Document:

EXHIBIT 4.3

                             FORM OF TRUST AGREEMENT

                        RESIDENTIAL ACCREDIT LOANS, INC.
                                    Company,

                       [NAME OF CERTIFICATE ADMINISTRATOR]
                            Certificate Administrator

                                       and

                                [NAME OF TRUSTEE]
                                     Trustee

                                   ----------

                                 TRUST AGREEMENT
                         Dated as of [_______ __, 200_]

                                   ----------

                       Mortgage Pass-Through Certificates
                                 Series [200 - ]

<PAGE>

                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

Section 1.01.  Defined Terms.................................................  2

                                   ARTICLE II
           CONVEYANCE OF THE UNDERLYING MORTGAGE SECURITIES; ORIGINAL
                          ISSUANCE OF THE CERTIFICATES

Section 2.01.  Conveyance of the Underlying Agency Securities................ 11

Section 2.02.  Acceptance by Trustee......................................... 12

Section 2.03.  Execution and Authentication of Certificates.................. 12

                                   ARTICLE III
         ADMINISTRATION OF THE UNDERLYING AGENCY SECURITIES; REPORTS TO
                               CERTIFICATEHOLDERS

Section 3.01.  Administration of the Trust Fund and the
                Underlying Agency Securities................................. 12

Section 3.02.  Collection of Monies.......................................... 13

Section 3.03.  Establishment of Certificate Account; Deposits in
                Certificate Account.......................................... 13

Section 3.04.  Permitted Withdrawals From the Certificate Account............ 14

Section 3.05.  Annual Statement as to Compliance............................. 14

Section 3.06.  Annual Independent Public Accountants' Servicing Report....... 15

Section 3.07.  Rights of the Company in Respect of the
               Certificate Administrator..................................... 15

                                   ARTICLE IV
                         PAYMENTS TO CERTIFICATEHOLDERS

Section 4.01.  Distributions................................................. 16

Section 4.02.  Statements to Certificateholders.............................. 18

Section 4.03.  Access to Certain Documentation and Information............... 19

Section 4.04.  Permitted Investments......................................... 19

Section 4.05.  Exchange Act Reporting........................................ 19

                                    ARTICLE V
                                THE CERTIFICATES

Section 5.01.  The Certificates.............................................. 20

Section 5.02.  Registration of Transfer and Exchange of Certificates......... 21

Section 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates............. 25

Section 5.04.  Persons Deemed Owners......................................... 25

Section 5.05.  Appointment of Paying Agent................................... 25

                                       i
<PAGE>

                                TABLE OF CONTENTS

                                   ARTICLE VI
                  THE COMPANY AND THE CERTIFICATE ADMINISTRATOR

Section 6.01.  Respective Liabilities of the Company and the
                Certificate Administrator.................................... 26

Section 6.02.  Merger, Consolidation or Conversion of the Company or
                the Certificate Administrator................................ 26

Section 6.03.  Limitation on Liability of the Company, the Certificate
                Administrator and Others..................................... 26

Section 6.04.  Company and Certificate Administrator Not to Resign........... 27

                                   ARTICLE VII
                                     DEFAULT

Section 7.01.  Events of Default............................................. 28

Section 7.02.  Trustee or Company to Act; Appointment of Successor........... 29

Section 7.03.  Notification to Certificateholders............................ 30

Section 7.04.  Waiver of Events of Default................................... 30

                                  ARTICLE VIII
                                   THE TRUSTEE

Section 8.01.  Duties of Trustee............................................. 30

Section 8.02.  Certain Matters Affecting the Trustee......................... 32

Section 8.03.  Trustee Not Liable for Certificates or
                Underlying Agency Securities................................. 34

Section 8.04.  Trustee May Own Certificates.................................. 34

Section 8.05.  Certificate Administrator to Pay Trustee's Fees and
                Expenses; Indemnification.................................... 34

Section 8.06.  Eligibility Requirements for Trustee.......................... 35

Section 8.07.  Resignation and Removal of the Trustee........................ 36

Section 8.08.  Successor Trustee............................................. 36

Section 8.09.  Merger or Consolidation of Trustee............................ 37

Section 8.10.  Appointment of Co-Trustee or Separate Trustee................. 37

Section 8.11.  Appointment of Office or Agency............................... 38

                                   ARTICLE IX
                                   TERMINATION

Section 9.01.  Termination................................................... 38

Section 9.02.  Additional Termination Requirements........................... 40

                                       ii
<PAGE>

                                TABLE OF CONTENTS

                                    ARTICLE X
                                REMIC PROVISIONS

Section 10.01. REMIC Administration.......................................... 41

Section 10.02. Certificate Administrator and Trustee Indemnification......... 44

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

Section 11.01. Amendment..................................................... 44

Section 11.02. Counterparts.................................................. 46

Section 11.03. Limitation on Rights of Certificateholders.................... 46

Section 11.04. Governing Law................................................. 47

Section 11.05. Notices....................................................... 47

Section 11.06. Notices to Rating Agency...................................... 47

Section 11.07. Severability of Provisions.................................... 48

Section 11.08. Successors and Assigns........................................ 48

Section 11.09. Article and Section Headings.................................. 48

                                   ARTICLE XII
                          COMPLIANCE WITH REGULATION AB

Section 12.01. Intent of the Parties; Reasonableness......................... 48

Section 12.02. Additional Representations and Warranties of the Trustee...... 49

Section 12.03. Information to Be Provided by the Trustee..................... 49

Section 12.04. Report on Assessment of Compliance and Attestation............ 49

Section 12.05. Indemnification; Remedies..................................... 50

Exhibit A-1  Form of Class [A-1][A-2][A-3][S] Certificate
Exhibit A-2  Form of Class R Certificate
Exhibit B-1  Form of Transfer Affidavit and Agreement
Exhibit B-2  Form of Transferor Certificate
Exhibit C    Back-Up Certification of Trustee
Exhibit D    Servicing Criteria

                                      iii
<PAGE>

            THIS  TRUST  AGREEMENT,  dated as of  [_____ 1, 200_ ], by and among
Residential  Accredit Loans,  Inc., as the company  (together with its permitted
successors and assigns, the "Company"), [_________] (together with its permitted
successors and assigns, the "Certificate  Administrator") and [___________],  as
trustee (together with its permitted successors and assigns (the "Trustee")).

                              PRELIMINARY STATEMENT

            The Company is the owner of the Underlying  Agency  Securities being
conveyed  by it to the  Trustee  for  inclusion  in the Trust  Fund and has duly
authorized  the execution and delivery of this Agreement to provide for the sale
and  conveyance  to the  Trustee of the  Underlying  Agency  Securities  and the
issuance  of the  Mortgage  Pass-Through  Certificates,  Series  [200 - ], Class
[A-1],  Class [A-2],  Class [A-3],  Class [S],  and Class R  (collectively,  the
"Certificates"),  representing  in the aggregate all of the "regular  interests"
and "residual  interests" in the Trust Fund, which  Certificates are issuable as
provided in this  Agreement.  All covenants and agreements  made by the Company,
the Certificate  Administrator and the Trustee herein are for the benefit of the
Holders of the Certificates.  The Company and the Certificate  Administrator are
entering into this  Agreement,  and the Trustee is accepting the trusts  created
hereby,  for good and valuable  consideration,  the receipt and  sufficiency  of
which are hereby acknowledged.

            The Underlying Agency Securities are [GNMA] [I] [II] Certificates
and are identified as [_________]. The Aggregate Underlying Certificate Balance
as of the Closing Date will be $[__________].

            The following table sets forth the designation,  Pass-Through  Rate,
aggregate Initial  Certificate  Principal Balance,  features,  Maturity Date and
initial  rating for each Class of  Certificates  comprising the interests in the
Trust Fund created hereunder.

<TABLE>
<CAPTION>
                                            Aggregate
                      Pass-Through      Initial Principal                          Maturity
Designation               Rate               Balance               Features          Date                Initial Rating
-----------               ----               -------               --------          ----                --------------

                                                                                                [S&P]        [Fitch]      [Moody's]
                                                                                                -----        -------      ---------

<S>                      <C>                 <C>                  <C>               <C>         <C>          <C>          <C>
Class [A-1]              [____]%             $[______]            Sequential

Class [A-2]              [____]%             $[______]            Sequential

Class [A-3]              [____]%             $[______]            Sequential/
                                                                    Accrual

Class [S]                [____]%             $[______]            Fixed Strip

Class R                  [____]%             $[______]            Residual
</TABLE>

            In  consideration of the premises and the mutual  agreements  herein
contained,  the Company, the Certificate  Administrator and the Trustee agree as
follows:

<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

            Section 1.01 Defined Terms.

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

            Accretion   Termination  Date:  With  respect  to  the  Class  [A-3]
Certificates,  the first  Distribution  Date on which the Certificate  Principal
Balances  of the Class R, Class  [A-1] and Class  [A-2]  Certificates  have been
reduced to zero.

            Accretion Amount: As to any Distribution  Date, the amount set forth
in Section 4.01(b).

            Accrued  Certificate  Interest:  With  respect to each  Distribution
Date,  (a)  as  to  each  Class  of  Certificates  (other  than  the  Class  [S]
Certificates), one month's interest accrued on the Certificate Principal Balance
of the  Certificates of such Class at the related  Pass-Through  Rate and (b) in
the case of the Class [S]  Certificates,  one  month's  interest  accrued on the
related Notional Amount at the related  Pass-Through Rate.  Accrued  Certificate
Interest will be calculated on the basis of a 360-day year  consisting of twelve
30-day  months.  In each  case,  Accrued  Certificate  Interest  on any Class of
Certificates  will be  reduced  by the  amount  (to the  extent  such  amount is
allocated to the Underlying Agency Securities) of the following shortfalls:  (i)
Prepayment  Interest  Shortfalls,   and  (ii)  any  other  interest  shortfalls,
including  interest that is not collectible  from the Mortgagor  pursuant to the
Soldiers'  and  Sailors'  Civil  Relief Act of 1940,  as amended;  with all such
reductions  allocated among the  Certificates in proportion to their  respective
amounts of Accrued  Certificate  Interest which would have resulted  absent such
reductions.

            Affiliate:  An  "affiliate"  of,  or  Person  "affiliated"  with,  a
specified Person, is a Person that directly,  or indirectly  through one or more
intermediaries,  controls or is controlled  by, or is under common control with,
the Person specified.

            Aggregate  Underlying   Certificate  Balance:  As  of  any  date  of
determination,  the aggregate of the Underlying  Certificate  Balances of all of
the  Underlying  Agency  Securities as of such date. As of the Closing Date, the
Aggregate Underlying Certificate Balance was $[________], after giving effect to
distributions made thereon prior to the Closing Date.

            Agreement:  This Trust Agreement together with all amendments hereof
and supplements hereto.

            Anticipated  Termination  Date: Any  Distribution  Date on which the
Certificate  Administrator  anticipates  that the Trust Fund will be  terminated
pursuant to Section 9.01.

            Available  Distribution  Amount:  As of any  Distribution  Date, the
aggregate amount on deposit in the Certificate  Account as of such  Distribution
Date, net of any portion thereof which  represents  amounts payable  pursuant to
clauses (ii) and (iii) of Section 3.04.

                                       2
<PAGE>

            Business Day: Any day other than (i) a Saturday or a Sunday, or (ii)
a day on which banking institutions in the State of New York[, the State of ] or
the State of [___________________] and such other state or states in which the
Certificate Account or any account relating to the Underlying Agency Securities
are required or authorized by law or executive order to be closed.

            Certificate: Any Class [A-1], Class [A-2], Class [A-3], Class [S] or
Class R Certificate.

            Certificate Account:  The trust account or accounts,  which shall at
all times be Eligible  Accounts,  created and maintained by the Trustee pursuant
to Section 3.03.  Funds  deposited in the  Certificate  Account shall be held in
trust for the  Certificateholders for the uses and purposes set forth in Article
III hereof.

            Certificate  Administrator:   [____________]  or  its  successor  in
interest,  solely  in its  capacity  as  certificate  administrator  under  this
Agreement,  or any  successor  certificate  administrator  appointed as provided
herein.

            Certificateholder  or Holder: The Person in whose name a Certificate
is registered in the  Certificate  Register,  except that neither a Disqualified
Organization  nor a  Non-United  States  Person  shall be a Holder  of a Class R
Certificate for any purpose hereof. Solely for the purpose of giving any consent
or exercising  any Voting Rights  pursuant to this  Agreement,  any  Certificate
registered  in the name of the Company,  the  Certificate  Administrator  or any
Affiliate  of  either  of them  shall be deemed  not to be  Outstanding  and the
Percentage  Interest or Voting Rights evidenced  thereby shall not be taken into
account in determining  whether the requisite amount of Percentage  Interests or
Voting  Rights  necessary  to effect  any such  consent  or  direction  has been
obtained.

            Certificate  Principal  Balance:  With  respect to each  Certificate
(other than the Class [S] Certificates), on any date of determination, an amount
equal to (i) the Initial  Certificate  Principal  Balance of such Certificate as
specified  on the  face  thereof  plus  (ii)  in the  case  of the  Class  [A-3]
Certificates,   all  Accrued  Certificate  Interest  added  to  the  Certificate
Principal  Balances  thereof  on  each  Distribution  Date  on or  prior  to the
Accretion  Termination  Date  pursuant  to  Section  4.01(b),  minus  (iii)  the
aggregate of all amounts previously distributed with respect to such Certificate
and applied to reduce the  Certificate  Principal  Balance  thereof  pursuant to
Section 4.01. The Class [S] Certificates have no Certificate Principal Balance.

            Certificate  Registrar  and  Certificate  Register:   The  registrar
appointed and the register maintained pursuant to Section 5.02.

            Class:  Collectively,  all  of the  Certificates  bearing  the  same
designation.

            Class [A-1]  Certificate:  Any one of the Class [A-1]  Certificates,
executed  by  the  Trustee  and  authenticated  by  the  Certificate  Registrar,
substantially  in the form  annexed  hereto as  Exhibit  A-1 and  evidencing  an
interest  designated  as a "regular  interest"  in the REMIC for purposes of the
REMIC Provisions.

                                       3
<PAGE>

            Class [A-2]  Certificate:  Any one of the Class [A-2]  Certificates,
executed  by  the  Trustee  and  authenticated  by  the  Certificate  Registrar,
substantially  in the form  annexed  hereto as  Exhibit  A-1 and  evidencing  an
interest  designated  as a "regular  interest"  in the REMIC for purposes of the
REMIC Provisions.

            Class [A-3]  Certificate:  Any one of the Class [A-3]  Certificates,
executed  by  the  Trustee  and  authenticated  by  the  Certificate  Registrar,
substantially  in the form  annexed  hereto as  Exhibit  A-1 and  evidencing  an
interest  designated  as a "regular  interest"  in the REMIC for purposes of the
REMIC Provisions.

            Class R Certificate:  Any one of the Class R Certificates,  executed
by the Trustee and authenticated by the Certificate Registrar,  substantially in
the form annexed hereto as Exhibit A-2 and evidencing an interest  designated as
a "residual interest" in the REMIC for purposes of the REMIC Provisions.

            Class  [S]  Certificate:  Any  one of the  Class  [S]  Certificates,
executed  by  the  Trustee  and  authenticated  by  the  Certificate  Registrar,
substantially  in the form  annexed  hereto as  Exhibit  A-1 and  evidencing  an
interest  designated  as a "regular  interest"  in the REMIC for purposes of the
REMIC Provisions.

            Closing Date: [____ __, 200 ].

            Code: The Internal Revenue Code of 1986.

            Commission: The Securities and Exchange Commission.

            Corporate Trust Office: The principal  corporate trust office of the
Trustee in the State of New York at which at any  particular  time its corporate
trust  business  with respect to this  Agreement  shall be  administered,  which
office at the date of the execution of this Agreement is located at [_________].

            Disqualified  Organization:  Any of the  following:  (i) the  United
States, any State or political subdivision thereof, any possession of the United
States, or any agency or  instrumentality of any of the foregoing (other than an
instrumentality  which is a corporation  if all of its activities are subject to
tax and,  except for the  FHLMC,  a majority  of its board of  directors  is not
selected  by  such   governmental   unit),  (ii)  a  foreign   government,   any
international  organization,  or any  agency  or  instrumentality  of any of the
foregoing,  (iii) any  organization  (other than certain  farmers'  cooperatives
described  in Section  521 of the Code)  which is exempt from the tax imposed by
Chapter 1 of the Code (unless such organization is subject to the tax imposed by
Section  511 of the Code on  unrelated  business  taxable  income),  (iv)  rural
electric and telephone  cooperatives  described in Section  1381(a)(2)(C) of the
Code and (v) any other Person so designated by the Trustee based upon an Opinion
of Counsel that the holding of an Ownership Interest in a Class R Certificate by
such Person may cause Trust Fund or any Person  having an Ownership  Interest in
any Class of Certificates,  other than such Person, to incur a liability for any
federal tax imposed  under the Code that would not  otherwise be imposed but for
the Transfer of an Ownership  Interest in a Class R Certificate  to such Person.
The terms "United States",  "State" and "international  organization" shall have
the meanings set forth in Section 7701 of the Code or successor provisions.

                                       4
<PAGE>

            Distribution Date: The third Business Day following each Underlying
Security Distribution Date, commencing with the Distribution Date on [_______
__, 200_ ].

            Eligible  Account:  An  account  that is any of the  following:  (i)
maintained with a depository institution the debt obligations of which have been
rated by the Rating Agency in its highest rating  available,  (ii) an account or
accounts in a depository institution in which such accounts are fully insured to
the limits  established  by the FDIC,  provided  that any such  deposits  not so
insured shall,  to the extent  acceptable to the Rating Agency,  as evidenced in
writing,  be  maintained  such  that (as  evidenced  by an  Opinion  of  Counsel
delivered  to the  Trustee  and the Rating  Agency)  the  registered  Holders of
Certificates  have a claim  with  respect  to the  funds  in such  account  or a
perfected first security interest against any collateral (which shall be limited
to Permitted  Investments) securing such funds that is superior to claims of any
other  depositors  or creditors of the  depository  institution  with which such
account is  maintained,  (iii) a trust  account or  accounts  maintained  in the
corporate trust department of [__________],  or (iv) an account or accounts of a
depository  institution acceptable to the Rating Agency (as evidenced in writing
by the Rating  Agency that use of any such  account as the  Certificate  Account
will not reduce the rating  assigned to the  Certificates  by such Rating Agency
below  the  lower of the  then-current  rating or the  rating  assigned  to such
Certificates as of the Closing Date by such Rating Agency).

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

            Event of Default: As defined in Section 7.01.

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

            [GNMA  Issuer:  Any one of the mortgage  banking  companies or other
financial  concerns  approved  by GNMA  that  has  issued  and is  servicing  an
Underlying Agency Security.]

            Independent:  When used with respect to any specified Person, such a
Person  who  (i)  is  in  fact  independent  of  the  Company,  the  Certificate
Administrator and the Trustee, or any Affiliate thereof,  (ii) does not have any
direct financial interest in the Company, the Certificate  Administrator and the
Trustee, or any Affiliate thereof,  and (iii) is not connected with the Company,
the Certificate Administrator and the Trustee as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions.

            Initial  Certificate   Principal  Balance:   With  respect  to  each
Certificate  (other  than a  Class  [S]  Certificate)  the  initial  Certificate
Principal Balance of such Certificate as specified on the face thereof as of the
Closing Date.

            Maturity  Date:  The  latest  possible  maturity  date,  solely  for
purposes of Section  1.860G-1(a)(4)(iii)  of the Treasury regulations,  by which
the Certificate  Principal Balance of each Class of Certificates  representing a
regular  interest  in the REMIC  would be  reduced to zero,  which  shall be the
Distribution  Date immediately  following the latest stated maturity date of any
of the Underlying Agency Securities.

            Mortgage Loans: With respect to any Underlying Agency Security,  the
mortgage loans in which such Underlying  Agency  Security  evidence a beneficial
ownership interest.

                                       5
<PAGE>

            Non-United  States  Person:  Any Person  other than a United  States
Person.

            Notice of Final Distribution:  With respect to any Underlying Agency
Security,  the notice to be  provided  pursuant to the Trustee as holder of such
Underlying  Agency  Security  to the  effect  that  final  distribution  on such
Underlying  Agency Security shall be made only upon  presentation  and surrender
thereof.

            Notice of  Termination:  Any of the notices  given to the Trustee by
the Certificate Administrator pursuant to Section 9.01(b).

            Notional Amount:  As of any  Distribution  Date, with respect to the
Class [S] Certificates, the Aggregate Underlying Certificate Balance immediately
prior to the most recent Underlying Security Distribution Date.

            Officer's Certificate:  A certificate signed by the President, Chief
Financial Officer, Treasurer, any Vice President, Secretary or any other officer
authorized  by  the  board  of  directors  of  the  Company,   the   Certificate
Administrator or the Trustee, as required by this Agreement.

            Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Company or the  Certificate  Administrator,  which opinion is reasonably
acceptable  to the Trustee;  except that any opinion of counsel  relating to (i)
the  qualification  of any account  required to be  maintained  pursuant to this
Agreement as an Eligible Account or (ii) the  qualification of the Trust Fund as
a  REMIC  or  compliance  with  the  REMIC  Provisions,  must be an  opinion  of
Independent counsel.

            Outstanding:  With  respect to the  Certificates,  as of the date of
determination,  all  Certificates  previously  executed and delivered under this
Agreement  except  (i)  Certificates  previously  canceled  by  the  Trustee  or
delivered to the Trustee for cancellation; and (ii) Certificates in exchange for
which or in lieu of which other  Certificates  have been  executed and delivered
pursuant to this Agreement.

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

            Pass-Through  Rate: With respect to each Class of Certificates,  the
respective per annum rate set forth in the Preliminary Statement hereto.

            Paying Agent: Any Paying Agent appointed by the Trustee.

            Percentage  Interest:  With respect to a  Certificate  (other than a
Class  [S]  Certificate  or a Class R  Certificate),  the  undivided  percentage
ownership  interest in the related Class  evidenced by such  Certificate,  which
percentage  ownership  interest  shall  be  equal  to  the  Initial  Certificate
Principal Balance thereof divided by the aggregate Initial Certificate Principal
Balance of all of the  Certificates  of the same Class.  With respect to a Class
[S] Certificate or Class R Certificate, the interest in distributions to be made
with respect to such Class  evidenced  thereby,  expressed as a  percentage,  as
stated on the face of such Certificate.

                                       6
<PAGE>

            Permitted Investments: One or more of the following:

            (i)  obligations  of, or guaranteed as to principal and interest by,
      the  United  States or any  agency or  instrumentality  thereof  when such
      obligations are backed by the full faith and credit of the United States;

            (ii)  repurchase  agreements on obligations  specified in clause (i)
      maturing  not more than one month  from the date of  acquisition  thereof,
      provided  that  the  unsecured   obligations  of  the  party  agreeing  to
      repurchase such  obligations are at the time rated by the Rating Agency in
      its highest short-term rating available;

            (iii) federal funds,  certificates of deposit, demand deposits, time
      deposits  and  bankers'  acceptances  (which  shall each have an  original
      maturity  of  not  more  than  90  days  and,  in  the  case  of  bankers'
      acceptances,  shall in no event have an original maturity of more than 365
      days or a remaining  maturity of more than 30 days)  denominated in United
      States  dollars  of any  U.S.  depository  institution  or  trust  company
      incorporated  under the laws of the United  States or any state thereof or
      of any  domestic  branch  of a  foreign  depository  institution  or trust
      company; provided that the debt obligations of such depository institution
      or trust  company  (or, if the only Rating  Agency is Standard & Poor's in
      the  case  of  the  principal  depository   institution  in  a  depository
      institution   holding   company,   debt   obligations  of  the  depository
      institution  holding company) at the date of acquisition thereof have been
      rated by the Rating Agency in its highest short-term rating available; and
      provided  further that if the only Rating  Agency is Standard & Poor's and
      if the  depository  or trust  company is a principal  subsidiary of a bank
      holding  company  and the  debt  obligations  of such  subsidiary  are not
      separately  rated, the applicable rating shall be that of the bank holding
      company;  and provided  further  that,  if the  original  maturity of such
      short-term  obligations  of a  domestic  branch  of a  foreign  depository
      institution or trust company shall exceed 30 days,  the short-term  rating
      of such  institution  shall be A-1+ if  Standard  & Poor's  is the  Rating
      Agency;

            (iv) commercial paper (having  original  maturities of not more than
      365 days) of any  corporation  incorporated  under the laws of the  United
      States  or any state  thereof  which on the date of  acquisition  has been
      rated by the Rating  Agency in its highest  short-term  rating  available;
      provided that such commercial paper shall have a remaining maturity of not
      more than 30 days;

            (v) a money  market fund or qualified  investment  fund rated by the
      Rating Agency in its highest rating available; and

            (vi) other  obligations  or  securities  that are  acceptable to the
      Rating Agency as a Permitted  Investment hereunder and will not reduce the
      rating assigned to the  Certificates by such Rating Agency below the lower
      of the  then-current  rating or the rating assigned to the Certificates as
      of the  Closing  Date by such  Rating  Agency,  as  evidenced  in writing;
      provided,  however,  that no instrument shall be a Permitted Investment if
      it represents, either (1) the right to receive only interest payments with
      respect to the underlying debt instrument or (2) the right to receive both
      principal and interest  payments derived from obligations  underlying such
      instrument and the principal

                                       7
<PAGE>

      payments  with  respect  to such  instrument  provide a yield to  maturity
      greater  than  120% of the  yield to  maturity  at par of such  underlying
      obligations.   References  herein  to  the  highest  rating  available  on
      unsecured  long-term debt shall mean Aaa in the case of Moody's  Investors
      Service,  Inc.,  AAA in the case of Standard & Poor's and Fitch  Investors
      Service,  Inc. and in the case of any other Rating  Agency shall mean such
      ratings  without any plus or minus,  and references  herein to the highest
      rating  available  on  unsecured  commercial  paper  and  short-term  debt
      obligations shall mean P-1 in the case of Moody's Investors Service, Inc.,
      A-1 in the case of  Standard & Poor's and either A-1 by Standard & Poor's,
      P-1 by Moody's Investors Service,  Inc. or F-1 by Fitch Investors Service,
      Inc. in the case of Fitch Investors Service, Inc.

            Permitted Transferee: Any Transferee of a Class R Certificate, other
than a Disqualified Organization or a Non-United States Person.

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

            Prepayment  Assumption:  A  prepayment  assumption  of [ ]%  of  the
standard  prepayment  assumption  used for  determining  the accrual of original
issue discount and market  discount on the  Certificates  for federal income tax
purposes.  The  standard  prepayment  assumption  assumes  a  constant  rate  of
prepayment  of  mortgage  loans of [ ]% per annum of the  outstanding  principal
balance of such mortgage loans in the first month of life of the mortgage loans,
increasing  by an additional [ ]% per annum in each  succeeding  month until the
thirtieth month, and a constant [ ]% per annum rate of prepayment thereafter for
the life of the mortgage loans.

            Principal  Distribution  Amount:  With  respect to any  Distribution
Date,  the sum of (i) the  aggregate  of the  Underlying  Certificate  Principal
Distribution   Amount  for  the  immediately   preceding   Underlying   Security
Distribution Date, plus any amounts received as described in Section 3.03(a)(ii)
since the preceding  Distribution  Date to the extent  allocated to principal of
one or more Underlying Agency Securities and (ii) the Accretion Amount.

            Rating Agencies: [________________] and [______________________]. If
an  agency or a  successor  is no longer in  existence,  "Rating  Agency"  shall
include such  statistical  credit rating  agency,  or other  comparable  Person,
designated  by the Company,  notice of which  designation  shall be given to the
Trustee and the Certificate Administrator.

            Record Date: With respect to any  Distribution  Date, other than the
first  Distribution Date, the last Business Day of the month preceding the month
in which the Underlying  Security  Distribution  Date on the  Underlying  Agency
Securities occurs and with respect to the first  Distribution  Date, the Closing
Date.

            Reference Date: [___________ 1, 200_].

            Regular Certificates: Any of the Certificates other than the Class R
Certificates.

                                       8
<PAGE>

            Regulation   AB:   Subpart   229.1100  -  Asset  Backed   Securities
(Regulation AB), 17 C.F.R. ss.ss.229.1100-229.1123,  as such may be amended from
time to time, and subject to such  clarification and interpretation as have been
provided by the  Commission in the adopting  release  (Asset-Backed  Securities,
Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005))
or by the staff of the  Commission,  or as may be provided by the  Commission or
its staff from time to time.

            REMIC:  A "real  estate  mortgage  investment  conduit"  within  the
meaning of Section 860D of the Code.

            REMIC Provisions:  Provisions of the federal income tax law relating
to REMICs, which appear at Sections 860A through 860G of Subchapter M of Chapter
1 of the Code, and related provisions,  and temporary and final regulations (or,
to the  extent  not  inconsistent  with  such  temporary  or final  regulations,
proposed   regulations)  and  published   rulings,   notices  and  announcements
promulgated thereunder, as the foregoing may be in effect from time to time.

            Residual Certificate: Any one of the Class R Certificates.

            Responsible  Officer:  When used with  respect to the  Trustee,  any
officer of the Trustee employed in its corporate trust department, including any
Senior Vice  President,  any Vice President,  any Assistant Vice President,  any
Assistant  Secretary,  any Trust Officer or Assistant Trust Officer or Assistant
Trust  Officer,  or any other  officer  of the  Trustee  customarily  performing
functions similar to those performed by any of the above designated  officers to
whom,  with respect to a particular  matter arising under this  Agreement,  such
matter is referred.

            Securitization  Transaction:  Any  transaction  involving  a sale or
other transfer of mortgage loans or securities backed by mortgage loans directly
or indirectly to an issuing in connection  with an issuance of publicly  offered
or privately placed, rated or unrated mortgage-backed securities.

            Servicing  Criteria:  The  "servicing  criteria"  set  forth in Item
1122(d) of Regulation AB, as such may be amended from time to time.

            Servicing  Fee:  With  respect  to any  Distribution  Date,  the fee
payable monthly to the Certificate  Administrator in respect of its compensation
hereunder  that  accrues at an annual  rate  equal to  [____]% on the  Aggregate
Underlying  Certificate  Balance as in effect immediately prior to the preceding
Underlying Security Distribution Date.

            Servicing  Officer:  Any  officer of the  Certificate  Administrator
involved in, or responsible for, the  administration  and servicing of the Trust
Fund whose name and specimen  signature  appear on a list of servicing  officers
furnished to the Trustee by the Certificate Administrator, as such list may from
time to time be amended.

            Standard & Poor's:  Standard & Poor's Ratings Group or its successor
in interest.

            Tax  Returns:  The  federal  income tax return on  Internal  Revenue
Service Form 1066,  U.S.  Real Estate  Mortgage  Investment  Conduit  Income Tax
Return,  including  Schedule Q thereto,  Quarterly  Notice to Residual  Interest
Holders of REMIC Taxable Income or Net Loss

                                       9
<PAGE>

Allocation,  or any successor forms, to be filed on behalf of the Trust Fund due
to its  classification as a REMIC under the REMIC Provisions,  together with any
and all  other  information,  reports  or  returns  that may be  required  to be
furnished to the  Certificateholders  or filed with the Internal Revenue Service
or any other  governmental  taxing authority under any applicable  provisions of
federal, state or local tax laws.

            Termination  Date: The Distribution  Date on which the Trust Fund is
terminated pursuant to Section 9.01.

            Trust  Fund:   The  corpus  of  the  trust  created  by  and  to  be
administered  under this  Agreement  consisting  of: (i) the  Underlying  Agency
Securities,  (ii) all  distributions  thereon payable after the Closing Date and
(iii) the  Certificate  Account and such assets that are deposited  therein from
time to time,  together  with any and all income,  proceeds  and  payments  with
respect thereto.

            Trustee:  [_____________________],  a [national  bank] [[state bank]
[trust  company]  [organized  under the laws of  [______]]  or its  successor in
interest, or any successor trustee appointed as herein provided.

            Trustee Information: As specified in Section 12.05(a)(i)(A).

            Underlying Agency Security:  Any of the [GNMA] [I] [II] Certificates
transferred to the Trustee by the Company pursuant to Section 2.01 to be held as
a part of the Trust Fund, as more fully described in the  Preliminary  Statement
hereto.

            Underlying  Agency  Securityholder:  The  registered  holder  of any
Underlying  Agency Security which,  following the execution and delivery of this
Agreement  by the  parties  hereto,  shall be the Trustee for the benefit of the
Certificateholders.

            Underlying  Certificate  Balance:  With  respect  to any  Underlying
Agency Security,  as of any Underlying Security Distribution Date (following all
distributions to be made with respect to the Underlying  Agency Security on such
Underlying  Security  Distribution  Date),  and as of any date of  determination
thereafter until the next succeeding  Underlying Security Distribution Date, the
principal  balance  of such  Underlying  Agency  Security  as set  forth  in, or
calculated in accordance  with the terms of such  Underlying  Agency Security on
the basis of, the Underlying  Security  Distribution  Date Statement sent to the
Trustee as Underlying Agency Securityholder relating to such Underlying Security
Distribution Date.

            Underlying  Certificate Principal  Distribution Amount: With respect
to any  Distribution  Date,  the aggregate  amount  actually  distributed on the
Underlying Agency Securities on the immediately  preceding  Underlying  Security
Distribution  Date and  identified  as applied to reduce the related  Underlying
Certificate  Balance in the respective  Underlying  Security  Distribution  Date
Statement.

            Underlying  Certificate  Rate: With respect to any Underlying Agency
Security and any Underlying  Security  Distribution  Date, the rate per annum at
which interest  payable with respect to such Underlying  Agency Security on such
Underlying Security Distribution Date accrued.

                                       10
<PAGE>

            Underlying   Security   Distribution   Date:  With  respect  to  any
Underlying Agency Security,  the "Distribution Date", as such term is defined on
such Underlying Agency Security.

            Underlying Security Distribution Date Statement: With respect to any
Underlying Agency Security and any Underlying  Security  Distribution  Date, the
monthly  remittance  report forwarded to the holder thereof with respect to such
Underlying  Security  Distribution  Date  pursuant  to  such  Underlying  Agency
Security.

            United States Person:  A citizen or resident of the United States, a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States is includible in gross
income  for  United  States  federal  income  tax  purposes  regardless  of  its
connection with the conduct of a trade or business within the United States. The
term  "United  States"  shall have the meaning set forth in Section  7701 of the
Code or successor provisions.

            Voting Rights:  The portion of the voting rights of all Certificates
which is allocated  to any  Certificate.  For so long as the related  Classes of
Certificates remain outstanding, [_______]% of all of the Voting Rights shall be
allocated  among  all  Holders  of the Class  [A-1]  Certificates,  Class  [A-2]
Certificates   and   Class   [A-3]   Certificates   in   proportion   to   their
then-outstanding Certificate Principal Balances; and [ ]% and [ ]% of the Voting
Rights  shall  be  allocated  among  the  Class  [S] and  Class R  Certificates,
respectively,  in  proportion  to the  Percentage  Interests  evidenced by their
respective Certificates.

                                   ARTICLE II

                          CONVEYANCE OF THE UNDERLYING
           MORTGAGE SECURITIES; ORIGINAL ISSUANCE OF THE CERTIFICATES

            Section 2.01. Conveyance of the Underlying Agency Securities.

            The Company,  concurrently  with the execution and delivery  hereof,
does  hereby  sell,  transfer,  assign,  set-over  and  otherwise  convey to the
Trustee,  in trust, for the use and benefit of the  Certificateholders,  without
recourse,  all the  right,  title  and  interest  of the  Company  in and to the
Underlying Agency  Securities and all other assets  constituting the Trust Fund.
Such assignment  includes,  without  limitation,  all amounts payable to and all
rights of the Underlying Agency Securityholders after the Closing Date.

            In connection  with such transfer and  assignment,  the Company does
hereby deliver to, and deposit with,  the Trustee each of the Underlying  Agency
Securities,  together with the following  documents or  instruments  relating to
each Underlying Agency Security:

            (i) a duly issued and authenticated  certificate for each Underlying
      Agency  Security,  each evidencing the entire interest in such [series and
      class] and registered in the name of "[Name of Trustee],  as trustee under
      the Trust Agreement  relating to Residential  Accredit Loans, Inc., Series
      [200_-____]"; and

                                       11
<PAGE>

            (ii) copies of the most recent Underlying Security Distribution Date
      Statements,   if  any,   delivered  to  the  related   Underlying   Agency
      Securityholder with respect to such Underlying Agency Security.

            The  transfer  of the  Underlying  Agency  Securities  and all other
assets  constituting  the Trust Fund is absolute  and is intended by the parties
hereto  as a sale  by  the  Company  to the  Trustee  of the  Underlying  Agency
Securities  for the  benefit of the  Certificateholders.  Except as  provided in
Sections 3.02(b) and 9.01 hereof, the Trustee shall not assign, sell, dispose of
or transfer any interest in the Underlying  Agency Securities or any other asset
constituting  the Trust Fund or permit the Underlying  Agency  Securities or any
other asset  constituting  the Trust Fund to be subjected to any lien,  claim or
encumbrance  arising by, through or under the Trustee or any Person claiming by,
through or under the Trustee.

            Section 2.02. Acceptance by Trustee.

            The Trustee hereby acknowledges receipt of the documents referred to
in Section  2.01(i) and (ii) above and declares  that it holds and will hold the
Underlying Agency Securities and such other documents and instruments  delivered
to it with respect to the Underlying  Agency Securities in trust for the use and
benefit of all  present  and future  Certificateholders.  Upon  delivery  of any
document or instrument  relating to a Underlying  Agency Security by the Company
or the Certificate Administrator,  the Trustee shall acknowledge receipt of such
documents.

            Section 2.03. Execution and Authentication of Certificates.

            Concurrently with the transfer and delivery of the Underlying Agency
Securities and all related documents and instruments,  the Trustee has executed,
authenticated  and  delivered,  to  or  upon  the  order  of  the  Company,  the
Certificates  duly  executed  and  authenticated  by the  Trustee in  authorized
Percentage Interests, registered in such names as the Company has requested.

                                  ARTICLE III

               ADMINISTRATION OF THE UNDERLYING AGENCY SECURITIES;
                          REPORTS TO CERTIFICATEHOLDERS

            Section 3.01.  Administration  of the Trust Fund and the  Underlying
                           Agency Securities.

            (a) If at any time the Trustee, as Underlying Agency Securityholder,
is  requested  in such  capacity  to take any  action  or to give  any  consent,
approval or waiver,  or if an Event of Default as defined under the terms of the
Underlying  Agency Security occurs,  the Trustee,  in its capacity as Underlying
Agency  Securityholder,  may take such action in connection with the enforcement
of any rights and remedies available to it in such capacity with respect thereto
and only in accordance  with the written  directions of Holders of  Certificates
evidencing at least 51% of the Voting Rights.  The Trustee shall promptly notify
all of the Certificateholders of any such request.

                                       12
<PAGE>

            (b) The holders of the Class R Certificates  shall pay in proportion
to their ownership  interests in such Class R Certificates  any taxes imposed on
the Trust Fund resulting from the  Certificate  Administrator's  exercise of any
option to repurchase any of the Underlying  Agency Securities in accordance with
the Assignment and Assumption Agreement.

            Section 3.02. Collection of Monies.

            (a)  In  connection  with  its  receipt  of  any  distribution  on a
Underlying  Agency Security on any Underlying  Security  Distribution  Date, the
Trustee shall review the  Underlying  Security  Distribution  Date Statement and
shall confirm that the information contained therein is arithmetically  correct.
If (i) the Trustee  shall not have  received a  distribution  on any  Underlying
Agency Security by the close of business on the date on which such  distribution
was to be received by the  Trustee,  the Trustee  shall  notify the  Certificate
Administrator if such  distribution  shall not have been received by the Trustee
one Business  Day  following  such notice or (ii) the Trustee  shall gain actual
knowledge of any event of default under and as defined in any Underlying  Agency
Security,  the Trustee shall promptly notify the Certificate  Administrator  and
the  Certificateholders  and such parties shall  proceed in accordance  with the
terms and conditions of Section 3.01(a).

            (b) Except as otherwise  provided in Section 9.01,  upon its receipt
of a Notice of Final  Distribution,  the Trustee shall present and surrender the
applicable  Underlying  Agency  Security to which such notice  applies for final
payment  thereon in accordance  with the terms and conditions of such Underlying
Agency  Security  and such  Notice  of Final  Distribution.  The  Trustee  shall
promptly deposit in the Certificate Account the final distribution received upon
presentation and surrender of such Underlying Agency Security.

            Section 3.03.  Establishment  of  Certificate  Account;  Deposits in
                           Certificate Account.

            (a) The Trustee,  for the benefit of the  Certificateholders,  shall
establish  and maintain one or more  accounts  (collectively,  the  "Certificate
Account"),  each of which  shall be an  Eligible  Account,  entitled  "[Name  of
Trustee],  in trust for the registered  holders of Residential  Accredit  Loans,
Inc., Mortgage Pass-Through Certificates, Series [200 - ]", held in trust by the
Trustee for the benefit of the  Certificateholders.  The Trustee shall cause the
following   payments  and  collections  in  respect  of  the  Underlying  Agency
Securities to be deposited directly into the Certificate Account:

            (i) all  distributions  received on the Underlying Agency Securities
      subsequent to the Closing Date;

            (ii)  any  amounts  received  in  connection  with  the  sale of the
      Underlying Agency Securities pursuant to Section 9.01 in accordance with a
      plan of complete liquidation of the Trust Fund meeting the requirements of
      Section  860F(a)(4)A  of the Code [, or in  connection  with any  optional
      repurchase  by the  Certificate  Administrator  or any GNMA  Issuer of any
      Underlying Agency Security]; and

            (iii) any other amounts specifically required to be deposited in the
      Certificate Account hereunder.

                                       13
<PAGE>

            The foregoing  requirements  for deposit in the Certificate  Account
shall be exclusive.

            (b)  Funds  in the  Certificate  Account  shall be  invested  by the
Trustee in Permitted  Investments in accordance with the provisions set forth in
Section 4.04. The Trustee shall give notice to the Certificate Administrator and
the  Company of the  location of each  Certificate  Account  upon  establishment
thereof and prior to any change thereof.

            Section 3.04. Permitted Withdrawals From the Certificate Account.

            The  Trustee  shall  from  time  to time  withdraw  funds  from  the
Certificate Account for the following purposes:

            (i) to make  distributions in the amounts and in the manner provided
      for in Section 4.01;

            (ii) to pay to the Certificate  Administrator  on each  Distribution
      Date, as compensation for its services  hereunder,  the Servicing Fee plus
      any investment income on amounts in the Certificate Account;

            (iii) to reimburse the Company or the Certificate  Administrator for
      expenses  incurred by and  reimbursable  to the Company or the Certificate
      Administrator  pursuant to Section 6.03,  Sections  10.01(c) and (g) or as
      otherwise permitted under this Agreement; and

            (iv) to  clear  and  terminate  the  Certificate  Account  upon  the
      termination of this Agreement.

            On each Distribution Date, the Trustee shall withdraw all funds from
the Certificate  Account and shall use such funds withdrawn from the Certificate
Account  only for the  purposes  described  in this  Section 3.04 and in Section
4.01.

            Section 3.05. Annual Statement as to Compliance.

            The  Certificate  Administrator  will deliver to the Company and the
Trustee  on or before  the  earlier  of (a) March 31 of each  year,  or (b) with
respect to any calendar  year during which the  Company's  annual report on Form
10-K is required to be filed in  accordance  with the Exchange Act and the rules
and regulations of the  Commission,  the date on which the annual report on Form
10-K is required to be filed in  accordance  with the Exchange Act and the rules
and regulations of the Commission, a servicer compliance certificate,  signed by
an authorized  officer of the  Certificate  Administrator,  as described in Item
1123 of Regulation AB, to the effect that:

            (i) A review of the Certificate  Administrator's  activities  during
the reporting  period and of its performance  under this Agreement has been made
under such officer's supervision.

                                       14
<PAGE>

            (ii) To the best of such officer's knowledge,  based on such review,
the Certificate  Administrator  has fulfilled all of its obligations  under this
Agreement in all materials respects throughout the reporting period or, if there
has been a failure to  fulfill  any such  obligation  in any  material  respect,
specifying  each such  failure  known to such  officer and the nature and status
thereof.

            The  Certificate  Administrator  shall use  commercially  reasonable
efforts to obtain from all other parties participating in the servicing function
any additional  certifications  required under Item 1123 of Regulation AB to the
extent required to be included in a Report on Form 10-K; provided, however, that
a failure to obtain such certifications shall not be a breach of the Certificate
Administrator's  duties  hereunder  if any such party  fails to  deliver  such a
certification.

            Section  3.06.  Annual  Independent  Public  Accountants'  Servicing
                            Report.

            On or before the  earlier of (a) March 31 of each year,  or (b) with
respect to any calendar  year during which the  Company's  annual report on Form
10-K is required to be filed in  accordance  with the Exchange Act and the rules
and  regulations  of the  Commission,  the date on which  the  annual  report is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the  Commission,  the  Certificate  Administrator  at its expense
shall cause a firm of independent public accountants,  which shall be members of
the American Institute of Certified Public  Accountants,  to furnish a report to
the  Company  and the Trustee the  attestation  required  under Item  1122(b) of
Regulation AB.

            Section  3.07.  Rights of the Company in Respect of the  Certificate
                            Administrator.

            The  Certificate   Administrator  shall  afford  the  Company,  upon
reasonable notice, during normal business hours access to all records maintained
by the  Certificate  Administrator  in respect  of its  rights  and  obligations
hereunder and access to officers of the  Certificate  Administrator  responsible
for such obligations.  Upon request, the Certificate Administrator shall furnish
the Company with its most recent financial statements and such other information
as the  Certificate  Administrator  possesses  regarding its business,  affairs,
property and condition,  financial or otherwise.  The Certificate  Administrator
shall also cooperate with all reasonable requests for information including, but
not limited to, notices and copies of files,  regarding  itself,  the Underlying
Agency Securities or the Certificates  from any Person or Persons  identified by
the  Company or the  Certificate  Administrator.  The  Company  may,  but is not
obligated to, enforce the obligations of the Certificate Administrator hereunder
and may, but is not obligated to, perform,  or cause a designee to perform,  any
defaulted obligation of the Certificate  Administrator hereunder or exercise the
rights of the Certificate Administrator hereunder; provided that the Certificate
Administrator  shall not be  relieved  of any of its  obligations  hereunder  by
virtue of such performance by the Company or its designee. The Company shall not
have any  responsibility  or  liability  for any action or failure to act by the
Certificate  Administrator  and is not obligated to supervise the performance of
the Certificate Administrator under this Agreement or otherwise.

                                       15
<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

            Section 4.01. Distributions.

            (a) On the  Business  Day  prior  to  each  Distribution  Date,  the
Certificate Administrator shall provide written notice to the Trustee indicating
the amount of Accrued  Certificate  Interest on each Class of the  Certificates,
and the Principal  Distribution  Amount and the allocation thereof to each Class
of Certificates,  for such  Distribution  Date. On each  Distribution  Date, the
Trustee shall withdraw from the  Certificate  Account all funds then on deposit,
and the Trustee or the Paying Agent appointed by the Trustee shall distribute to
the  Holders  of each  respective  Class of  Certificates,  from such  Available
Distribution  Amount, the following amounts, in the following order of priority,
in each case to the extent of the Available Distribution Amount:

            (i) first, concurrently to the Class [A-1] Certificateholders, Class
      [A-2]  Certificateholders,   Class  [S]  Certificateholders  and  Class  R
      Certificateholders  on a pro rata basis based on the  Accrued  Certificate
      Interest payable thereon,  Accrued  Certificate  Interest on such Class of
      Certificates  as applicable for such  Distribution  Date, plus any Accrued
      Certificate   Interest   thereon   remaining   unpaid  for  any   previous
      Distribution Date;

            (ii) second,  an amount equal to the Principal  Distribution  Amount
      shall be distributed in reduction of the Certificate Principal Balances of
      the Classes set forth below as follows:

                  (A) first, to the Class R Certificates,  until the Certificate
            Principal Balance thereof is reduced to zero;

                  (B)  second,  to  the  Class  [A-1]  Certificates,  until  the
            Certificate Principal Balance thereof is reduced to zero; and

                  (C)  third,  to  the  Class  [A-2]  Certificates,   until  the
            Certificate Principal Balance thereof is reduced to zero;

            (iii)  third,  to  the  Class  [A-3]   Certificateholders,   Accrued
      Certificate  Interest on such Classes of  Certificates  as applicable  for
      such  Distribution  Date, plus any Accrued  Certificate  Interest  thereon
      remaining unpaid from any previous  Distribution  Date (to the extent such
      unpaid  Accrued  Certificate  Interest  does not  constitute  an Accretion
      Amount);

            (iv) fourth,  an amount equal to the Principal  Distribution  Amount
      remaining after the  distribution  described in clause (ii) above shall be
      distributed in reduction of the Certificate Principal Balance of the Class
      [A-3]  Certificates,  until the Certificate  Principal  Balance thereof is
      reduced to zero;

provided,  that  if  such  Distribution  Date is on or  prior  to the  Accretion
Termination  Date, no distribution  shall be made pursuant to clause (iii) above
to the Class [A-3] Certificateholders to

                                       16
<PAGE>

the extent that Accrued  Certificate  Interest is not then payable in accordance
with  Section  4.01(b);  and provided  further,  that the amount  available  for
interest distributions on the Certificates on any Distribution Date as described
above shall not exceed the aggregate amount distributed on the Underlying Agency
Securities on the preceding Underlying Security  Distribution Date in respect of
interest,  reduced by the  Servicing  Fee;  and provided  further,  that no such
unpaid Accrued Certificate  Interest on the Certificates will be carried forward
to the  extent  that the  corresponding  amount  of any  shortfall  in  interest
distributions  on any of  the  Underlying  Agency  Securities  on the  preceding
Underlying  Security  Distribution  Date is not carried  forward with respect to
such Underlying Agency Securities;

            (b) On each  Distribution  Date prior to the  Accretion  Termination
Date, an amount equal to the amount of Accrued Certificate Interest on the Class
[A-3]   Certificates  for  such   Distribution  Date  that  would  otherwise  be
distributed on such  Certificates on such  Distribution Date pursuant to Section
4.01(a)(iii)  shall be added to the Certificate  Principal Balance thereof (such
amount, the "Accretion  Amount").  On and after the Accretion  Termination Date,
the  entire  amount  of  Accrued   Certificate   Interest  on  the  Class  [A-3]
Certificates for such Distribution Date shall be payable to such Certificates to
the extent not required to retire fully the Class [A-1], Class [A-2] and Class R
Certificates on the Accretion Termination Date. Any Accrued Certificate Interest
on the Class [A-3]  Certificates  which is required to be paid to the holders of
the  Class  [A-1],  Class  [A-2]  or  Class  R  Certificates  on  the  Accretion
Termination  Date as provided  in the  preceding  sentence  will be added to the
Certificate  Principal  Balance of the Class  [A-3]  Certificates  in the manner
described in the first sentence of this Section 4.01(b).

            (c)  Payments  on  each  Distribution  Date  will  be  made  to  the
Certificateholders  of record on the related Record Date.  Distributions  to any
Certificateholder  on any  Distribution  Date shall be made by wire  transfer of
immediately  available funds to the account of such  Certificateholder at a bank
or   other   entity   having   appropriate    facilities   therefor,   if   such
Certificateholder  shall have so  notified  the  Trustee or the Paying  Agent in
writing  at  least  five  Business  Days  prior  to the  Record  Date and if the
aggregate  amount of distribution to be made to such Holder is at least $10,000,
or in  such  other  manner  as  shall  be  agreed  to by the  Trustee  and  such
Certificateholder,  or  otherwise  by check  mailed by first  class  mail to the
address of such Certificateholder  appearing in the Certificate Register.  Final
distribution  on each  Certificate  will be made in like  manner,  but only upon
presentment  and surrender of such  Certificate at the Corporate Trust Office or
such other location specified in the notice to  Certificateholders of such final
distribution.

            (d) Except as  otherwise  provided  in Section  9.01,  whenever  the
Trustee,  as of five  Business  Days prior to any Record Date,  expects that the
final  distribution with respect to the Certificates will be made on the related
Distribution  Date,  the Trustee  shall,  no later than such related Record Date
mail to each  Holder of the  Certificates  on such  date a notice to the  effect
that:

            (i) the Trustee expects that the final  distribution with respect to
      the  Certificates  will be made on such  Distribution  Date but only  upon
      presentation  and  surrender  of such  Certificates  at the  office of the
      Trustee therein specified; and

                                       17
<PAGE>

            (ii) no interest  shall accrue on such  Certificates  from and after
      such Distribution Date.

            Section 4.02. Statements to Certificateholders.

            On each  Distribution  Date,  the  Certificate  Administrator  shall
prepare  and  the   Trustee   shall   forward  by  mail  a  statement   to  each
Certificateholder stating:

            (i) the Available Distribution Amount for such Distribution Date and
      the  respective  portions  thereof  constituting  interest  and  principal
      distributions on the Underlying Agency Securities;

            (ii) with respect to such Distribution Date, the aggregate amount of
      Accrued  Certificate  Interest and the amounts of interest  and  principal
      distributed to the  Certificateholders  of each Class on such Distribution
      Date pursuant to Section 4.01;

            (iii) the respective amounts of any prepayments and any purchases of
      Mortgage  Loans  (due  to  conversion  or  otherwise)   included  in  such
      distributions;

            (iv) the  Certificate  Principal  Balance or Notional  Amount of the
      Certificates  of each  Class  after  giving  effect  to  distributions  of
      principal on such Distribution Date; and

            (v) the Underlying  Certificate  Balance for each Underlying  Agency
      Security  as of the  Underlying  Security  Distribution  Date  immediately
      preceding such Distribution  Date, after giving effect to the distribution
      of principal made thereon on such Underlying Security Distribution Date.

      In the case of the  information  furnished  pursuant to clause (ii) above,
the  amounts  shall  also  be  expressed  as a  dollar  amount  per  Certificate
evidencing a $1,000 denomination.

      In addition,  the Trustee promptly will furnish to Certificateholders  and
the  Certificate  Administrator  copies of any notices,  statements,  reports or
other  communications  including,  without  limitation,  the Underlying Security
Distribution   Date  Statements  (or,  in  lieu  thereof,   if  the  Certificate
Administrator  so  elects,  a summary  report  of  information  relevant  to the
Certificates, reported by the [GNMA Issuer] with regard to the Underlying Agency
Securities)  for each Underlying  Security  Distribution  Date,  received by the
Trustee as the Underlying Agency Securityholder.

            On or  before  March  31st of each  calendar  year,  beginning  with
calendar  year [200 ], the Trustee shall prepare and deliver by first class mail
to  each  Person  who at any  time  during  the  previous  calendar  year  was a
Certificateholder  of record a statement  containing the information required to
be contained in the regular monthly report to  Certificateholders,  as set forth
in clause (ii) above aggregated for such calendar year or the applicable portion
thereof during which such Person was a Certificateholder. Such obligation of the
Trustee shall be deemed to have been satisfied to the extent that  substantially
comparable  information  shall  be  provided  by  the  Trustee  pursuant  to any
requirements of the Code and regulations  thereunder as from time to time are in
force. The Trustee, upon request, will furnish the Certificate

                                       18
<PAGE>

Administrator  with  all  information  the  Trustee  has  as may  reasonably  be
requested in connection with the preparation by the Certificate Administrator of
all tax returns described in Section 10.01.

            Section 4.03. Access to Certain Documentation and Information.

            The  Trustee  shall  provide  to the  Certificateholders  access  to
certificates and all reports, documents and records maintained by the Trustee in
respect of its duties  hereunder,  such access being afforded without charge but
only upon reasonable written request and during normal business hours at offices
designated by the Trustee.

            Section 4.04. Permitted Investments.

            The   Certificate   Administrator   shall  direct  any   institution
maintaining  the  Certificate  Account to invest  the funds in such  Certificate
Account in Permitted Investments, which shall mature not later than the Business
Day  immediately  preceding the next  Distribution  Date (except  that,  (i) any
investment in the institution  with which the Certificate  Account is maintained
may mature on such Distribution Date and (ii) any other investment may mature on
such  Distribution  Date if the Trustee shall advance funds on such Distribution
Date to the Certificate Account in the amount payable on such investment on such
Distribution  Date,  pending  receipt  thereof to the extent  necessary  to make
distributions on the  Certificates),  and shall not be sold or disposed of prior
to their maturity.  All such Permitted  Investments shall be made in the name of
the Trustee, in trust for the Holders of the Certificates,  or its nominee.  All
income and gain  received  from any such  investment  shall be  deposited in the
appropriate  Certificate  Account and may only be withdrawn  and applied for the
purposes set forth in Section 3.04. The amount of any losses incurred in respect
of any such  investments  shall be deposited in the  Certificate  Account by the
Certificate Administrator out of its own funds immediately as realized.

            Section 4.05. Exchange Act Reporting.

            (a) The  Certificate  Administrator  shall, on behalf of the Company
and in respect of the Trust Fund, sign and cause to be filed with the Commission
any periodic  reports  required to be filed under the provisions of the Exchange
Act,  and the rules and  regulations  of the  Commission  thereunder  including,
without limitation,  reports on Form 10-K, Form 10-D and Form 8-K. In connection
with the  preparation  and filing of such  periodic  reports,  the Trustee shall
timely provide to the Certificate Administrator (i) a list of Certificateholders
as shown on the  Certificate  Register as of the end of each calendar year, (ii)
copies of all pleadings, other legal process and any other documents relating to
any claims,  charges or complaints  involving the Trustee, as trustee hereunder,
or the Trust Fund that are received by the Trustee,  (iii) notice of all matters
that, to the actual knowledge of a Responsible Officer of the Trustee, have been
submitted  to a vote of the  Certificateholders,  other than those  matters that
have been  submitted to a vote of the  Certificateholders  at the request of the
Company or the Certificate Administrator,  and (iv) notice of any failure of the
Trustee  to  make  any  distribution  to  the  Certificateholders.  Neither  the
Certificate  Administrator nor the Trustee shall have any liability with respect
to the  Certificate  Administrator's  failure to  properly  prepare or file such
periodic reports resulting from

                                       19
<PAGE>

or relating to the  Certificate  Administrator's  inability or failure to obtain
any  information  not  resulting  from  the  Certificate   Administrator's   own
negligence or willful misconduct.

            (b) Any Form 10-K filed with the Commission in connection  with this
Section 4.03 shall include,  with respect to the  Certificates  relating to such
10-K:

            (i) A  certification,  signed by the senior officer in charge of the
      servicing functions of the Certificate Administrator, in the form required
      or  permitted  by the  Commission  (the  "Form  10-K  Certification"),  in
      compliance  with Rules  13a-14 and 15d-14  under the  Exchange Act and any
      additional directives of the Commission.

            (ii) A report  regarding its  assessment  of  compliance  during the
      preceding  calendar year with all applicable  servicing criteria set forth
      in  relevant  Commission   regulations  with  respect  to  mortgage-backed
      securities  transactions  taken  as  a  whole  involving  the  Certificate
      Administrator that are backed by the same types of assets as those backing
      the  certificates,  as well as similar reports on assessment of compliance
      received from other  parties  participating  in the servicing  function as
      required by relevant Commission regulations,  as described in Item 1122(a)
      of  Regulation  AB. The  Certificate  Administrator  shall obtain from all
      other  parties  participating  in  the  servicing  function  any  required
      certifications.

            (iii) With respect to each assessment  report described  immediately
      above, a report by a registered  public  accounting  firm that attests to,
      and reports on, the assessment  made by the asserting  party, as set forth
      in relevant Commission regulations,  as described in Regulation 1122(b) of
      Regulation AB and Section 3.06.

            (iv) The servicer  compliance  certificate  required to be delivered
      pursuant Section 3.06.

            (c) In  connection  with the Form 10-K  Certification,  the  Trustee
shall  provide  the  Certificate  Administrator  with  a  back-up  certification
substantially in the form attached hereto as Exhibit C.

            (d) This  Section  4.05  may be  amended  in  accordance  with  this
Agreement without the consent of the Certificateholders.

                                   ARTICLE V

                                THE CERTIFICATES

            Section 5.01. The Certificates.

            The  Certificates  shall be  substantially  in the form set forth in
Exhibits  A-1 and A-2  hereto.  The  Certificates  (other  than  the  Class  [S]
Certificates and Class R Certificates) will be issuable in registered form, with
minimum initial Certificate Principal Balances as of the Closing Date of $[____]
and integral multiples of $[____] in excess thereof[;provided, however, that one
Class  [____]  Certificate  will be issued in an initial  denomination  equal to
$[____],  or the sum of $[_____] and any  integral  multiple of  $[_____]].  The
Class [S] Certificates and Class R

                                       20
<PAGE>

Certificates  will be issuable in registered  form, in minimum  denominations of
not less than a [ ]% Percentage Interest;  [provided, however, that at all times
one Class R Certificate will be held by [the Certificate  Administrator] as "tax
matters  person"  pursuant  to  Section  10.01(c)  in  a  minimum   denomination
representing a Percentage Interest of not less than 0.01%].

            The Certificates shall be executed by manual or facsimile  signature
on behalf of an  authorized  officer of the  Trustee.  Certificates  bearing the
manual  or  facsimile  signatures  of  individuals  who  were  at any  time  the
authorized officers of the Trustee shall bind the Trustee,  notwithstanding that
such  individuals  or any of them have ceased to hold such offices  prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such  Certificates.  No Certificate shall be entitled to any benefit
under this Agreement,  or be valid for any purpose, unless there appears on such
Certificate a certificate of  authentication  substantially in the form provided
for herein executed by the Certificate  Registrar by manual signature,  and such
certificate  upon any  Certificate  shall be conclusive  evidence,  and the only
evidence,  that such  Certificate  has been  duly  authenticated  and  delivered
hereunder. All Certificates shall be dated the date of their authentication.

            Section 5.02. Registration of Transfer and Exchange of Certificates.

            (a) The  Trustee  shall  cause to be kept at one of the  offices  or
agencies to be appointed by the Trustee in  accordance  with the  provisions  of
this Section 5.02 a Certificate  Register in which,  subject to such  reasonable
regulations as it may prescribe,  the Trustee shall provide for the registration
of  Certificates  and of  transfers  and  exchanges  of  Certificates  as herein
provided.  The Trustee is  initially  appointed  Certificate  Registrar  for the
purpose of registering  Certificates and transfers and exchanges of Certificates
as herein provided. The Certificate Registrar, or the Trustee, shall provide the
Certificate Administrator with a certified list of Certificateholders as of each
Record Date prior to the Distribution  Date. Upon satisfaction of the conditions
set forth below,  the Trustee shall execute and the Certificate  Registrar shall
authenticate  and  deliver,  in  the  name  of  the  designated   transferee  or
transferees,  one or  more  new  Certificates  of a  like  Class  and  aggregate
Percentage Interest. In addition,  the Trustee shall notify the Company of every
proposed transfer or exchange of the Certificates.

            (b) At the  option of the  Certificateholders,  Certificates  may be
exchanged for other Certificates of authorized denominations of a like Class and
aggregate  Percentage  Interest,  upon  surrender  of  the  Certificates  to  be
exchanged  at any such  office  or  agency.  Whenever  any  Certificates  are so
surrendered for exchange the Trustee shall execute and the Certificate Registrar
shall  authenticate  and deliver the  Certificates  which the  Certificateholder
making the  exchange  is entitled to receive.  Every  Certificate  presented  or
surrendered for transfer or exchange shall (if so required by the Trustee or the
Certificate  Registrar)  be duly  endorsed  by, or be  accompanied  by a written
instrument of transfer in form  satisfactory  to the Trustee and the Certificate
Registrar duly executed by, the Holder  thereof or his attorney duly  authorized
in writing.

            (c) In the case of any Certificate presented for registration in the
name of an  employee  benefit  plan  or  other  plan  subject  to the  fiduciary
responsibility  provisions of ERISA,  or Section 4975 of the Code (or comparable
provisions  of any  subsequent  enactments),  an  investment  manager,  a  named
fiduciary or a trustee of such plan, or any other Person who is

                                       21
<PAGE>

using "plan assets" of any such plan to effect such  acquisition  (including any
insurance  company  using  funds in its general or  separate  accounts  that may
constitute "plan assets"), unless otherwise directed by the Company, the Trustee
shall  require an Opinion of  Counsel  acceptable  to and in form and  substance
satisfactory to the Trustee,  the Company and the Certificate  Administrator  to
the effect that the purchase or holding of such Certificate is permissible under
applicable  law,  will not  constitute  or result in any  non-exempt  prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, and will not
subject  the  Trustee,  the  Company  or the  Certificate  Administrator  to any
obligation or liability  (including  obligations or  liabilities  under ERISA or
Section  4975 of the Code) in addition to those  undertaken  in this  Agreement,
which Opinion of Counsel shall not be an expense of the Trustee,  the Company or
the   Certificate   Administrator.   Neither  the   Company,   the   Certificate
Administrator nor the Trustee will be required to obtain such Opinion of Counsel
on behalf of any prospective transferee.

            (d) (i) Each Person who has or who acquires any  Ownership  Interest
in a Class R Certificate  shall be deemed by the  acceptance or  acquisition  of
such Ownership  Interest to have agreed to be bound by the following  provisions
and to have  irrevocably  authorized  the Trustee or its  designee  under clause
(iii)(A)  below to deliver  payments  to a Person  other than such Person and to
negotiate the terms of any  mandatory  sale under clause  (iii)(B)  below and to
execute all  instruments  of transfer  and to do all other  things  necessary in
connection with any such sale. The rights of each Person acquiring any Ownership
Interest  in a  Class R  Certificate  are  expressly  subject  to the  following
provisions:

                  (A) Each Person holding or acquiring any Ownership Interest in
            a Class R  Certificate  shall be a  Permitted  Transferee  and shall
            promptly notify the Trustee of any change or impending change in its
            status as a Permitted Transferee.

                  (B) In connection with any proposed  Transfer of any Ownership
            Interest  in a  Class  R  Certificate,  the  Trustee  shall  require
            delivery to it, and shall not  register  the Transfer of any Class R
            Certificate  until its receipt of, (I) an affidavit and agreement (a
            "Transfer  Affidavit and Agreement"  attached hereto as Exhibit B-1)
            from the proposed Transferee,  in form and substance satisfactory to
            the  Trustee and the  Certificate  Administrator,  representing  and
            warranting,  among other  things,  that it is a United States Person
            and  Permitted  Transferee,  that it is not  acquiring its Ownership
            Interest  in the  Class R  Certificate  that is the  subject  of the
            proposed transfer as a nominee,  trustee or agent for any Person who
            is not a  Permitted  Transferee,  that for so long as it retains its
            Ownership  Interest in a Class R  Certificate,  it will  endeavor to
            remain  a  Permitted  Transferee,  and  that  it  has  reviewed  the
            provisions  of this  Section  5.02(d) and agrees to be bound by them
            and (II) a  certificate,  attached  hereto as Exhibit B-2,  from the
            Holder  wishing to  transfer  the Class R  Certificate,  in form and
            substance    satisfactory   to   the   Certificate    Administrator,
            representing and warranting,  among other things, that no purpose of
            the proposed  Transfer is to impede the  assessment or collection of
            tax.

                                       22
<PAGE>

                  (C)  Notwithstanding  the delivery of a Transfer Affidavit and
            Agreement by a proposed  Transferee  under clause (B) above,  if the
            Trustee has actual  knowledge that the proposed  Transferee is not a
            Permitted  Transferee,  no  transfer of an  Ownership  Interest in a
            Class R Certificate to such proposed Transferee shall be effected.

                  (D) Each Person holding or acquiring any Ownership Interest in
            a  Class  R  Certificate  shall  agree  (1) to  require  a  Transfer
            Affidavit  and  Agreement  from any other Person to whom such Person
            attempts to transfer its Ownership Interest in a Class R Certificate
            and (2) not to transfer its Ownership  Interest unless it provides a
            certificate to the Trustee and the Certificate  Administrator in the
            form attached hereto as Exhibit B-2.

                  (E) Each Person holding or acquiring an Ownership  Interest in
            a Class R Certificate,  by purchasing an Ownership  Interest in such
            Certificate,  agrees to give the Trustee written notice that it is a
            "pass-through  interest  holder"  within the  meaning  of  Temporary
            Treasury  Regulations Section  1.67-3T(a)(2)(i)(A)  immediately upon
            acquiring an Ownership Interest in a Class R Certificate,  if it is,
            or is holding an  Ownership  Interest  in a Class R  Certificate  on
            behalf of, "pass-through interest holder."

                  (F) Each Person holding or acquiring any Ownership Interest in
            a Class R Certificate shall be a "qualified  institutional buyer" as
            defined in Rule 144A under the  Securities  Act of 1933, as amended,
            or an Affiliate of the Company or the Certificate Administrator.

            (ii)  The  Trustee  will  register  the  transfer  of  any  Class  R
      Certificate  only if it shall have  received  the Transfer  Affidavit  and
      Agreement,  a Certificate  of the Holder  requesting  such transfer in the
      form  attached  hereto as Exhibit B-2 and all of such other  documents  as
      shall have been reasonably required by the Certificate  Administrator as a
      condition to such  registration.  Transfers of the Class R Certificates to
      Non-United States Persons and "Disqualified  Organizations" (as defined in
      Section 860E(e)(5) of the Code) are prohibited.

            (iii) (A) If any Disqualified  Organization shall become a holder of
      a Class R Certificate,  then the last preceding Permitted Transferee shall
      be  restored,  to the  extent  permitted  by law,  to all rights as Holder
      thereof  retroactive to the date of  registration of such transfer of such
      Class R Certificate.  If a Non-United  States Person shall become a holder
      of a Class R  Certificate,  then the last  preceding  United States Person
      shall be  restored,  to the  extent  permitted  by law,  to all rights and
      obligations as Holder thereof  retroactive to the date of  registration of
      such  transfer  of such Class R  Certificate.  If a transfer  of a Class R
      Certificate  is  disregarded   pursuant  to  the  provisions  of  Treasury
      Regulation  Sections  1.860E-1  or  1.860G-3,   then  the  last  preceding
      Permitted Transferee shall be restored, to the extent permitted by law, to
      all rights and  obligations as Holder  thereof  retroactive to the date of
      registration  of such  transfer of such Class R  Certificate.  The Trustee
      shall be under no liability to any Person for any registration of transfer
      of a Class R  Certificate  that is in fact not  permitted  by this Section
      5.02(d) or for making any

                                       23
<PAGE>

payments due on such  Certificate  to the holder thereof or for taking any other
action with respect to such holder under the provisions of this Agreement.

            (B) If any purported  Transferee  shall become a Holder of a Class R
      Certificate in violation of the  restrictions  in this Section 5.02(d) and
      to the extent that the retroactive restoration of the rights of the Holder
      of such Class R Certificate as described in clause (iii)(A) above shall be
      invalid,  illegal or  unenforceable,  then the  Certificate  Administrator
      shall have the right,  without notice to the Holder or any prior Holder of
      such Class R Certificate,  to sell such Class R Certificate to a purchaser
      selected by the Certificate Administrator on such terms as the Certificate
      Administrator may choose. Such purported Transferee shall promptly endorse
      and deliver each Class R Certificate in accordance  with the  instructions
      of the Certificate  Administrator.  Such purchaser may be the Company, the
      Certificate  Administrator  itself or any  affiliate of the Company or the
      Certificate  Administrator.   The  proceeds  of  such  sale,  net  of  the
      commissions  (which may  include  commissions  payable to the  Certificate
      Administrator or its affiliates),  expenses and taxes due, if any, will be
      remitted by the Certificate  Administrator  to such purported  Transferee.
      The terms and  conditions of any sale under this clause  (iii)(B) shall be
      determined in the sole  discretion of the Certificate  Administrator,  and
      the Certificate  Administrator shall not be liable to any Person having an
      Ownership Interest in a Class R Certificate as a result of its exercise of
      such discretion.

            (iv) The Certificate Administrator,  on behalf of the Trustee, shall
      make  available,  upon written  request from the Trustee,  all information
      necessary to compute any tax imposed (A) as a result of the transfer of an
      Ownership  Interest  in a Class R  Certificate  to any Person who is not a
      Permitted   Transferee,   including  the  information   regarding  "excess
      inclusions"  of such Class R  Certificates  required to be provided to the
      Internal  Revenue  Service and certain  Persons as  described  in Treasury
      Regulation  Section  1.860D-1(b)(5),  and (B) as a result of any regulated
      investment  company,  real estate  investment  trust,  common  trust fund,
      partnership,  trust, estate or organizations  described in Section 1381 of
      the Code having as among its record  holders at any time any Person who is
      not a Permitted  Transferee.  Reasonable  compensation  for providing such
      information  may be required by the  Certificate  Administrator  from such
      person.

            (v) The  provisions of this Section  5.02(d) set forth prior to this
      subsection (v) may be modified,  added or eliminated,  provided that there
      shall have been delivered to the Trustee:

                  (A) written  notification from the Rating Agency to the effect
            that the  modification,  addition or elimination of such  provisions
            will not cause such  Rating  Agency to  downgrade  its  then-current
            ratings  of the  Certificates  below the  lower of the  then-current
            rating or the rating  assigned to such  Certificates  on the Closing
            Date by such Rating Agency; and

                  (B) a certificate  of the  Certificate  Administrator  stating
            that the  Certificate  Administrator  has  received  an  Opinion  of
            Counsel,  in form  and  substance  satisfactory  to the  Certificate
            Administrator,  to the effect  that such  modification,  addition or
            absence of such provisions will not cause the Trust

                                       24
<PAGE>

            Fund to cease to qualify as a REMIC and will not cause (1) the Trust
            Fund to be subject to an entity-level  tax caused by the transfer of
            any  Class  R  Certificate  to a  Person  that  is  not a  Permitted
            Transferee  or  (2) a  Certificateholder  or  another  Person  to be
            subject to a  REMIC-related  tax caused by the transfer of a Class R
            Certificate to a Person that is not a Permitted Transferee.

            (e) No service  charge shall be made for any transfer or exchange of
Certificates,  but the Trustee may require  payment of a sum sufficient to cover
any tax or  governmental  charge  that may be  imposed  in  connection  with any
transfer or exchange of Certificates.

            (f) All Certificates  surrendered for transfer and exchange shall be
destroyed by the Certificate Registrar.

            Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

            If (i) any mutilated  Certificate is surrendered to the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  and the  Certificate  Registrar  such
security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice to the Trustee or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute  and the  Certificate  Registrar  shall  authenticate  and  deliver,  in
exchange  for or in lieu  of any  such  mutilated,  destroyed,  lost  or  stolen
Certificate, a new Certificate of like Class and Percentage Interest but bearing
a  number  not  contemporaneously  outstanding.  Upon  the  issuance  of any new
Certificate  under this  Section,  the  Trustee may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and any other expenses  (including the fees and expenses of the
Trustee  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate  issued  pursuant to this  Section  shall  constitute  complete  and
indefeasible  evidence of ownership in the Trust Fund, as if originally  issued,
whether or not the lost,  stolen or destroyed  Certificate shall be found at any
time.

            Section 5.04. Persons Deemed Owners.

            Prior to due  presentation  of a  Certificate  for  registration  of
transfer,  the  Company,  the  Certificate   Administrator,   the  Trustee,  the
Certificate   Registrar   and  any  agent  of  the  Company,   the   Certificate
Administrator,  the Trustee or the Certificate Registrar may treat the Person in
whose name any  Certificate is registered as the owner of such  Certificate  for
the purpose of  receiving  distributions  pursuant  to Section  4.01 and for all
other   purposes   whatsoever,   and  neither  the  Company,   the   Certificate
Administrator,  the  Trustee,  the  Certificate  Registrar  nor any agent of the
Company, the Certificate Administrator, the Trustee or the Certificate Registrar
shall be  affected  by notice to the  contrary  except as  provided  in  Section
5.02(d).

            Section 5.05. Appointment of Paying Agent.

            The  Trustee  may  appoint a Paying  Agent for the purpose of making
distributions  to  Certificateholders  pursuant to Section 4.01. In the event of
any such  appointment,  on or prior to each  Distribution Date the Trustee shall
deposit or cause to be deposited with the Paying

                                       25
<PAGE>

Agent a sum sufficient to make the payments to Certificateholders in the amounts
and in the manner provided for in Section 4.01, such sum to be held in trust for
the benefit of Certificateholders.

            The Trustee  shall cause each Paying Agent to execute and deliver to
the  Trustee an  instrument  in which such  Paying  Agent  shall  agree with the
Trustee  that such Paying Agent will hold all sums held by it for the payment to
Certificateholders in trust for the benefit of the  Certificateholders  entitled
thereto  until such sums shall be paid to such  Certificateholders.  Any sums so
held by such Paying Agent shall be held only in Eligible  Accounts to the extent
such sums are not distributed to the  Certificateholders  on the date of receipt
by such Paying Agent.

                                   ARTICLE VI

                  THE COMPANY AND THE CERTIFICATE ADMINISTRATOR

            Section  6.01.  Respective   Liabilities  of  the  Company  and  the
                            Certificate Administrator.

            The Company  and the  Certificate  Administrator  shall be liable in
accordance   herewith  only  to  the  extent  of  the   respective   obligations
specifically  imposed  upon and  undertaken  by the Company and the  Certificate
Administrator herein.

            Section 6.02. Merger,  Consolidation or Conversion of the Company or
                          the Certificate Administrator.

            Subject to the following paragraph,  the Company and the Certificate
Administrator will each keep in full effect its existence, rights and franchises
as a  corporation  or  association  under  the laws of the  jurisdiction  of its
incorporation,  and each  will  obtain  and  preserve  its  qualification  to do
business  as  a  foreign   corporation  in  each   jurisdiction  in  which  such
qualification   is  or  shall  be   necessary   to  protect  the   validity  and
enforceability  of  this  Agreement  and the  Certificates  and to  perform  its
respective duties under this Agreement.

            The  Company  or the  Certificate  Administrator  may be  merged  or
consolidated  with or into any Person,  or transfer all or substantially  all of
its assets to any Person,  in which case any Person resulting from any merger or
consolidation to which the Company or the Certificate  Administrator  shall be a
party,  or  any  Person  succeeding  to  the  business  of  the  Company  or the
Certificate  Administrator,  shall  be  the  successor  of  the  Company  or the
Certificate Administrator,  as the case may be, 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; provided, that no Event
of  Default  shall  result   therefrom  and  such   successor   shall  meet  the
qualifications set forth in Section 7.02.

            Section  6.03.   Limitation   on  Liability  of  the  Company,   the
                             Certificate Administrator and Others.

            Neither the Company,  the Certificate  Administrator  nor any of the
directors,  officers,  employees  or agents of the  Company  or the  Certificate
Administrator   shall  be  under  any   liability  to  the  Trust  Fund  or  the
Certificateholders for any action taken or for refraining from the

                                       26
<PAGE>

taking of any action in good faith pursuant to this Agreement,  or for errors in
judgment;  provided, however, that this provision shall not protect the Company,
the  Certificate  Administrator  or  any  such  Person  against  any  breach  of
warranties or  representations  made herein,  or against any specific  liability
imposed on the  Certificate  Administrator  pursuant to any Section  hereof,  or
against  any  liability  which would  otherwise  be imposed by reason of willful
misfeasance,  bad faith or gross  negligence in the  performance of duties or by
reason of reckless  disregard of obligations or duties  hereunder.  The Company,
the Certificate  Administrator and any director,  officer,  employee or agent of
the  Company  or the  Certificate  Administrator  may rely in good  faith on any
document of any kind which,  prima facie, is properly  executed and submitted by
any  Person  respecting  any  matters  arising  hereunder.   The  Company,   the
Certificate  Administrator and any director,  officer,  employee or agent of the
Company or the Certificate  Administrator shall be indemnified and held harmless
by the Trust Fund against any loss,  liability or expense incurred in connection
with any legal action relating to this Agreement or the Certificates, other than
any loss,  liability or expense incurred by reason of willful  misfeasance,  bad
faith or gross  negligence in the performance of duties or by reason of reckless
disregard  of  obligations  or duties  hereunder.  Neither  the  Company nor the
Certificate  Administrator shall be under any obligation to appear in, prosecute
or defend any legal  action  unless  such  action is  related to its  respective
duties under this  Agreement and which in its opinion does not involve it in any
expense or liability;  provided, however, that the Company may in its discretion
undertake any such action which it may deem  necessary or desirable with respect
to this  Agreement  and the  rights  and  duties of the  parties  hereto and the
interests of the Certificateholders  hereunder. In such event, and provided that
such action has been consented to by the Holders of  Certificates  evidencing at
least 51% of the Voting Rights,  the legal expenses and costs of such action and
any liability  resulting  therefrom shall be expenses,  costs and liabilities of
the Trust Fund, and the Company shall be entitled to be reimbursed therefor from
the  Certificate  Account as  provided  in Section  3.04.  In no event shall the
Certificate  Administrator  be liable  (solely in its  capacity  as  Certificate
Administrator) for any error arising out of any inaccurate information contained
in  any  Distribution  Date  Statement.  This  provision  shall  not  limit  the
Certificate Administrator's liability in any other capacity.

            Section 6.04. Company and Certificate Administrator Not to Resign.

            The Certificate  Administrator shall not resign from the obligations
and duties  hereby  imposed on it,  except  upon  determination  that its duties
hereunder  are no longer  permissible  under  applicable  law or are in material
conflict by reason of applicable law with any other activities carried on by it,
the other activities of the Certificate Administrator so causing such a conflict
being of a type and nature carried on by the  Certificate  Administrator  at the
date of this Agreement. Any such determination permitting the resignation of the
Certificate  Administrator  shall be  evidenced by an Opinion of Counsel to such
effect  which  shall be  delivered  in form and  substance  satisfactory  to the
Trustee.  No such  resignation  shall  become  effective  until the Trustee or a
successor   certificate   administrator   shall  have  assumed  the  Certificate
Administrator's responsibilities and obligations in accordance with Section 7.02
hereof.

                                       27
<PAGE>

                                  ARTICLE VII

                                     DEFAULT

            Section 7.01. Events of Default.

            "Event  of  Default",  wherever  used  herein,  means any one of the
following events (whatever 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) the Certificate  Administrator  shall fail to observe or perform
      in any material  respect any of the covenants or agreements on the part of
      the  Certificate  Administrator  contained in the  Certificates or in this
      Agreement and such failure shall  continue  unremedied  for a period of 30
      days after the date on which written notice of such failure, requiring the
      same  to  be   remedied,   shall  have  been  given  to  the   Certificate
      Administrator  by the  Trustee  or  the  Company,  or to  the  Certificate
      Administrator,  the Company and the Trustee by the Holders of Certificates
      evidencing Percentage Interests aggregating not less than 33%; or

            (ii) a decree or order of a court or agency or supervisory authority
      having  jurisdiction  in the  premises  in an  involuntary  case under any
      present or future federal or state  bankruptcy,  insolvency or similar law
      or appointing a conservator  or receiver or liquidator in any  insolvency,
      readjustment  of debt,  marshalling  of assets and  liabilities or similar
      proceedings,  or for the winding-up or  liquidation of its affairs,  shall
      have been entered against the Certificate Administrator and such decree or
      order shall have remained in force  undischarged  or unstayed for a period
      of 60 days; or

            (iii) the Certificate Administrator shall consent to the appointment
      of a conservator or receiver or liquidator in any insolvency, readjustment
      of debt, marshalling of assets and liabilities, or similar proceedings of,
      or relating to, the Certificate  Administrator  or of, or relating to, all
      or substantially all of the property of the Certificate Administrator; or

            (iv)  the  Certificate  Administrator  shall  admit in  writing  its
      inability to pay its debts  generally as they become due,  file a petition
      to take advantage of, or commence a voluntary  case under,  any applicable
      insolvency or reorganization  statute,  make an assignment for the benefit
      of its creditors, or voluntarily suspend payment of its obligations.

            If an Event of Default described in this Section shall occur,  then,
and in each and every such case, so long as such Event of Default shall not have
been  remedied,  either the Company or the Trustee may, and at the  direction of
Holders  of  Certificates  evidencing  at least 51% of the  Voting  Rights,  the
Trustee shall, by notice in writing to the Certificate Administrator (and to the
Company  if given by the  Trustee or to the  Trustee  if given by the  Company),
terminate all of the rights and  obligations  of the  Certificate  Administrator
under this  Agreement and in and to the  Underlying  Agency  Securities  and the
proceeds thereof, other than its rights as

                                       28
<PAGE>

a  Certificateholder   hereunder;   provided,   however,  that  the  Certificate
Administrator  will  be  entitled  to all  compensation  and any  income  on the
Certificate Account that accrued to the Certificate  Administrator prior to such
termination.  The  Trustee is hereby  authorized  and  empowered  to execute and
deliver,  on behalf of the Certificate  Administrator,  as  attorney-in-fact  or
otherwise, any and all documents and other instruments,  and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of  termination,  whether to complete  the transfer  and  endorsement  or
assignment  of the  Underlying  Agency  Securities  and  related  documents,  or
otherwise. The Certificate Administrator agrees to cooperate with the Trustee in
effecting the  termination of the Certificate  Administrator's  responsibilities
and rights hereunder, including, without limitation, the transfer to the Trustee
or its designee for  administration by it of all cash amounts which shall at the
time be credited  to the  Certificate  Account or  thereafter  be received  with
respect to the Underlying Agency  Securities.  No such termination shall release
the  Certificate  Administrator  for any liability that it would  otherwise have
hereunder  for  any  act  or  omission  prior  to the  effective  time  of  such
termination.

            Section 7.02. Trustee or Company to Act; Appointment of Successor.

            On and  after  the time the  Certificate  Administrator  receives  a
notice of  termination  pursuant to Section 7.01, the Trustee or, upon notice to
the Company,  and with the Company's  consent  (which shall not be  unreasonably
withheld) a designee (which meets the standards set forth below) of the Trustee,
shall be the successor in all respects to the Certificate  Administrator  in its
capacity as Certificate  Administrator under this Agreement and the transactions
set  forth  or   provided   for   herein   and  shall  be  subject  to  all  the
responsibilities,   duties  and  liabilities  relating  thereto  placed  on  the
Certificate  Administrator  (except for its  obligations  to deposit  amounts in
respect of losses incurred prior to such notice of termination on the investment
of funds in the  Certificate  Account  pursuant to Section 4.04 by the terms and
provisions hereof);  provided,  however, that any failure to perform such duties
or responsibilities caused by the preceding Certificate  Administrator's failure
to provide  information  required  by Section  4.01  shall not be  considered  a
default by the Trustee hereunder. As compensation therefor, the Trustee shall be
entitled to all funds relating to the  Underlying  Agency  Securities  which the
Certificate  Administrator would have been entitled to charge to the Certificate
Account if the Certificate  Administrator had continued to act hereunder and, in
addition,  shall be entitled to the income from any Permitted  Investments  made
with  amounts  attributable  to the  Underlying  Agency  Securities  held in the
Certificate  Account. If the Trustee has become the successor to the Certificate
Administrator in accordance with Section 7.01, then  notwithstanding  the above,
the Trustee may, if it shall be  unwilling to so act, or shall,  if it is unable
to so act,  appoint,  or petition a court of competent  jurisdiction to appoint,
any established housing and home finance  institution,  which is also a FNMA- or
FHLMC-approved  mortgage servicing  institution,  having a net worth of not less
than $10,000,000 as the successor to the Certificate  Administrator hereunder in
the assumption of all or any part of the responsibilities, duties or liabilities
of the Certificate  Administrator hereunder.  Pending appointment of a successor
to the Certificate  Administrator  hereunder, the Trustee shall become successor
to the Certificate  Administrator  and shall act in such capacity as hereinabove
provided.  In connection with such  appointment and assumption,  the Trustee may
make such arrangements for the compensation of such successor out of payments on
Underlying  Agency  Securities as it and such successor  shall agree;  provided,
however,  that no such  compensation  shall be in excess of that  permitted  the
initial  Certificate  Administrator  hereunder.  The Company,  the Trustee,  the
Certificate

                                       29
<PAGE>

Administrator,  the  Custodian  and  such  successor  shall  take  such  action,
consistent  with this  Agreement,  as shall be necessary to effectuate  any such
succession.

            Section 7.03. Notification to Certificateholders.

            (a) Upon any such  termination  or appointment of a successor to the
Certificate Administrator,  the Trustee shall give prompt written notice thereof
to Certificateholders at their respective addresses appearing in the Certificate
Register.

            (b) Within 60 days after the occurrence of any Event of Default, the
Trustee  shall  transmit by mail to all Holders of  Certificates  notice of each
such Event of  Default  hereunder  known to the  Trustee,  unless  such Event of
Default shall have been cured or waived.

            Section 7.04. Waiver of Events of Default.

            The  Holders  representing  at least  66% of the  Voting  Rights  of
Certificates may waive such default or Event of Default; provided, however, that
no waiver pursuant to this Section 7.04 shall affect the Holders of Certificates
in the manner set forth in Section  10.01.  Upon any such waiver of a default or
Event of Default,  such default or Event of Default by the Holders  representing
the  requisite  percentage  of Voting  Rights of  Certificates  affected by such
default or Event of  Default,  shall  cease to exist and shall be deemed to have
been  remedied for every purpose  hereunder.  No such waiver shall extend to any
subsequent or other  default or Event of Default or impair any right  consequent
thereon except to the extent expressly so waived.

                                  ARTICLE VIII

                                   THE TRUSTEE

            Section 8.01. Duties of Trustee.

            (a) The Trustee,  prior to the occurrence of an Event of Default and
after the curing of all Events of Default which may have occurred, undertakes to
perform such duties and only such duties as are  specifically  set forth in this
Agreement. In case an Event of Default has occurred (which has not been cured or
waived),  the Trustee shall  exercise such of the rights and powers vested in it
by this  Agreement,  and use the same degree of care and skill in their exercise
as a prudent  investor  would  exercise  or use under the  circumstances  in the
conduct of such investor's own affairs.

            (b) The  Trustee,  upon  receipt of all  resolutions,  certificates,
statements,  opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically  required to be furnished  pursuant to any
provision  of this  Agreement,  shall  examine  them to  determine  whether they
conform to the  requirements  of this  Agreement and the terms of the Underlying
Agency Securities.  The Trustee shall notify the  Certificateholders of any such
documents which do not materially  conform to the requirements of this Agreement
in  the  event  that  the  Trustee,  after  so  requesting,   does  not  receive
satisfactorily  corrected documents or a satisfactory  explanation regarding any
such nonconformities.

                                       30
<PAGE>

            The  Trustee  shall  forward  or cause to be  forwarded  in a timely
fashion the  notices,  reports and  statements  required to be  forwarded by the
Trustee pursuant to Sections 3.01, 4.02 and 9.01. The Trustee shall furnish in a
timely  fashion  to  the  Certificate  Administrator  such  information  as  the
Certificate  Administrator  may  reasonably  request  from  time to time for the
Certificate  Administrator to fulfill its duties as set forth in this Agreement.
The Trustee covenants and agrees that it shall perform its obligations hereunder
in a manner so as to maintain the status of the Trust Fund as a REMIC, under the
REMIC  Provisions and to prevent the  imposition of any federal,  state or local
income,  prohibited transaction,  contribution or other tax on the Trust Fund to
the extent that  maintaining  such status and avoiding such taxes are reasonably
within the  control of the Trustee  and are  reasonably  within the scope of its
duties under this Agreement,  notwithstanding  the foregoing.  Also, the Trustee
shall have no additional  obligations  with respect to  maintenance of the Trust
Fund as a REMIC other than as specifically set forth herein.

            (c) No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent  action,  its own negligent failure
to act or its own willful misconduct; provided, however, that:

            (i) Prior to the  occurrence  of an Event of Default,  and after the
      curing or waiver of all such  Events of Default  which may have  occurred,
      the duties and  obligations  of the Trustee shall be determined  solely by
      the express provisions of this Agreement,  the Trustee shall not be liable
      except  for  the  performance  of  such  duties  and  obligations  as  are
      specifically  set  forth  in  this  Agreement,  no  implied  covenants  or
      obligations  shall be read into this Agreement against the Trustee and, in
      the  absence  of bad faith on the part of the  Trustee,  the  Trustee  may
      conclusively  rely, as to the truth of the statements and the  correctness
      of the  opinions  expressed  therein,  upon any  certificates  or opinions
      furnished by the Company or the Certificate  Administrator  to the Trustee
      and  which on their  face,  do not  contradict  the  requirements  of this
      Agreement;

            (ii) The  Trustee  shall not be  personally  liable  for an error of
      judgment  made in good  faith  by a  Responsible  Officer  or  Responsible
      Officers  of the  Trustee,  unless it shall be proved that the Trustee was
      negligent in ascertaining the pertinent facts;

            (iii) The Trustee shall not be personally liable with respect to any
      action  taken,  suffered  or  omitted  to be taken by it in good  faith in
      accordance  with the  direction  of the  Certificateholders  of any  Class
      holding  Certificates  which  evidence,  as  to  such  Class,   Percentage
      Interests  aggregating not less than 25% as to the time,  method and place
      of conducting any proceeding for any remedy  available to the Trustee,  or
      exercising  any trust or power  conferred  upon the  Trustee,  under  this
      Agreement;

            (iv) The Trustee shall not be charged with  knowledge of any default
      or an Event of Default under clauses (i),  (ii),  (iii) or (iv) of Section
      7.01 unless a Responsible  Officer of the Trustee  assigned to and working
      in the Corporate Trust Office obtains actual  knowledge of such failure or
      event or the Trustee  receives  written notice of such failure or event at
      its  Corporate  Trust  Office  from  the  Certificate  Administrator,  the
      Company, or any Certificateholder; and

                                       31
<PAGE>

            (v) Except to the extent  provided in Section  7.02, no provision in
      this  Agreement  shall require the Trustee to expend or risk its own funds
      or otherwise incur any personal financial  liability in the performance of
      any of its duties as Trustee  hereunder,  or in the exercise of any of its
      rights or  powers,  if the  Trustee  shall  have  reasonable  grounds  for
      believing that repayment of funds or adequate  indemnity against such risk
      or liability is not reasonably assured to it. In the event the Trustee has
      been  authorized  by  Certificateholders   evidencing  the  percentage  of
      Percentage  Interests  required to authorize  such action  pursuant to the
      terms of this Agreement and the indemnification provided to the Trustee by
      such Certificateholders is not reasonably satisfactory to the Trustee, the
      Trustee  may  require  the  approval  of  all  Certificateholders   and/or
      additional  indemnification  prior to taking any such action. In addition,
      the Trustee may seek indemnification from the Certificate Administrator or
      the Company  prior to taking any such  action  provided  that  neither the
      Certificate  Administrator  nor the  Company  shall be required to provide
      such indemnification.

            (d) The Trustee shall timely pay, from its own funds,  the amount of
any and all  federal,  state and local  taxes  imposed  on the Trust Fund or its
assets  or  transactions   including,   without   limitation,   (i)  "prohibited
transaction"  penalty taxes as defined in Section 860F of the Code, if, when and
as the same shall be due and payable,  and (ii) any tax on  contributions to the
Trust Fund after the Closing  Date imposed by Section  860G(d) of the Code,  but
only if such  taxes  arise out of a breach  by the  Trustee  of its  obligations
hereunder  which breach  constitutes  negligence  or willful  misconduct  of the
Trustee.

            Section 8.02. Certain Matters Affecting the Trustee.

            (a) Except as otherwise provided in Section 8.01:

            (i) the  Trustee  may  rely and  shall be  protected  in  acting  or
      refraining  from  acting  upon  any  resolution,   Officer's  Certificate,
      certificate of auditors or any other certificate,  statement,  instrument,
      opinion, report, notice, request, consent, order, appraisal, bond or other
      paper or document  believed by it to be genuine and to have been signed or
      presented by the proper party or parties;

            (ii) the Trustee may consult with counsel and any Opinion of Counsel
      shall be full and complete  authorization and protection in respect of any
      action  taken or suffered or omitted by it  hereunder in good faith and in
      accordance with such Opinion of Counsel;

            (iii) the Trustee  shall be under no  obligation  to exercise any of
      the  trusts or  powers  vested in it by this  Agreement  or to  institute,
      conduct or defend any  litigation  hereunder or in relation  hereto at the
      request, order or direction of any of the Certificateholders,  pursuant to
      the provisions of this  Agreement,  unless such  Certificateholders  shall
      have offered to the Trustee  reasonable  security or indemnity against the
      costs,  expenses and liabilities which may be incurred therein or thereby;
      nothing  contained  herein  shall,  however,  relieve  the  Trustee of the
      obligation, upon the occurrence of an Event of Default (which has not been
      cured),  to  exercise  such of the rights and powers  vested in it by this
      Agreement, and to use the same degree of care and

                                       32
<PAGE>

skill in their  exercise as a prudent  investor  would exercise or use under the
circumstances in the conduct of such investor's own affairs;

            (iv) the  Trustee  shall not be  personally  liable  for any  action
      taken,  suffered  or omitted by it in good faith and  believed by it to be
      authorized or within the discretion or rights or powers  conferred upon it
      by this Agreement;

            (v) prior to the  occurrence  of an Event of Default  hereunder  and
      after the  curing of all Events of Default  which may have  occurred,  the
      Trustee  shall  not be bound to 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,  unless  requested  in  writing so to do by Holders of
      Certificates  evidencing Percentage  Interests,  aggregating not less than
      50%;  provided,  however,  that if the payment within a reasonable time to
      the Trustee of the costs, expenses or liabilities likely to be incurred by
      it in the making of such  investigation is, in the opinion of the Trustee,
      not  reasonably  assured to the Trustee by the security  afforded to it by
      the terms of this Agreement,  the Trustee may require reasonable indemnity
      against such expense or  liability  as a condition to so  proceeding.  The
      reasonable  expense  of  every  such  examination  shall  be  paid  by the
      Certificate Administrator,  if an Event of Default shall have occurred and
      is  continuing,  and  otherwise by the  Certificateholder  requesting  the
      investigation;

            (vi) the Trustee  may execute any of the trusts or powers  hereunder
      or perform any duties hereunder either directly or by or through agents or
      attorneys; and

            (vii) to the extent  authorized  or required from time to time under
      the Code and the  regulations  promulgated  thereunder,  each  Holder of a
      Class R Certificate hereby irrevocably appoints and authorizes the Trustee
      to be its  attorney-in-fact  for  purposes  of  signing  any  Tax  Returns
      required to be filed on behalf of the Trust Fund.  The Trustee  shall sign
      on behalf of the Trust Fund and deliver to the  Certificate  Administrator
      in a  timely  manner  any Tax  Returns  prepared  by or on  behalf  of the
      Certificate  Administrator  that  the  Trustee  is  required  to  sign  as
      determined  by  the  Certificate   Administrator  pursuant  to  applicable
      federal,   state  or  local  tax  laws,   provided  that  the  Certificate
      Administrator shall indemnify the Trustee for signing any such Tax Returns
      that contain errors or omissions.

            (b)  Following the issuance of the  Certificates,  the Trustee shall
not accept  any  contribution  of assets to the Trust Fund  unless it shall have
obtained  or been  furnished  with an Opinion of Counsel to the effect that such
contribution  will not (i) cause the REMIC to fail to  qualify as a REMIC at any
time that any  Certificates  are  outstanding or (ii) cause the Trust Fund to be
subject to any tax as a result of such contribution (including the imposition of
any tax on  "prohibited  transactions"  of the Trust Fund imposed  under Section
860F(a) of the Code).

                                       33
<PAGE>

            Section  8.03.  Trustee Not Liable for  Certificates  or  Underlying
                            Agency Securities.

            The recitals  contained herein and in the  Certificates  (other than
the execution of the  Certificates and relating to the acceptance and receipt of
the  Underlying  Agency  Securities)  shall be taken  as the  statements  of the
Company or the  Certificate  Administrator,  as the case may be, and the Trustee
assumes  no  responsibility  for  their   correctness.   The  Trustee  makes  no
representations  as to the validity or  sufficiency  of this Agreement or of the
Certificates  (except that the  Certificates  shall be duly and validly executed
and  authenticated by it as Certificate  Registrar) or of the Underlying  Agency
Securities or any related  document.  Except as otherwise  provided herein,  the
Trustee shall not be  accountable  for the use or  application by the Company or
the Certificate  Administrator  of any of the Certificates or of the proceeds of
such  Certificates,  or for  the use or  application  of any  funds  paid to the
Company or the  Certificate  Administrator  in respect of the Underlying  Agency
Securities deposited in or withdrawn from the Certificate Account by the Company
or the Certificate Administrator.

            Section 8.04. Trustee May Own Certificates.

            The Trustee in its  individual or any other  capacity may become the
owner or pledgee of  Certificates  with the same rights it would have if it were
not Trustee.

            Section 8.05.  Certificate  Administrator  to Pay Trustee's Fees and
                           Expenses; Indemnification.

            (a) The Certificate Administrator covenants and agrees to pay to the
Trustee and any co-trustee from time to time, and the Trustee and any co-trustee
shall be entitled to, reasonable compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for all services  rendered by each of them in the execution of the trusts hereby
created  and in the  exercise  and  performance  of any of the powers and duties
hereunder of the Trustee and any co-trustee,  and the Certificate  Administrator
will pay or  reimburse  the  Trustee  and any  co-trustee  upon  request for all
reasonable expenses,  disbursements and advances incurred or made by the Trustee
or any  co-trustee in accordance  with any of the  provisions of this  Agreement
(including the reasonable compensation and the expenses and disbursements of its
counsel  and of all  Persons  not  regularly  in its  employ,  and the  expenses
incurred by the Trustee or any co-trustee in connection  with the appointment of
an  office  or  agency  pursuant  to  Section  8.11)  except  any such  expense,
disbursement or advance as may arise from its negligence or bad faith.

            (b) The  Certificate  Administrator  agrees to indemnify the Trustee
for, and to hold the Trustee harmless  against,  any loss,  liability or expense
incurred without  negligence or willful  misconduct on its part, arising out of,
or in connection  with,  the acceptance  and  administration  of the Trust Fund,
including the costs and expenses (including  reasonable legal fees and expenses)
of  defending  itself  against  any claim in  connection  with the  exercise  or
performance of any of its powers or duties under this Agreement, provided that:

                                       34
<PAGE>

            (i) with respect to any such claim, the Trustee shall have given the
      Certificate  Administrator  written  notice  thereof  promptly  after  the
      Trustee shall have actual knowledge thereof;

            (ii) while  maintaining  control over its own  defense,  the Trustee
      shall  cooperate and consult fully with the Certificate  Administrator  in
      preparing such defense; and

            (iii)  notwithstanding  anything in this  Agreement to the contrary,
      the  Certificate  Administrator  shall not be liable for settlement of any
      claim by the  Trustee  entered  into  without  the  prior  consent  of the
      Certificate   Administrator   which  consent  shall  not  be  unreasonably
      withheld.

No termination of this Agreement  shall affect the  obligations  created by this
Section 8.05(b) of the Certificate  Administrator to indemnify the Trustee under
the conditions and to the extent set forth herein.

            Notwithstanding the foregoing,  the indemnification  provided by the
Certificate Administrator in this Section 8.05(b) shall not pertain to any loss,
liability  or  expense  of the  Trustee,  including  the costs and  expenses  of
defending  itself  against any claim,  incurred in  connection  with any actions
taken by the  Trustee at the  direction  of  Certificateholders  pursuant to the
terms of this Agreement.

            (c)   Notwithstanding   Section   8.05(b)  above,   the  Certificate
Administrator  shall  not  indemnify  the  Trustee  for any loss,  liability  or
expense, including the costs and expenses of defending itself against any claim,
incurred  in  connection  with  the  Trustee's  establishment,   maintenance  or
management of the Certificate  Account;  provided,  however,  that the foregoing
shall not limit the Certificate Administrator's obligation to made deposits into
the  Certificate  Account to cover  losses  incurred  in  respect  of  Permitted
Investments pursuant to Section 4.04.

            Section 8.06. Eligibility Requirements for Trustee.

            The  Trustee  hereunder  shall at all  times be a  corporation  or a
national  banking  association  having its principal  office in a state and city
acceptable  to the Company and organized  and doing  business  under the laws of
such  state or the  United  States of  America,  authorized  under  such laws to
exercise  corporate  trust powers,  having a combined  capital and surplus of at
least  $50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or national banking association publishes reports
of condition at least  annually,  pursuant to law or to the  requirements of the
aforesaid  supervising  or  examining  authority,  then for the purposes of this
Section the combined capital and surplus of such corporation  shall be deemed to
be its  combined  capital and surplus as set forth in its most recent  report of
condition  so  published.  In case at any time  the  Trustee  shall  cease to be
eligible in accordance  with the  provisions of this Section,  the Trustee shall
resign immediately in the manner and with the effect specified in Section 8.07.

                                       35
<PAGE>

            Section 8.07. Resignation and Removal of the Trustee.

            (a) The Trustee may at any time  resign and be  discharged  from the
trusts hereby  created by giving  written  notice  thereof to the Company.  Upon
receiving  such notice of  resignation,  the Company  shall  promptly  appoint a
successor  trustee  by  written  instrument,  in  duplicate,  one  copy of which
instrument shall be delivered to the resigning  Trustee and one copy each to the
successor trustee. If no successor trustee shall have been so appointed and have
accepted  appointment  within  30  days  after  the  giving  of such  notice  of
resignation,  then the  resigning  Trustee may  petition  any court of competent
jurisdiction for the appointment of a successor trustee.

            (b) If at any  time  the  Trustee  shall  cease  to be  eligible  in
accordance  with the  provisions  of Section 8.06 and shall fail to resign after
written  request  therefor by the Company,  or if at any time the Trustee  shall
become  incapable of acting,  or shall be adjudged  bankrupt or insolvent,  or a
receiver of the Trustee or of its  property  shall be  appointed,  or any public
officer  shall  take  charge or control of the  Trustee  or of its  property  or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Company  may remove  the  Trustee  and  appoint a  successor  trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee.

            (c) The  Holders  of  Certificates  evidencing  at least  51% of the
Voting Rights may at any time remove the Trustee and appoint a successor trustee
by written instrument or instruments,  in triplicate,  signed by such Holders or
their  attorneys-in-fact duly authorized,  one complete set of which instruments
shall be delivered  to the  Company,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

            (d) Any  resignation or removal of the Trustee and  appointment of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.08.

            Section 8.08. Successor Trustee.

            (a) Any  successor  trustee  appointed  as provided in Section  8.07
shall  execute,  acknowledge  and deliver to the Company and to its  predecessor
trustee an instrument  accepting such appointment  hereunder,  and thereupon the
resignation  or removal of the  predecessor  trustee shall become  effective and
such  successor  trustee,  without any further act,  deed or  conveyance,  shall
become fully vested with all the rights,  powers,  duties and obligations of its
predecessor  hereunder,  with the like effect as if originally  named as trustee
herein.  The  predecessor  trustee shall  deliver to the  successor  trustee all
Underlying  Agency  Securities and related  documents and statements  held by it
hereunder,  and the Company,  the Certificate  Administrator and the predecessor
trustee shall execute and deliver such  instruments  and do such other things as
may  reasonably be required for more fully and certainly  vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

            (b) No successor  trustee  shall accept  appointment  as provided in
this Section unless at the time of such acceptance such successor  trustee shall
be eligible under the provisions of Section 8.06.

                                       36
<PAGE>

            (c)  Upon  acceptance  of  appointment  by a  successor  trustee  as
provided in this  Section,  the Company  shall mail notice of the  succession of
such trustee  hereunder  to all Holders of  Certificates  at their  addresses as
shown in the  Certificate  Register.  If the  Company  fails to mail such notice
within 10 days after  acceptance of  appointment by the successor  trustee,  the
successor  trustee  shall  cause such  notice to be mailed at the expense of the
Company.

            Section 8.09. Merger or Consolidation of Trustee.

            Any  corporation  or  national  banking  association  into which the
Trustee may be merged or converted or with which it may be  consolidated  or any
corporation  or  national  banking   association   resulting  from  any  merger,
conversion  or  consolidation  to which  the  Trustee  shall be a party,  or any
corporation or national banking  association  succeeding to all or substantially
all of the corporation trust business of the Trustee,  shall be the successor of
the Trustee hereunder, provided such corporation or national banking association
shall be eligible under the provisions of Section 8.06, 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 Trustee shall mail notice
of any such merger or consolidation to the  Certificateholders  at their address
as shown in the Certificate Register.

            Section 8.10. Appointment of Co-Trustee or Separate Trustee.

            (a)  Notwithstanding  any other provisions  hereof, at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Trust Fund or property securing the same may at the time be located,
the  Certificate  Administrator  and the Trustee  acting  jointly shall have the
power and shall  execute  and  deliver  all  instruments  to appoint one or more
Persons  approved by the Trustee to act as  co-trustee or  co-trustees,  jointly
with the Trustee,  or separate trustee or separate trustees,  of all or any part
of the Trust Fund, and to vest in such Person or Persons, in such capacity, such
title to the  Trust  Fund,  or any  part  thereof,  and,  subject  to the  other
provisions of this Section 8.10, such powers,  duties,  obligations,  rights and
trusts as the Certificate  Administrator and the Trustee may consider  necessary
or desirable.  If the  Certificate  Administrator  shall not have joined in such
appointment  within 15 days after the receipt by it of a request so to do, or in
case an Event of Default  shall have  occurred  and be  continuing,  the Trustee
alone shall have the power to make such  appointment.  No co-trustee or separate
trustee  hereunder  shall be  required  to meet the  terms of  eligibility  as a
successor  trustee  under  Section  8.06  hereunder  and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 8.08 hereof.

            (b) In the  case of any  appointment  of a  co-trustee  or  separate
trustee pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Certificate Administrator  hereunder),  the Trustee shall be
incompetent  or  unqualified  to perform  such act or acts,  in which event such
rights,  powers,  duties and obligations  (including the holding of title to the
Trust Fund or any portion thereof in any such  jurisdiction)  shall be exercised
and  performed by such  separate  trustee or  co-trustee at the direction of the
Trustee.

                                       37
<PAGE>

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

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

            Section 8.11. Appointment of Office or Agency.

            The  Trustee  will  maintain  an office or agency in the City of New
York where  Certificates  may be  surrendered  for  registration  of transfer or
exchange. The Trustee initially designates  [_______________________],  which is
located  at   [_________________________]   for  the   purpose  of  keeping  the
Certificate Register.  The Trustee will maintain an office at the address stated
in Section  11.05(c)  hereof where notices and demands to or upon the Trustee in
respect of this Agreement may be served.

                                   ARTICLE IX

                                   TERMINATION

            Section 9.01. Termination.

            (a)  Subject  to  Section  9.02,  the  respective   obligations  and
responsibilities of the Certificate  Administrator,  the Company and the Trustee
created  hereby with respect to the  Certificates  (other than the obligation to
make  certain  payments  and to send certain  notices to  Certificateholders  as
hereinafter  set  forth)  shall  terminate   immediately  upon  payment  to  the
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them hereunder  following the earlier to occur of (i) the
repurchase  by  the  Certificate  Administrator  or  the  Company  of all of the
Underlying  Agency  Securities and other assets remaining in the Trust Fund at a
price equal to 100% of the then  outstanding  Certificate  Principal  Balance of
each of the Class [A-1],  Class [A-2],  Class [A-3] and Class R Certificates  on
the day of  repurchase  together  with  accrued  interest  thereon  on such then
outstanding  Certificate  Principal Balance and on the Class [S] Certificates at
the then  applicable  Notional  Amount at the related  Pass-Through  Rate to the
first  day of the  month in which  the  proceeds  of such  repurchase  are to be
distributed, and (ii) the last action required to be taken by the Trustee on the
Termination  Date  pursuant to this  Article IX  following  receipt of the final
distribution to be made on the last remaining  Underlying Agency Security in the
Trust Fund upon presentation and

                                       38
<PAGE>

surrender of such  Underlying  Agency  Security in accordance with the terms and
conditions thereof; provided,  however, that in no event shall the trust created
hereby continue beyond the expiration of twenty-one  years from the death of the
survivor of the  descendants  of Joseph P. Kennedy,  the late  ambassador of the
United States to the United Kingdom, living on the date hereof.

            The  right  of  the  Certificate  Administrator  or the  Company  to
repurchase all of the Underlying Agency  Securities  pursuant to (i) above shall
be conditioned upon the aggregate of the Underlying Certificate Balances of such
Underlying Agency  Securities at the time of any such repurchase  aggregating an
amount equal to or less than [ ]% of the aggregate of the Underlying Certificate
Balances of the Underlying Agency Securities at the Closing Date.

            (b) The  Certificate  Administrator  shall give the  Trustee and the
Rating Agency notice (a "Notice of  Termination")  as soon as practicable of the
Distribution  Date on which the Certificate  Administrator  anticipates that the
final  distribution  will  be  made  to the  Certificateholders.  Notice  of any
termination  of the Trust Fund  pursuant to this Section 9.01 shall be mailed by
the  Trustee to  affected  Certificateholders  at their  addresses  shown in the
Certificate  Register  as soon as  practicable  after  the  Trustee  shall  have
received a Notice of  Termination  but in any event,  not more than thirty days,
and not less than ten  days,  prior to the  Anticipated  Termination  Date.  The
notice mailed by the Trustee to affected Certificateholders shall:

                  (A)  specify  the  Anticipated  Termination  Date on which the
            final  distribution  is  anticipated  to be made to  Holders  of the
            Certificates;

                  (B)  specify  the  amount of any such final  distribution,  if
            known; and

                  (C) state that the final  distribution  to  Certificateholders
            will be made only upon presentation and surrender of Certificates at
            the office of the Trustee therein specified.

If the Trust Fund is not terminated on the Anticipated  Termination Date for any
reason,  the  Trustee  shall  promptly  mail  notice  thereof  to each  affected
Certificateholder.

            (c) Upon  presentation  and  surrender  of the  Certificates  by the
Certificateholders  on the Termination Date, the Trustee shall distribute to the
Certificateholders the amounts otherwise distributable on such Distribution Date
pursuant to Section  4.01(a).  Any funds not distributed on the Termination Date
because of the failure of any  Certificateholders  to tender their  Certificates
shall  be set  aside  and  held in  trust  for the  account  of the  appropriate
non-tendering  Certificateholders,  whereupon the Trust Fund shall terminate. If
any  Certificates  as to which  notice of the  Termination  Date has been  given
pursuant to this Section 9.01 shall not have been  surrendered for  cancellation
within six months after the time  specified in such  notice,  the Trustee  shall
mail a  second  notice  to  the  remaining  Certificateholders,  at  their  last
addresses shown in the Certificate Register, to surrender their Certificates for
cancellation in order to receive,  from such funds held, the final  distribution
with respect thereto. If within one year after the second notice any Certificate
shall not have been  surrendered for  cancellation,  the Trustee shall so notify
the Certificate Administrator who shall upon receipt of such notice, directly or

                                       39
<PAGE>

through   an  agent,   take   reasonable   steps  to   contact   the   remaining
Certificateholders  concerning  surrender of their  Certificates.  The costs and
expenses of maintaining such funds and of contacting Certificateholders shall be
paid out of the assets which  remain held.  If within two years after the second
notice any Certificates  shall not have been surrendered for  cancellation,  the
Trustee shall pay to the Certificate  Administrator all amounts distributable to
the Holders thereof and the Certificate Administrator shall thereafter hold such
amounts for the benefit of such Holders.  No interest shall accrue or be payable
to  any   Certificateholder   on  any   amount   held  as  a   result   of  such
Certificateholder's  failure to surrender its  Certificate(s)  for final payment
thereof in accordance with this Section 9.01.

            Section 9.02. Additional Termination Requirements.

            (a) The  Trust  Fund  shall be  terminated  in  accordance  with the
following  additional  requirements,  unless  the  Trustee  and the  Certificate
Administrator have received an Opinion of Counsel to the effect that the failure
of the Trust Fund to comply with the  requirements of this Section 9.02 will not
(i)  result  in the  imposition  on the  Trust  Fund  of  taxes  on  "prohibited
transactions", as described in Section 860F of the Code, or (ii) cause the Trust
Fund to  fail to  qualify  as a  REMIC  at any  time  that  any  Certificate  is
outstanding.

            (i)  The   Certificate   Administrator   shall  establish  a  90-day
      liquidation  period for the Trust Fund and  specify  the first day of such
      period in a  statement  attached  to the  Trust  Fund's  final Tax  Return
      pursuant  to  Treasury  regulations  Section  1.860F-1.   The  Certificate
      Administrator  also shall satisfy all of the  requirements  of a qualified
      liquidation  for the Trust  Fund  under  Section  860F of the Code and the
      regulations thereunder;

            (ii) The Certificate  Administrator  shall notify the Trustee at the
      commencement  of such  90-day  liquidation  period and, at or prior to the
      time of making of the final payment on the Certificates, the Trustee shall
      sell or otherwise dispose of all of the remaining assets of the Trust Fund
      in accordance with the terms hereof; and

            (iii)  After  making  the final  payment  on the  Certificates,  the
      Certificate  Administrator  shall  distribute  or  credit,  or cause to be
      distributed or credited,  to the Holders of the Class R  Certificates  all
      cash  remaining in the  Certificate  Account  (other than cash retained to
      meet claims), and the Trust Fund shall terminate at that time.

            (b) Each Holder of a  Certificate  hereby  irrevocably  approves and
appoints the Certificate  Administrator as its attorney-in-fact for the purposes
of adoption of the plan of complete  liquidation  and obtaining the signature of
the Trustee in accordance with the terms and conditions of this Agreement.

                                       40
<PAGE>

                                   ARTICLE X

                                REMIC PROVISIONS

            Section 10.01. REMIC Administration.

            (a) The  Certificate  Administrator  shall make an election to treat
the Trust Fund as a REMIC under the Code and,  if  necessary,  under  applicable
state law. Such election will be made on Form 1066 or other appropriate  federal
tax or information  return (including Form 8811) or any appropriate state return
for the taxable  year ending on the last day of the  calendar  year in which the
Certificates  are issued.  For the purposes of the REMIC  election in respect of
the Trust Fund, the Certificates  (other than the Class R Certificates) shall be
designated  as the "regular  interests"  and the Class R  Certificates  shall be
designated  as the sole class of  "residual  interest"  in the Trust  Fund.  The
Certificate  Administrator  and the Trustee shall not permit the creation of any
"interests"  (within the meaning of Section  860G of the Code) in the Trust Fund
other than the Trust Fund regular interests and the interests represented by the
Certificates, respectively.

            (b) The Closing Date is hereby  designated  as the "Startup  Day" of
the Trust Fund within the meaning of Section 860G(a)(9) of the Code.

            (c)  [[The   Certificate   Administrator]   shall  hold  a  Class  R
Certificate representing a 0.01% Percentage Interest of all Class R Certificates
and shall be  designated  as the tax  matters  person  of the Trust  Fund in the
manner  provided under Treasury  regulations  section  1.860F-4(d) and temporary
Treasury regulations section 301.6231(a)(7)-1T.] [the Certificate Administrator]
as tax matters person,  shall (i) act on behalf of the Trust Fund in relation to
any tax matter or  controversy  involving the Trust Fund and (ii)  represent the
Trust  Fund  in  any  administrative  or  judicial  proceeding  relating  to  an
examination or audit by any governmental  taxing authority with respect thereto.
The legal  expenses,  including  without  limitation  attorneys' or accountants'
fees,  and costs of any such  proceeding and any liability  resulting  therefrom
shall be expenses of the Trust Fund and [the Certificate Administrator] shall be
entitled to reimbursement  therefor out of amounts  attributable to the Mortgage
Loans on deposit in the  Certificate  Account as provided by Section 3.04 unless
such  legal  expenses  and costs  are  incurred  by  reason of [the  Certificate
Administrator's]  willful  misfeasance,  bad faith or gross negligence.  If [the
Certificate  Administrator] is no longer the Certificate Administrator hereunder
[the  Certificate  Administrator]  shall be paid reasonable  compensation by any
successor  Certificate  Administrator  hereto  for so  acting  as  "tax  matters
person."]

            (d) The  Certificate  Administrator  shall  prepare  or  cause to be
prepared all of the Tax Returns that it determines  are required with respect to
the Trust Fund created hereunder and deliver such Tax Returns in a timely manner
to the Trustee and the Trustee  shall sign and file such Tax Returns in a timely
manner. The expenses of preparing such returns shall be borne by the Certificate
Administrator  without  any right of  reimbursement  therefor.  The  Certificate
Administrator  agrees to indemnify and hold harmless the Trustee with respect to
any tax or  liability  arising  from the  Trustee's  signing of Tax Returns that
contain errors or omissions.

                                       41
<PAGE>

            (e)  The  Certificate   Administrator   shall  provide  (i)  to  any
transferor of a Class R  Certificate  such  information  as is necessary for the
application  of any tax relating to the transfer of a Class R Certificate to any
Person who is not a  Permitted  Transferee,  (ii) to the Trustee and the Trustee
shall  forward  to the  Certificateholders  such  information  or reports as are
required  by the Code or the REMIC  Provisions  including  reports  relating  to
interest,  original  issue  discount and market  discount or premium  (using the
Prepayment  Assumption)  and (iii) to the  Internal  Revenue  Service  the name,
title,  address  and  telephone  number  of the  person  who  will  serve as the
representative of the Trust Fund.

            (f) The Certificate  Administrator shall take such actions and shall
cause the Trust Fund created  hereunder  to take such actions as are  reasonably
within the Certificate  Administrator's control and the scope of its duties more
specifically  set forth  herein as shall be  necessary  to  maintain  the status
thereof as a REMIC under the REMIC  Provisions (and the Trustee shall assist the
Certificate Administrator, to the extent reasonably requested by the Certificate
Administrator  to do so). The Certificate  Administrator  shall not knowingly or
intentionally  take any action,  cause the Trust Fund to take any action or fail
to take (or fail to cause to be taken) any action  reasonably within its control
and the scope of duties more  specifically  set forth  herein,  that,  under the
REMIC Provisions,  if taken or not taken, as the case may be, could (i) endanger
the status of the Trust Fund as a REMIC or (ii)  result in the  imposition  of a
tax upon the Trust Fund  (including  but not  limited  to the tax on  prohibited
transactions  as  defined  in  Section  860F(a)(2)  of the  Code  and the tax on
contributions  to a REMIC set forth in Section 860G(d) of the Code) (either such
event,  an "Adverse  REMIC  Event")  unless the  Certificate  Administrator  has
received an Opinion of Counsel (at the expense of the party seeking to take such
action  or,  if such  party  fails  to pay  such  expense,  and the  Certificate
Administrator  determines that taking such action is in the best interest of the
Trust Fund and the Certificateholders,  at the expense of the Trust Fund, but in
no event at the expense of the Certificate  Administrator or the Trustee) to the
effect that the  contemplated  action will not,  with  respect to the Trust Fund
created hereunder, endanger such status or, unless the Certificate Administrator
determines in its sole  discretion to indemnify the Trust Fund against such tax,
result in the  imposition  of such a tax. The Trustee  shall not take or fail to
take  any  action  (whether  or  not  authorized  hereunder)  as  to  which  the
Certificate  Administrator  has  advised it in writing  that it has  received an
Opinion of Counsel to the effect  that an Adverse  REMIC  Event could occur with
respect to such action. In addition,  prior to taking any action with respect to
the Trust  Fund or its  assets,  or causing  the Trust Fund to take any  action,
which is not expressly permitted under the terms of this Agreement,  the Trustee
will consult with the  Certificate  Administrator  or its designee,  in writing,
with respect to whether such action could cause an Adverse  REMIC Event to occur
with respect to the Trust Fund,  and the Trustee  shall not take any such action
or cause the  Trust  Fund to take any such  action  as to which the  Certificate
Administrator has advised it in writing that an Adverse REMIC Event could occur.
The  Certificate  Administrator  may consult  with  counsel to make such written
advice,  and the cost of same  shall be borne by the party  seeking  to take the
action not expressly permitted by this Agreement, but in no event at the expense
of the Certificate  Administrator.  At all times as may be required by the Code,
the  Certificate  Administrator  will,  to the extent within its control and the
scope of its duties more specifically set forth herein,  maintain  substantially
all of the  assets of the Trust  Fund as  "qualified  mortgages"  as  defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

                                       42
<PAGE>

            (g)  In  the  event  that  any  tax  is   imposed   on   "prohibited
transactions"  of the  Trust  Fund  created  hereunder  as  defined  in  Section
860F(a)(2) of the Code, on "net income from  foreclosure  property" of the Trust
Fund as defined in Section  860G(c)  of the Code,  on any  contributions  to the
Trust Fund after the Startup  Day  therefor  pursuant to Section  860G(d) of the
Code,  or any other tax is imposed by the Code or any  applicable  provisions of
state or local  tax  laws,  such tax  shall be  charged  (i) to the  Certificate
Administrator,  if such  tax  arises  out of or  results  from a  breach  by the
Certificate  Administrator of any of its obligations under this Agreement or the
Certificate Administrator has in its sole discretion determined to indemnify the
Trust Fund against such tax;  (ii) to the Trustee,  if such tax arises out of or
results  from a breach  by the  Trustee  of any of its  obligations  under  this
Agreement;  or otherwise  (iii)  against  amounts on deposit in the  Certificate
Account as provided by Section 3.04 and on the  Distribution  Date(s)  following
such  reimbursement  the aggregate of such taxes shall be allocated in reduction
of the Accrued  Certificate  Interest on each Class entitled thereto in the same
manner as if such taxes constituted a Prepayment Interest Shortfall.

            (h) The Trustee and the Certificate Administrator shall, for federal
income tax purposes,  maintain  books and records with respect to the Trust Fund
on a calendar  year and on an accrual  basis or as otherwise  may be required by
the REMIC Provisions.

            (i) Following the Startup Day, neither the Certificate Administrator
nor the  Trustee  shall  accept  any  contributions  of assets to the Trust Fund
unless the  Certificate  Administrator  and the Trustee  shall have  received an
Opinion  of  Counsel  (at  the  expense  of  the  party  seeking  to  make  such
contribution)  to the effect that the inclusion of such assets in the Trust Fund
will not cause the Trust Fund to fail to qualify as a REMIC at any time that any
Certificates  are  outstanding  or  subject  the Trust Fund to any tax under the
REMIC Provisions or other applicable provisions of federal,  state and local law
or ordinances.

            (j)  Neither the  Certificate  Administrator  nor the Trustee  shall
enter into any  arrangement  by which the Trust Fund will receive a fee or other
compensation  for  services  nor permit  either such REMIC to receive any income
from assets other than "qualified mortgages" as defined in Section 860G(a)(3) of
the Code or  "permitted  investments"  as defined in Section  860G(a)(5)  of the
Code.

            (k) Solely for the  purposes of Section  1.860G-1(a)(4)(iii)  of the
Treasury  regulations,   the  "latest  possible  maturity  date"  by  which  the
Certificate  Principal  Balance of each  Class of  Certificates  representing  a
regular  interest  in the Trust Fund would be reduced to zero is  [_____________
___,  20____] which is the Distribution  Date  immediately  following the latest
scheduled maturity of any Mortgage Loan.

            (l)  Within  30  days  after  the  Closing  Date,  the   Certificate
Administrator  shall  prepare and file with the  Internal  Revenue  Service Form
8811,  "Information  Return for Real Estate Mortgage Investment Conduits (REMIC)
and Issuers of Collateralized Debt Obligations" for the Trust Fund.

            (m)  Neither the Trustee  nor the  Certificate  Administrator  shall
sell,  dispose  of or  substitute  for  any of the  Mortgage  Loans  (except  in
connection with (i) the default,  imminent  default or foreclosure of a Mortgage
Loan, including but not limited to, the acquisition or sale of

                                       43
<PAGE>

a  Mortgaged  Property  acquired  by  deed  in lieu  of  foreclosure,  (ii)  the
bankruptcy of the Trust Fund,  (iii) the  termination of the Trust Fund pursuant
to Article IX of this Agreement or (iv) a purchase of Mortgage Loans pursuant to
Article II or III of this  Agreement) nor acquire any assets for the Trust Fund,
nor  sell  or  dispose  of any  investments  in  the  Custodial  Account  or the
Certificate  Account for gain,  nor accept any  contributions  to the Trust Fund
after the Closing  Date unless it has  received an Opinion of Counsel  that such
sale, disposition, substitution or acquisition will not (a) affect adversely the
status of the Trust Fund as a REMIC or (b) unless the Certificate  Administrator
has  determined in its sole  discretion to indemnify the Trust Fund against such
tax, cause the Trust Fund to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions.

            Section    10.02.    Certificate     Administrator    and    Trustee
Indemnification.

            (a) The Trustee  agrees to indemnify the Trust Fund, the Company and
the  Certificate  Administrator  for any  taxes  and  costs  including,  without
limitation,  any  reasonable  attorneys fees imposed on or incurred by the Trust
Fund, the Company or the Certificate  Administrator,  as a result of a breach of
the Trustee's covenants set forth in Article VIII or this Article X.

            (b) The  Certificate  Administrator  agrees to  indemnify  the Trust
Fund,  the Company and the Trustee for any taxes and costs  (including,  without
limitation,  any reasonable attorneys' fees) imposed on or incurred by the Trust
Fund,  the Company or the  Trustee,  as a result of a breach of the  Certificate
Administrator's  covenants  set forth in this  Article X or in Article  III with
respect to compliance with the REMIC Provisions,  including without  limitation,
any penalties  arising from the Trustee's  execution of Tax Returns  prepared by
the Certificate Administrator that contain errors or omissions.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

            Section 11.01. Amendment.

            (a) This  Agreement may be amended from time to time by the Company,
the Certificate Administrator and the Trustee, without the consent of any of the
Certificateholders:

            (i) to cure any ambiguity;

            (ii) to correct or  supplement  any  provisions  herein or  therein,
      which may be inconsistent with any other provisions herein;

            (iii) to modify,  eliminate or add to any of its  provisions to such
      extent as shall be necessary to maintain  the  qualification  of the Trust
      Fund as a REMIC at all times that any  Certificate  is  outstanding  or to
      avoid or minimize the risk of the  imposition of any tax on the Trust Fund
      pursuant  to the  Code  that  would be a claim  against  the  Trust  Fund,
      provided that the Trustee has received an Opinion of Counsel to the effect
      that  (A)  such  action  is  necessary  or  desirable  to  maintain   such
      qualification or to avoid or

                                       44
<PAGE>

      minimize  the risk of the  imposition  of any such tax and (B) such action
      will not  adversely  affect in any material  respect the  interests of any
      Certificateholder;

            (iv) to  change  the  timing  and/or  nature  of  deposits  into the
      Certificate Account, provided that (A) such change shall not, as evidenced
      by an Opinion of Counsel,  adversely  affect in any  material  respect the
      interests of any Certificateholder and (B) such change shall not adversely
      affect the  then-current  rating of the  Certificates,  as  evidenced by a
      letter from the Rating Agency then rating the Certificates to such effect;

            (v) to modify, eliminate or add to the provisions of Section 5.02(d)
      or  any  other  provision  hereof  restricting  transfer  of the  Class  R
      Certificates  by virtue of their  being  the  REMIC  "residual  interest",
      provided that (A) such change shall not adversely  affect the then-current
      ratings of the  Certificates,  as  evidenced  by a letter  from the Rating
      Agency to such  effect,  and (B) such change shall not, as evidenced by an
      Opinion  of  Counsel,   cause   either  the  Trust  Fund  or  any  of  the
      Certificateholders  (other  than the  transferor)  to be  subject to a tax
      caused by a transfer to a non-Permitted Transferee; and

            (vi) to make  any  other  provisions  with  respect  to  matters  or
      questions  arising  under this  Agreement  which  shall not be  materially
      inconsistent  with the  provisions of this  Agreement,  provided that such
      action shall not, as evidenced by an Opinion of Counsel,  adversely affect
      in any material respect the interests of any Certificateholder.

            (b) This  Agreement  may also be  amended  from  time to time by the
Company,  the Certificate  Administrator and the Trustee with the consent of the
Holders of  Certificates  evidencing  in the  aggregate not less than 66% of the
Percentage  Interests  of each Class of  Certificates  affected  thereby 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 Holders of  Certificates  of such  Class;  provided,  however,  that no such
amendment shall:

            (i)  reduce in any  manner  the  amount  of, or delay the timing of,
      payments which are required to be distributed on any  Certificate  without
      the consent of the Holder of such Certificate,

            (ii) reduce the aforesaid  percentage of  Certificates  of any Class
      the Holders of which are required to consent to any such amendment, in any
      such case without the consent of the Holders of all  Certificates  of such
      Class then outstanding, or

            (iii) adversely  affect in any material respect the interests of the
      Holders of  Certificates  of any Class in a manner other than as described
      in clause (i) hereof  without  the consent of Holders of  Certificates  of
      such Class evidencing,  as to such Class, Percentage Interests aggregating
      not less than 66%.

            (c)  Notwithstanding  any contrary provision of this Agreement,  the
Trustee  shall not consent to any  amendment to this  Agreement  unless it shall
have first  received an Opinion of Counsel to the effect that (1) such amendment
or the exercise of any power granted to

                                       45
<PAGE>

the  Certificate  Administrator,  the Company or the Trustee in accordance  with
such  amendment  will not result in the imposition of a tax on the Trust Fund or
cause  the  Trust  Fund to fail to  qualify  as a REMIC  at any  time  that  any
Certificate  is  outstanding  and (2) such  amendment,  if made  pursuant to any
provision of Section 11.01(a), is permitted under such provision.

            (d) Promptly  after the execution of any such  amendment the Trustee
shall furnish  written  notification  of the substance of such amendment to each
Certificateholder.   It   shall   not  be   necessary   for   the   consent   of
Certificateholders  under this Section 11.01 to approve the  particular  form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance  thereof.  The manner of obtaining such consents and of evidencing
the  authorization  of the  execution  thereof  by  Certificateholders  shall be
subject to such reasonable regulations as the Trustee may prescribe.

            Section 11.02. Counterparts.

            For the purpose of facilitating the recordation of this Agreement as
herein  provided  and  for  other  purposes,  this  Agreement  may  be  executed
simultaneously in any number of counterparts,  each of which  counterparts shall
be deemed to be an original,  and such counterparts shall constitute but one and
the same instrument.

            Section 11.03. Limitation on Rights of Certificateholders.

            (a) The  death or  incapacity  of any  Certificateholder  shall  not
operate  to  terminate  this  Agreement  or the Trust  Fund,  nor  entitle  such
Certificateholder's  legal representatives or heirs to claim an accounting or to
take any action or  proceeding in any court for a partition or winding up of the
Trust Fund, nor otherwise affect the rights,  obligations and liabilities of the
parties hereto or any of them.

            (b) No  Certificateholder  shall  have any right to vote  (except as
expressly  provided for herein) or in any manner otherwise control the operation
and management of the Trust Fund, or the obligations of the parties hereto,  nor
shall anything herein set forth, or contained in the terms of the  Certificates,
be construed so as to  constitute  the  Certificateholders  from time to time as
partners or members of an association;  nor shall any Certificateholder be under
any liability to any third party by reason of any action taken by the parties to
this Agreement pursuant to any provision hereof.

            (c) No  Certificateholder  shall  have any  right by  virtue  of any
provision of this  Agreement  to institute  any suit,  action or  proceeding  in
equity or at law upon or under or with  respect to this  Agreement,  unless such
Holder  previously  shall have given to the Trustee a notice of a default by the
Company, the Certificate  Administrator or the Trustee in the performance of any
obligation  hereunder,  and  of  the  continuance  thereof,  as  herein-  before
provided, and unless also the Holders of Certificates of any Class evidencing at
least 33% of the Voting  Rights of such Class,  shall have made written  request
upon the Trustee to institute such action, suit or proceeding in its own name as
Trustee  hereunder  and  shall  have  offered  to the  Trustee  such  reasonable
indemnity as it may require  against the costs,  expenses and  liabilities to be
incurred therein or thereby,  and the Trustee,  for 60 days after its receipt of
such notice, request and offer of indemnity,  shall have neglected or refused to
institute any such action, suit or proceeding. For

                                       46
<PAGE>

the protection and enforcement of the provisions of this Section, each and every
Certificateholder  and the  Trustee  shall be  entitled to such relief as can be
given either at law or in equity.

            Section 11.04. Governing Law.

            THIS AGREEMENT AND THE CERTIFICATES SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS,  RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            Section 11.05. Notices.

            All demands and notices  hereunder  shall be in writing and shall be
deemed  to have  been  duly  given  if  personally  delivered  at or  mailed  by
registered mail,  postage prepaid (except for notices to the Trustee which shall
be deemed to have been duly given only when received), to (a) in the case of the
Company,   Residential   Accredit  Loans,   Inc.,   [_________________________],
Attention:  [_____],  or such other address as may hereafter be furnished to the
Certificate  Administrator and the Trustee in writing by the Company, (b) in the
case  of  the  Certificate  Administrator,   [___________________],   Attention:
[______________],  or such other  address as may be  hereafter  furnished to the
Company and the Trustee by the Certificate  Administrator in writing, (c) in the
case of the Trustee,  [_______________],  Attention: Residential Accredit Loans,
Inc.,  Series  [200_-___],  with a copy  to  [____________________],  Attention:
Residential Accredit Loans, Inc., Series [200-___], or such other address as may
hereafter  be  furnished  to the Company and the  Certificate  Administrator  in
writing by the Trustee,  and (d) in the case of [name of rating agency], [ ], or
such other address as may hereafter be furnished to the Company, the Trustee and
the Certificate  Administrator in writing by [name of rating agency]. Any notice
required  or  permitted  to be mailed to a  Certificateholder  shall be given by
first-class mail, postage prepaid, at the address of such holder as shown in the
Certificate Register and shall be conclusively  presumed to have been duly given
when mailed.

            Section 11.06. Notices to Rating Agency.

            The  Company,  the  Certificate  Administrator  or the  Trustee,  as
applicable,  shall  notify  the  Rating  Agency at such time as it is  otherwise
required  pursuant to this  Agreement to give notice of the occurrence of any of
the events  described  in clauses (a),  (b),  (c), (f) or (g) below or provide a
copy to the Rating  Agency at such time as  otherwise  required to be  delivered
pursuant to this Agreement of any of the statements described in clauses (d) and
(e) below:

            (a) a material change or amendment to this Agreement;

            (b) the occurrence of an Event of Default;

            (c)  the  termination  or  appointment  of a  successor  Certificate
Administrator or Trustee or a change in the majority ownership of the Trustee;

            (d) the  statement  required to be  delivered  to the Holders of the
Certificates pursuant to Section 4.02;

                                       47
<PAGE>

            (e) the  statements  required  to be  delivered  pursuant to Section
3.05;

            (f) a change in the location of the Certificate Account;

            (g) the occurrence of the Final Distribution Date; and

            (h) the repurchase of any Underlying Agency Securities.

            Section 11.07. Severability of Provisions.

            If any one or more of the covenants, agreements, provisions or terms
of this Agreement  shall be for any reason  whatsoever  held invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

            Section 11.08. Successors and Assigns.

            The provisions of this Agreement  shall be binding upon and inure to
the benefit of the respective  successors and assigns of the parties hereto, and
all such provisions shall inure to the benefit of the Certificateholders.

            Section 11.09. Article and Section Headings.

            The article  and  section  headings  herein are for  convenience  of
reference only, and shall not limit or otherwise affect the meaning hereof.

                                  ARTICLE XII

                          COMPLIANCE WITH REGULATION AB

            Section 12.01. Intent of the Parties; Reasonableness.

            The  Company,   the  Trustee  and  the   Certificate   Administrator
acknowledge  and agree that the  purpose of this  Article  XII is to  facilitate
compliance by the Company with the provisions of Regulation AB and related rules
and regulations of the  Commission.  The Company shall not exercise its right to
request  delivery of information  or other  performance  under these  provisions
other  than in good  faith,  or for  purposes  other  than  compliance  with the
Securities Act, the Exchange Act and the rules and regulations of the Commission
under  the  Securities  Act  and  the  Exchange  Act.  Each  of the  Certificate
Administrator  and  the  Trustee   acknowledges  that   interpretations  of  the
requirements of Regulation AB may change over time,  whether due to interpretive
guidance provided by the Commission or its staff,  consensus among  participants
in the mortgage-backed  securities markets, advice of counsel, or otherwise, and
agrees to comply with requests made by the Company in good faith for delivery of
information under these provisions on the basis of evolving  interpretations  of
Regulation  AB. Each of the  Certificate  Administrator  and the  Trustee  shall
cooperate fully with the Company to deliver to the Company (including any of its
assignees  or  designees),  any and  all  statements,  reports,  certifications,
records and any other information  necessary in the good faith  determination of
the

                                       48
<PAGE>

Company to permit the Company or such Company to comply with the  provisions  of
Regulation  AB,  together  with such  disclosures  relating  to the  Certificate
Administrator,  the Trustee and the  Mortgage  Loans,  or the  servicing  of the
Mortgage Loans,  reasonably  believed by the Company to be necessary in order to
effect such compliance.

            Section  12.02.  Additional  Representations  and  Warranties of the
                             Trustee.

            (a) The Trustee  shall be deemed to  represent  to the Company as of
the date on which  information  is first  provided to the Company  under Section
12.03 that,  except as disclosed  in writing to the Company  prior to such date:
(i) it is not  aware  and  has not  received  notice  that  any  default,  early
amortization or other performance  triggering event has occurred as to any other
Securitization Transaction due to any act or failure to act of the Trustee; (ii)
it has not been  terminated as trustee in a  securitization  of mortgage  loans;
(iii) there are no aspects of its financial condition that could have a material
adverse effect on the  performance by it of its trustee  obligations  under this
Agreement or any other  Securitization  Transaction;  (iv) there are no material
legal or governmental  proceedings pending (or known to be contemplated) against
it; and (v) there are no affiliations, relationships or transactions relating to
the  Trustee  with  respect  to the  Company  or any  sponsor,  issuing  entity,
servicer,  trustee,  originator,  significant  obligor,  enhancement  or support
provider  or  other  material  transaction  party  (as  such  terms  are used in
Regulation AB) relating to the  Securitization  Transaction  contemplated by the
Agreement (the "Transaction Parties").

            (b) If so requested by the Company on any date following the date on
which  information  is first  provided to the Company under Section  12.03,  the
Trustee  shall,  within five Business Days  following  such request,  confirm in
writing  the  accuracy  of the  representations  and  warranties  set  forth  in
paragraph (a) of this Section or, if any such representation and warranty is not
accurate as of the date of such request or such confirmation, provide reasonably
adequate disclosure of the pertinent facts, in writing, to the requesting party.

            Section 12.03. Information to Be Provided by the Trustee.

            (a) If so requested by the Company for the purpose of satisfying its
reporting  obligation  under  the  Exchange  Act with  respect  to any  class of
Certificates,  the  Trustee  shall (i) notify the  Company in writing of (A) any
material litigation or governmental  proceedings pending against the Trustee and
(B) any  affiliations or relationships  that develop  following the Closing Date
between the Trustee and any Transaction Party, and (ii) provide to the Company a
written description of such proceedings, affiliations or relationships.

            (b) In addition to such  information  as the Trustee is obligated to
provide pursuant to other  provisions of this Agreement,  if so requested by the
Company , the Trustee shall provide such information reasonably available to the
Trustee  regarding  the  performance  or servicing  of the Mortgage  Loans as is
reasonably  required  to  facilitate  preparation  of  distribution  reports  in
accordance with Item 1121 of Regulation AB.

            Section 12.04. Report on Assessment of Compliance and Attestation.

            On or before March 15 of each calendar year, the Trustee shall:

                                       49
<PAGE>

            (a)  deliver  to  the  Company  a  report  (in  form  and  substance
reasonably  satisfactory to the Company)  regarding the Trustee's  assessment of
compliance with the Servicing Criteria during the immediately preceding calendar
year,  as required  under Rules  13a-18 and 15d-18 of the  Exchange Act and Item
1122 of Regulation  AB. Such report shall be addressed to the Company and signed
by an authorized officer of the Trustee, and shall address each of the Servicing
Criteria  specified on a  certification  substantially  in the form of Exhibit D
hereto; and

            (b)  deliver  to  the  Company  a  report  of  a  registered  public
accounting  firm  reasonably  acceptable  to the  Company  that  attests to, and
reports on, the  assessment  of  compliance  made by the  Trustee and  delivered
pursuant to the preceding  paragraph.  Such  attestation  shall be in accordance
with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act.

            Section 12.05. Indemnification; Remedies.

            (a) The Trustee shall  indemnify the Company,  each affiliate of the
Company,  the  Certificate  Administrator  and  each  broker  dealer  acting  as
underwriter,  placement agent or initial  purchaser of the  Certificates or each
Person who controls any of such parties (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange  Act); and the respective  present
and former directors,  officers,  employees and agents of each of the foregoing,
and shall hold each of them  harmless  from and  against  any  losses,  damages,
penalties,  fines,  forfeitures,  legal fees and  expenses  and  related  costs,
judgments,  and any other costs,  fees and expenses that any of them may sustain
arising out of or based upon:

                  (i)(A) any untrue  statement of a material  fact  contained or
alleged to be contained in any information, report, certification,  accountants'
letter or other material  provided under this Article XII by or on behalf of the
Trustee  (collectively,  the  "Trustee  Information"),  or (B) the  omission  or
alleged omission to state in the Trustee Information a material fact required to
be  stated  in the  Trustee  Information  or  necessary  in  order  to make  the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading; provided, by way of clarification, that clause (B) of this
paragraph shall be construed solely by reference to the Trustee  Information and
not to any other information  communicated in connection with a sale or purchase
of securities,  without regard to whether the Trustee Information or any portion
thereof is presented together with or separately from such other information;

                  (ii) any failure by the  Trustee to deliver  any  information,
report,  certification,  accountants'  letter  or  other  material  when  and as
required under this Article XII; or

                  (iii)  any  breach  by  the  Trustee  of a  representation  or
warranty  set forth in Section  12.02(a) or in a writing  furnished  pursuant to
Section 12.02(b).

            (b) In the case of any failure of  performance  described  in clause
(ii) of this Section,  the Trustee shall promptly  reimburse the Company for all
costs reasonably incurred by each such party in order to obtain the information,
report,  certification,  accountants'  letter or other material not delivered as
required by the Trustee.

                                       50
<PAGE>

            IN WITNESS WHEREOF, the Company,  the Certificate  Administrator and
the Trustee  have caused  their  names to be signed  hereto by their  respective
officers thereunto duly authorized and their respective seals, if required, duly
attested,  to be  hereunto  affixed,  all as of the day  and  year  first  above
written.

                                             RESIDENTIAL ACCREDIT LOANS, INC.
[Seal]

                                             By: _______________________________
                                                 Name:
                                                 Title:

Attest:     __________________________
            Name:
            Title:

                                             [NAME OF CERTIFICATE ADMINISTRATOR]
                                             as Certificate Administrator
[Seal]

                                             By: _______________________________
                                                 Name:
                                                 Title:

Attest:     __________________________
            Name:
            Title:

                                             [NAME OF TRUSTEE],
                                             [Seal] as Trustee

                                             By: _______________________________
                                                 Name:
                                                 Title:

Attest:     __________________________
            Name:
            Title:

                                       51
<PAGE>

STATE OF _______________________

COUNTY OF ______________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                          ___________________________________
                                          Signature of the Notary

(Seal)

                                       52
<PAGE>

STATE OF _______________________

COUNTY OF ______________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                          ___________________________________
                                          Signature of the Notary

(Seal)

                                       53
<PAGE>

STATE OF _______________________

COUNTY OF ______________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                          ___________________________________
                                          Signature of the Notary

(Seal)

                                       54
<PAGE>

                                                                     EXHIBIT A-1

                  FORM OF CLASS [A-1][A-2][A-3][S] CERTIFICATE

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE  IS A "REGULAR
INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

[NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN SUBJECT
TO THE FIDUCIARY  RESPONSIBILITY  PROVISIONS OF THE EMPLOYEE  RETIREMENT  INCOME
SECURITY  ACT OF 1974,  AS  AMENDED,  OR  SECTION  4975 OF THE CODE,  UNLESS THE
TRANSFEREE  PROVIDES  AN  OPINION  OF COUNSEL  SATISFACTORY  TO THE  CERTIFICATE
ADMINISTRATOR, THE COMPANY AND THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE
BY, ON BEHALF  OF,  OR WITH  "PLAN  ASSETS"  OF SUCH PLAN IS  PERMISSIBLE  UNDER
APPLICABLE  LAW,  WILL NOT  CONSTITUTE  OR  RESULT  IN A  NON-EXEMPT  PROHIBITED
TRANSACTION AND WILL NOT SUBJECT THE CERTIFICATE  ADMINISTRATOR,  THE COMPANY OR
THE TRUSTEE TO ANY  OBLIGATION IN ADDITION TO THOSE  UNDERTAKEN IN THE AGREEMENT
(AS DEFINED  BELOW),  PROVIDED THAT NO SUCH OPINION SHALL BE REQUIRED  UNDER THE
CIRCUMSTANCES SET FORTH IN THE AGREEMENT.]

[THE FOLLOWING  INFORMATION IS PROVIDED  SOLELY FOR THE PURPOSES OF APPLYING THE
U.S.   FEDERAL  INCOME  TAX  ORIGINAL  ISSUE  DISCOUNT  ("OID")  RULES  TO  THIS
CERTIFICATE.  THE ISSUE DATE OF THIS CERTIFICATE IS [______ __, 200_].  ASSUMING
THAT THE MORTGAGE LOANS PREPAY AT [_____]% OF THE STANDARD PREPAYMENT ASSUMPTION
(AS DESCRIBED IN THE PROSPECTUS SUPPLEMENT) AND ASSUMING A CONSTANT PASS-THROUGH
RATE EQUAL TO THE INITIAL  PASS-THROUGH  RATE, THIS  CERTIFICATE HAS BEEN ISSUED
WITH NO MORE THAN $[_____] OF OID PER [$1,000/$100,000] OF  [PRINCIPAL/NOTIONAL]
AMOUNT AND THE YIELD TO  MATURITY  IS [____]%,  COMPUTED  UNDER THE  APPROXIMATE
METHOD.  THERE IS NO SHORT ACCRUAL PERIOD WITH RESPECT TO THIS  CERTIFICATE.  NO
REPRESENTATION  IS MADE THAT THE  MORTGAGE  LOANS WILL PREPAY AT A RATE BASED ON
THE STANDARD  PREPAYMENT  ASSUMPTION OR AT ANY OTHER RATE OR AS TO THE CONSTANCY
OF THE PASS-THROUGH RATE.]

Class [A-1][A-2][A-3][S]          Certificate No. [____________]

Date of Trust Agreement:          [___]% Pass-Through Rate
[__________________ 1, 200_]      [based on Notional Amount]

Reference Date:
[__________________ 1, 200_]

                                     A-1-1
<PAGE>

First Distribution Date:

                                  [aggregate Initial Certificate
[_______________ __, 200_]        Principal Balance of the Class [A-1][A-2][A-3]
                                  Certificates as of the Reference Date:
                                  $[_____________]

Certificate Administrator:        [Initial Certificate Principal
[______________]                  Balance of this Certificate:
                                  $____________]

Assumed Termination Date:         [Percentage Interest:_________%]
[_______________ __, 20__]

                                  CUSIP [___________]

               MORTGAGE PASS-THROUGH CERTIFICATE, Series [200 - ]

      evidencing a  percentage  interest in any  distributions  allocable to the
      Class  [A-1][A-2][A-3][S]  Certificates  with  respect  to the Trust  Fund
      consisting  of  the  Underlying  Agency  Securities  formed  and  sold  by
      Residential Accredit Loans, Inc..

            This  Certificate  is  payable  solely  from the assets of the Trust
Fund,  and does not  represent  an  obligation  of or  interest  in  Residential
Accredit Loans,  Inc., the Certificate  Administrator,  the Trustee  referred to
below or GMAC  Mortgage,  LLC or any of their  affiliates.  Although  payment of
principal  and interest on the  Underlying  Agency  Securities  is guaranteed by
[GNMA], this Certificate is not guaranteed or insured by any governmental agency
or  instrumentality  or by Residential  Accredit  Loans,  Inc., the  Certificate
Administrator, the Trustee or GMAC Mortgage, LLC or any of their affiliates.

            This certifies that  [______________] is the registered owner of the
Percentage  Interest  evidenced by this  Certificate  ([obtained by dividing the
Certificate  Principal Balance of this Certificate by the aggregate  Certificate
Principal Balance of all Class [A-1][A-2][A-3] Certificates,  both] as specified
above)  in  certain  distributions  with  respect  to a  Trust  Fund  consisting
primarily  of a pool of the  Underlying  Agency  Securities,  formed and sold by
Residential Accredit Loans, Inc.  (hereinafter called the "Company",  which term
includes any successor entity under the Agreement  referred to below). The Trust
Fund was created  pursuant to a Trust  Agreement  dated as specified  above (the
"Agreement")   among   the   Company,   the   Certificate    Administrator   and
[_________________________], as trustee (the "Trustee"), a summary of certain of
the  pertinent  provisions  of which is set forth  hereafter.  To the extent not
defined herein,  the capitalized terms used herein have the meanings assigned in
the  Agreement.  This  Certificate  is issued under and is subject to the terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

            Pursuant to the terms of the Agreement,  a distribution will be made
on the third Business Day following the Underlying  Security  Distribution  Date
for the Underlying Agency Securities (the  "Distribution  Date"),  commencing on
the first Distribution Date specified above,

                                     A-1-2
<PAGE>

to the  Person in whose  name this  Certificate  is  registered  at the close of
business  on the  last  day (or if such  last  day is not a  Business  Day,  the
Business Day  immediately  preceding  such last day) of the month next preceding
the month of the Underlying Security Distribution Date for the Underlying Agency
Securities (the "Record  Date"),  from the Available Funds in an amount equal to
the product of the Percentage  Interest  evidenced by this  Certificate  and the
amount  required to be  distributed to Holders of Class [____]  Certificates  on
such Distribution Date. [The Notional Amount of the Class [S] Certificates as of
any  date of  determination  is equal to the  Aggregate  Underlying  Certificate
Balance. The Class [S] Certificates have no Certificate Principal Balance.]

            Distributions on this Certificate will be made either by the Trustee
or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire  transfer  or  otherwise)  for the account of the Person  entitled  thereto
except as  otherwise  provided in the  Agreement  if such  Person  shall have so
notified the Certificate  Administrator or such Paying Agent, or by check mailed
to the address of the Person  entitled  thereto,  as such name and address shall
appear on the Certificate Register.

            Notwithstanding   the  above,   the  final   distribution   on  this
Certificate  will be made after due notice of the pendency of such  distribution
and only upon  presentation  and surrender of this  Certificate at the office or
agency  appointed by the Trustee for that purpose in the City of New York.  [The
initial aggregate Certificate Principal Balance of the Certificates is set forth
above. The Certificate Principal Balance hereof will be reduced to the extent of
the distributions allocable to principal.]

            This  Certificate is one of a duly authorized  issue of Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates"). The
Certificates  are  limited  in right  of  payment  to  certain  collections  and
recoveries respecting the Underlying Agency Securities, all as more specifically
set forth herein and in the Agreement.

            As  provided  in the  Agreement,  withdrawals  from the  Certificate
Account  created  for  the  benefit  of  Certificateholders  may be  made by the
Certificate   Administrator   from  time  to  time  for   purposes   other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Company  and the  Certificate  Administrator  of  certain
expenses incurred, by either of them.

            The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Certificate Administrator and the Trustee and the rights of the
Certificateholders  under  the  Agreement  at  any  time  by  the  Company,  the
Certificate  Administrator  and the  Trustee  with the consent of the Holders of
Certificates  evidencing in the  aggregate  not less than 66% of the  Percentage
Interests of each Class of Certificates  affected  thereby.  Any such consent by
the Holder of this  Certificate  shall be conclusive  and binding on such Holder
and upon all future holders of this  Certificate and of any  Certificate  issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation  of such  consent  is made upon the  Certificate.  The  Agreement  also
permits the amendment thereof in certain circumstances without the consent

                                     A-1-3
<PAGE>

of  the  Holders  of  any  of  the  Certificates  and,  in  certain   additional
circumstances,  without  the  consent  of the  Holders  of  certain  Classes  of
Certificates.

            As provided  in the  Agreement  and  subject to certain  limitations
therein  set forth,  the  transfer of this  Certificate  is  registrable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer  at the offices or  agencies  appointed  by the Trustee in the City and
State of New York, duly endorsed by, or accompanied by an assignment in the form
below or other  written  instrument  of  transfer  in form  satisfactory  to the
Trustee and the  Certificate  Registrar  duly  executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate
Percentage Interest will be issued to the designated transferee or transferees.

            The  Certificates  are  issuable  only  as  registered  Certificates
without coupons in Classes and in denominations  specified in the Agreement.  As
provided in the Agreement and subject to certain  limitations therein set forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

            No service charge will be made for any such registration of transfer
or exchange,  but the Trustee may require  payment of a sum  sufficient to cover
any tax or other governmental charge payable in connection therewith.

            The  Company,  the  Certificate  Administrator,  the Trustee and the
Certificate   Registrar   and  any  agent  of  the  Company,   the   Certificate
Administrator,  the Trustee or the Certificate Registrar may treat the Person in
whose name this  Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Certificate Administrator, the Trustee nor any such
agent shall be affected by notice to the contrary.

            THIS  CERTIFICATE  SHALL BE GOVERNED BY AND  CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

            The  obligations   created  by  the  Agreement  in  respect  of  the
Certificates and the Trust Fund created thereby shall terminate upon the payment
to  Certificateholders  of all  amounts  held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement  following  receipt of the
final  distribution to be made on the last remaining  Underlying Agency Security
in the Trust Fund upon  presentation  and  surrender of such  Underlying  Agency
Security in accordance with the terms and conditions thereof.

                                     A-1-4
<PAGE>

            IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate to be
duly executed.

Dated:________________

                                                [NAME OF TRUSTEE],
                                                as Trustee

                                                By: ____________________________
                                                    Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

      This is one of the Class  [A-1][A-2][A-3][S]  Certificates  referred to in
the within-mentioned Agreement.

                                                [Name of Certificate Registrar],
                                                as Certificate Registrar

                                                By: ____________________________
                                                    Authorized Signatory

                                     A-1-5
<PAGE>

                                   ASSIGNMENT

            FOR VALUE RECEIVED,  the undersigned  hereby sell(s),  assign(s) and
transfer(s)
unto ___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

            (Please  print or typewrite  name and address  including  postal zip
code  of  assignee)  the  beneficial   interest  evidenced  by  the  within  the
Certificate and hereby  authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

            I (We)  further  direct  the  Certificate  Registrar  to issue a new
Certificate of a like  denomination to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________
________________________________________________________________________________
__________________________

Dated:____________________

                                                ___________________________
                                                Signature by or on behalf of
                                                assignor

                                                ___________________________
                                                Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

            The  assignee   should   include  the   following  for  purposes  of
distribution:

            Distributions  shall be made,  by wire  transfer  or  otherwise,  in
immediately   available   funds  to   ________________   for  the   account   of
________________ account number  __________________,  or, if mailed by check, to
____________________.

Applicable statements should be mailed to: ___________________.

            This  information  is  provided by  __________________________,  the
assignee named above, or _________________________, as its agent.

                                     A-1-6
<PAGE>

                                                                     EXHIBIT A-2

                           FORM OF CLASS R CERTIFICATE

THIS  CERTIFICATE  MAY NOT BE  TRANSFERRED  TO A NON-UNITED  STATES  PERSON OR A
DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

NO TRANSFER OF THIS  CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN SUBJECT
TO THE FIDUCIARY  RESPONSIBILITY  PROVISIONS OF THE EMPLOYEE  RETIREMENT  INCOME
SECURITY ACT OF 1974, OR SECTION 4975 OF THE CODE,  AS AMENDED,  OR SECTION 4975
OF THE CODE, UNLESS THE TRANSFEREE  PROVIDES AN OPINION OF COUNSEL  SATISFACTORY
TO THE CERTIFICATE ADMINISTRATOR,  THE COMPANY AND THE TRUSTEE THAT THE PURCHASE
OF THIS  CERTIFICATE  BY, ON BEHALF  OF, OR WITH  "PLAN  ASSETS" OF SUCH PLAN IS
PERMISSIBLE   UNDER   APPLICABLE   LAW,   WILL  NOT  SUBJECT   THE   CERTIFICATE
ADMINISTRATOR, THE COMPANY OR THE TRUSTEE TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN IN THE AGREEMENT  (AS DEFINED  BELOW),  PROVIDED THAT NO SUCH OPINION
SHALL BE REQUIRED UNDER THE CIRCUMSTANCES SET FORTH IN THE AGREEMENT.

ANY RESALE,  TRANSFER OR OTHER  DISPOSITION  OF THIS CLASS R CERTIFICATE  MAY BE
MADE ONLY IF THE  PROPOSED  TRANSFEREE  PROVIDES  A  TRANSFER  AFFIDAVIT  TO THE
CERTIFICATE ADMINISTRATOR AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER
(A) THE UNITED STATES, ANY STATE OR POLITICAL  SUBDIVISION  THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF
ANY OF THE FOREGOING,  (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE  DESCRIBED
IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
THE CODE UNLESS SUCH  ORGANIZATION  IS SUBJECT TO THE TAX IMPOSED BY SECTION 511
OF THE CODE,  (C) ANY  ORGANIZATION  DESCRIBED IN SECTION  1381(a)(2)(C)  OF THE
CODE, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING  CLAUSES (A), (B) OR (C) BEING
HEREINAFTER  REFERRED TO AS A "DISQUALIFIED  ORGANIZATION") OR (D) AN AGENT OF A
DISQUALIFIED  ORGANIZATION,  (2) NO  PURPOSE OF SUCH  TRANSFER  IS TO IMPEDE THE
ASSESSMENT  OR  COLLECTION  OF TAX, AND (3) SUCH  TRANSFEREE  SATISFIES  CERTAIN
ADDITIONAL   CONDITIONS  OF  THE  PROPOSED   TRANSFEREE.   NOTWITHSTANDING   THE
REGISTRATION  IN  THE  CERTIFICATE  REGISTER  OR ANY  TRANSFER,  SALE  OR  OTHER
DISPOSITION OF THIS RESIDUAL  CERTIFICATE TO A DISQUALIFIED  ORGANIZATION  OR AN
AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF
NO LEGAL FORCE OR EFFECT  WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,

                                     A-2-1
<PAGE>

INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE.
EACH HOLDER OF THIS  CERTIFICATE  BY  ACCEPTANCE  OF THIS  CERTIFICATE  SHALL BE
DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

Class R                                        Certificate No. [____________]

Date of Trust Agreement:                       [___]% Pass-Through Rate
[________________ __, 200_]

Reference Date:
[________________ __, 200_]

First Distribution Date:                       Aggregate Initial Certificate
[________________ __, 200_]                    Principal the Class R
                                               Certificates $[_____________]

Certificate Administrator:                     [Initial Certificate Principal
[______________]                               Balance of this Certificate:
                                               $____________]

Assumed Termination Date:                      [_________]% [Percentage Interest
[_______________ __, 200_]

                                               CUSIP [___________]

                       MORTGAGE PASS-THROUGH CERTIFICATE,
                               Series [200_-___ ]

      evidencing a  percentage  interest in any  distributions  allocable to the
      Class R Certificates  with respect to the Trust Fund  consisting of a pool
      of Underlying Agency  Securities  formed and sold by Residential  Accredit
      Loans, Inc.

            This  Certificate  is  payable  solely  from the assets of the Trust
Fund,  and does not  represent  an  obligation  of or  interest  in  Residential
Accredit Loans,  Inc., the Certificate  Administrator or the Trustee referred to
below or GMAC  Mortgage,  LLC or any of their  affiliates.  Although  payment of
principal  and interest on the  Underlying  Agency  Securities  is guaranteed by
[GNMA], this Certificate is not guaranteed or insured by any governmental agency
or  instrumentality  or by Residential  Accredit  Loans,  Inc., the  Certificate
Administrator, the Trustee or GMAC Mortgage, LLC or any of their affiliates.

            This certifies that  [_______________]  is the registered owner of a
percentage  interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance  of the  Certificate  by the  aggregate
Initial  Certificate  Principal  Balance  of all Class R  Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting primarily of a pool of Underlying Agency Securities,  formed and sold
by Residential  Accredit Loans, Inc.  (hereinafter  called the "Company",  which
term includes any successor entity under the Agreement  referred to below).  The
Trust Fund was created pursuant to a Trust

                                     A-2-2
<PAGE>

Agreement  dated as specified  above (the  "Agreement")  among the Company,  the
Certificate Administrator and [________________],  as trustee (the "Trustee"), a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

            Pursuant to the terms of the Agreement,  a distribution will be made
on the third Business Day following the Underlying  Security  Distribution  Date
for the Underlying Agency Securities (the  "Distribution  Date"),  commencing on
the first  Distribution  Date specified  above, to the Person in whose name this
Certificate  is  registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately preceding such last
day) of the month  immediately  preceding the month of the related  Distribution
Date  for the  Underlying  Agency  Securities  (the  "Record  Date"),  from  the
Available  Funds in an amount  equal to the product of the  Percentage  Interest
evidenced  by this  Certificate  and the amount  required to be  distributed  to
Holders of Class R Certificates on such Distribution Date.

            Each Holder of this  Certificate will be deemed to have agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions,  then the Company will have the right, in its
sole  discretion and without notice to the Holder of this  Certificate,  to sell
this Certificate to a purchaser selected by the Company,  which purchaser may be
the Company,  or any affiliate of the Company,  on such terms and  conditions as
the Company may choose.

            Notwithstanding   the  above,   the  final   distribution   on  this
Certificate  will be made after due notice of the pendency of such  distribution
and only upon  presentation  and surrender of this  Certificate at the office or
agency  appointed by the Trustee for that  purpose in the City of New York.  The
Initial  Certificate  Principal  Balance of this Certificate is set forth above.
The  Certificate  Principal  Balance  hereof  will be  reduced  to the extent of
distributions  allocable  to  principal.  Notwithstanding  the  reduction of the
Certificate  Principal  Balance  hereof to zero,  this  Certificate  will remain
outstanding  under the  Agreement  and the  Holder  hereof  may have  additional
obligations with respect to this Certificate, including tax liabilities, and may
be entitled to certain additional  distributions  hereon, in accordance with the
terms and provisions of the Agreement.

            In  connection  with any transfer of this  Certificate,  the Trustee
will  require  (a) a  representation  letter,  in the form as  described  by the
Agreement,  stating that the transferee is not an employee benefit plan or other
plan  subject  to  the  fiduciary  responsibility  provisions  of  the  Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or (b) if such

                                     A-2-3
<PAGE>

transferee  is an  employee  benefit  plan or other plan  subject  to ERISA,  an
opinion of counsel  acceptable to and in form and substance  satisfactory to the
Trustee,  the  Company and the  Certificate  Administrator  with  respect to the
permissibility  of such  transfer  under ERISA and stating,  among other things,
that the  transferee's  acquisition  of this Class R Certificate  is permissible
under   applicable  law,  will  not  constitute  or  result  in  any  non-exempt
"prohibited  transaction"  under  Section  406 of ERISA or  Section  4975 of the
Internal  Revenue Code of 1986 and will not subject the Trustee,  the Company or
the  Certificate   Administrator  to  any  obligation  or  liability  (including
obligations  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in the  Agreement.  Each Holder of this Class R  Certificate  will be
deemed to have agreed to be bound by the restrictions set forth in the Agreement
to the effect that (i) each person  holding or acquiring any Ownership  Interest
in this Class R  Certificate  must be a Permitted  Transferee  (and may not be a
Non-United  States  Person),   (ii)  no  Ownership  Interest  in  this  Class  R
Certificate  may be  transferred  without  the  express  written  consent of the
Company,  which  consent may be  conditioned  on the delivery to the Company of,
among other  things,  an opinion of counsel,  (iii) any  attempted  or purported
transfer of any Ownership  Interest in this Class R Certificate  in violation of
such  restrictions  will be absolutely  null and void and will vest no rights in
the  purported  transferee,  and  (iv)  if any  Person  other  than a  Permitted
Transferee  acquires  any  Ownership  Interest  in this Class R  Certificate  in
violation of such  restrictions,  then the Company  will have the right,  in its
sole  discretion and without notice to the Holder of this Class R Certificate to
sell this Class R  Certificate  to a purchaser  selected by the  Company,  which
purchaser may be the Company, or any affiliate of the Company, on such terms and
conditions as the Company may choose.

            This  Certificate is one of a duly authorized  issue of Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates"). The
Certificates  are  limited  in right  of  payment  to  certain  collections  and
recoveries respecting the Underlying Agency Securities, all as more specifically
set forth herein and in the Agreement.

            As  provided  in the  Agreement,  withdrawals  from the  Certificate
Account  created  for  the  benefit  of  Certificateholders  may be  made by the
Certificate   Administrator   from  time  to  time  for   purposes   other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement to the Company and the Certificate Administrator of advances made,
or certain expenses incurred, by either of them.

            The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Certificate Administrator and the Trustee and the rights of the
Certificateholders  under  the  Agreement  at  any  time  by  the  Company,  the
Certificate  Administrator  and the  Trustee  with the consent of the Holders of
Certificates  evidencing in the  aggregate  not less than 66% of the  Percentage
Interests of each Class of Certificates  affected  thereby.  Any such consent by
the Holder of this  Certificate  shall be conclusive  and binding on such Holder
and upon all future holders of this  Certificate and of any  Certificate  issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation  of such  consent  is made upon the  Certificate.  The  Agreement  also
permits the amendment  thereof in certain  circumstances  without the consent of
the Holders of any of the Certificates and, in certain additional circumstances,
without the consent of the Holders of certain Classes of Certificates.

                                     A-2-4
<PAGE>

            As provided  in the  Agreement  and  subject to certain  limitations
therein  set forth,  the  transfer of this  Certificate  is  registrable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer  at the offices or  agencies  appointed  by the Trustee in the City and
State of New York, duly endorsed by, or accompanied by an assignment in the form
below or other  written  instrument  of  transfer  in form  satisfactory  to the
Trustee and the  Certificate  Registrar  duly  executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate
Percentage Interest will be issued to the designated transferee or transferees.

            The  Certificates  are  issuable  only  as  registered  Certificates
without coupons in Classes and in denominations  specified in the Agreement.  As
provided in the Agreement and subject to certain  limitations therein set forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

            No service charge will be made for any such registration of transfer
or exchange,  but the Trustee may require  payment of a sum  sufficient to cover
any tax or other governmental charge payable in connection therewith.

            The  Company,  the  Certificate  Administrator,  the Trustee and the
Certificate   Registrar   and  any  agent  of  the  Company,   the   Certificate
Administrator,  the Trustee or the Certificate Registrar may treat the Person in
whose name this  Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Certificate Administrator, the Trustee nor any such
agent shall be affected by notice to the contrary.

            THIS  CERTIFICATE  SHALL BE GOVERNED BY AND  CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

            The  obligations   created  by  the  Agreement  in  respect  of  the
Certificates and the Trust Fund created thereby shall terminate upon the payment
to  Certificateholders  of all  amounts  held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement  following  receipt of the
final  distribution to be made on the last remaining  Underlying Agency Security
in the Trust Fund upon  presentation  and  surrender of such  Underlying  Agency
Security in accordance with the terms and conditions thereof.

                                     A-2-5
<PAGE>

            IN WITNESS WHEREOF,  the Trustee has caused this Class R Certificate
to be duly executed.

Dated:

                                                [NAME OF TRUSTEE],
                                                as Trustee

                                                By: ____________________________
                                                    Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

            This  is  one  of  the  Class  R  Certificates  referred  to in  the
within-mentioned Agreement.

                                                [NAME OF CERTIFICATE REGISTRAR],
                                                as Trustee

                                                By: ____________________________
                                                    Authorized Signatory

                                     A-2-6
<PAGE>

                                   ASSIGNMENT

            FOR VALUE RECEIVED,  the undersigned  hereby sell(s),  assign(s) and
transfer(s)
unto____________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

            (Please  print or typewrite  name and address  including  postal zip
code  of  assignee)  the  beneficial   interest  evidenced  by  the  within  the
Certificate and hereby  authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

            I (We)  further  direct  the  Certificate  Registrar  to issue a new
Certificate of a like  denomination to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
__________________________

Dated:____________________

                                                    ___________________________
                                                    Signature by or on behalf of
                                                    assignor

                                                    ___________________________
                                                    Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

            The  assignee   should   include  the   following  for  purposes  of
distribution:

            Distributions  shall be made,  by wire  transfer  or  otherwise,  in
immediately   available   funds  to   ________________   for  the   account   of
________________ account number  __________________,  or, if mailed by check, to
_____________________________________.

Applicable statements should be mailed to: ____________________________________.

            This  information  is  provided by  __________________________,  the
assignee named above, or _________________________, as its agent.

                                     A-2-7
<PAGE>

                                                                     EXHIBIT B-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF [_________________] )
                             )    ss:
COUNTY OF [_______________]  )

            [NAME OF OFFICER], being first duly sworn, deposes and says:

            1. That he or she is [Title of Officer]  of [Name of Owner]  (record
or beneficial owner (the "Owner") of the Residential Accredit Loans, Inc., Class
R Certificate,  Series [200__-____] (the "Residual  Certificates")),  a [savings
institution]  [corporation]  duly  organized and existing under the laws of [the
State of ________________] [the United States], on behalf of which he makes this
affidavit and agreement.  The Residual  Certificates were issued pursuant to the
Trust  Agreement,  dated as of  [______________  __, 200__],  among  Residential
Accredit Loans,  Inc., as the company (the  "Company"),  [________________],  as
certificate     administrator    (the    "Certificate     Administrator")    and
[________________], as trustee (the "Trustee").

            2.  That  the  Owner  (i) is not  and  will  not be a  "disqualified
organization" as of [date of transfer] within the meaning of Section  860E(e)(5)
of the  Internal  Revenue  Code of 1986,  as  amended  (the  "Code"),  (ii) will
endeavor  to remain  other than a  disqualified  organization  for so long as it
retains  its  ownership  interest  in the  Residual  Certificate  and  (iii)  is
acquiring  the Residual  Certificates  for its own account or for the account of
another Owner from which it has received an affidavit in substantially  the same
form as this  affidavit  and  agreement.  (For  this  purpose,  a  "disqualified
organization"  means  the  United  States,  any state or  political  subdivision
thereof, or any agency or instrumentality of any of the foregoing (other than an
instrumentality  all of the  activities of which are subject to tax and,  except
for the Federal  Home Loan  Mortgage  Corporation,  a majority of whose board of
directors  is not  selected  by any such  governmental  entity),  or any foreign
government,  international organization or any agency or instrumentality of such
foreign government or organization, any rural electric or telephone cooperative,
or any organization (other than certain farmers' cooperatives) that is generally
exempt from federal income tax unless such organization is subject to the tax on
unrelated business taxable income).

            3. That the Owner is aware (i) of the tax that  would be  imposed on
transfers of the Residual  Certificates to disqualified  organizations under the
Code that applies to all transfers of Residual Certificates;  (ii) that such tax
would be on the  transferor,  or, if such  transfer  is through an agent  (which
person includes a broker, nominee or middleman) for a disqualified organization,
on the  agent;  (iii)  that the  person  otherwise  liable  for the tax shall be
relieved of liability for the tax if the transferee  furnishes to such person an
affidavit  that the transferee is not a  disqualified  organization  and, at the
time of transfer,  such person does not have actual knowledge that the affidavit
is false; and (iv) that the Residual  Certificates may be "noneconomic  residual
interests"  within the  meaning of  proposed  Treasury  regulations  promulgated
pursuant to the Code and that the transferor of a noneconomic  residual interest
will

                                     B-1-1
<PAGE>

remain  liable for any taxes due with  respect  to the  income of such  residual
interest,  unless no  significant  purpose  of the  transfer  was to impede  the
assessment or collection of tax.

            4. That the  Owner is aware of the tax  imposed  on a  "pass-through
entity" holding the Residual Certificates if at any time during the taxable year
of the pass-through  entity a disqualified  organization is the record holder of
an interest in such entity.  (For this purpose, a "pass through entity" includes
a regulated  investment  company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

            5. That the Owner is aware that the Trustee  will not  register  the
transfer of any Residual Certificates unless the transferee, or the transferee's
agent,  delivers  to it an  affidavit  and  agreement,  among other  things,  in
substantially the same form as this affidavit and agreement. The Owner expressly
agrees  that it will not  consummate  any such  transfer if it knows or believes
that any of the  representations  contained in such  affidavit and agreement are
false.

            6. That the Owner has  reviewed  the  restrictions  set forth on the
face of the Residual  Certificates  and the provisions of Section 4.02(f) of the
Pooling and  Servicing  Agreement  under which the  Residual  Certificates  were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  4.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 4.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

            7.  The  Owner  warrants  and  represents  that it is [a  "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933, as amended] [a person involved in the  organization or operation of
the Company or Certificate  Administrator,  or an affiliate,  as defined in Rule
405 under the Securities Act of 1933, as amended, of either of them].

            8.  That  the  Owner  consents  to any  additional  restrictions  or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable  arrangement to ensure that the Residual  Certificates will only be
owned,  directly  or  indirectly,  by  an  Owner  that  is  not  a  disqualified
organization.

            9. The Owner's Taxpayer Identification Number is [ ].

            10.  This  affidavit  and  agreement  relates  only to the  Residual
Certificates  held by the  Owner and not to any  other  holder  of the  Residual
Certificates. The Owner understands that the liabilities described herein relate
only to the Residual Certificates.

            11. That no purpose of the Owner  relating to the purchase of any of
the Residual Certificates by the Owner is or will be to impede the assessment or
collection of any tax.

            12. That the Owner has no present  knowledge or expectation  that it
will become  insolvent or subject to a bankruptcy  proceeding for so long as any
of the Residual  Certificates  remain  outstanding.  In this  regard,  the Owner
hereby represents to and for the

                                     B-1-2
<PAGE>

benefit of the person from whom it acquired  the Residual  Certificate  that the
Owner intends to pay taxes associated with holding such Residual  Certificate as
they become due, fully understanding that it may incur tax liabilities in excess
of any cash flows generated by the Residual Certificate.

            13.  The Owner is a citizen or  resident  of the  United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States is includible in gross
income  for  United  States  federal  income  tax  purposes  regardless  of  its
connection with the conduct of a trade or business within the United States.

            14. The Owner is not an employee  benefit plan or other plan subject
to the Employee  Retirement Income Security Act of 1974, as amended ("ERISA") or
Section 4975 of the Internal Revenue Code of 1986 (the "Code"), or an investment
manager,  a named  fiduciary  or a trustee of any such plan or any other  Person
acting,  directly  or  indirectly,  on  behalf  of or  purchasing  any  Residual
Certificate   with  "plan  assets"  of  any  such  plan,  and  understands  that
registration of transfer of any Residual Certificate to any such plan, or to any
Person acting on behalf of or  purchasing  any Residual  Certificate  with "plan
assets" of any such plan,  will not be made unless such plan or Person  delivers
an opinion of its  counsel,  addressed  and  satisfactory  to the  Trustee,  the
Company and the Certificate  Administrator,  to the effect that the purchase and
holding of a Residual  Certificate by, on behalf of or with "plan assets" of any
such plan is permissible under applicable law, would not constitute or result in
any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
of the Code, and would not subject the Company, the Certificate Administrator or
the Trustee to any obligation or liability (including  liabilities under Section
406 of ERISA or Section 4975 of the Code) in addition to those undertaken in the
Trust Agreement or any other liability.

                                     B-1-3
<PAGE>

            IN WITNESS  WHEREOF,  the Owner has  caused  this  instrument  to be
executed on its behalf,  pursuant to the authority of its Board of Directors, by
its [Title of Officer] and its corporate seal to be hereunto attached,  attested
by its [Assistant] Secretary, this day of ________________, 200 .

                                                  [NAME OF OWNER]

                                                  By: __________________________
                                                      [Name of Officer]
                                                      [Title of Officer]

[Corporate Seal]

ATTEST:

_______________________________
[Assistant] Secretary

STATE OF ______________________

COUNTY OF _____________________

On ________________________,  200___ before me, ________________________, Notary
Public, personally appeared  ________________________________,  personally known
to me  (or  proved  to me on  the  basis  of  satisfactory  evidence)  to be the
person(s)  whose  name(s)  is/are   subscribed  to  the  within  instrument  and
acknowledged  to  me  that  he/she/they   executed  the  same  in  his/her/their
authorized  capacity(ies),   and  that  by  his/her/their  signature(s)  on  the
instrument  the  person(s),  or the entity  upon  behalf of which the  person(s)
acted, executed the instrument.

WITNESS my hand and official seal.

                                            ____________________________________
                                            Signature of the Notary

(Seal)

                                     B-1-4
<PAGE>

                                                                     EXHIBIT B-2

                         FORM OF TRANSFEROR CERTIFICATE

                                                     [__________________, 20___]

Residential Accredit Loans, Inc.
8300 Normandale Lake Blvd.
Suite 700
Minneapolis, Minnesota 55437

[Name of Trustee]
[Address of Trustee]

Attention:  [__________________]

            Re:  Mortgage   Pass-Through   Certificates,   Series  [200__-____],
Residual

Ladies and Gentlemen:

            This letter is delivered to you in  connection  with the transfer by
[______________________]   (the  "Seller")  to   [______________________]   (the
"Purchaser") of $[______________________]  Initial Certificate Principal Balance
of  the  Mortgage  Pass-Through  Certificates,   Series  [200__-___],   Class  R
Certificate  (the "Residual  Certificates"),  pursuant to Section [_____] of the
Trust Agreement (the "Trust Agreement"),  dated as of [____________________  __,
200__] among Residential  Accredit Loans,  Inc., as the company (the "Company"),
[______________________],  as the certificate  administrator  (the  "Certificate
Administrator"),  and [______________________],  as trustee (the "Trustee"). All
terms used herein and not otherwise defined shall have the meanings set forth in
the Trust Agreement.  The Seller hereby  certifies,  represents and warrants to,
and covenants with, the Company and the Trustee that:

            1. No purpose of the Seller  relating to  transfer  of the  Residual
Certificate  by  the  Seller  to the  Purchaser  is or  will  be to  impede  the
assessment or collection of any tax.

            2. The Seller  understands  that the  Purchaser has delivered to the
Trustee and the Certificate  Administrator a Transfer Affidavit and Agreement in
the form  attached to the Trust  Agreement  as Exhibit  B-1. The Seller does not
know or believe that any representation contained therein is false.

            3. The Seller has at the time of the transfer conducted a reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-1(c)(r)(i)  and,  as  a  result  of  that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the  future.  The  Seller  understands  that the  transfer  of a Residual
Certificate may

                                     B-2-1
<PAGE>

not be  respected  for United  States  income tax  purposes  (and the Seller may
continue  to be liable for United  States  income  taxes  associated  therewith)
unless the Seller has conducted such an investigation.

                                                      Very truly yours,

                                                      [NAME OF SELLER]
                                                      (Seller)

                                                      By:______________________
                                                      Name:____________________
                                                      Title:___________________

                                     B-2-2
<PAGE>

                                                                       EXHIBIT C

            [FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE]

      The  undersigned,  a Responsible  Officer of [_________]  (the  "Trustee")
certifies that:

      (a) The Trustee has performed all of the duties  specifically  required to
be  performed  by it pursuant  to the  provisions  of the Pooling and  Servicing
Agreement  dated  as of  [_________],  20[__]  (the  "Agreement")  by and  among
[__________], as depositor,  [_____________],  as Certificate Administrator, and
the Trustee in accordance with the standards set forth therein.

      (b) Based on my knowledge,  the list of Certificateholders as shown on the
Certificate Register as of the end of each calendar year that is provided by the
Trustee  pursuant to the  Agreement is accurate as of the last day of the 20[__]
calendar year.

Capitalized terms used and not defined herein shall have the meanings given such
terms in the Agreement.

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.]

                                                              Name:
                                                              Title:

                                      C-1
<PAGE>

                                                                       EXHIBIT D

         SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      The assessment of compliance to be delivered by the Trustee shall address,
at a  minimum,  the  criteria  identified  as  below  as  "Applicable  Servicing
Criteria":

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                                           Applicable
                                   Servicing Criteria                                  Servicing Criteria
------------------------------------------------------------------------------------------------------------

     Reference                                    Criteria
------------------------------------------------------------------------------------------------------------

                                      General Servicing Considerations
------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                <C>
                    Policies and procedures are instituted to monitor any
                    performance or other triggers and events of default in
1122(d)(1)(i)       accordance with the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    If any material servicing activities are outsourced to
                    third parties, policies and procedures are instituted to
                    monitor the third party's performance and compliance with
1122(d)(1)(ii)      such servicing activities.
------------------------------------------------------------------------------------------------------------
                    Any requirements in the transaction agreements to maintain
1122(d)(1)(iii)     a back-up servicer for the pool assets are maintained.
------------------------------------------------------------------------------------------------------------
                    A fidelity bond and errors and omissions policy is in
                    effect on the party participating in the servicing function
                    throughout the reporting period in the amount of coverage
                    required by and otherwise in accordance with the terms of
1122(d)(1)(iv)      the transaction agreements.
------------------------------------------------------------------------------------------------------------

                                     Cash Collection and Administration
------------------------------------------------------------------------------------------------------------
                    Payments on pool assets are deposited into the appropriate
                    custodial bank accounts and related bank clearing accounts
                    no more than two business days following receipt, or such
                    other number of days specified in the transaction
1122(d)(2)(i)       agreements.
------------------------------------------------------------------------------------------------------------
                    Disbursements made via wire transfer on behalf of an               |X| (as to investors
                    obligor or to an investor are made only by authorized                       only)
1122(d)(2)(ii)      personnel.
------------------------------------------------------------------------------------------------------------
                    Advances of funds or guarantees regarding collections, cash
                    flows or distributions, and any interest or other fees
                    charged for such advances, are made, reviewed and approved
1122(d)(2)(iii)     as specified in the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    The related accounts for the transaction, such as cash
                    reserve accounts or accounts established as a form of
                    overcollateralization, are separately maintained (e.g.,
                    with respect to commingling of cash) as set forth in the
1122(d)(2)(iv)      transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Each custodial account is maintained at a federally insured
                    depository institution as set forth in the transaction
                    agreements. For purposes of this criterion, "federally
                    insured depository institution" with respect to a foreign
                    financial institution means a foreign financial institution
                    that meets the requirements of Rule 13k-1(b)(1) of the
1122(d)(2)(v)       Securities Exchange Act.
------------------------------------------------------------------------------------------------------------
                    Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)      unauthorized access.
------------------------------------------------------------------------------------------------------------
                    Reconciliations are prepared on a monthly basis for all
                    asset-backed securities related bank accounts, including
                    custodial accounts and related bank clearing accounts.
                    These reconciliations are (A) mathematically accurate; (B)
                    prepared within 30 calendar days after the bank statement
                    cutoff date, or such other number of days specified in the
                    transaction agreements; (C) reviewed and approved by
                    someone other than the person who prepared the
                    reconciliation; and (D) contain explanations for
                    reconciling items. These reconciling items are resolved
                    within 90 calendar days of their original identification,
                    or such other number of days specified in the transaction
1122(d)(2)(vii)     agreements.
------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-1
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                                           Applicable
                                   Servicing Criteria                                  Servicing Criteria
------------------------------------------------------------------------------------------------------------

     Reference                                    Criteria
------------------------------------------------------------------------------------------------------------
                                     Investor Remittances and Reporting

------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                         <C>
       Reports to investors, including those to be filed with the
                    Commission, are maintained in accordance with the
                    transaction agreements and applicable Commission
                    requirements. Specifically, such reports (A) are prepared in
                    accordance with timeframes and other terms set forth in the
                    transaction agreements; (B) provide information calculated
                    in accordance with the terms specified in the transaction
                    agreements; (C) are filed with the Commission as required by
                    its rules and regulations; and (D) agree with investors' or
                    the trustee's records as to the total unpaid principal
1122(d)(3)(i)                    balance and number of pool assets serviced by the servicer.
------------------------------------------------------------------------------------------------------------
                    Amounts due to investors are allocated and remitted in                      |X|
                    accordance with timeframes, distribution priority and other
1122(d)(3)(ii)      terms set forth in the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Disbursements made to an investor are posted within two                     |X|
                    business days to the servicer's investor records, or such
1122(d)(3)(iii)     other number of daysspecified in the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Amounts remitted to investors per the investor reports agree                |X|
                    with cancelled checks, or other form of payment, or
1122(d)(3)(iv)      custodial bank statements.
------------------------------------------------------------------------------------------------------------
                                         Pool Asset Administration
------------------------------------------------------------------------------------------------------------
                    Collateral  or  security on pool  assets is  maintained  as
                    required by the  transaction  agreements  or related  asset
1122(d)(4)(i)       pool documents.
------------------------------------------------------------------------------------------------------------
                    Pool assets and related documents are safeguarded as
1122(d)(4)(ii)      required by  the transaction agreements
------------------------------------------------------------------------------------------------------------
                    Any additions,  removals or substitutions to the asset pool
                    are made,  reviewed  and  approved in  accordance  with any
1122(d)(4)(iii)     conditions or requirements in the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Payments on pool assets,  including  any  payoffs,  made in
                    accordance with the related pool asset documents are posted
                    to the servicer's  obligor records  maintained no more than
                    two business  days after  receipt,  or such other number of
                    days specified in the transaction agreements, and allocated
                    to  principal,  interest or other items  (e.g.,  escrow) in
1122(d)(4)(iv)      accordance with the related pool asset documents.
------------------------------------------------------------------------------------------------------------
                    The servicer's records regarding the pool assets agree with
                    the servicer's  records with respect to an obligor's unpaid
1122(d)(4)(v)       principal balance.
------------------------------------------------------------------------------------------------------------
                    Changes with respect to the terms or status of an obligor's
                    pool asset (e.g.,  loan  modifications  or  re-agings)  are
                    made,  reviewed  and  approved by  authorized  personnel in
                    accordance with the transaction agreements and related pool
1122(d)(4)(vi)      asset documents.
------------------------------------------------------------------------------------------------------------
                    Loss  mitigation  or recovery  actions  (e.g.,  forbearance
                    plans,  modifications  and  deeds  in lieu of  foreclosure,
                    foreclosures   and   repossessions,   as  applicable)   are
                    initiated,  conducted and concluded in accordance  with the
                    timeframes  or  other   requirements   established  by  the
1122(d)(4)(vii)     transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Records  documenting   collection  efforts  are  maintained
                    during the period a pool asset is  delinquent in accordance
                    with  the   transaction   agreements.   Such   records  are
                    maintained  on at  least a  monthly  basis,  or such  other
                    period  specified  in  the  transaction   agreements,   and
                    describe the entity's  activities in monitoring  delinquent
                    pool assets including,  for example,  phone calls,  letters
                    and payment  rescheduling  plans in cases where delinquency
1122(d)(4)(viii)    is deemed temporary (e.g., illness or unemployment).
------------------------------------------------------------------------------------------------------------
                    Adjustments  to interest  rates or rates of return for pool
                    assets  with  variable  rates  are  computed  based  on the
1122(d)(4)(ix)      related pool asset documents.
------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-3
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                                           Applicable
                                   Servicing Criteria                                  Servicing Criteria
------------------------------------------------------------------------------------------------------------

     Reference                                    Criteria
------------------------------------------------------------------------------------------------------------
<S>                 <C>                                                                         <C>
                    Regarding  any funds held in trust for an obligor  (such as
                    escrow   accounts):   (A)  such  funds  are  analyzed,   in
                    accordance with the obligor's pool asset  documents,  on at
                    least an annual  basis,  or such other period  specified in
                    the transaction  agreements;  (B) interest on such funds is
                    paid,  or  credited,   to  obligors  in   accordance   with
                    applicable  pool asset  documents  and state laws;  and (C)
                    such funds are  returned to the obligor  within 30 calendar
                    days of full  repayment of the related pool asset,  or such
                    other  number  of  days   specified   in  the   transaction
1122(d)(4)(x)       agreements.
------------------------------------------------------------------------------------------------------------
                    Payments  made on  behalf  of an  obligor  (such  as tax or
                    insurance  payments)  are  made on or  before  the  related
                    penalty  or   expiration   dates,   as   indicated  on  the
                    appropriate  bills or notices for such  payments,  provided
                    that such  support  has been  received  by the  servicer at
                    least 30 calendar days prior to these dates,  or such other
1122(d)(4)(xi)      number of days specified in the transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Any late payment  penalties in connection  with any payment
                    to be made on  behalf  of an  obligor  are  paid  from  the
                    servicer's funds and not charged to the obligor, unless the
1122(d)(4)(xii)     late payment was due to the obligor's error or omission.
------------------------------------------------------------------------------------------------------------
                    Disbursements made on behalf of an obligor are posted within
                    two business days to the obligor's records maintained by the
                    servicer, or such other number of days specified in the
1122(d)(4)(xiii)    transaction agreements.
------------------------------------------------------------------------------------------------------------
                    Delinquencies, charge-offs and uncollectible accounts are
                    recognized and recorded in accordance with the transaction
1122(d)(4)(xiv)     agreements.
------------------------------------------------------------------------------------------------------------
                    Any external enhancement or other support, identified in                    |X|
                    Item 1114(a)(1) through (3) or Item 1115 of Regulation AB,
1122(d)(4)(xv)      is maintained as set forth in the transaction agreements.
------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-2EXHIBIT 10.1

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

      ASSIGNMENT AND  ASSUMPTION  AGREEMENT,  dated  [________]  [__],  20[___],
between Residential  Funding Company,  LLC, a Delaware limited liability company
("RFC"),  and Residential  Accredit  Loans,  Inc., a Delaware  corporation  (the
"Company").

                                    Recitals

            A. RFC has entered into contracts ("Seller  Contracts") with various
seller/servicers,  pursuant to which such  seller/servicers sell to RFC mortgage
loans.

            B. The Company  wishes to purchase from RFC certain  Mortgage  Loans
(as hereinafter defined) sold to RFC pursuant to the Seller Contracts.

            C. The  Company,  RFC,  as master  servicer,  and  [__________],  as
trustee (the  "Trustee"),  are entering  into a Series  Supplement,  dated as of
[________] [__],  20[___] (the "Series  Supplement"),  and the Standard Terms of
Pooling  and  Servicing   Agreement,   dated  as  of  [________]  [__],  20[___]
(collectively,  the "Pooling and  Servicing  Agreement"),  pursuant to which the
Company  proposes  to issue  Mortgage  Asset-Backed  Pass-Through  Certificates,
Series  20[__]-[__]  (the   "Certificates")   consisting  of  [eighteen  classes
designated as Class A-1,  Class A-2, Class A-3, Class M-1, Class M-2, Class M-3,
Class M-4,  Class M-5,  Class M-6,  Class M-7,  Class M-8, Class M-9, Class B-1,
Class  B-2,  Class  B-3,  Class  SB,  Class R-I and  Class  R-II],  representing
beneficial ownership interests in a trust fund consisting primarily of a pool of
Mortgage Loans identified in Exhibit One to the Series Supplement (the "Mortgage
Loans").

            D. In  connection  with the  purchase  of the  Mortgage  Loans,  the
Company  will  assign to RFC a de  minimis  portion  of the [Class R-I and Class
R-II] Certificates (the "Retained Certificates").

            E. In  connection  with the purchase of the  Mortgage  Loans and the
issuance of the  Certificates,  RFC wishes to make certain  representations  and
warranties to the Company.

            F. The  Company  and RFC intend  that the  conveyance  by RFC to the
Company  of all its  right,  title and  interest  in and to the  Mortgage  Loans
pursuant to this Agreement shall constitute a purchase and sale and not a loan.

            NOW  THEREFORE,  in  consideration  of the  recitals  and the mutual
promises herein and other good and valuable consideration,  the parties agree as
follows:

            1. All capitalized  terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

            2. Concurrently  with the execution and delivery hereof,  RFC hereby
assigns to the Company without recourse all of its right,  title and interest in
and to the  Mortgage  Loans,  including  all interest  and  principal,  and with
respect to the Sharia Mortgage Loans,  all amounts in respect of profit payments
and acquisition payments, received on or with respect to the

<PAGE>

Mortgage Loans after [________] [__],  20[___] (other than payments of principal
and  interest,  and with respect to the Sharia  Mortgage  Loans,  all amounts in
respect of profit payments and acquisition payments due on the Mortgage Loans on
or before [________] [__], 20[___]). In consideration of such assignment, RFC or
its designee  will receive from the Company in  immediately  available  funds an
amount equal to  $[________]  and a de minimis  portion of each of the Class R-I
and Class R-II  Certificates.  In  connection  with such  assignment  and at the
Company's  direction,  RFC has in respect of each  Mortgage  Loan  endorsed  the
related  Mortgage Note (other than any Destroyed  Mortgage Note) to the order of
the Trustee and delivered an assignment of mortgage or security  instrument,  as
applicable, in recordable form to the Trustee or its agent.

      RFC and the  Company  agree  that  the  sale of each  Pledged  Asset  Loan
pursuant  to  this  Agreement  will  also  constitute  the   assignment,   sale,
setting-over,  transfer and  conveyance  to the Company,  without  recourse (but
subject to RFC's covenants, representations and warranties specifically provided
herein),  of all of RFC's obligations and all of RFC's right, title and interest
in, to and under,  whether now existing or  hereafter  acquired as owner of such
Pledged  Asset  Loan with  respect to any and all  money,  securities,  security
entitlements,  accounts, general intangibles, payment intangibles,  instruments,
documents, deposit accounts, certificates of deposit, commodities contracts, and
other  investment  property and other  property of whatever kind or  description
consisting of, arising from or related, (i) the Credit Support Pledge Agreement,
the Funding and Pledge  Agreement  among the Mortgagor or other Person  pledging
the  related  Pledged  Assets  (the  "Customer"),  Combined  Collateral  LLC and
National Financial Services Corporation, and the Additional Collateral Agreement
between  GMAC  Mortgage,  LLC  and the  Customer  (collectively,  the  "Assigned
Contracts"),  (ii)  all  rights,  powers  and  remedies  of RFC as owner of such
Pledged Asset Loan under or in connection with the Assigned  Contracts,  whether
arising under the terms of such  Assigned  Contracts,  by statute,  at law or in
equity,  or otherwise  arising out of any default by the  Mortgagor  under or in
connection  with the Assigned  Contracts,  including  all rights to exercise any
election  or  option  or to make any  decision  or  determination  or to give or
receive any notice,  consent,  approval or waiver thereunder,  (iii) the Pledged
Amounts and all money,  securities,  security  entitlements,  accounts,  general
intangibles,  payment  intangibles,  instruments,  documents,  deposit accounts,
certificates of deposit,  commodities  contracts,  and other investment property
and other  property of whatever  kind or  description  and all cash and non-cash
proceeds of the sale,  exchange,  or redemption  of, and all stock or conversion
rights,  rights  to  subscribe,  liquidation  dividends  or  preferences,  stock
dividends,  rights to interest,  dividends,  earnings,  income,  rents,  issues,
profits, interest payments or other distributions of cash or other property that
secures a Pledged Asset Loan, (iv) all documents,  books and records  concerning
the foregoing  (including all computer programs,  tapes, disks and related items
containing  any such  information)  and (v) all  insurance  proceeds  (including
proceeds  from the  Federal  Deposit  Insurance  Corporation  or the  Securities
Investor  Protection  Corporation or any other insurance  company) of any of the
foregoing  or  replacements  thereof  or  substitutions  therefor,  proceeds  of
proceeds and the  conversion,  voluntary  or  involuntary,  of any thereof.  The
foregoing transfer,  sale,  assignment and conveyance does not constitute and is
not intended to result in the creation,  or an assumption by the Company, of any
obligation of RFC, or any other Person in connection  with the Pledged Assets or
under any agreement or instrument relating thereto,  including any obligation to
the Mortgagor, other than as owner of the Pledged Asset Loan.

                                       2
<PAGE>

      The Company and RFC intend  that the  conveyance  by RFC to the Company of
all its right,  title and interest in and to the Mortgage Loans pursuant to this
Section 2 shall be, and be construed as, a sale of the Mortgage  Loans by RFC to
the Company. It is, further, not intended that such conveyance be deemed to be a
pledge of the  Mortgage  Loans by RFC to the  Company  to secure a debt or other
obligation of RFC. Nonetheless,  (a) this Agreement is intended to be and hereby
is a security  agreement within the meaning of Articles 8 and 9 of the Minnesota
Uniform  Commercial Code and the Uniform Commercial Code of any other applicable
jurisdiction; (b) the conveyance provided for in this Section shall be deemed to
be, and hereby is, a grant by RFC to the  Company of a security  interest in all
of RFC's right, title and interest,  whether now owned or hereafter acquired, in
and to any and all general intangibles,  payment intangibles,  accounts, chattel
paper, instruments, documents, money, deposit accounts, certificates of deposit,
goods,  letters of credit,  advices of credit and investment property consisting
of,  arising from or relating to any of the following:  (A) the Mortgage  Loans,
including (i) with respect to each Cooperative  Loan, the related Mortgage Note,
Security   Agreement,   Assignment  of  Proprietary  Lease,   Cooperative  Stock
Certificate,  Cooperative  Lease, any insurance policies and all other documents
in the related  Mortgage File,  (ii) with respect to each Sharia  Mortgage Loan,
the related  Sharia  Mortgage Loan  Security  Instrument,  Sharia  Mortgage Loan
Co-Ownership Agreement, Obligation to Pay, Assignment Agreement and Amendment of
Security  Instrument,  any  insurance  policies  and all other  documents in the
related  Mortgage File and (iii) with respect to each Mortgage Loan other than a
Cooperative  Loan or a Sharia  Mortgage  Loan,  the related  Mortgage  Note, the
Mortgage, any insurance policies and all other documents in the related Mortgage
File,  (B) all monies due or to become due  pursuant  to the  Mortgage  Loans in
accordance  with the  terms  thereof  and (C) all  proceeds  of the  conversion,
voluntary or involuntary, of the foregoing into cash, instruments, securities or
other property,  including without limitation all amounts from time to time held
or invested in the Certificate Account or the Custodial Account,  whether in the
form of cash,  instruments,  securities or other property; (c) the possession by
the Trustee,  the Custodian or any other agent of the Trustee of Mortgage  Notes
or such other  items of  property  as  constitute  instruments,  money,  payment
intangibles,  negotiable documents,  goods, deposit accounts, letters of credit,
advices of credit,  investment  property or chattel  paper shall be deemed to be
"possession  by the secured  party," or  possession  by a purchaser  or a person
designated  by such  secured  party,  for  purposes of  perfecting  the security
interest  pursuant  to the  Minnesota  Uniform  Commercial  Code and the Uniform
Commercial  Code  of  any  other  applicable  jurisdiction  (including,  without
limitation,  Sections 8-106, 9-313 and 9-106 thereof);  and (d) notifications to
persons holding such property,  and  acknowledgments,  receipts or confirmations
from  persons  holding  such  property,  shall be  deemed  notifications  to, or
acknowledgments,  receipts or  confirmations  from,  securities  intermediaries,
bailees or agents of, or persons  holding for, (as  applicable)  the Trustee for
the purpose of  perfecting  such security  interest  under  applicable  law. RFC
shall,  to the  extent  consistent  with this  Agreement,  take such  reasonable
actions as may be necessary to ensure that, if this Agreement were determined to
create  a  security  interest  in the  Mortgage  Loans  and the  other  property
described  above,  such security  interest would be determined to be a perfected
security  interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement.  Without  limiting the generality
of the foregoing,  RFC shall prepare and deliver to the Company not less than 15
days prior to any filing date,  and the Company shall file, or shall cause to be
filed,   at  the  expense  of  RFC,  all  filings   necessary  to  maintain  the
effectiveness  of any original  filings  necessary under the Uniform  Commercial
Code as in effect

                                       3
<PAGE>

in any jurisdiction to perfect the Company's security interest in or lien on the
Mortgage Loans,  including without limitation (x) continuation  statements,  and
(y) such other  statements as may be occasioned by (1) any change of name of RFC
or the Company,  (2) any change of location of the state of formation,  place of
business  or the chief  executive  office  of RFC,  or (3) any  transfer  of any
interest of RFC in any Mortgage Loan.

            Notwithstanding the foregoing,  (i) the Master Servicer shall retain
all servicing  rights  (including,  without  limitation,  primary  servicing and
master  servicing)  relating to or arising out of the  Mortgage  Loans,  and all
rights to receive  servicing fees,  servicing  income and other payments made as
compensation  for such  servicing  granted to it under the Pooling and Servicing
Agreement pursuant to the terms and conditions set forth therein  (collectively,
the  "Servicing  Rights") and (ii) the Servicing  Rights are not included in the
collateral in which RFC grants a security  interest  pursuant to the immediately
preceding paragraph.

            3. Concurrently with the execution and delivery hereof,  the Company
hereby assigns to RFC without  recourse all of its right,  title and interest in
and to a de minimis portion of each of the Class R-I and Class R-II Certificates
as part of the  consideration  payable to RFC by the  Company  pursuant  to this
Agreement.

            4. RFC  represents  and  warrants to the Company that on the date of
execution  hereof  (or,  if  otherwise  specified  below,  as  of  the  date  so
specified):

            (a)  The  information  set  forth  in  Exhibit  One  to  the  Series
Supplement with respect to each Mortgage Loan or the Mortgage Loans, as the case
may be,  is true and  correct  in all  material  respects,  at the date or dates
respecting which such information is furnished;

            (b) Each  Mortgage  Loan is  required  to be  covered  by a standard
hazard  insurance  policy.  Except  in the  case of  approximately  [__]% of the
aggregate  principal  balance of the Mortgage  Loans,  each Mortgage Loan with a
Loan-to-Value Ratio at origination in excess of 80% will be insured by a Primary
Insurance Policy covering at least 35% of the principal  balance of the Mortgage
Loan at origination if the Loan-to-Value Ratio is between 100.00% and 95.01%, at
least 30% of the principal  balance of the Mortgage Loan at  origination  if the
Loan-to-Value Ratio is between 95.00% and 90.01%, at least 25% of the balance if
the  Loan-to-Value  Ratio is  between  90.00% and 85.01% and at least 12% of the
balance if the Loan-to-Value  Ratio is between 85.00% and 80.01%. To the best of
the Company's knowledge, each such Primary Insurance Policy is in full force and
effect and the Trustee is entitled to the benefits thereunder;

            (c) Each Primary  Insurance Policy insures the named insured and its
successors  and assigns,  and the issuer of the Primary  Insurance  Policy is an
insurance  company whose  claims-paying  ability is currently  acceptable to the
Rating Agencies;

            (d) Immediately prior to the assignment of the Mortgage Loans to the
Company,  RFC had good title to, and was the sole owner of, each  Mortgage  Loan
free and clear of any pledge, lien, encumbrance or security interest (other than
rights to  servicing  and  related  compensation  and,  with  respect to certain
Mortgage  Loans,  the monthly  payment due on the first Due Date  following  the
Cut-off Date), and no action has been taken or failed to be taken by RFC

                                       4
<PAGE>

that would materially  adversely affect the  enforceability of any Mortgage Loan
or the interests therein of any holder of the Certificates;

            (e) [No] Mortgage Loan was 30 or more days  delinquent in payment of
principal  and interest as of the Cut-off Date [and no Mortgage Loan has been so
delinquent more than once in the 12-month period prior to the Cut-off Date];

            (f) Subject to clause (e) above as respects delinquencies,  there is
no  default,  breach,  violation  or event of  acceleration  existing  under any
Mortgage Note or Mortgage and no event which,  with notice and expiration of any
grace or cure period, would constitute a default,  breach, violation or event of
acceleration,  and no such default,  breach,  violation or event of acceleration
has been waived by the Seller or by any other entity  involved in originating or
servicing a Mortgage Loan;

            (g)  There is no  delinquent  tax or  assessment  lien  against  any
Mortgaged Property;

            (h) No Mortgagor has any right of offset, defense or counterclaim as
to the related  Mortgage  Note or Mortgage  except as may be provided  under the
Servicemembers  Civil Relief Act,  formerly  known as the Soldiers' and Sailors'
Civil  Relief Act of 1940,  as amended,  and except with  respect to any buydown
agreement for a Buydown Mortgage Loan;

            (i)  There are no  mechanics'  liens or  claims  for work,  labor or
material  affecting any Mortgaged  Property which are or may be a lien prior to,
or equal  with,  the lien of the  related  Mortgage,  except such liens that are
insured or  indemnified  against by a title  insurance  policy  described  under
clause (aa) below;

            (j) Each Mortgaged Property is free of damage and in good repair and
no notice of  condemnation  has been given with respect thereto and RFC knows of
nothing  involving any Mortgaged  Property that could  reasonably be expected to
materially  adversely  affect  the  value  or  marketability  of  any  Mortgaged
Property;

            (k)  Each  Mortgage  Loan at the time it was  made  complied  in all
material respects with applicable local, state, and federal laws, including, but
not limited to, all applicable anti-predatory lending laws;

            (l) Each  Mortgage  contains  customary and  enforceable  provisions
which  render the rights and  remedies  of the holder  adequate  to realize  the
benefits of the security  against the Mortgaged  Property,  including (i) in the
case of a Mortgage that is a deed of trust,  by trustee's  sale, (ii) by summary
foreclosure,   if  available  under  applicable  law,  and  (iii)  otherwise  by
foreclosure,  and there is no  homestead  or other  exemption  available  to the
Mortgagor  that would  interfere  with such right to sell at a trustee's sale or
right to foreclosure,  subject in each case to applicable federal and state laws
and judicial precedents with respect to bankruptcy and right of redemption;

            (m) With respect to each Mortgage that is a deed of trust, a trustee
duly  qualified  under  applicable  law to  serve  as  such is  properly  named,
designated and serving, and

                                       5
<PAGE>

except in connection with a trustee's sale after default by a Mortgagor, no fees
or expenses  are payable by the Seller or RFC to the trustee  under any Mortgage
that is a deed of trust;

            (n)   The   Mortgage   Loans   are   [conventional,    fixed   rate,
fully-amortizing, first mortgage loans having terms to maturity of not more than
30] years from the date of origination  or  modification  with monthly  payments
due, with respect to a majority of the Mortgage  Loans, on the first day of each
month;

            (o) [No Mortgage  Loan  provides  for deferred  interest or negative
amortization;]

            (p)  If any  of  the  Mortgage  Loans  are  secured  by a  leasehold
interest,  with respect to each leasehold interest: the use of leasehold estates
for residential properties is an accepted practice in the area where the related
Mortgaged Property is located;  residential  property in such area consisting of
leasehold estates is readily  marketable;  the lease is recorded and no party is
in any way in breach of any  provision of such lease;  the  leasehold is in full
force and effect and is not  subject to any prior lien or  encumbrance  by which
the leasehold  could be terminated or subject to any charge or penalty;  and the
remaining  term of the lease does not  terminate  less than ten years  after the
maturity date of such Mortgage Loan;

            (q) Each Assigned  Contract relating to each Pledged Asset Loan is a
valid,  binding  and legally  enforceable  obligation  of the  parties  thereto,
enforceable  in accordance  with their terms,  except as limited by  bankruptcy,
insolvency  or  other  similar  laws  affecting  generally  the  enforcement  of
creditor's rights;

            (r) The  Assignor  is the  holder  of all of the  right,  title  and
interest  as owner of each  Pledged  Asset  Loan in and to each of the  Assigned
Contracts delivered and sold to the Company hereunder, and the assignment hereof
by RFC validly transfers such right,  title and interest to the Company free and
clear of any pledge,  lien,  or security  interest or other  encumbrance  of any
Person;

            (s) The full  amount of the  Pledged  Amount  with  respect  to such
Pledged  Asset  Loan has been  deposited  with the  custodian  under the  Credit
Support  Pledge  Agreement  and is on  deposit  in the  custodial  account  held
thereunder as of the date hereof;

            (t) RFC is a member  of  MERS,  in good  standing,  and  current  in
payment of all fees and  assessments  imposed by MERS, and has complied with all
rules and procedures of MERS in connection with its assignment to the Trustee as
assignee of the Depositor of the Mortgage relating to each Mortgage Loan that is
registered  with  MERS,  including,  among  other  things,  that RFC shall  have
confirmed  the transfer to the  Trustee,  as assignee of the  Depositor,  of the
Mortgage on the MERS(R) System;

            (u) No  instrument  of  release  or  waiver  has  been  executed  in
connection with the Mortgage Loans, and no Mortgagor has been released, in whole
or in part from its obligations in connection with a Mortgage Loan;

            (v) With respect to each Mortgage Loan, either (i) the Mortgage Loan
is assumable  pursuant to the terms of the Mortgage  Note,  or (ii) the Mortgage
Loan contains a

                                       6
<PAGE>

customary  provision for the acceleration of the payment of the unpaid principal
balance of the Mortgage Loan in the event the related Mortgaged Property is sold
without the prior consent of the mortgagee thereunder;

            (w) The  proceeds of the  Mortgage  Loan have been fully  disbursed,
there  is no  requirement  for  future  advances  thereunder  and  any  and  all
requirements as to completion of any on-site or off-site  improvements and as to
disbursements  of any escrow funds therefor  (including any escrow funds held to
make  Monthly  Payments  pending  completion  of such  improvements)  have  been
complied  with.  All costs,  fees and  expenses  incurred in making,  closing or
recording the Mortgage Loans were paid;

            (x) Except with respect to approximately [ ]% of the Mortgage Loans,
the appraisal was made by an appraiser who meets the minimum  qualifications for
appraisers as specified in the Program Guide;

            (y)  To  the  best  of  RFC's  knowledge,  any  escrow  arrangements
established  with  respect  to any  Mortgage  Loan  are in  compliance  with all
applicable local, state and federal laws and are in compliance with the terms of
the related Mortgage Note;

            (z) Each  Mortgage  Loan was  originated  (1) by a savings  and loan
association,  savings bank, commercial bank, credit union,  insurance company or
similar  institution  that is  supervised  and  examined  by a federal  or state
authority,  (2) by a mortgagee  approved  by the  Secretary  of HUD  pursuant to
Sections  203 and 211 of the  National  Housing  Act,  as  amended,  or (3) by a
mortgage broker or  correspondent  lender in a manner such that the Certificates
would  qualify as "mortgage  related  securities"  within the meaning of Section
3(a)(41) of the Securities Exchange Act of 1934, as amended;

            (aa) All  improvements  which were  considered  in  determining  the
Appraised Value of the Mortgaged Properties lie wholly within the boundaries and
the building  restriction  lines of the Mortgaged  Properties,  or the policy of
title  insurance  affirmatively  insures against loss or damage by reason of any
violation,  variation,  encroachment  or  adverse  circumstance  that  either is
disclosed or would have been disclosed by an accurate survey;

            (bb) Each Mortgage Note and Mortgage  constitutes a legal, valid and
binding  obligation of the  borrower,  or the consumer in the case of the Sharia
Mortgage  Loans,  enforceable in accordance  with its terms except as limited by
bankruptcy, insolvency or other similar laws affecting generally the enforcement
of creditor's rights;

            (cc) [None] of the Mortgage  Loans are subject to the Home Ownership
and Equity Protection Act of 1994;

            (dd) None of the  Mortgage  Loans are loans that,  under  applicable
state or local  law in  effect  at the time of  origination  of such  loan,  are
referred  to as (1) "high  cost" or  "covered"  loans or (2) any  other  similar
designation  if  the  law  imposes  greater  restrictions  or  additional  legal
liability for residential mortgage loans with high interest rates, points and/or
fees;

                                       7
<PAGE>

            (ee) None of the Mortgage Loans secured by a property located in the
State of Georgia were originated on or after October 1, 2002 and before March 7,
2003;

            (ff) No  Mortgage  Loan is a High  Cost  Loan or  Covered  Loan,  as
applicable  (as such  terms are  defined in the then  current  Standard & Poor's
LEVELS(R) Glossary which is now Version 5.7 Revised, Appendix E (attached hereto
as Exhibit A));  provided  that no  representation  and warranty is made in this
clause  (ff)  with  respect  to  [__]% of the  Mortgage  Loans  (by  outstanding
principal  balance as of the Cut-off  Date)  secured by property  located in the
State of West  Virginia  and with  respect  to [__]% of the  Mortgage  Loans (by
outstanding  principal  balance as of the  Cut-off  Date)  secured  by  property
located in the State of Kansas;

            (gg)  With   respect  to  each  Sharia   Mortgage   Loan,   mortgage
pass-through certificates or notes representing interests in mortgage loans that
are in all material  respects of the same type as the Mortgage Loans,  and which
are structured to be permissible under Islamic law utilizing a declining balance
co-ownership  structure,  have  been,  for a least  one  year  prior to the date
hereof,  (a) held by investors other than employee  benefit plans, and (b) rated
at least BBB- or Baa3, as applicable, by a Rating Agency; and

            (hh) No fraud or  misrepresentation  has taken  place in  connection
with the origination of any Mortgage Loan.

            RFC shall provide  written notice to GMAC Mortgage,  LLC of the sale
of each Pledged  Asset Loan to the Company  hereunder  and by the Company to the
Trustee  under the Pooling  and  Servicing  Agreement,  and shall  maintain  the
Schedule of Additional  Owner  Mortgage  Loans (as defined in the Credit Support
Pledge  Agreement),  showing  the Trustee as the  Additional  Owner of each such
Pledged  Asset Loan,  all in accordance  with Section 7.1 of the Credit  Support
Pledge Agreement.

      Upon  discovery by RFC or upon notice from the Company or the Trustee of a
breach  of the  foregoing  representations  and  warranties  in  respect  of any
Mortgage  Loan which  materially  and  adversely  affects the  interests  of any
holders of the  Certificates or of the Company in such Mortgage Loan or upon the
occurrence of a Repurchase Event (hereinafter  defined),  notice of which breach
or  occurrence  shall be given to the Company by RFC, if it discovers  the same,
RFC shall,  within 90 days  after the  earlier  of its  discovery  or receipt of
notice  thereof,  either cure such breach or  Repurchase  Event in all  material
respects or,  either (i)  purchase  such  Mortgage  Loan from the Trustee or the
Company,  as the case may be, at a price  equal to the  Purchase  Price for such
Mortgage Loan or (ii) substitute a Qualified  Substitute  Mortgage Loan or Loans
for such Mortgage Loan in the manner and subject to the limitations set forth in
Section  2.04  of  the  Pooling  and  Servicing  Agreement.  If  the  breach  of
representation  and warranty  that gave rise to the  obligation to repurchase or
substitute a Mortgage Loan pursuant to this Section 4 was the representation and
warranty  set forth in clause (k) or (hh) of this  Section 4, then RFC shall pay
to the Trust Fund, concurrently with and in addition to the remedies provided in
the preceding  sentence,  an amount equal to any  liability,  penalty or expense
that was actually  incurred and paid out of or on behalf of the Trust Fund,  and
that directly  resulted  from such breach,  or if incurred and paid by the Trust
Fund thereafter, concurrently with such payment.

                                       8
<PAGE>

            5. With respect to each Mortgage Loan, a first lien repurchase event
("Repurchase  Event") shall have  occurred if it is  discovered  that, as of the
date  thereof,  the related  Mortgage  was not a valid first lien on the related
Mortgaged  Property  subject  only to (i) the lien of real  property  taxes  and
assessments  not  yet  due  and  payable,   (ii)  covenants,   conditions,   and
restrictions,  rights of way, easements and other matters of public record as of
the date of recording of such Mortgage and such permissible  title exceptions as
are listed in the Program Guide and (iii) other matters to which like properties
are commonly subject which do not materially  adversely  affect the value,  use,
enjoyment or marketability of the Mortgaged Property. In addition,  with respect
to any  Mortgage  Loan as to which the  Company  delivers  to the Trustee or the
Custodian an affidavit  certifying that the original Mortgage Note has been lost
or  destroyed,  if  such  Mortgage  Loan  subsequently  is in  default  and  the
enforcement thereof or of the related Mortgage is materially  adversely affected
by the absence of the original Mortgage Note, a Repurchase Event shall be deemed
to have occurred and RFC will be obligated to repurchase or substitute  for such
Mortgage Loan in the manner set forth in Section 4 above.

            6. This Agreement  shall inure to the benefit of and be binding upon
the parties hereto and their  respective  successors  and assigns,  and no other
person shall have any right or obligation hereunder.

                                       9
<PAGE>

      IN WITNESS  WHEREOF,  the parties have entered  into this  Assignment  and
Assumption Agreement on the date first written above.

                                                RESIDENTIAL FUNDING COMPANY, LLC

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

                                                RESIDENTIAL ACCREDIT LOANS, INC.

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

<PAGE>

                                    EXHIBIT A

                APPENDIX E OF THE STANDARD & POOR'S GLOSSARY FOR
                  FILE FORMAT FOR LEVELS(R) VERSION 5.7 REVISED

                                                REVISED [________] [__], 20[___]

APPENDIX E - Standard & Poor's Predatory Lending Categories

Standard & Poor's has categorized loans governed by anti-predatory  lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors  that  include (a) the risk  exposure  associated  with the  assignee
liability and (b) the tests and  thresholds  set forth in those laws.  Note that
certain  loans  classified  by the  relevant  statute as Covered are included in
Standard & Poor's High Cost Loan Category  because they included  thresholds and
tests  that  are  typical  of  what is  generally  considered  High  Cost by the
industry.

Standard & Poor's High Cost Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
 State/Jurisdiction        Name of Anti-Predatory Lending        Predatory
                                 Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
Arkansas                 Arkansas Home Loan Protection       High Cost Home Loan
                         Act, Ark. Code Ann. ss.ss.
                         23-53-101 et seq.

                         Effective July 16, 2003
--------------------------------------------------------------------------------
Cleveland Heights, OH    Ordinance No. 72-2003 (PSH),        Covered Loan
                         Mun. Code ss.ss. 757.01 et seq.

                         Effective June 2, 2003
--------------------------------------------------------------------------------
Colorado                 Consumer Equity Protection, Colo.   Covered Loan
                         Stat. Ann. ss.ss. 5-3.5-101 et seq.

                         Effective for covered loans offered
                         or entered into on or after January
                         1, 2003. Other provisions of the
                         Act took effect on June 7, 2002
--------------------------------------------------------------------------------
Connecticut              Connecticut Abusive Home Loan       High Cost Home Loan
                         Lending Practices Act,
                         Conn. Gen. Stat. ss.ss.
                         36a-746 et seq.

                         Effective October 1, 2001
--------------------------------------------------------------------------------

<PAGE>

Standard & Poor's High Cost Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
 State/Jurisdiction        Name of Anti-Predatory Lending        Predatory
                                 Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
District of Columbia     Home Loan Protection Act, D.C. Code Covered Loan
                         ss.ss. 26-1151.01 et seq.

                         Effective for loans closed on or
                         after January 28, 2003
--------------------------------------------------------------------------------
Florida                  Fair Lending Act, Fla. Stat. Ann.   High Cost Home Loan
                         ss.ss. 494.0078 et seq.

                         Effective October 2, 2002
--------------------------------------------------------------------------------
Georgia (Oct. 1, 2002 -  Georgia Fair Lending Act, Ga. Code  High Cost Home Loan
Mar. 6, 2003)            Ann. ss.ss. 7-6A-1 et seq.

                         Effective October 1, 2002 -
                         March 6, 2003
--------------------------------------------------------------------------------
Georgia as amended       Georgia Fair Lending Act, Ga. Code  High Cost Home Loan
(Mar. 7, 2003 - current) Ann. ss.ss. 7-6A-1 et seq.

                         Effective for loans closed on or
                         after March 7, 2003
--------------------------------------------------------------------------------
HOEPA Section 32         Home Ownership and Equity           High Cost Loan
                         Protection Act of 1994, 15 U.S.C.
                         ss. 1639, 12 C.F.R. ss.ss. 226.32
                         and 226.34

                         Effective October 1, 1995,
                         amendments October 1, 2002
--------------------------------------------------------------------------------
Illinois                 High Risk Home Loan Act, Ill. Comp. High Risk Home Loan
                         Stat. tit. 815, ss.ss. 137/5 et
                         seq.

                         Effective January 1, 2004 (prior to
                         this date, regulations under
                         Residential Mortgage License Act
                         effective from May 14, 2001)
--------------------------------------------------------------------------------
Indiana                  Indiana Home Loan Practices Act,    High Cost Home
                         Ind. Code Ann. ss.ss. 24-9-1-1 et   Loans
                         seq.

                         Effective January 1, 2005; amended
                         by 2005 HB 1179, effective July 1,
                         2005
--------------------------------------------------------------------------------
Kansas                   Consumer Credit Code, Kan. Stat.    High Loan to Value
                         Ann. ss.ss. 16a-1-101 et seq.       Consumer Loan (id.
                                                             ss. 16a-3-207) and;
--------------------------------------------------------------------------------

                                       2
<PAGE>

Standard & Poor's High Cost Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
 State/Jurisdiction        Name of Anti-Predatory Lending        Predatory
                                 Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
                         Sections 16a-1-301 and 16a-3-207    High APR Consumer
                         became effective April 14, 1999;    Loan (id. ss.
                         Section 16a-3-308a became effective 16a-3-308a)
                         July 1, 1999
--------------------------------------------------------------------------------
Kentucky                 2003 KY H.B. 287 - High Cost Home   High Cost Home Loan
                         Loan Act, Ky. Rev. Stat. ss.ss.
                         360.100 et seq.

                         Effective June 24, 2003
--------------------------------------------------------------------------------
Maine                    Truth in Lending, Me. Rev. Stat.    High Rate High Fee
                         tit. 9-A, ss.ss. 8-101 et seq.      Mortgage

                         Effective September 29, 1995 and as
                         amended from time to time
--------------------------------------------------------------------------------
Massachusetts            Part 40 and Part 32, 209 C.M.R.     High Cost Home Loan
                         ss.ss. 32.00 et seq. and 209 C.M.R.
                         ss.ss. 40.01 et seq.

                         Effective March 22, 2001 and
                         amended from time to time
--------------------------------------------------------------------------------
Nevada                   Assembly Bill No. 284, Nev. Rev.    Home Loan
                         Stat. ss.ss. 598D.010 et seq.

                         Effective October 1, 2003
--------------------------------------------------------------------------------
New Jersey               New Jersey Home Ownership Security  High Cost Home Loan
                         Act of 2002, N.J. Rev. Stat. ss.ss.
                         46:10B-22 et seq.

                         Effective for loans closed on or
                         after November 27, 2003
--------------------------------------------------------------------------------
New Mexico               Home Loan Protection Act, N.M. Rev. High Cost Home Loan
                         Stat. ss.ss. 58-21A-1 et seq.

                         Effective as of January 1, 2004;
                         Revised as of February 26, 2004
--------------------------------------------------------------------------------
New York                 N.Y. Banking Law Article 6-l        High Cost Home Loan

                         Effective for applications made on
                         or after April 1, 2003
--------------------------------------------------------------------------------

                                       3
<PAGE>

Standard & Poor's High Cost Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
 State/Jurisdiction        Name of Anti-Predatory Lending        Predatory
                                 Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
North Carolina           Restrictions and Limitations on     High Cost Home Loan
                         High Cost Home Loans, N.C. Gen.
                         Stat. ss.ss. 24-1.1E et seq.

                         Effective July 1, 2000; amended
                         October 1, 2003 (adding open-end
                         lines of credit)
--------------------------------------------------------------------------------
Ohio                      H.B. 386 (codified in various      Covered Loan
                          sections of the Ohio Code), Ohio
                          Rev. Code Ann. ss.ss. 1349.25 et
                          seq.

                         Effective May 24, 2002
--------------------------------------------------------------------------------
Rhode Island             Rhode Island Home Loan Protection   High Cost Home Loan
                         Act, R.I. Gen. Laws ss.ss.
                         34-25.2-1 et seq. Effective
                         December 31, 2006
--------------------------------------------------------------------------------
Oklahoma                 Consumer Credit Code (codified in   Subsection 10
                         various sections of Title 14A)      Mortgage

                         Effective July 1, 2000; amended
                         effective January 1, 2004
--------------------------------------------------------------------------------
South Carolina           South Carolina High Cost and        High Cost Home Loan
                         Consumer Home Loans Act, S.C. Code
                         Ann. ss.ss. 37-23-10 et seq.

                         Effective for loans taken on or
                         after January 1, 2004
--------------------------------------------------------------------------------
Tennessee                Tennessee Home Loan Protection Act, High Cost Home Loan
                         Tenn. Code Ann. ss.ss. 45-20-101 et
                         seq. Effective January 1, 2007
--------------------------------------------------------------------------------
West Virginia            West Virginia Residential Mortgage  West Virginia
                         Lender, Broker and Servicer Act, W. Mortgage Loan Act
                         Va. Code Ann. ss.ss. 31-17-1 et     Loan
                         seq.

                         Effective June 5, 2002
--------------------------------------------------------------------------------

                                       4
<PAGE>

Standard & Poor's Covered Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
                           Name of Anti-Predatory Lending        Predatory
 State/Jurisdiction              Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
Georgia (Oct. 1, 2002    Georgia Fair Lending Act, Ga. Code  Covered Loan
- Mar. 6, 2003)          Ann. ss.ss. 7-6A-1 et seq.

                         Effective October 1, 2002 - March
                         6, 2003
--------------------------------------------------------------------------------
New Jersey               New Jersey Home Ownership Security  Covered Home Loan
                         Act of 2002, N.J. Rev. Stat. ss.ss.
                         46:10B-22 et seq.

                         Effective November 27, 2003 - July
                         5, 2004
--------------------------------------------------------------------------------

Standard & Poor's Home Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
                           Name of Anti-Predatory Lending        Predatory
 State/Jurisdiction              Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
Georgia (Oct. 1, 2002    Georgia Fair Lending Act, Ga. Code  Home Loan
- Mar. 6, 2003)          Ann. ss.ss. 7-6A-1 et seq.

                         Effective October 1, 2002 - March
                         6, 2003
--------------------------------------------------------------------------------
New Jersey               New Jersey Home Ownership Security  Home Loan
                         Act of 2002, N.J. Rev. Stat. ss.ss.
                         46:10B-22 et seq.

                         Effective for loans closed on or
                         after November 27, 2003
--------------------------------------------------------------------------------
New Mexico               Home Loan Protection Act, N.M. Rev. Home Loan
                         Stat. ss.ss. 58-21A-1 et seq.

                         Effective as of January 1, 2004;
                         Revised as of February 26, 2004
--------------------------------------------------------------------------------
North Carolina           Restrictions and Limitations on     Consumer Home Loan
                         High Cost Home Loans, N.C. Gen.
                         Stat. ss.ss. 24-1.1E et seq.

                         Effective July 1, 2000; amended
                         October 1, 2003 (adding open-end
                         lines of credit)
--------------------------------------------------------------------------------

                                       5
<PAGE>

Standard & Poor's Home Loan Categorization

--------------------------------------------------------------------------------
                                                               Category under
                                                              Applicable Anti-
                           Name of Anti-Predatory Lending        Predatory
 State/Jurisdiction              Law/Effective Date             Lending Law
--------------------------------------------------------------------------------
South Carolina           South Carolina High Cost and        Consumer Home Loan
                         Consumer Home Loans Act, S.C. Code
                         Ann. ss.ss. 37-23-10 et seq.

                         Effective for loans taken on or
                         after January 1, 2004
--------------------------------------------------------------------------------

                                       6

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