Document:

NOTE GUARANTY INSURANCE POLICY

Obligations:   Home Equity Loan Trust 2003-HS3          Policy Number: 42504
               Home Equity Loan-Backed Term Notes, Series 2003-HS3
         Class II Notes, consisting of $243,000,000 Class A-II-A Notes and Class
               A-II-B Notes Class A-II-A Variable Funding Notes in an amount not
               to exceed  $14,277,138.79  Class A-II-B Variable Funding Notes in
               an amount not to exceed $49,842,970.58 (the "Obligations")

        MBIA Insurance  Corporation  (the  "Insurer"),  in  consideration of the
payment of the premium and subject to the terms of this Note Guaranty  Insurance
Policy (this "Policy"), hereby unconditionally and irrevocably guarantees to any
Owner that an amount  equal to each full and  complete  Insured  Payment will be
received  from the  Insurer  by  JPMorgan  Chase  Bank,  or its  successors,  as
indenture  trustee for the Owners (the  "Indenture  Trustee"),  on behalf of the
Owners,  for distribution by the Indenture Trustee to each Owner of each Owner's
proportionate share of the Insured Payment. The Insurer's  obligations hereunder
with respect to a particular  Insured  Payment shall be discharged to the extent
funds equal to the  applicable  Insured  Payment are  received by the  Indenture
Trustee,  whether  or not such  funds  are  properly  applied  by the  Indenture
Trustee.  Insured  Payments  shall be made  only at the  time set  forth in this
Policy,  and no accelerated  Insured  Payments  shall be made  regardless of any
acceleration of the Obligations,  unless such acceleration is at the sole option
of the Insurer.

        Notwithstanding  the  foregoing  paragraph,  this  Policy does not cover
shortfalls,  if any,  attributable to the liability of the Issuer,  the Trust or
the Indenture  Trustee for  withholding  taxes,  if any (including  interest and
penalties in respect of any such liability).

        No defenses,  set-offs and  counterclaims  of any kind  available to the
Insurer so as to deny  payment of any amount due in respect of this  Policy will
be valid and the Insurer hereby waives and agrees not to assert any and all such
defenses,  set-offs and counterclaims so as to deny payment of any amount due in
respect of this Policy,  including without limitation,  any such rights acquired
by subrogation, assignment or otherwise

        The Insurer will pay any Insured Payment that is a Preference  Amount on
the  Business  Day  following  receipt on a Business Day by the Fiscal Agent (as
described  below) of (a) a certified copy of the order requiring the return of a
preference payment,  (b) an opinion of counsel  satisfactory to the Insurer that
such order is final and not subject to appeal, (c) an assignment in such form as
is reasonably required by the Insurer,  irrevocably assigning to the Insurer all
rights and claims of the Owner  relating  to or  arising  under the  Obligations
against the debtor which made such preference  payment or otherwise with respect
to such  preference  payment  and (d)  appropriate  instruments  to  effect  the
appointment  of the  Insurer  as agent for such  Owner in any  legal  proceeding
related  to  such  preference   payment,   such  instruments  being  in  a  form
satisfactory to the Insurer,  provided that if such documents are received after
12:00 noon,  New York City time, on such Business Day, they will be deemed to be
received on the following  Business Day. Such payments shall be disbursed to the
receiver  or  trustee  in  bankruptcy  named in the  final  order  of the  court
exercising  jurisdiction  on behalf  of the Owner and not to any Owner  directly
unless such Owner has returned  principal or interest paid on the Obligations to
such  receiver or trustee in  bankruptcy,  in which case such  payment  shall be
disbursed to such Owner.

        The Insurer  will pay any other amount  payable  hereunder no later than
12:00 noon,  New York City time,  on the later of the Payment  Date on which the
Deficiency  Amount is due or the second  Business Day  following  receipt in New
York,  New York on a Business Day by U.S. Bank Trust  National  Association,  as
Fiscal Agent for the Insurer,  or any  successor  fiscal agent  appointed by the
Insurer (the "Fiscal Agent"), of a Notice (as described below), provided that if
such Notice is received  after 12:00 noon,  New York City time, on such Business
Day, it will be deemed to be received on the following Business Day. If any such
Notice  received  by the  Fiscal  Agent is not in  proper  form or is  otherwise
insufficient for the purpose of making claim  hereunder,  it shall be deemed not
to have been  received by the Fiscal Agent for purposes of this  paragraph,  and
the Insurer or the Fiscal  Agent,  as the case may be, shall  promptly so advise
the Indenture Trustee and the Indenture Trustee may submit an amended Notice.

        Insured Payments due hereunder,  unless otherwise stated herein, will be
disbursed by the Fiscal Agent to the  Indenture  Trustee on behalf of the Owners
by wire  transfer of  immediately  available  funds in the amount of the Insured
Payment less, in respect of Insured Payments related to Preference Amounts,  any
amount held by the Indenture Trustee for the payment of such Insured Payment and
legally available therefor.

        The Fiscal Agent is the agent of the Insurer only,  and the Fiscal Agent
shall in no event be liable to Owners  for any acts of the  Fiscal  Agent or any
failure of the Insurer to deposit, or cause to be deposited, sufficient funds to
make payments due under this Policy.

        Subject to the terms of the  Agreement,  the Insurer shall be subrogated
to the rights of each Owner to receive  payments  under the  Obligations  to the
extent of any payment by the Insurer hereunder.

        As used herein, the following terms shall have the following meanings:

        "Agreement"  means the  Indenture  dated as of September  29, 2003 among
Home  Equity Loan Trust  2003-HS3,  as Issuer,  and the  Indenture  Trustee,  as
indenture trustee, without regard to any amendment or supplement thereto, unless
such amendment or supplement has been approved in writing by the Insurer.

        "Business Day" means any day other than (a) a Saturday or a Sunday (b) a
day on which the Insurer is closed or (c) a day on which banking institutions in
New  York  City or in the  city in  which  the  corporate  trust  office  of the
Indenture  Trustee under the Agreement is located are authorized or obligated by
law or executive order to close.

        "Deficiency  Amount" means with respect to any Payment Date,  the sum of
(i) the excess, if any, of (A) the Class II Interest Distribution Amount on such
Payment Date over (B) the amount on deposit in the Payment Account available for
interest  distributions  on such Payment Date, (ii) any Liquidation  Loss Amount
relating to Loan Group II (other  than any Excess  Loss Amount  relating to Loan
Group II) for such Payment  Date, to the extent not  distributed  as part of the
Group II-A Liquidation Loss Distribution Amount, the Group II-B Liquidation Loss
Distribution Amount, or a reduction of the Group II Overcollateralization Amount
or excess interest from Loan Group I on such Payment Date, (iii) any Excess Loss
Amount  relating to Loan Group II on such Payment  Date and (iv) the  Guaranteed
Payment Amount, if applicable.

        "Guaranteed  Payment  Amount" means the aggregate  outstanding  security
balance of the Class II Notes on the Payment Date in August  2033,  after giving
effect to all other  distributions  of  principal  on the Class II Notes on such
Payment Date.

        "Insured  Payment"  means  (a) as of any  Payment  Date,  any  Class  II
Deficiency Amount and (b) any Preference Amount.

        "Notice" means the telephonic or telegraphic notice,  promptly confirmed
in writing by facsimile  substantially in the form of Exhibit A attached hereto,
the original of which is subsequently delivered by registered or certified mail,
from the Indenture Trustee specifying the Insured Payment which shall be due and
owing on the applicable Payment Date.

        "Owner"  means each Class II  Noteholder  (as defined in the  Agreement)
(other than the Indenture Trustee, the Depositor or the Master Servicer) who, on
the  applicable  Payment Date,  is entitled  under the terms of  Obligations  to
payment thereunder.

        "Preference Amount" means any amount previously  distributed to an Owner
on the Obligations  that is recoverable and sought to be recovered as a voidable
preference by a trustee in bankruptcy  pursuant to the United States  Bankruptcy
Code (11  U.S.C.),  as  amended  from  time to time in  accordance  with a final
nonappealable order of a court having competent jurisdiction.

        Capitalized  terms used herein and not  otherwise  defined  herein shall
have  the  respective  meanings  set  forth in the  Agreement  as of the date of
execution of this Policy,  without giving effect to any subsequent  amendment to
or modification of the Agreement  unless such amendment or modification has been
approved in writing by the Insurer.

        Any notice  hereunder  or service of process on the Fiscal  Agent may be
made at the address  listed below for the Fiscal Agent or such other  address as
the Insurer shall specify in writing to the Indenture Trustee.

        The notice address of the Fiscal Agent is 15th Floor,  61 Broadway,  New
York, New York 10006, Attention:  Municipal Registrar and Paying Agency, or such
other  address as the Fiscal  Agent shall  specify to the  Indenture  Trustee in
writing.

        THIS  POLICY  IS BEING  ISSUED  UNDER  AND  PURSUANT  TO,  AND  SHALL BE
CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

        The   insurance   provided   by  this  Policy  is  not  covered  by  the
Property/Casualty  Insurance  Security  Fund  specified in Article 76 of the New
York Insurance Law.

        This Policy is not cancelable for any reason. The premium on this Policy
is not refundable for any reason, including payment, or provision being made for
payment, prior to maturity of the Obligations.

<PAGE>

        IN WITNESS  WHEREOF,  the  Insurer has caused this Policy to be executed
and attested this 29th day of September 2003.

                                               MBIA INSURANCE CORPORATION

                                               By
                                                  --------------------------
                                               Name
                                                    ------------------------
                                               Title
                                                     -----------------------

Attest:

By _______________________________
    Secretary

                           [SIGNATURE PAGE TO POLICY]

<PAGE>
                                    EXHIBIT A

                           TO NOTE GUARANTY INSURANCE
                              POLICY NUMBER: 42504

                           NOTICE UNDER NOTE GUARANTY
                         INSURANCE POLICY NUMBER: 42504

U.S. Bank Trust National Association, as Fiscal Agent
  for MBIA Insurance Corporation
15th Floor
61 Broadway
New York, NY  10006
Attention:  Municipal Registrar and
           Paying Agency

MBIA Insurance Corporation
113 King Street
Armonk, NY  10504

The undersigned,  a duly authorized officer of JPMorgan Chase Bank, as indenture
trustee (the "Indenture Trustee"),  hereby certifies to U.S. Bank Trust National
Association (the "Fiscal Agent") and MBIA Insurance Corporation (the "Insurer"),
with reference to Note Guaranty  Insurance  Policy Number:  42504 (the "Policy")
issued by the  Insurer in respect of the Home Equity  Loan Trust  2003-HS3  Home
Equity Loan-Backed Term Notes,  Series 2003-HS3,  Class II Notes,  consisting of
$243,000,000  Class A-II-A Notes and Class A-II-B Notes,  Class A-II-A  Variable
Funding  Notes in an  amount  not to  exceed  $14,277,138.79  and  Class  A-II-B
Variable  Funding  Notes  in  an  amount  not  to  exceed   $49,842,970.58  (the
"Obligations"), that:

               (a) the  Indenture  Trustee is the  indenture  trustee  under the
        Indenture dated as of September 29, 2003, between Home Equity Loan Trust
        2003-HS3, as Issuer, and the Indenture Trustee, as indenture trustee for
        the Owners;

               (b)  the  amount  due  under  clause  (i)  of the  definition  of
        Deficiency  Amount for the Payment  Date  occurring  on the  "Applicable
        Payment Date") is $ ;

               (c)  the  amount  due  under  clause  (ii) of the  definition  of
        Deficiency Amount for the Applicable Payment Date is $ ;

               (d) the  amount  due  under  clause  (iii) of the  definition  of
        Deficiency AMOUNT for the Applicable Payment Date is $ ;

               (e)  the  amount  due  under  clause  (iv) of the  definition  of
        Deficiency Amount for the Applicable Payment Date is $ ;

               (f) the sum of the amounts listed in paragraphs (b), (c), (d) and
        (e) above is $ (the "Deficiency Amount");

               (g)  the  amount  of  previously   distributed  payments  on  the
        Obligations that is recoverable and sought to be recovered as a voidable
        preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in
        accordance with a final  nonappealable order of a court having competent
        jurisdiction is $ (the "Preference Amount");

               (h) the total Insured  Payment due is $ , which amount equals the
        sum of the Deficiency Amount and the Preference Amount;

               (i) the Indenture Trustee is making a claim under and pursuant to
        the terms of the Policy for the dollar amount of the Insured Payment set
        forth in (f) above to be applied to the payment of the Deficiency Amount
        for the Applicable Payment Date in accordance with the Agreement and for
        the dollar  amount of the  Insured  Payment set forth in (g) above to be
        applied to the payment of any Preference Amount; and

               (j) the  Indenture  Trustee  directs  that payment of the Insured
        Payment  be made to the  following  account  by bank  wire  transfer  of
        federal or other  immediately  available  funds in  accordance  with the
        terms of the Policy: [INDENTURE TRUSTEE'S ACCOUNT NUMBER].

        Any  capitalized  term used in this  Notice  and not  otherwise  defined
herein shall have the meaning assigned thereto in the Policy.

Any Person Who  Knowingly  And With Intent To Defraud Any  Insurance  Company Or
Other Person Files An Application For Insurance Or Statement Of Claim Containing
Any  Materially  False  Information,  Or Conceals For The Purpose Of Misleading,
Information Concerning Any Fact Material Thereto, Commits A Fraudulent Insurance
Act,  Which Is A Crime,  And Shall  Also Be Subject  To A Civil  Penalty  Not To
Exceed Five  Thousand  Dollars  And The Stated  Value Of The Claim For Each Such
Violation.

        IN WITNESS  WHEREOF,  the  Indenture  Trustee has executed and delivered
this Notice under the Policy as of the day of , .

                         [                    ] , as Indenture Trustee

                         By
                            --------------------------------------------
                         Name
                              ------------------------------------------
                         Title
                               -----------------------------------------01-510593.2                                    5

01-510593.2
                         NOTE GUARANTY INSURANCE POLICY

Obligations:   Home Equity Loan Trust 2003-HS3             Policy Number: 42503

               Home Equity Loan-Backed Term Notes, Series 2003-HS3  $435,000,000
               Class I Notes,  consisting  of Class A-I-1,  Class  A-I-2,  Class
               A-I-3, Class A-I-4 and Class A-I-IO (the "Obligations")

        MBIA Insurance  Corporation  (the  "Insurer"),  in  consideration of the
payment of the premium and subject to the terms of this Note Guaranty  Insurance
Policy (this "Policy"), hereby unconditionally and irrevocably guarantees to any
Owner that an amount  equal to each full and  complete  Insured  Payment will be
received  from the  Insurer  by  JPMorgan  Chase  Bank,  or its  successors,  as
indenture  trustee for the Owners (the  "Indenture  Trustee"),  on behalf of the
Owners,  for distribution by the Indenture Trustee to each Owner of each Owner's
proportionate share of the Insured Payment. The Insurer's  obligations hereunder
with respect to a particular  Insured  Payment shall be discharged to the extent
funds equal to the  applicable  Insured  Payment are  received by the  Indenture
Trustee,  whether  or not such  funds  are  properly  applied  by the  Indenture
Trustee.  Insured  Payments  shall be made  only at the  time set  forth in this
Policy,  and no accelerated  Insured  Payments  shall be made  regardless of any
acceleration of the Obligations,  unless such acceleration is at the sole option
of the Insurer.

        Notwithstanding  the  foregoing  paragraph,  this  Policy does not cover
shortfalls,  if any,  attributable to the liability of the Issuer,  the Trust or
the Indenture  Trustee for  withholding  taxes,  if any (including  interest and
penalties in respect of any such liability).

        No defenses,  set-offs and  counterclaims  of any kind  available to the
Insurer so as to deny  payment of any amount due in respect of this  Policy will
be valid and the Insurer hereby waives and agrees not to assert any and all such
defenses,  set-offs and counterclaims so as to deny payment of any amount due in
respect of this Policy,  including without limitation,  any such rights acquired
by subrogation, assignment or otherwise.

        The Insurer will pay any Insured Payment that is a Preference  Amount on
the  Business  Day  following  receipt on a Business Day by the Fiscal Agent (as
described  below) of (a) a certified copy of the order requiring the return of a
preference payment,  (b) an opinion of counsel  satisfactory to the Insurer that
such order is final and not subject to appeal, (c) an assignment in such form as
is reasonably required by the Insurer,  irrevocably assigning to the Insurer all
rights and claims of the Owner  relating  to or  arising  under the  Obligations
against the debtor which made such preference  payment or otherwise with respect
to such  preference  payment  and (d)  appropriate  instruments  to  effect  the
appointment  of the  Insurer  as agent for such  Owner in any  legal  proceeding
related  to  such  preference   payment,   such  instruments  being  in  a  form
satisfactory to the Insurer,  provided that if such documents are received after
12:00 noon,  New York City time, on such Business Day, they will be deemed to be
received on the following  Business Day. Such payments shall be disbursed to the
receiver  or  trustee  in  bankruptcy  named in the  final  order  of the  court

<PAGE>

exercising  jurisdiction  on behalf  of the Owner and not to any Owner  directly
unless such Owner has returned  principal or interest paid on the Obligations to
such  receiver or trustee in  bankruptcy,  in which case such  payment  shall be
disbursed to such Owner.

        The Insurer  will pay any other amount  payable  hereunder no later than
12:00 noon,  New York City time,  on the later of the Payment  Date on which the
related Deficiency Amount is due or the second Business Day following receipt in
New York, New York on a Business Day by U.S. Bank Trust National Association, as
Fiscal Agent for the Insurer,  or any  successor  fiscal agent  appointed by the
Insurer (the "Fiscal Agent"), of a Notice (as described below), provided that if
such Notice is received  after 12:00 noon,  New York City time, on such Business
Day, it will be deemed to be received on the following Business Day. If any such
Notice  received  by the  Fiscal  Agent is not in  proper  form or is  otherwise
insufficient for the purpose of making claim  hereunder,  it shall be deemed not
to have been  received by the Fiscal Agent for purposes of this  paragraph,  and
the Insurer or the Fiscal  Agent,  as the case may be, shall  promptly so advise
the Indenture Trustee and the Indenture Trustee may submit an amended Notice.

        Insured Payments due hereunder,  unless otherwise stated herein, will be
disbursed by the Fiscal Agent to the  Indenture  Trustee on behalf of the Owners
by wire  transfer of  immediately  available  funds in the amount of the Insured
Payment less, in respect of Insured Payments related to Preference Amounts,  any
amount held by the Indenture Trustee for the payment of such Insured Payment and
legally available therefor.

        The Fiscal Agent is the agent of the Insurer only,  and the Fiscal Agent
shall in no event be liable to Owners  for any acts of the  Fiscal  Agent or any
failure of the Insurer to deposit, or cause to be deposited, sufficient funds to
make payments due under this Policy.

        Subject to the terms of the  Agreement,  the Insurer shall be subrogated
to the rights of each Owner to receive  payments  under the  Obligations  to the
extent of any payment by the Insurer hereunder.

        As used herein, the following terms shall have the following meanings:

        "Agreement"  means the Indenture  dated as of September 29, 2003 between
Home  Equity Loan Trust  2003-HS3,  as issuer,  and the  Indenture  Trustee,  as
indenture trustee, without regard to any amendment or supplement thereto, unless
such amendment or supplement has been approved in writing by the Insurer.

        "Business Day" means any day other than (a) a Saturday or a Sunday (b) a
day on which the Insurer is closed or (c) a day on which banking institutions in
New  York  City or in the  city in  which  the  corporate  trust  office  of the
Indenture  Trustee under the Agreement is located are authorized or obligated by
law or executive order to close.

        "Deficiency  Amount" means, with respect to any Payment Date, the sum of
(i) the excess, if any, of (A) the Class I Interest  Distribution Amount on such
Payment Date over (B) the amount on deposit in the Payment Account available for

<PAGE>

interest  distributions  on such Payment Date, (ii) any Liquidation  Loss Amount
for Loan Group I (other  than any Excess  Loss Amount for Loan Group I) for such
Payment  Date, to the extent not  distributed  as part of the  Liquidation  Loss
Distribution Amount or a reduction of the Group I  Overcollateralization  Amount
or excess  interest  from Loan Group II on such Payment  Date,  (iii) any Excess
Loss  Amount  relating  to Loan  Group I for  such  Payment  Date  and  (iv) the
Guaranteed Payment Amount, if applicable.

        "Guaranteed  Payment  Amount" means the aggregate  outstanding  security
balance of the Class A-I-1 Notes, Class A-I-2 Notes and Class A-I-3 Notes on the
Payment Date in July 2018,  after giving  effect to all other  distributions  of
principal  on the Class A-I-1  Notes,  the Class A-I-2 Notes and the Class A-I-3
Notes on such Payment Date and (ii) the aggregate  outstanding  security balance
of the Class A-I-4 Notes on the Payment  Date in  September  2033,  after giving
effect to all other  distributions of principal on the Class A-I-4 Notes on such
Payment Date.

        "Insured  Payment"  means  (a) as of  any  Payment  Date,  any  Class  I
Deficiency Amount and (b) any Preference Amount.

        "Notice" means the telephonic or telegraphic notice,  promptly confirmed
in writing by facsimile  substantially in the form of Exhibit A attached hereto,
the original of which is subsequently delivered by registered or certified mail,
from the Indenture Trustee specifying the Insured Payment which shall be due and
owing on the applicable [Payment Date].

        "Owner"  means each Class I  Noteholder  (as  defined in the  Agreement)
(other than the Indenture Trustee, the Depositor or the Master Servicer) who, on
the applicable  Payment Date, is entitled under the terms of the  Obligations to
payment thereunder.

        "Preference Amount" means any amount previously  distributed to an Owner
on the Obligations  that is recoverable and sought to be recovered as a voidable
preference by a trustee in bankruptcy  pursuant to the United States  Bankruptcy
Code (11  U.S.C.),  as  amended  from  time to time in  accordance  with a final
nonappealable order of a court having competent jurisdiction.

        Capitalized  terms used herein and not  otherwise  defined  herein shall
have  the  respective  meanings  set  forth in the  Agreement  as of the date of
execution of this Policy,  without giving effect to any subsequent  amendment to
or modification of the Agreement  unless such amendment or modification has been
approved in writing by the Insurer.

        Any notice  hereunder  or service of process on the Fiscal  Agent may be
made at the address  listed below for the Fiscal Agent or such other  address as
the Insurer shall specify in writing to the Indenture Trustee.

        The notice address of the Fiscal Agent is 15th Floor,  61 Broadway,  New
York, New York 10006, Attention:  Municipal Registrar and Paying Agency, or such
other  address as the Fiscal  Agent shall  specify to the  Indenture  Trustee in
writing.

        THIS  POLICY  IS BEING  ISSUED  UNDER  AND  PURSUANT  TO,  AND  SHALL BE
CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

        The   insurance   provided   by  this  Policy  is  not  covered  by  the
Property/Casualty  Insurance  Security  Fund  specified in Article 76 of the New
York Insurance Law.

        This Policy is not cancelable for any reason. The premium on this Policy
is not refundable for any reason, including payment, or provision being made for
payment, prior to maturity of the Obligations.

<PAGE>

        IN WITNESS  WHEREOF,  the  Insurer has caused this Policy to be executed
and attested this 29th day of September 2003.

                                               MBIA INSURANCE CORPORATION

                                               By
                                                  ----------------------------
                                               Name
                                                    --------------------------
                                               Title
                                                     -------------------------

Attest:

By _______________________________
    Secretary

                           [SIGNATURE PAGE TO POLICY]

<PAGE>
                                  EXHIBIT A

                           TO NOTE GUARANTY INSURANCE
                              POLICY NUMBER: 42503

                           NOTICE UNDER NOTE GUARANTY
                         INSURANCE POLICY NUMBER: 42503

U.S. Bank Trust National Association, as Fiscal Agent
  for MBIA Insurance Corporation
15th Floor
61 Broadway
New York, NY  10006
Attention:  Municipal Registrar and
           Paying Agency

MBIA Insurance Corporation
113 King Street
Armonk, NY  10504

The undersigned,  a duly authorized officer of JPMorgan Chase Bank, as indenture
trustee (the "Indenture Trustee"),  hereby certifies to U.S. Bank Trust National
Association (the "Fiscal Agent") and MBIA Insurance Corporation (the "Insurer"),
with reference to Note Guaranty  Insurance  Policy Number:  42503 (the "Policy")
issued by the  Insurer in respect of the  $678,000,000  Home  Equity  Loan Trust
2003-HS3 Home Equity Loan-Backed Term Notes, Series 2003-HS3, $435,000,000 Class
I Notes (the "Obligations"), that:

               (a) the  Indenture  Trustee is the  indenture  trustee  under the
        Indenture dated as of September 29, 2003, between Home Equity Loan Trust
        2003-HS3, as Issuer, and the Indenture Trustee, as indenture trustee for
        the Owners;

               (b)  the  amount  due  under  clause  (i)  of the  definition  of
        Deficiency  Amount for the Payment  Date  occurring  on the  "Applicable
        Payment Date") is $ ;

               (c) the amount due under clause (ii) of the definition of Class I
        Deficiency Amount for the Applicable Payment Date is $ ;

               (d) the  amount  due  under  clause  (iii) of the  definition  of
        Deficiency AMOUNT for the Applicable Payment Date is $ ;

               (e)  the  amount  due  under  clause  (iv) of the  definition  of
        Deficiency Amount for the Applicable Payment Date is $ ;

               (f) the sum of the amounts listed in paragraphs (b), (c), (d) and
        (e) above is $ (the "Deficiency Amount");

               (g)  the  amount  of  previously   distributed  payments  on  the
        Obligations that is recoverable and sought to be recovered as a voidable
        preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in
        accordance with a final  nonappealable order of a court having competent
        jurisdiction is $ (the "Preference Amount");

               (h) the total Insured  Payment due is $ , which amount equals the
        sum of the Deficiency Amount and the Preference Amount;

               (i) the Indenture Trustee is making a claim under and pursuant to
        the terms of the Policy for the dollar amount of the Insured Payment set
        forth in (f) above to be applied to the payment of the Deficiency Amount
        for the Applicable Payment Date in accordance with the Agreement and for
        the dollar  amount of the  Insured  Payment set forth in (g) above to be
        applied to the payment of any Preference Amount; and

               (j) the  Indenture  Trustee  directs  that payment of the Insured
        Payment  be made to the  following  account  by bank  wire  transfer  of
        federal or other  immediately  available  funds in  accordance  with the
        terms of the Policy: [INDENTURE TRUSTEE'S ACCOUNT NUMBER].

        Any  capitalized  term used in this  Notice  and not  otherwise  defined
herein shall have the meaning assigned thereto in the Policy.

Any Person Who  Knowingly  And With Intent To Defraud Any  Insurance  Company Or
Other Person Files An Application For Insurance Or Statement Of Claim Containing
Any  Materially  False  Information,  Or Conceals For The Purpose Of Misleading,
Information Concerning Any Fact Material Thereto, Commits A Fraudulent Insurance
Act,  Which Is A Crime,  And Shall  Also Be Subject  To A Civil  Penalty  Not To
Exceed Five  Thousand  Dollars  And The Stated  Value Of The Claim For Each Such
Violation.

        IN WITNESS  WHEREOF,  the  Indenture  Trustee has executed and delivered
this Notice under the Policy as of the day of , .

                              [                  ], as Indenture Trustee

                              By
                                 --------------------------------------------
                              Name
                                   ------------------------------------------
                              Title
                                    -----------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]