upon such distribution thereunder or hereunder.
Subject to Sections 5.01 and 5.02 hereof, the Indenture Trustee shall possess
all right, title and interest in and to all funds on deposit from time to time
in the Trust Accounts (other than the Certificate Distribution Account) and in
all proceeds thereof (including all income thereon) and all such funds,
investments, proceeds and income shall be part of the Trust Account Property and
the Trust Estate. If, at any time, any Trust Account ceases to be an Eligible
Account, the Indenture Trustee (or the Servicer on its behalf) shall, within ten
Business Days (or such longer period, not to exceed 30 calendar days, as to
which each Rating Agency and the Securities Insurer may consent) (i) establish a
new Trust Account as an Eligible Account, (ii) terminate the ineligible Trust
Account, and (iii) transfer any cash and investments from such ineligible Trust
Account to such new Trust Account.

            With respect to the Trust Accounts (other than the Certificate
Distribution Account), the Indenture Trustee agrees, by its acceptance hereof,
that each such Trust Account shall be subject to the sole and exclusive custody
and control of the Indenture Trustee for the benefit of the Securityholders, the
Securities Insurer and the Issuer, as the case may be, and the Indenture Trustee
shall have sole signature and withdrawal authority with respect thereto.

            In addition to this Agreement and the Indenture, the Certificate
Distribution Account established hereunder shall also be subject to and
established and maintained in accordance with the Owner Trust Agreement. Subject
to rights of the Indenture Trustee, the Noteholders and the Securities Insurer
hereunder and under the Indenture, the Owner Trustee shall possess for the
benefit of the Certificateholders and the Securities Insurer all right, title
and interest in all funds on deposit from time to time in the Certificate
Distribution Account and in all proceeds thereof (including all income thereon)
and all such funds, investments, proceeds and

                                      -56-
<PAGE>

income shall be part of the Trust Account Property and the Trust Estate. Subject
to the rights of the Indenture Trustee, the Noteholders and the Securities
Insurer, the Owner Trustee agrees, by its acceptance hereof, that such
Certificate Distribution Account shall be subject to the sole and exclusive
custody and control of the Owner Trustee for the benefit of the Issuer and the
parties entitled to payments and distributions therefrom, including, without
limitation, the Certificateholders and the Securities Insurer, and the Owner
Trustee shall have sole signature and withdrawal authority with respect to the
Certificate Distribution Account. Notwithstanding the preceding, the
distribution of amounts from the Certificate Distribution Account in accordance
with Section 5.01(c)(ii) hereof shall also be made for the benefit of the
Indenture Trustee (including without limitation with respect to its duties under
the Indenture and this Agreement relating to the Trust Estate), and the
Indenture Trustee (in its capacity as Indenture Trustee) shall have the right,
but not the obligation, to take custody and control of the Certificate
Distribution Account and to cause the distribution of amounts therefrom in the
event that the Owner Trustee fails to distribute such amounts in accordance with
subsections (b) and (c) of Section 5.02.

            In accordance with Section 5.01 and 5.02 hereof, the Servicer or the
Master Servicer shall have the power, revocable by the Indenture Trustee or by
the Owner Trustee with the consent of the Indenture Trustee, to instruct the
Indenture Trustee or Owner Trustee to make withdrawals and payments from the
Trust Accounts for the purpose of permitting the Servicer, the Master Servicer
or the Issuer to carry out their respective duties hereunder or permitting the
Indenture Trustee or Owner Trustee to carry out their respective duties herein
or under the Indenture or the Owner Trust Agreement, as applicable.

            (1) Investment of Funds. So long as no Master Servicer Event of
Default shall have occurred and be continuing, the funds held in any Trust
Account may be invested (to the extent practicable) in Permitted Investments, as
directed by the Master Servicer. Any directions for investment of funds in any
Trust Account shall be made in writing or by telephone or facsimile transmission
with confirmation in writing. In any case, funds in any Trust Account must be
available for withdrawal without penalty, and any Permitted Investments must
mature or otherwise be available for withdrawal, not later than the Business Day
immediately preceding the Payment Date next following the date of such
investment and shall not be sold or disposed of prior to its maturity subject to
subsection (a)(2) of this Section. All interest and any other investment
earnings on amounts or investments held in any Trust Account shall be deposited
into such Trust Account immediately upon receipt by the Indenture Trustee. All
Permitted Investments in which funds in any Trust Account (other than the
Certificate Distribution Account) are invested must be held by or registered in
the name of ______________, as Indenture Trustee, in trust for the _________
Home Loan Asset Backed Notes, Series 200_-_. While the Indenture Trustee holds
the Certificate Distribution Account, on behalf of the Owner Trustee, all
Permitted Investments in which funds in the Certificate Distribution Account are
invested shall be held by or registered in the name _______________, on behalf
of the Owner Trustee, in trust for the _________ Home Loan Asset Backed Notes,
Series 200_-_.

            (2) Insufficiency and Losses in Trust Accounts. If any amounts are
needed for disbursement from any Trust Account held by or on behalf of the
Indenture Trustee and sufficient uninvested funds are not available to make such
disbursement, the Indenture Trustee shall cause to be sold or otherwise
converted to cash a sufficient amount of the investments in such Trust Account.
The Indenture Trustee shall not be liable for any investment loss or other

                                      -57-
<PAGE>

charge resulting therefrom, unless such loss or charge is caused by the failure
of the Indenture Trustee or Owner Trustee, respectively, to perform in
accordance with this Section 5.03 hereof or the Indenture Trustee is the obligor
under the Permitted Investment and has defaulted thereon.

            If any losses are realized in connection with any investment in any
Trust Account pursuant to this Agreement and the Indenture, then the Master
Servicer shall deposit the amount of such losses (to the extent not offset by
income from other investments in such Trust Account) into such Trust Account
immediately upon the realization of such loss. All interest and any other
investment earnings on amounts held in any Trust Account shall be the income of
the Issuer (or, when there is a single beneficial owner of a Residual Interest
Certificate, such owner), and for federal and state income tax purposes the
Issuer (or such single beneficial owner) shall be the owner (or beneficial owner
in the case of the Collection Account).

            (b) No Liability for Losses. Subject to Section 6.01 of the
Indenture, the Indenture Trustee shall not in any way be held liable by reason
of any insufficiency in any Trust Account held by the Indenture Trustee
resulting from any investment loss on any Permitted Investment included therein
(except to the extent that the Indenture Trustee is the obligor and has
defaulted thereon).

            (c) Delivery of Trust Account Property. With respect to the Trust
Account Property, the Indenture Trustee acknowledges and agrees that:

            (1) any Trust Account Property that is held in deposit accounts
shall be held solely in the Eligible Accounts; and each such Eligible Account
shall be subject to the sole and exclusive dominion, custody and control of the
Indenture Trustee; [and, without limitation on the foregoing, the Indenture
Trustee shall have sole signature authority with respect thereto;]

            (2) any Trust Account Property that constitutes property within
clause (a) of the definition of "Delivery" in Section 1.1 hereof shall be
delivered to and maintained by the Indenture Trustee in accordance with the
definition of "Delivery" in Section 1.1 hereof and shall be held, pending
maturity or disposition, solely by or on behalf of the Indenture Trustee; and

            (3) any Trust Account Property that is a book-entry security held
through the Federal Reserve System pursuant to federal book-entry regulations
shall be delivered to and maintained by the Indenture Trustee in accordance with
the definition of "Delivery" in Section 1.1 hereof.

            Section 5.04 Allocation of Losses. In the event that Net Liquidation
Proceeds, Property Insurance Proceeds or Released Mortgaged Property Proceeds on
a Liquidated Home Loan are less than the related Principal Balance plus accrued
interest thereon, or any Obligor makes a partial payment of any Monthly Payment
due on a Home Loan, such Net Liquidation Proceeds, Property Insurance Proceeds,
Released Mortgaged Property Proceeds or partial payment shall be applied to
payment of the related Debt Instrument, first, to interest accrued at the Home
Loan Interest Rate and, then, to principal.

                                      -58-
<PAGE>

                                   ARTICLE VI

                       STATEMENTS AND REPORTS; WITHHOLDING

            Section 6.01 Statements. (a) No later than each Determination Date,
the Master Servicer shall cause the Servicer to deliver to the Indenture Trustee
and the Master Servicer by facsimile, the receipt and legibility of which shall
be confirmed by telephone, and with hard copy thereof to be delivered no later
than one (1) Business Day after such Determination Date, the Servicer's Monthly
Remittance Report, setting forth the date of such Report (day, month and year),
the name of the Issuer (i.e., "________ Home Loan Owner Trust 200_-_"), the
Series designation of the Notes (i.e., "Series 200_-_") and the date of this
Agreement, all in substantially the form set out in Exhibit B hereto.
Furthermore, Master Servicer shall cause the Servicer to deliver to the Master
Servicer and the Indenture Trustee no later than each Determination Date, a
magnetic tape or computer disk providing such information regarding the
Servicer's activities in servicing the Home Loans during the related Due Period
as the Indenture Trustee or the Master Servicer may reasonably require. The
Master Servicer shall also cause the Servicer to deliver any Loan Liquidation
Reports pursuant to Section 4.10(a) hereof.

            (b) On each Payment Date, Indenture Trustee shall distribute, based
on information provided by the Servicer, a monthly statement (the "Payment
Statement") to the Depositor, the Securities Insurer, the Master Servicer, the
Securityholders and the Rating Agencies, stating the date of original issuance
of the Notes (day, month and year), the name of the Issuer (i.e,. "_______ Home
Loan Owner Trust 200_-_"), the Series designation of the Notes (i.e., "Series
200_-_"), the date of this Agreement and the following information:

            (1) the Available Collection Amount, Available Payment Amount, the
Regular Payment Amount and the Excess Spread for the related Payment Date;

            (2) the Note Principal Balance of the Notes before and after giving
effect to payments made to the holders of such Notes on such Payment Date, and
the Pool Principal Balance as of the first and last day of the related Due
Period;

            (3) the Note Factor with respect to the Notes then outstanding;

            (4) the amount of principal, if any, and interest to be distributed
to the Notes on the related Payment Date;

            (5) the Note Interest Rate and Noteholders' Interest Carry-Forward
Amount, if any, on the related Payment Date;

            (6) as of such Payment Date, the Overcollateralization Amount, the
Overcollateralization Target Amount and any Overcollateralization Deficiency
Amount or any Overcollateralization Reduction Amount, and any such amount to be
distributed to the Noteholders or the holders of the Residual Interest on such
Payment Date;

            (7) the Master Servicer Compensation, the Servicing Compensation,
the Indenture Trustee Fee, and the Guaranty Insurance Premium, for such Payment
Date;

                                      -59-
<PAGE>

            (8) as of such Payment Date, the Net Loan Losses incurred during the
related Due Period, the cumulative Net Loan Losses as of such Payment Date;

            (9) the weighted average maturity of the Home Loans and the weighted
average Home Loan Interest Rate of the Home Loans;

            (10) the number of and aggregate Principal Balance of all Home Loans
in foreclosure proceedings and the percent of the aggregate Principal Balances
of such Home Loans to the aggregate Principal Balances of all Home Loans, all as
of the close of business on the last day of the related Due Period;

            (11) the number of and the aggregate Principal Balance of the Home
Loans in bankruptcy proceedings and the percent of the aggregate Principal
Balances of such Home Loans to the aggregate Principal Balances of all Home
Loans, all as of the close of business on the last day of the related Due
Period;

            (12) the number of Foreclosure Properties, the aggregate Principal
Balance of the related Home Loans, the book value of such Foreclosure Properties
and the percent of the aggregate Principal Balances of such Home Loans to the
aggregate Principal Balances of all Home Loans, all as of the close of business
on the last day of the related Due Period;

            (13) during the related Due Period (and cumulatively, from the
Closing Date through the most current Due Period), the number and aggregate
Principal Balance of Home Loans for each of the following: (A) that became
Defaulted Home Loans, (B) that became Liquidated Home Loans, (C) that became
Deleted Home Loans pursuant to Section 3.05 hereof as a result of such Deleted
Home Loans being Defective Home Loans, and (D) that became Deleted Home loans
pursuant to Section 3.05 hereof as a result of such Deleted Home Loans being
Defaulted Home Loans or a Home Loan in default or imminent default;

            (14) the scheduled principal payments and the principal prepayments
received with respect to the Home Loans during the Due Period;

            (15) the number and aggregate Principal Balance of Home Loans that
were 30, 60 or 90 days Delinquent as of the close of business on the last day of
the related Due Period and the Six Month Average Delinquency, the Three-Month
Average Annualized Losses and the cumulative Realized Losses;

            (16) the amount of any Insured Payment included in the amounts
distributed to the Noteholders on such Payment Date; and

            (17) the amount of any Securities Insurer Reimbursement Amount to be
paid to the Securities Insurer on such Payment Date and the amount of any
Securities Insurer Reimbursement Amount remaining unsatisfied following such
payment.

            In the case of information furnished to Noteholders pursuant to
subclause (b)(4) of this Section 6.01, the amounts shall be expressed as a
dollar amount per Note with a $1,000 Denomination.

                                      -60-
<PAGE>

            All reports prepared by the Indenture Trustee of the withdrawals
from and deposits in the Collection Account will be based in whole or in part
upon the information provided to the Indenture Trustee by the Servicer, and the
Indenture Trustee may fully rely upon and shall have no liability with respect
to such information provided by the Servicer. In no event shall the Indenture
Trustee be obligated to provide information required pursuant to this Section
6.01(b) if it has not timely received the necessary information form the
Servicer to provide such information.

            (c) Within a reasonable period of time after the end of each
calendar year, the Indenture Trustee shall prepare and distribute to each Person
who at any time during the calendar year was a Noteholder such information as is
reasonably necessary to provide to such Person a statement containing the
information set forth in subclause (b) of this Section 6.01, aggregated for such
calendar year or applicable portion thereof during which such Person was a
Noteholder.

            (d) On each Payment Date, the Indenture Trustee shall forward to The
Depository Trust Company and to the holders of the Residual Interest
Certificates a copy of the Payment Statement in respect of such Payment Date and
a statement setting forth the amounts actually distributed to such holders of
the Residual Interest Certificates on such Payment Date, together with such
other information as the Indenture Trustee deems necessary or appropriate.

            (e) Within a reasonable period of time after the end of each
calendar year, the Indenture Trustee shall prepare and distribute to each Person
who at any time during the calendar year was a holder of Residual Interest
Certificates, if requested in writing by such Person, a statement containing the
information provided pursuant to the previous paragraph aggregated for such
calendar year or applicable portion thereof during which such Person was a
holder of Residual Interest Certificates.

            (f) The Indenture Trustee shall forward to each Noteholder and each
holder of a Residual Interest Certificate, during the term of this Agreement,
such periodic, special or other reports, including information tax returns or
reports required with respect to the Notes and the Residual Interest
Certificates, as shall be necessary, reasonable, or appropriate with respect to
the Noteholders or the holders of Residual Interest Certificates, or otherwise
with respect to the purposes of this Agreement, all such reports or information
in the case of the Residual Interest Certificates to be provided by and in
accordance with such applicable instructions and directions as the Majority
Residual Interestholders may reasonably require.

            (g) The Master Servicer promptly shall notify each Rating Agency if
the Securities Insurer waives or changes the Overcollateralization Target
Amount, the OC Trigger Increase Event, the Spread Squeeze Amount or the Step
Down Test.

            (h) Reports and computer tapes furnished by the Servicer and the
Indenture Trustee, to the Master Servicer and the Securities Insurer pursuant to
this Agreement shall be deemed confidential and of a proprietary nature and
shall not be copied or distributed except in connection with the purposes and
requirements of this Agreement. No Person entitled to receive copies of such
reports or tapes shall use the information therein for the purpose of soliciting
the customers of the Transferor or the Servicer or for any other purpose except
as set forth in this Agreement.

                                      -61-
<PAGE>

            Section 6.02 Withholding. The Indenture Trustee shall comply with
all requirements of the Code, and applicable state and local laws, with respect
to the withholding from any payments made to any Noteholder of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith, giving due effect to any applicable
exemptions from such withholding and effective certifications or forms provided
by the recipient. Any amounts withheld pursuant to this Section 6.02 shall be
deemed to have been paid to the Noteholders for all purposes of this Agreement
or the Indenture.

                                  ARTICLE VII

                          GENERAL SERVICING PROCEDURES

            Section 7.01 Servicing Advances. The Master Servicer shall cause the
Servicer to make Servicing Advances under Section 6.7 of the Servicing
Agreement. The Indenture Trustee shall make any Servicing Advance that the
Servicer fails to make. The Indenture Trustee shall be reimbursed for funds so
advanced out of Servicing Compensation on subsequent Payment Dates.

            Section 7.02 Release of Home Loan Files(a) . If with respect to any
Home Loan:

            (i) the outstanding Principal Balance of such Home Loan plus all
      interest accrued thereon shall have been paid;

            (ii) the Servicer shall have received, in escrow, payment in full of
      such Home Loan in a manner customary for such purposes;

            (iii) such Home Loan has become a Defective Loan and has been
      repurchased or a Qualified Substitute Home Loan has been conveyed to the
      Owner Trustee pursuant to Section 3.05 hereof;

            (iv) such Home Loan or the related Foreclosure Property has been
      sold in connection with the termination of the Issuer pursuant to Section
      11.01 hereof; or

            (v) such Home Loan is a Defaulted Home Loan or a Liquidated Home
      Loan that is liquidated or disposed of or the related Foreclosure Property
      has been sold.

then in each such case, an Officer's Certificate of the Servicer pursuant to
Section 4.5 of the Servicing Agreement to the effect that the Servicer has
complied with all of its obligations under this Agreement and the Servicing
Agreement with respect to such Home Loan and requesting that the Custodian
release to the Servicer the related Indenture Trustee's Home Loan File. Upon the
receipt of such Officer's Certificate, the Custodian shall, within five Business
Days or such shorter period as may be required by applicable law, release, or
cause the applicable Custodian to release (unless such Indenture Trustee's Home
Loan File has previously been released), the related Indenture Trustee's Home
Loan File to the Servicer and execute and deliver such instruments of transfer
or assignment, in each case without recourse, as shall be necessary to vest
ownership of such Home Loan in the Servicer or such other Person as may be
specified in such certificate, the forms of any such instrument to be appended
to such certificate.

                                      -62-
<PAGE>

            (b) If a temporary release of the Indenture Trustee's Home Loan File
is necessary or appropriate for the servicing (which may include any
modification or foreclosure) of any Home Loan, then upon the request of the
Servicer pursuant to Section 3(b) of the Custodial Agreement the Custodian shall
release the related Indenture Trustee's Home Loan File (or any requested portion
thereof) to the Servicer.

            Section 7.03 Servicing Compensation As compensation for its services
under the Servicing Agreement, the Servicer shall be entitled to receive from
the Collection Account the Servicing Fee, out of which the Servicer shall pay
any subservicing fees to any subservicer. Additional servicing compensation in
the form of assumption fees, 80% of late charges collected, modification fees,
and other administrative fees, insufficient funds charges shall be part of the
Servicing Compensation payable to the Servicer hereunder and under Section 8.1
of the Servicing Agreement and shall be paid either by the Servicer retaining
such additional servicing compensation prior to deposit in the Collection
Account pursuant to Section 5.01(b)(1) hereof or, if deposited in the Collection
Account, as part of the Servicing Compensation withdrawn from the Collection
Account or Note Payment Account.

            The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and under the Servicing
Agreement and shall not be entitled to reimbursement therefor except as
specifically provided for herein or in Section 8.1 thereof.

            Section 7.04 Statement as to Compliance and Financial Statements.
The Master Servicer will deliver or cause to be delivered to the Indenture
Trustee, the Owner Trustee, the Depositor, the Securities Insurer, the Master
Servicer and the Rating Agencies not later than 90 days following the end of
each fiscal year of the Servicer (beginning with the fiscal year 200_), an
Officer's Certificate, required under Section 7.2 of the Servicing Agreement,
stating that (i) a review of the activities of the Servicer during the preceding
year and of performance under this Agreement and the Servicing Agreement has
been made under such officer's supervision and (ii) to the best of such
officer's knowledge, based on such review, the Servicer has fulfilled all of its
obligations under this Agreement and the Servicing Agreement throughout such
year, or, if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof and what action the Servicer proposes to take with respect thereto.

            Contemporaneously with the submission of the Officer's Certificate
required by the preceding paragraph, the Master Servicer shall deliver or cause
to be delivered to the Indenture Trustee, the Securities Insurer, the Master
Servicer and the Owner Trustee a copy of the Servicer's annual audited financial
statements prepared in the ordinary course of business. The Master Servicer
shall, upon the request of the Depositor, deliver to such party any unaudited
quarterly financial statements of the Servicer.

            The Master Servicer shall also cause the Servicer to furnish and
certify to the requesting party such other information as to (i) the Servicer's
organization, activities and personnel relating to the performance of the
obligations of the Servicer hereunder, (ii) the Servicer's financial condition,
(iii) the Home Loans and (iv) the performance of the obligations of any
subservicer under the any subservicing agreements, in each case as the Indenture
Trustee,

                                      -63-
<PAGE>

the Owner Trustee, the Master Servicer, the Securities Insurer or the Depositor
may reasonably request from time to time.

            Section 7.05 Independent Public Accountants' Servicing Report. Not
later than 90 days following the end of each fiscal year of the Servicer
(beginning with fiscal year 200_), the Master Servicer shall require that the
Servicer comply with Section 7.3 of the Servicing Agreement and cause any
nationally recognized firm of Independent Certified Public Accountants (which
may also render other services to the Servicer) to furnish a statement to the
Indenture Trustee, the Owner Trustee, the Rating Agencies, the Securities
Insurer, the Master Servicer and the Depositor to the effect that such firm has
examined certain documents and records relating to the servicing of the Home
Loans under this Agreement, the Servicing Agreement or of mortgage loans under
pooling or sale and servicing agreements (including the Home Loans and this
Agreement) substantially similar to one another (such statement to have attached
thereto a schedule setting forth the pooling or sale and servicing agreements
covered thereby) and that, on the basis of such examination conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Program for Mortgages serviced for FHLMC, such
firm confirms that such servicing has been conducted in compliance with such
pooling or sale and servicing agreements except for such significant exceptions
or errors in records that, in the opinion of such firm, the Uniform Single
Attestation Program for Mortgage Bankers or the Attestation Program for
Mortgages serviced for FHLMC requires it to report, each of which errors and
omissions shall be specified in such statement. In rendering such statement,
such firm may rely, as to matters relating to direct servicing of mortgage loans
by subservicers, upon comparable statements for examinations conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Program for Mortgages serviced for FHLMC (rendered
within one year of such statement) of independent public accountants with
respect to the related subservicer.

            Section 7.06 Reports to the Indenture Trustee; Collection Account
Statements. If the Collection Account is not maintained with the Indenture
Trustee, then not later than 25 days after each Record Date, the Master Servicer
shall cause the Servicer to forward to the Indenture Trustee, the Securities
Insurer and the Master Servicer, a statement, certified by a Servicing Officer,
setting forth the status of the Collection Account as of the close of business
on the preceding Record Date and showing, for the period covered by such
statement, the aggregate of deposits into the Collection Account for each
category of deposit specified in Section 5.01(b)(1) hereof, the aggregate of
withdrawals from the Collection Account for each category of withdrawal
specified in Section 5.01(b)(2) and (3) hereof, in each case, for the related
Due Period.

            Section 7.07 Financial Statements and Records of Servicer. The
Master Servicer shall require that the Servicer agree to provide the books,
records or information, and/or access thereto, of the types required of the
Master Servicer in Sections 9.07 and 9.08 herein, to the Indenture Trustee, the
Owner Trustee, the Depositor, the Securities Insurer and each of their
respective agents, upon terms substantially similar to the terms set forth in
Sections 9.07 and 9.08.

                                      -64-
<PAGE>

                                  ARTICLE VIII

                                   (RESERVED)

                                   ARTICLE IX

                               THE MASTER SERVICER

            Section 9.01 Indemnification; Third Party Claims (a) The Master
Servicer shall indemnify the Transferor, the Owner Trustee, the Issuer, the
Depositor, the Securities Insurer and the Indenture Trustee (each an
"Indemnified Party") and hold harmless each of them against any and all claims,
losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments, and other costs and expenses resulting from any claim,
demand, defense or assertion based on or grounded upon, or resulting from, a
breach of any of the Master Servicer's representations and warranties and
covenants contained in this Agreement or in any way relating to the failure of
the Master Servicer to perform its duties and service the Home Loans in
compliance with the terms of this Agreement.

            (b) The Transferor, the Depositor, the Owner Trustee, the Securities
Insurer or the Indenture Trustee, as the case may be, shall promptly notify the
Master Servicer if a claim is made by a third party with respect to a breach of
any of the Master Servicer's representations and warranties and covenants
contained in this Agreement or in any way relating to the failure of the Master
Servicer to perform its duties and service the Home Loans in compliance with the
terms of this Agreement. The Master Servicer shall promptly notify the Indenture
Trustee, the Owner Trustee, the Securities Insurer and the Depositor of any
claim of which it has been notified pursuant to this Section 9.01 by a Person
other than the Depositor, and, in any event, shall promptly notify the Depositor
of its intended course of action with respect to any claim.

            (c) The Master Servicer shall be entitled to participate in and,
upon notice to the Indemnified Party, assume the defense of any such action or
claim in reasonable cooperation with, and with the reasonable cooperation of,
the Indemnified Party. The Indemnified Party will have the right to employ its
own counsel in any such action in addition to the counsel of the Master
Servicer, but the fees and expenses of such counsel will be at the expense of
such Indemnified Party, unless (i) the employment of counsel by the Indemnified
Party at its expense has been authorized in writing by the Master Servicer, (ii)
the Master Servicer has not in fact employed counsel to assume the defense of
such action within a reasonable time after receiving notice of the commencement
of the action, or (iii) the named parties to any such action or proceeding
(including any impleaded parties) include both the Master Servicer and one or
more Indemnified Parties, and the Indemnified Parties shall have been advised by
counsel that there may be one or more legal defenses available to them which are
different from or additional to those available to the Master Servicer. The
Master Servicer shall not be liable for any settlement of any such claim or
action unless the Master Servicer shall have consented thereto or be in default
on its obligations hereunder. Any failure by an Indemnified Party to comply with
the provisions of this Section 9.01 shall relieve the Master Servicer of
liability only if such failure is materially prejudicial to the position of the
Master Servicer and then only to the extent of such prejudice.

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            (d) The provisions of this Section 9.01 shall survive the
replacement of the Master Servicer; provided, that no successor master servicer
shall be liable for (or required to indemnify any party for) any act or omission
of any predecessor master servicer.

            Section 9.02 Merger or Consolidation of the Master Servicer. The
Master Servicer shall keep in full effect its existence, rights and franchises
as a corporation, and will obtain and preserve its authorization or
qualification to do business as a foreign corporation and maintain, or cause an
affiliate approved by the other parties hereto to maintain, such other licenses
and permits in each jurisdiction necessary to protect the validity and
enforceability of this Agreement or any of the Home Loans and to perform its
duties under this Agreement; provided, however, that the Master Servicer may
merge or consolidate with any other corporation upon the satisfaction of the
conditions set forth in the following paragraph.

            With the consent of the Securities Insurer, any Person into which
the Master Servicer may be merged or consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Master Servicer shall
be a party, or any Person succeeding to the business of the Master Servicer,
shall be an Eligible Servicer and shall be the successor of the Master Servicer,
as applicable hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. The Master Servicer shall send notice of any such
merger, conversion, consolidation or succession to the Indenture Trustee, the
Owner Trustee, the Securities Insurer, the Servicer and the Issuer.

            Section 9.03 Limitation on Liability of the Master Servicer and
Others. The Master Servicer and any director, officer, employee or agent of the
Master Servicer may rely on any document of any kind which it in good faith
reasonably believes to be genuine and to have been adopted or signed by the
proper authorities respecting any matters arising hereunder. Subject to the
terms of Section 9.01 hereof, the Master Servicer shall have no obligation to
appear with respect to, prosecute or defend any legal action which is not
incidental to the Master Servicer's duty to service the Home Loans in accordance
with this Agreement.

            Section 9.04 Master Servicer Not to Resign; Assignment. The Master
Servicer shall not resign from the obligations and duties hereby imposed on it
except (a) with the consent of the Owner Trustee, the Securities Insurer and
Indenture Trustee or (b) upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to
clause (b) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an independent opinion of counsel to such effect
delivered (at the expense of the Master Servicer) to the Owner Trustee, the
Securities Insurer and the Indenture Trustee. No resignation of the Master
Servicer shall become effective until a successor master servicer appointed by
the Depositor and acceptable to the Rating Agencies, the Securities Insurer and
the Indenture Trustee shall have assumed the Master Servicer's responsibilities,
duties, liabilities (other than those liabilities arising prior to the
appointment of such successor) and obligations under this Agreement.

            Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its rights, benefits or privileges hereunder to any
other Person, or delegate to or subcontract with, or authorize or appoint any
other Person to perform any of the duties,

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covenants or obligations to be performed by the Master Servicer hereunder and
any agreement, instrument or act purporting to effect any such assignment,
transfer, delegation or appointment shall be void.

            The Master Servicer agrees to cooperate with any successor master
servicer in effecting the transfer of the Master Servicer's servicing
responsibilities and rights hereunder pursuant to the first paragraph of this
Section 9.04.

            Section 9.05 [Reserved.]

            Section 9.06 Relationship of Master Servicer to the Issuer and the
Indenture Trustee. The relationship of the Master Servicer (and of any successor
to the Master Servicer as master servicer under this Agreement) to the Issuer
and the Indenture Trustee under this Agreement is intended by the parties hereto
to be that of an independent contractor and not of a joint venturer, agent or
partner of the Issuer or the Indenture Trustee.

            Section 9.07 Master Servicer May Own Securities Each of the Master
Servicer and any Affiliate of the Master Servicer may in its individual or any
other capacity become the owner or pledgee of Securities with the same rights as
it would have if it were not the Master Servicer or an Affiliate thereof except
as otherwise specifically provided herein. Securities so owned by or pledged to
the Master Servicer or such Affiliate shall have an equal and proportionate
benefit under the provisions of this Agreement, without preference, priority, or
distinction as among all of the Securities; provided, however, that any
Securities owned by the Master Servicer or any Affiliate thereof, during the
time such Securities are owned by them, shall be without voting rights for any
purpose set forth in this Agreement. The Master Servicer shall notify the
Indenture Trustee and the Securities Insurer promptly after it or any of its
Affiliates becomes the owner or pledgee of a Security.

            Section 9.08 Right to Examine Master Servicer Records. The Indenture
Trustee, the Owner Trustee, the Depositor, the Securities Insurer and each of
their respective agents shall have the right upon reasonable prior notice,
during normal business hours and as often as reasonably required, to examine,
audit and copy, at the expense of the Person making such examination, any and
all of the books, records or other information of the Master Servicer
(including, without limitation, the Servicer), whether held by the Master
Servicer or by another on behalf of the Master Servicer, which may be relevant
to the performance or observance by the Master Servicer of the terms, covenants
or conditions of this Agreement. In the case of the supervisory agents and
examiners of the Issuer, the Indenture Trustee, the Owner Trustee, the
Securities Insurer and the Securityholders, access to the documentation
regarding the Home Loans required by applicable state and federal regulations
shall be afforded without charge but only upon reasonable request and during
normal business hours at the offices of the Master Servicer designated by it.

            The Master Servicer also agrees to make available on a reasonable
basis to the Depositor, the Securityholders or any prospective Securityholder a
knowledgeable financial or accounting officer for the purpose of answering
reasonable questions respecting recent developments affecting the Servicer or
the financial statements of the Servicer and to permit the Depositor, the
Securityholders and any prospective Securityholder to inspect the Servicer's

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servicing facilities during normal business hours for the purpose of satisfying
that the Servicer has the ability to service the Home Loans in accordance with
this Agreement.

            Each Securityholder, the Indenture Trustee, the Securities Insurer,
the Master Servicer and the Owner Trustee agree that any information obtained
pursuant to the terms of this Agreement shall be held confidential.

            Section 9.09 Financial Statements The Master Servicer understands
that, in connection with the transfer of the Notes, Noteholders and the
Securities Insurer may request that the Master Servicer make available to the
Noteholders and to prospective Noteholders annual audited financial statements
of the Servicer for one or more of the most recently completed five fiscal years
for which such statements are available, which request shall not be unreasonably
denied.

                                   ARTICLE X

                                     DEFAULT

            Section 10.01 Master Servicer Events of Default. (a) Master Servicer
Event of Default. A Master Servicer Event of Default shall include the
occurrence and continuation of one or more of the following:

            (i) (1) Any failure by the Servicer to deposit in the Collection
      Account in accordance with Section 5.01(b) hereof any payments in respect
      of the Home Loans received by the Servicer no later than the second
      Business Day following the day on which such payments were received; (2)
      any failure of the Servicer to pay when due any amount payable by it under
      the Servicing Agreement or this Agreement; or (3) the occurrence and
      continuance of any other Servicer Event of Default (as defined in Exhibit
      E hereto) which Servicer Event of Default continues unremedied for a
      period of 30 days after the date on which a Notice of Default requiring
      such failure to be remedied shall have been given (a) to the Servicer and
      the Master Servicer by the Indenture Trustee, or the Securities Insurer,
      or (b) to the Servicer, the Master Servicer, the Indenture Trustee, the
      Owner Trustee and the Securities Insurer by the Majority Noteholders.

            (ii) The failure by the Master Servicer duly to observe or perform,
      in any material respect, any other covenants, obligations or agreements of
      the Master Servicer as set forth in this Agreement, which failure
      continues unremedied for a period of 30 days after the date on which a
      Notice of Default requiring such failure to be remedied shall have been
      given (a) to the Master Servicer by the Indenture Trustee, the Owner
      Trustee or the Securities Insurer, or (b) to the Master Servicer, the
      Indenture Trustee, the Owner Trustee and the Securities Insurer by the
      Majority Noteholders.

            (iii) A decree or order of a court or agency or supervisory
      authority having jurisdiction for the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshaling
      of assets and liabilities or similar proceedings, or for the winding-up or
      liquidation of its affairs, shall have been entered

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      against the Master Servicer and such decree or order shall have remained
      in force, undischarged or unstayed for a period of 60 days.

            (iv) The Master Servicer shall consent to the appointment of a
      conservator or receiver or liquidator in any insolvency, readjustment of
      debt, marshaling of assets and liabilities or similar proceedings of or
      relating to the Master Servicer or of or relating to all or substantially
      all of the Master Servicer's property.

            (v) The Master Servicer shall admit in writing its inability to pay
      its debts as they become due, file a petition to take advantage of any
      applicable insolvency or reorganization statute, make an assignment for
      the benefit of its creditors, or voluntarily suspend payment of its
      obligations.

            (vi) The Majority Noteholders and the Securities Insurer,
      collectively, or the Securities Insurer, individually, shall determine, in
      their reasonable judgment and based upon published reports (including wire
      services), which they reasonably believe in good faith to be reliable, and
      shall give the Master Servicer a Notice of Default, that:

            (1) the Master Servicer or Servicer has experienced a material
adverse change in its business, assets, liabilities, operations, condition
(financial or otherwise) or prospects; or

            (2) the Master Servicer or Servicer or any of their subsidiaries or
parent has defaulted on any of its material obligations; or

            (3) the Master Servicer is no longer able to discharge its duties
under this Agreement or the Servicer is no longer able to discharge its duties
under the Servicing Agreement; or

            (4) the Master Servicer has ceased to conduct its business in the
ordinary course;

provided, however, that the Master Servicer shall have five Business Days from
the receipt of such Notice of Default to cure such Master Servicer Event of
Default by providing the foregoing parties with written assurances that, in a
reasonable and good faith manner, substantiate the financial and operational
well-being of the Master Servicer or Servicer, as appropriate, and adequately
refute the occurrence of a material adverse change, including, without
limitation, information, reports or written assurances obtained from certain of
its lenders or lenders to the Servicer.

            (vii) An event of default has occurred and is continuing under the
      Indemnification Agreement.

            (b) Remedies. If a Servicer Event of Default (as defined in Exhibit
E hereto) shall occur and be continuing or the Servicer's term of service has
not been renewed pursuant to Section 3 of the Servicing Agreement, then, and in
each and every such case, so long as such Servicer Event of Default shall not
have been remedied, the Securities Insurer or the Indenture Trustee, the Owner
Trustee or the Majority Noteholders, by a Notice of Default to the Master
Servicer may, in addition to whatever rights such Person may have at law or in
equity to

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damages, including injunctive relief and specific performance, with
the consent of the Securities Insurer may require the Master Servicer to
terminate all the rights and obligations of the Servicer under the Servicing
Agreement and in and to the Home Loans and the proceeds thereof, as servicer
under the Servicing Agreement. Upon termination of the Servicer following such
Notice of Default, all authority and power of the Servicer under the Servicing
Agreement, whether with respect to the Home Loans or otherwise, shall, at the
direction of the Securities Insurer, pass to, be transferred to, and be vested
in either: (1) a successor servicer acceptable to the Securities Insurer; or (2)
the Master Servicer, or (3) the Indenture Trustee. If a Master Servicer Event of
Default shall occur and be continuing, then, and in each and every such case, so
long as a Master Servicer Event of Default shall not have been remedied, the
Securities Insurer or the Indenture Trustee, or the Majority Noteholders, by a
Notice of Default to the Master Servicer may, in addition to whatever rights
such Person may have at law or in equity to damages, including injunctive relief
and specific performance, with the consent of the Securities Insurer, may
terminate all the rights and obligations of the Master Servicer under this
Agreement and in and to the Home Loans and the proceeds thereof, as Master
Servicer under this Agreement. Upon termination of the Master Servicer following
such Notice of Default, all authority and power of the Master Servicer under
this Agreement, whether with respect to the Home Loans or otherwise, shall, at
the direction of the Securities Insurer pass to, be transferred to, and be
vested in either: (1) a successor master servicer reasonably acceptable to the
Securities Insurer; or (2) the Indenture Trustee.

            Upon the termination of the Master Servicer and transfer to a
successor, master servicer, the Indenture Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
do or cause to be done all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, including, but not limited
to, the transfer and endorsement or assignment of the Home Loans and related
documents. The Master Servicer agrees to cooperate with the successor master
servicer in effecting the termination of the Master Servicer's responsibilities
and rights hereunder.

            Section 10.02 [Reserved].

            Section 10.03 Waiver of Defaults. The Securities Insurer, and the
Majority Noteholders may with prior consent of the Securities Insurer, on behalf
of all Noteholders, waive any events permitting removal of the Servicer or
Master Servicer pursuant to this Article X; provided, however, that the Majority
Noteholders may not waive a default in making a required payment on a Note or
distribution on a Residual Interest Certificate without the consent of the
related Noteholder or holder of the Residual Interest Certificate. Upon any
waiver of a past default, such default shall cease to exist and any Master
Servicer Event of Default arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto except to the
extent expressly so waived.

            Section 10.04 Accounting Upon Termination of Master Servicer. Upon
termination of the Master Servicer under this Article X, the Master Servicer
shall, at its own expense execute and deliver such instruments and perform all
acts reasonably requested in order to effect the orderly and efficient transfer
of master servicing of the Home Loans to its successor

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and to more fully and definitively vest in such successor all rights, powers,
duties, responsibilities, obligations and liabilities of the Master Servicer
under this Agreement.

                                   ARTICLE XI

                                   TERMINATION

            Section 11.01 Termination. This Agreement shall terminate upon
notice to the Indenture Trustee of either:

            (a) the later of (i) the satisfaction and discharge of the Indenture
and the provisions thereof, or (ii) the disposition of all funds with respect to
the last Home Loan and the remittance of all funds due hereunder and the payment
of all amounts due and payable to the Servicer, the Indenture Trustee, the Owner
Trustee, the Issuer, the Master Servicer, the Securities Insurer and any
Custodian; or

            (b) the mutual consent of the Servicer, the Master Servicer, the
Depositor, the Transferor, the Securities Insurer and all Securityholders in
writing.

            Section 11.02 Optional Termination. On or after any Payment Date on
which the Pool Principal Balance declines to 10% or less of the Original Pool
Principal Balance, then the Majority Residual Interestholders may, at their
option, effect an early termination of the Issuer. On or after any Payment Date
on which the Pool Principal Balance declines to 5% or less of the Original Pool
Principal Balance, then the Securities Insurer or the Master Servicer may, at
their respective options, effect an early termination of the Issuer. The
Majority Residual Interestholders, the Securities Insurer or the Master
Servicer, as applicable, shall effect such early termination by providing prior
notice thereof to the Servicer, the Indenture Trustee, the Master Servicer, the
Securities Insurer and Owner Trustee and by purchasing all of the Home Loans
from the Issuer at a purchase price, payable in cash, equal to or greater than
the Termination Price. The expense of any Independent appraiser required under
this Section 11.02 shall be a nonreimbursable expense of Majority Residual
Interestholders, the Securities Insurer or the Master Servicer, as applicable.

            Any such early termination by the Majority Residual Interestholders,
the Securities Insurer or the Master Servicer, as applicable, shall be
accomplished by depositing into the Collection Account on the third Business Day
prior to the Payment Date on which the purchase is to occur the amount of the
Termination Price to be paid. The Termination Price and any amounts then on
deposit in the Collection Account (other than any amounts not required to have
been deposited therein pursuant to Section 5.01(b)(1) hereof and any amounts
withdrawn therefrom by the Indenture Trustee pursuant to Section 5.01(b)(3)
hereof) shall be transferred to the Note Payment Account pursuant to Section
5.01(b)(2) hereof for payment to Noteholders and the Securities Insurer on the
succeeding Payment Date; and any amounts received with respect to the Home Loans
and Foreclosure Properties subsequent to the Due Period immediately preceding
such final Payment Date shall belong to the purchaser thereof or the Securities
Insurer, as applicable. For purposes of calculating the Available Payment Amount
for such final Payment Date, amounts transferred to the Note Payment Account
immediately preceding such final

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Payment Date shall in all cases be deemed to have been received during the
related Due Period, and amounts so transferred shall be applied pursuant to
Section 5.01(d) and (e) hereof.

            Section 11.03 Notice of Termination. Notice of termination of this
Agreement or of early redemption and termination of the Issuer shall be sent (i)
by the Indenture Trustee to the Noteholders and the Securities Insurer in
accordance with Section 10.02 of the Indenture and (ii) by the Owner Trustee to
the Certificateholders in accordance with Section 9.1(d) of the Owner Trust
Agreement.

                                  ARTICLE XII

                            MISCELLANEOUS PROVISIONS

            Section 12.01 Acts of Noteholders. Except as otherwise specifically
provided herein, whenever action, consent or approval of the Noteholders is
required under this Agreement, such action, consent or approval shall be deemed
to have been taken or given on behalf of, and shall be binding upon, all
Noteholders if the Majority Noteholders agree to take such action or give such
consent or approval.

            Section 12.02 Amendment. (a) This Agreement may be amended from time
to time by the Depositor, the Master Servicer, the Transferor, the Indenture
Trustee and the Issuer by written agreement with notice thereof to the
Securityholders, without the consent of any of the Securityholders, but with the
consent of the Securities Insurer, to cure any error or ambiguity, to correct or
supplement any provisions hereof which may be defective or inconsistent with any
other provisions hereof or to add any other provisions with respect to matters
or questions arising under this Agreement; provided, however, that such action
will not adversely affect in any material respect the interests of the
Noteholders. An amendment described above shall be deemed not to adversely
affect in any material respect the interests of the Noteholders if either (i) an
Opinion of Counsel is obtained to such effect or (ii) the party requesting the
amendment obtains the Ratings Confirmation with respect to such amendment.

            (b) This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Transferor, the Indenture Trustee and the
Issuer by written agreement, with the prior written consent of the Majority
Noteholders and the Securities Insurer, for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this
Agreement, or of modifying in any manner the rights of the Noteholders;
provided, however, that no such amendment shall (i) reduce in any manner the
amount of, or delay the timing of, collections of payments on Home Loans or
distributions which are required to be made on any Note, without the consent of
the holders of 100% of the Notes affected thereby and the Securities Insurer,
(ii) adversely affect in any material respect the interests of the holders of
any of the Notes or the Securities Insurer in any manner other than as described
in clause (i), without the consent of the holders of 100% of such Notes or the
Securities Insurer, or (iii) reduce the percentage of any of the Notes, the
consent of which is required for any such amendment, without the consent of the
holders of 100% of such Notes and the Securities Insurer.

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            (c) It shall not be necessary for the consent of Noteholders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.

            Prior to the execution of any amendment to this Agreement, the
Issuer and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement. The Issuer and the Indenture Trustee may, but shall
not be obligated to, enter into any such amendment which affects the Issuer's
own rights, duties or immunities of the Issuer or the Indenture Trustee, as the
case may be, under this Agreement.

            Section 12.03 Recordation of Agreement. To the extent permitted by
applicable law, this Agreement, or a memorandum thereof if permitted under
applicable law, is subject to recordation in all appropriate public offices for
real property records in all of the counties or other comparable jurisdictions
in which any or all of the Mortgaged Properties are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the Noteholders' expense on direction of the
Majority Noteholders or the Securities Insurer, but only when accompanied by an
Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Noteholders or is necessary for the
administration or servicing of the Home Loans.

            Section 12.04 Duration of Agreement. This Agreement shall continue
in existence and effect until terminated as herein provided.

            Section 12.05 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

            Section 12.06 Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by overnight mail, certified mail or
registered mail, postage prepaid, to:

            (a) in the case of the Depositor, Securitized Asset Backed
Receivables LLC, 200 Park Avenue, New York, New York 10166, Attention:
[___________], or such other addresses as may hereafter be furnished to the
Securityholders and the other parties hereto in writing by the Depositor;

            (b) in the case of the Issuer, at ________ Home Loan Owner Trust
200_-_, c/o [______________________], [_____________________], Attention:
[____________], or such other address as may hereafter be furnished to the
Securityholders and the other parties hereto;

            (c) in the case of the Transferor and Master Servicer, _________
_________, [_________________], Attention: [___________], or such other address
as may hereafter be furnished to the Securityholders and the other parties
hereto in writing by the Servicer or the Transferor;

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            (d) in the case of the Indenture Trustee, _______,__________________
__________________________;

            (e) in the case of the Securityholders, as set forth in the
applicable Note Register;

            (f) [in the case of a claim under the Guaranty Policy,
_______________ ____________________________, or such other address as may be
furnished to the Securityholders and the other parties hereto in writing by the
Securities Insurer];

            (g) [in the case of the Securities Insurer, ______________________,
Attention: [ ] (_________ Home Loan Asset Backed Notes, Series 200_-_);] or

            (h) in the case of the Servicer, to
_________________________________ _______________, Attention: _____________,
_________ Series 200_-_; provided that during the period that the Master
Servicer is acting as Servicer, notices shall be sent to the Master Servicer.

            Any such notices shall be deemed to be effective with respect to any
party hereto upon the receipt of such notice by such party, except that notices
to the Securityholders shall be effective upon mailing or personal delivery.

            Section 12.07 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this
Agreement.

            Section 12.08 No Partnership. Nothing herein contained shall be
deemed or construed to create any partnership or joint venture between the
parties hereto and the services of the Servicer shall be rendered as an
independent contractor.

            Section 12.09 Counterparts. This Agreement may be executed in one or
more counterparts and by the different parties hereto on separate counterparts,
each of which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same Agreement.

            Section 12.10 Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the Servicer, the Transferor, the Depositor,
the Indenture Trustee, the Issuer, the Noteholders, the Securities Insurer, the
Master Servicer and their respective successors and permitted assigns.

            Section 12.11 Headings. The headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be
deemed to be part of this Agreement.

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            Section 12.12 Actions of Securityholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Securityholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Securityholders in person or by agent duly appointed in writing; and except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Depositor, the Servicer, the
Indenture Trustee or the Issuer. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Agreement and conclusive in favor of the Depositor, the Servicer, the Indenture
Trustee and the Issuer if made in the manner provided in this Section 12.12.

            (b) The fact and date of the execution by any Securityholder of any
such instrument or writing may be proved in any reasonable manner, which the
Depositor, the Servicer, the Indenture Trustee or the Issuer deems sufficient.

            (c) Any request, demand, authorization, direction, notice, consent,
waiver or other act by a Securityholder shall bind every holder of every
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof, in respect of anything done, or omitted to be done,
by the Depositor, the Servicer, the Indenture Trustee, the Securities Insurer or
the Issuer in reliance thereon, whether or not notation of such action is made
upon such Security.

            (d) The Depositor, the Servicer, the Indenture Trustee or the Issuer
may require additional proof of any matter referred to in this Section 12.12 as
it shall deem necessary.

            Section 12.13 Reports to Rating Agencies. (a) The Indenture Trustee
shall provide to each Rating Agency copies of statements, reports and notices,
to the extent received or prepared in connection herewith, as follows:

            (i) copies of amendments to this Agreement;

            (ii) notice of any substitution or repurchase of any Home Loans;

            (iii) notice of any termination, replacement, succession, merger or
      consolidation of the Servicer, the Master Servicer, any Custodian or the
      Issuer;

            (iv) notice of final payment on the Notes;

            (v) any Notice of Default;

            (vi) copies of the annual independent accountants' report delivered
      pursuant to Section 7.05 hereof, and copies of any compliance reports
      delivered by the Servicer including under Section 7.04 hereof; and

            (vii) copies of any Payment Date Statement pursuant to Section
      6.01(b) hereof.

            (b) With respect to the requirement of the Indenture Trustee to
provide statements, reports and notices to the Rating Agencies, such statements,
reports and notices shall

                                      -75-
<PAGE>

be delivered to the Rating Agencies at the following addresses: (i) if to
Standard & Poor's Ratings Services, 55 Water Street, New York, New York, 10041,
Attention: Residential Mortgage Surveillance Group; and (ii) if to Moody's
Investors Service, Inc., 99 Church Street, Pass-Through Group, New York, New
York 10007, Attention: Residential Mortgage.

            Section 12.14 Holders of the Residual Interest Certificates. (a) Any
sums to be distributed or otherwise paid hereunder or under the Owner Trust
Agreement to the holders of the Residual Interest Certificates shall be paid to
such holders pro rata based on their percentage holdings in the Residual
Interest;

            (b) Where any act or event hereunder is expressed to be subject to
the consent or approval of the holders of the Residual Interest Certificates,
such consent or approval shall be capable of being given by the holder or
holders of not less than 51% of the Residual Interest in aggregate.

            Section 12.15 [Grant of Noteholder Rights to Securities Insurer. In
consideration for the guarantee of the Insured Securities by the Securities
Insurer pursuant to the Guaranty Policy, and by acceptance of an Insured
Security, the Noteholders hereby grant to the Securities Insurer the right to
act as the holder of 100% of the outstanding Insured Securities for the purpose
of exercising the rights of the holders of the Insured Securities under this
Agreement, without the consent of any such Noteholders, including the voting
rights of such holders, but excluding those rights requiring the consent of all
such holders under Section 12.02(b), and any rights of such holders to payments
under Section 5.01 (d) and (e) hereof and under Section 8.02(c) of the
Indenture; provided that the preceding grant of rights to the Securities Insurer
by the Noteholders shall be subject to Section 12.17 hereof. The rights of the
Securities Insurer to direct certain actions and consent to certain actions of
the Majority Noteholders hereunder will terminate at such time as the Principal
Balance of Insured Securities have been reduced to zero and the Securities
Insurer has been paid the Securities Insurer Reimbursement Amount in full and
all other amounts owed under the Guaranty Policy and Insurance Agreement and the
Securities Insurer has no further obligation under the Guaranty Policy.]

            Section 12.16 Third Party Beneficiary. The parties hereto
acknowledge that the Securities Insurer is an express third party beneficiary
hereof entitled to enforce any rights reserved to it hereunder as if it were
actually a party hereto.

            Section 12.17 [Suspension and Termination of Securities Insurer's
Rights. (a)During the continuation of a Securities Insurer Default, the rights
granted or reserved to the Securities Insurer hereunder shall vest instead in
the Majority Noteholders; provided, however, that the Securities Insurer shall
be entitled to any payments of the Securities Insurer Reimbursement Amount, and
the Securities Insurer shall retain those rights under Section 11.01 to consent
to the termination of this Agreement and Section 12.02 to consent to any
amendment of this Agreement.

            (b) At such time as either (i) the Principal Balances of the Insured
Securities have been reduced to zero or (ii) the Guaranty Policy has been
terminated, and in either case of (i) or (ii) the Securities Insurer has been
paid the Securities Insurer Reimbursement Amount in full and all other amounts
owed under the Guaranty Policy and the Insurance Agreement (and the

                                      -76-
<PAGE>

Securities Insurer no longer has any obligation under the Guaranty Policy,
except for breach thereof by the Securities Insurer), then the rights and
benefits granted or reserved to the Securities Insurer hereunder (including the
rights to direct certain actions and receive certain notices) shall terminate
and the Noteholders (including in certain instances the Majority Noteholders)
shall be entitled to the exercise of such rights and to receive such benefits of
the Securities Insurer following such termination to the extent that such rights
and benefits are applicable to the Noteholders (including the Majority
Noteholders).]

                                      -77-
<PAGE>

            IN WITNESS WHEREOF, the Issuer, the Depositor, the Transferor, the
Servicer, the Master Servicer and the Indenture Trustee have caused their names
to be signed by their respective officers thereunto duly authorized, as of the
day and year first above written, to this Sale and Servicing Agreement.

                                       _________ HOME LOAN OWNER TRUST SERIES
                                          200_-_, as Issuer

                                       By:[______________________], not
                                          in its individual capacity but
                                          solely as Owner Trustee

                                       By:______________________________________
                                          Name:
                                          Title:

                                       SECURITIZED ASSET BACKED RECEIVABLES
                                          LLC, as Depositor

                                       By:____________________________________
                                          Name:
                                          Title:

                                       _________ _________, as Transferor and
                                          Master      Servicer

                                       By:____________________________________
                                          Name:
                                          Title:

                                       _________, not in its individual
                                          capacity but solely as Indenture
                                          Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this _____
day of _______ 200_, personally appeared _______________, known to me to be a
person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said
[______________________], not in its individual capacity but in its capacity as
Owner Trustee of _________ HOME LOAN OWNER TRUST 200_-_ as Issuer, and that she
executed the same as the act of such corporation for the purpose and
consideration therein expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF [______________________], this the
____ day of ______, 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this _____
day of _______ 200_, personally appeared _______________, known to me to be a
person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said SECURITIZED ASSET
BACKED RECEIVABLES LLC, as the Depositor, and that he/she executed the same as
the act of such corporation for the purpose and consideration therein expressed,
and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF SECURITIZED ASSET BACKED RECEIVABLES
LLC, this the ____ day of ________, 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this __
day of ______ 200_, personally appeared _______________________, known to me to
be the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said _________
_________, as the Transferor and Master Servicer, and that he executed the same
as the act of such corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF _________ _________, this the ____
day of _______ 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this __
day of _______ 200_, personally appeared ____________________, known to me to be
the person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said _________, not in its
individual capacity, but in its capacity as Indenture Trustee, and that she
executed the same as the act of such entity for the purposes and consideration
therein expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL, this the __ day of _______ 200_.

                                       Notary Public, State of _______________

<PAGE>

                                    EXHIBIT A

                               HOME LOAN SCHEDULE

                                      A-1
<PAGE>

                                    EXHIBIT B

      Form of Servicer's Monthly Remittance Report to Indenture Trustee

                                      B-1
<PAGE>

                                    EXHIBIT C

                         Form of Loan Liquidation Report

Customer Name:
Account No.:
Original Principal Balance:

1. Type of Liquidation (REO disposition/charge-off/short pay-off)        _______

      Date last paid                                                     _______

   Foreclosure

      Date of Foreclosure                                                _______

      Date of REO                                                        _______

      Date of REO Disposition                                            _______

      Property Sale Price/Estimated Market Value at disposition          $
                                                                         _______

   Settlement (short pay-off and collection actions)

      Date of Settlement Payment                                         _______

   Defaulted Loan Sale                                                   _______

      Date of Sale                                                       _______

      Charge-off or Bankruptcy Date of Charge-off or Bankruptcy
      Discharge                                                          _______

2. Liquidation Proceeds

                                      C-1
<PAGE>

      Principal Prepayment                                               $
                                                                         _______

      Property Sale Proceeds                                             $
                                                                         _______

      Insurance Proceeds                                                 $
                                                                         _______

      Settlement Payment Loan Sale Proceeds                              $
                                                                         _______

      Other (Itemize)                                                    $
                                                                         _______

         Total Proceeds                                                  $
                                                                         _______

      Liquidation Expenses Servicing Advances                            $
                                                                         _______

      Servicing Fees                                                     $
                                                                         _______

      Other Servicing Compensation                                       $
                                                                         _______

      Collection Agent or Attorney's Fees                                $
                                                                         _______

         Total Advances                                                  $
                                                                         _______

4. Net Liquidation Proceeds (Item 2 minus Item 3)                        $
                                                                         _______

5. Principal Balance of Mortgage Loan                                    $
                                                                         _______

6. Loss, if any (Item 5 minus Item 4)                                    $
                                                                         _______

<PAGE>

                                    EXHIBIT D

                     Form of Master Servicer Renewal Notice

            [MASTER SERVICER]

            Re:  _________  Home Loan Asset Backed  Notes,  Series 200_-_ Dear
Ladies and Gentlemen:

            Reference is hereby made to the Sale and Servicing Agreement dated
as of _______ 1, 200_ (the "Agreement") among _________ Home Loan Owner Trust
200_-_, as Issuer, Securitized Asset Backed Receivables LLC, as Depositor,
_________ _________, as Transferor, Master Servicer, and as Servicer, and
_________, as Indenture Trustee. [The Indenture Trustee has not received
notification from _________________, as the Securities Insurer, that instructs
the Indenture Trustee not to renew the term of ______________ as the Master
Servicer under the Agreement.] Therefore, pursuant to Section 9.05 of the
Agreement, the Indenture Trustee hereby notifies ________________________ that
its term as Master Servicer has been extended for a successive three calendar
month period beginning with the month of ____________, _____.

                                       ___________________________________,
                                          as Indenture Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

cc: [Securities Insurer]

Securitized Asset Backed Receivables LLC
200 Park Avenue
New York, New York  10166
Attn:  [_____________]

_________ Home Loan Owner Trust 200_-_
c/o [______________________]
[______________________]
Attn:  [______________________]

                                      D-1
<PAGE>

                                    EXHIBIT E

                                      E-1

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